Ask me for a financial analysis of any stock

Discussion in 'Stocks' started by meteoraln, Oct 6, 2011.

  1. Ask me about a stock, and I'll highlight the good and bad things that I see about the financial statements. I'll point out any fraudulent/borderline accounting if I see it, and highlight things like debt levels, cash flows, etc.

    I'm not here to recommend stocks or tell you whether you should buy or sell stock XXX. This is intended as a introduction to fundamental analysis and accounting and as a way to learn how to read financial statements.

    Financial statements of banks, commodities, energy, biotechs, and pharmaceuticals are out of my circle of competence and I will not be able to properly dissect and explain those statements. I might give it a try if the numbers make sense to me though.
  2. dnkn
  3. t
  4. gobar


  5. GTS


  6. There's unfortunately too little information on DNKN. It did its IPO not too long ago and the financial statements only stretch back for 2 years on google finance. In what's available though, my attention was drawn to the large 331m unusual expense in 2008 and a sharp drop in shareholder equity from 770m to 306m from 2009 to 2010.
  7. T - ATT is fairly easy to analyze. Most of the numbers are very consistent, which makes ATT reasonably predictable. First thing I want to point out is the capital expenditures, which is consistently a bit more than half of operating cash flow. Cap Ex is money spent on things that keep the business going or expansion. In ATT's case, it's likely money spent just to stay competitive, like upgrading cell towers. This is unfortunately a lot of money that could have gone into shareholder's pockets.

    Shareholder equity doesn't really change much year over year as ATT pays out most of their remaining profits in dividends. Intangibles, at 60bn for 2010, accounts for a very large percentage of shareholder equity. A piece of the intangibles are attributed to the rights for ATT to use the air waves.

    I would want to know why 2008 had spike in Selling/General/Admin expenses. ATT does not strike me as a company which would be significantly affected by the housing crisis. This is something that I can only hope the 10K can explain (which I will not research into for here.)
  8. DEXO

    Given: too much debt, in a dying industry and led by an incompetent management team.

    Should I buy the whole company at these prices and install a new management team? Is it a steal at these levels?
  9. LOL... already many requests ahead in queue.

    Anyways I'll like to ask about AAPL- there is just too much buzz about it.
  10. testing reply... my last 2 replies didn't show up
    #10     Oct 7, 2011