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Value-oriented company or value-oriented equities

A value-oriented company is a company that appears to be undervalued in the marketplace. The stocks are traded at a price below their true value. But this value is subjective and is assessed only on the basis of a fundamental analysis.

It is important for investors to be able to distinguish the value-oriented company from the companies, whose stock value has just fallen.

For example, a falling stock price may indicate a serious problem,
but it may also be an overreaction in the market soon a course
correction follows. Looking for investors who work value-oriented
not just cheap stocks, but rather quality companies.

To do this you apply the fundamental analysis so that you can better evaluate the situation of the company in the market. As a rule, they are looking for companies that have a high dividend yield and a low price profit.

Such value-oriented companies can be found in every industry. These
are mostly cyclical companies, where revenues fall during the period of recidivism and are undervalued in unstable market conditions.


safety margin

Before investors decide to invest in a value-oriented company, they use the safety margin. So they are careful to buy the company's stock at a price that is so low that they have enough leeway if they are wrong in their analysis.

The Annual Report

An annual report is a formal report financial results and the business
results of the company, an individual or a legal entity.

Purpose of an annual report
The purpose is to provide financial information should be and on an as
good as possible to be overlooked Path. This not only applies to the company itself, but also for those interested in the company, which may include shareholders. The annual report is here main method of communication between shareholders and potential investors. Of course,
the annual report can also be from Banks, financial institutions and others are used when financial decisions are pending. Usually, a business report
will appear Written paper. Many companies, however, provide the annual report also available as a digital copy.

The types of business reports
In a business report, the annual balance sheet, the most Profit and loss, cash flow and a report on the retained profits. The annual balance sheet or balance sheet gives an overview of the assets, liabilities and equity at a given level Time.

The profit and loss or the income statement shows the income and spending over a period of time. Cash flow refers to the movements of cash in and out of the company. The report of the retained profits shows the changes in profits of the company in a given period of time. The retained profits refer to all profits of the company that will be withheld and not paid to shareholders.

Forex Pennant

 

 

 

 

 

 

 

The pennant is a triangular and trend-setting pattern. It always forms after a strong price movement. In the technical analysis the pennant
is used to make trading decisions easier:

The formation of the pennant formation

If there is a steep movement in a certain direction, then neither the
seller nor the buyers have the upper hand. The market price is
temporarily included in the consolidation formation in such a phase.
This means one Uncertainty, which is a more or less symmetrical
triangle to emerge, which is called pennant formation. At some point,
the course breaks out of this formation and the original trend continues.

The bullish pennant
This always arises during an uptrend. He indicates that the price may
rise even further. As a trader You can open a long trade, which then
most likely profits from a second price rise.

The bearish pennant
This arises in contrast to the bullish pennant in a Downtrend. He shows
that the price can fall even further. As a trader, you should open a short trade here, then from benefits from a coming second price downturn.

Tulip mania of the 17th century

The name actually has something to do
with it to do the tulips from the Netherlands.

In the middle of the 17th century, there
was a rapid increase and then a sudden collapse in the price of tulip bulbs.

 

 


How did this phenomenon come about?

Tulips introduced to Holland in the late 16th century enjoyed great popularity within a very short time. Especially in the middle class, this flower became a status symbol. Unfortunately, some of the flower bulbs were infected with a virus. It created the multicolored petals, very soon were coveted and classified according to their rarity. Naturally, the demand in this time for these Flower bulbs are growing so strongly that prices have risen sharply. Tulip traders became rich. Others wanted to benefit as well. The prices of each onion became so high that people did everything to get some of the rare onions. It was partly livestock and farm used for it. People, who those who were able to get hold of the onions hoped to sell the onions abroad at a profit.

The market collapsed
Towards the end of 1636, the price of tulip bulbs was so high that people decided to sell them again in order to secure profits. Then the market was so flooded with tulip bulbs in 1637 that the price dropped drastically. Buyers who had contracted the high prices in the wedding refused to pay the high price, because the tulip bulbs had clearly on Lost value. Some speculators lost everything because the tulip bulbs were now worthless. When the Dutch government wanted to intervene, it only made things worse. Thus, the tulip crash caused an economic crisis, which was a lesson for many Dutch.

Warrants and convertible bonds

These are securities that a company offers to attract investors and raise additional funds.

The convertible bond

It is a long-term security that is also against a different kind securities,
for example, one common share. The convertible bonds include both
the bonds and the preference shares. But it is usually a form of bonds.

For investors, convertibles are attractive instruments, because here there
is an investment with greater growth potential than is usual with conventional bonds. The investor receives income for the convertible bond that is similar to a normal bond.

But he has the option to convert these bonds into shares, the price should rise so far that the change is profitable for him.

The warrant

Again, these are long-term securities, however have shorter terms than convertible bonds. The investor gets by the warrant the right to acquire certain Shares at a fixed price (exercise price).

The warrants are very often tied to bonds or preferred stock, but can be issued independently. The strike price is often higher than the price at which the shares are currently traded. If the stock then increases in value, the investor can buy it at the exercise price. In the volatile market, the warrant is more valuable, because there is a higher probability that the Price rises above the exercise price. The value always goes back, the closer the expiry date of the warrant moves, because the chances a favorable price movement then decrease.

The trend-setting pattern in forex trading

It is a price pattern in a particular Price chart showing a break in a trend. On
the one hand it may indicate that the trend is continuing in the original direction. There are a total of three different components.

- The original trend (up or down)
- The consolidation area Course varies between support
   and Resistance
- The breakout

A trend-setting pattern can take on a wide variety of forms.
The main difference lies in the consolidation area and its shape

The most common types of trend-updating pattern are:
- wedges
- Pennant
- triangles
- Rectangles

Why does the trend-setting pattern benefit the trader? The trader will benefit
from a trend-setting pattern in recognizing random price movements. It can provide highly profitable opportunities for trading. Is on the trend-updating Always rely on patterns Unfortunately, the trend-setting patterns offer no one hundred percent reliance. This means that there is no guarantee that the original trend will continue, because it can also come to a trend reversal.

Especially with false breakouts, traders have to be on the alert, though the course seems to continue in the original trend direction, but in reality reverses.

Traders should always keep in mind that the patterns are subjective and can be interpreted differently by the different traders. For the trader, it means a lot practice to properly interpret the trend-updating patterns and thus expanding
the skills in this field.

 

 

 

Know your Customer  (KYC)

This term is also abbreviated to KYC, which means to German as much as know your customer.

This is a due diligence procedure, a type of risk assessment in the sense of due diligence. Financial institutions make sure they get more accurate information about their clients ...

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Disclaimer

In particular, the information provided does not constitute investment advice or investment brokerage. It does not contain a solicitation to buy or sell foreign exchange or other investments. Foreign exchange trading involves considerable risks; a total loss of the capital invested is also possible. Anyone who trades in foreign exchange must familiarize themselves first with the risks. The analysis, information and the service offered are for illustrative purposes only, the use is at your own risk. Past results are no guarantee of future results. The owner assumes no responsibility for any losses on the foreign exchange markets or other markets and investments.

Look at ours Disclaimber . There you will find important information / risk information

Important risk information please visit this page : Disclaimber.

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