Investment and Portfolio Analysis Essay Example | Topics and Well Written Essays - 2000 words

Investment and Portfolio Analysis - Essay Example The understandings of market sentiments are very important for technical analysts and day-traders who try to maximize profits from stock price movement. The analysis of balance sheet of the company is found that the company has strong fundamentals including sufficient assets to cover its liabilities and there are no concerns regarding debt, payables, or inventory. With the help of several technical indicators, an investor will be able to analyze the relationship between price – volume and demand – supply for the overall market as well as the individual stock and make appropriate investment decisions. The company’s management has been able to successfully tackle the slow demand situation by introducing new products in the market at lower cost which increased the company’s sales volumes. With the increase in sales the company’s cost of production also increased at CAGR of 49% during the past three years. On the basis of these analysis and findings a s uitable recommendation can be given to investor regarding the attractiveness of the investment. The investment style of an individual varies from another depending on various opportunities and investment constraints. Individuals generally invest a certain portion of the surplus left after all necessary expenditures are carried out. The most common objective however is to maximize their return on investment. A proper fundamental and technical analysis generally provides a basic idea regarding these aspects and helps investors make informed investment decisions. Other factors like macroeconomic scenario, industry analysis, market sentiments and management analysis also plays an important factor in giving the best idea of a long or short sale investment decision. This report discusses these important investment tools with reference to a particular stock, which will help the investors a clue of