There are many steps in calculating the fair value of a company. However, before we even do that, it is imperative to know how a company earns its profit. Does it do that by selling to consumers? licensing its technology to other companies? or extracting natural resources from the ground?
The sensible way to do it is by reading the company's annual report. What is an annual report? Annual report is yearly publication by public companies to better inform investor about the company's line of business. Annual report gives investors a glance of the company's line of business, financial health as well as management's strategies for doing business.
Let's look at CNET Networks Inc. The company trades in the NASDAQ market with symbol: CNET. What does CNET do? I know CNET owns cnet.com. But do you know that it also owns download.com, MP3.com, ZDnet.com and News.com ? How do I know that? Yep, you guess it. CNET's Annual Report will gives you all that.
From CNET's annual report, we can do a little digging for CNET's internet traffic. As of August 27th 2005, these websites of CNET attracts 3 % of all internet traffic. Pretty impressive, considering that Google holds 23% of all internet traffic. On April 2005, Google had 78.6 million unique visitors. By comparing this metric, we might have an idea CNET's revenue potential for the month of August. I will not go into that but this shows how useful reading CNET's annual report is. Reading an annual report serves as the first step towards investing in a particular company.
How do we obtain annual report? There are several sources for this. First is the companies own website. You are interested in knowing more about CNET Networks? You can get the annual report by going to http://www.cnet.com and go to its shareholder relation. After several clicks, you can then download the annual report.
Or ... you can go to some websites that offer complete annual report for a number of different companies in alphabetical order. Our website is one of them. Admittedly, while having hundreds of annual reports in one place is convenient, it is not as thorough as what the company's own website has to say.
Read More...
Internet is one of technology products that used by many people in this world. Internet brings many benefits for education, communication, and business. Today, many people use this connection to get update with situations in worldwide. For education, this connection gives students easy access to download books, encyclopedia, looking scholarship, e learning, and many more. For media communication, internet serves low cost for calling, chatting, and e-mailing. While for business, internet provides fast connection to minimize the distance. Using internet, marketing also able to promote their new products to people in foreign country and export their products. Another function of internet is it can be used as a stocks watch.
Because of easy service and its accuracy, many stockholders equip their facility with internet. They can monitor the price and analyze the opportunity of their investment. To get accustomed with the service, you may learn from internet about buying stocks at the Web-articles.Info. This web will give you some tips to learn more about stocks transaction via internet using broker’s help. This web gives three steps to buy stocks from internet. The first is you have to register and make an account with the internet stockbroker. Internet stockbroker is like a server that operates the web programs. You have to give complete information and financial data to them. Some web may ask you to deposit your money as the guarantee of your business. After you done, you are allowed to involve in their activity. If you have found your interest, you may arrange fro the purchasing beforehand. Then you can do simply making order via online towards the webmaster.
Using internet, you will save more for the transaction. It is also simple and can be handled by one person only. If you do not want use website help, you may buy directly from the company using online transaction.
Read More...It has been long long time I have not updated this blog anymore since I was so busy with my work. I have no activity a lot also in my stock investment. Just following what all of my friend discussed on email. However, I try to update my yahoo finance data for every single stock I invest in to just pay a little attention what chart would say for tomorrow and hoping there would be a signal for trading ala HB - Hajar Bleh.
This week, even I have not got a signal for trading I bought BUMI and being a fast scalper to collect a penny of dollar for living :). It has been a surprise that BUMI was falling down react to global market. But this morning I checked on my mobile, BUMI jumped in opening to 4.5% - 2250. Hope will close upto 2300 :)
Ok.. that is a short story on my stock investment this week. See U in another old style office blog trader's investment story.
Read More...