Fire Your Stock Analyst!: Analyzing Stocks On Your Own: Analyzing Stocks On Your Own

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The #1 Guide to Do-It-Yourself Stock Analysis–Now Fully Updated with Powerful New Shortcuts!   “Harry’s book is among my most recommended readings because it provides a step-by-step process that enables any investor to analyze potential investment opportunities and ultimately become a much better investor.” – Charles E. Kirk, The Kirk Report   “This is a thoughtful book that will stir the imagination and whet the appetite of anyone considering investing in stocks. It will serve as a foundation for lifelong education in how to improve your wealth.” – Victor Niederhoffer, Chief Speculator, Manchester Investments, and author of the best-selling Education of a Speculator   “This book is sensible, balances risks with rewards, has a lot of real-world practical examples carefully worked out, and a lot of tangible parameters. This is the book I wish I had time to write.” – David Edwards, President, Heron Capital Management, Inc.   “Fire Your Stock Analyst! grabbed my attention early and held it to the very end. This is a good book if you are interested in being your own stock guru or just getting started in common stock investment analysis.” – Nicholas D. Gerber, Portfolio Manager, Ameristock Funds   “A refreshing antidote to run-of-the-mill investing ‘how-tos.’ The net result is an insightful and useful treatise on investing that works for both growth and value plays.” – Charles Mulford, Invesco Chair and Professor of Accounting, Georgia Institute of Technology, and coauthor of The Financial Numbers Game: Detecting Creative Accounting Practices   “Fire Your Stock Analyst! offers honest and up-to-the minute advice and guidance on the investment-research process. Domash offers up a great combination of textbook knowledge backed by real-world examples.” – Richard H. Driehaus, Driehaus Capital Management, Inc.   “Fire Your Stock Analyst! provides well-thought-out, sensible, step-by-step strategies for analyzing stocks, including when to sell. These analytical methods, used by pros though rarely explained to individual investors, will help you improve your results in the market right away.” – Jon D. Markman, Senior Investment Strategist and Portfolio Manager, Pinnacle Investment Advisors Cover Contents Acknowledgments About the Author Introduction PART I: Getting Started Chapter 1 The Analysis Process Identifying Potential Candidates Concentrate on the Strongest Candidates Quick Prequalify Detailed Analysis When to Sell Summary Chapter 2 Evaluating Risk Portfolio Risk Risk Factors Spotting Strong Industries in a Weak Market Company-Specific Risks Company-Specific Risks Described in Subsequent Chapters Summary Chapter 3 Screening Morningstar Google Zacks Portfolio123 Google Growth Screen Zacks Growth/Momentum Screen Portfolio123 Down & Out Value Stock Finder Portfolio123 Growth Stock Screen Zacks’ Bulletproof Stocks The Zen of Screening Premade Screens Summary PART II: Analysis Tools Chapter 4 Analysis Tool #1: Analyze Analysts’ Data Who Are the Analysts? Analysts’ Ratings “Sell” Is a Four-Letter Word Consensus Ratings Do Strong Buys Outperform Sells? Number of Analysts Sentiment Index Analysts’ Estimates Earnings Surprise Sales Forecasts Guidance Changes Research Reports Summary Chapter 5 Analysis Tool #2: Valuation Implied Growth Growth at a Reasonable Price Dividends Summary Chapter 6 Analysis Tool #3: Establish Target Prices The Process Summary Chapter 7 Analysis Tool #4: Industry Analysis The Business Industry Growth Outlook Analysts’ Forecasts Are Good Enough Convert Earnings Growth to Sales Growth Industry Concentration Picking Winners in an Emerging Fragmented Industry Industry Scuttlebutt Summary Chapter 8 Analysis Tool #5: Business Plan Analysis Introduction Overblown Competitive Advantages: Factors That Should Make a Difference But Often Don’t Business Plan Scorecard Summary Chapter 9 Analysis Tool #6: Evaluate Management Quality Key Executive and Board Quality Clean Accounting Earnings Growth Stability Stock Ownership Summary Chapter 10 Analysis Tool #7: Analyze Financial Fitness Financial Fitness Counts Pinpointing Financially Challenged Companies Simplify the Problem Detecting Potential Busted Cash Burners Detailed Fiscal Fitness Exam Bond Ratings Use Bond Prices to Identify Risky Debtors Summary Chapter 11 Analysis Tool #8: Profitability and Growth Analysis Where Do Earnings Come From? Analyzing Sales (Revenue) History Analyzing Margins Comparing Margins High Versus Low Margins Analyzing Overhead Expenses Profitability Ratios Cash Flow Analysis EBITDA Versus Operating Cash Flow Summary Chapter 12 Analysis Tool #9: Detect Red Flags Sales Growth Trends Accounts Receivables and Inventories Statement of Cash Flows Yellow Flags Summary Chapter 13 Analysis Tool #10: Ownership Considerations Institutional Ownership Insider Ownership Summary Chapter 14 Analysis Tool #11: Price Charts Trends Moving Averages Value Investors Growth Investors Avoid Downtrends Compare Short- and Long-Term Moving Averages The Risk Zone Chart Types Trading Volume Summary PART III: The Analysis Process Chapter 15 Quick Prequalify Concentrate on the Strongest Candidates Company Overview Valuation Ratios Real Revenues + Real Earnings + Real Growth = Real Stock Check the Buzz Summary Chapter 16 The Value Investing Process Concentrate on the Strongest Candidates Cycles Normalizing The Value Analysis Process When to Sell Summary Chapter 17 The Growth Investing Process Concentrate on the Strongest Candidates Growth Candidates The Process When to Sell Summary Chapter 18 Analysis Scorecards Value Stock Analysis Scorecard Growth Stock Analysis Scorecard PART IV: Appendixes Appendix A: Industry Information Appendix B: Economic Data Appendix C: Earnings Reports and Conference Calls Reported Earnings Summary Appendix D: Detecting Scams, Frauds, and Pump and Dump Summary Appendix E: How to Read Financial Statements Income Statement Balance Sheet Statement of Cash Flows Finding the Data Pro Forma Accounting Versus GAAP Appendix F: Glossary A B C D E F G I J L M N O P R S T V W Index A B C D E F G H I J–K L M N O P Q–R S T U–V W X–Z