Page Title
MARNOR INVESTMENT PARTNERSHIP LLP
LET YOUR MONEY EARN YOU THE PROFIT YOU DESERVE
MARNOR INVESTMENT PARTNERSHIP
TECHNICAL
INTRODUCTION TO FUNDAMENTAL ANALYSIS
The massive amount of numbers in a company's financial statement can be bewildering and intimidating to many investors. On the other hand, if you know how to read them, the financial statements are invaluable information for stock market success.
Financial statement analysis is the biggest part of fundamental analysis. Also known as quantitative analysis, it involves looking at historical performance data to estimate the future performance. Followers of quantitative analysis want as much data as they can find on revenue, expenses, assets, liabilities, management and all the other financial aspects of a company that lead to cash flow. Fundamental analysts look at this information for insight into the performance of in the future. They don't ignore the company's stock price; they just avoid focusing exclusively on it.
Before we learn different ways to estimate future performance, it is important to understand the basics of the financial statements.
The following information is presented in most financial reports, note that the order in which these are presented might vary:
Summary of the previous year.
Information about the company in general, itshistory, products and line of business.
Letter to shareholders from the President or the CEO.
Auditor's report telling you that the results are accurate.
An in-depth discussion about the financial results and other factors within the business.
The complete set of financial statements (balance sheet, income statement, statement of retained earnings, and cash flow statement)
Notes to the Financial Statements.
Other information on the company's management, officers, offices, new locations, etc.
How you read the financial statements really depends on who you are and what your interest in the company is. Management, creditors/lenders, partners, and investors utilize financial statements. Each group is interested in different things. For example, the partnership assess profitability, growth, stability, current ratio, net profit margin and the rate of dividends.
The partnership condensed the financial statement in a screening box. By this we select some major points of great importance to evaluate the worth of a particular stock. Some of the points are mentioned below.
1.
PEG RATIO - PE/earnings growth rate -- THIS MUST BE EQUAL TO 1 OR < 1
PEG RATIO - PE/earnings growth rate -- THIS MUST BE EQUAL TO 1 OR < 12.NET PROFIT RATIO - THIS MUST BE > 20%
NET PROFIT RATIO - THIS MUST BE > 20%3.THE PREVIUOS YEAR SALES GROWTH - MUST BE 20% OR GREATER
THE PREVIUOS YEAR SALES GROWTH - MUST BE 20% OR GREATER4.EARNINGS PER SHARE (EPS) - MUST BE 20% OR GREATER
EARNINGS PER SHARE (EPS) - MUST BE 20% OR GREATER5.MARKET CAP OF £8M OR 5M FOR US SHARES
MARKET CAP OF £8M OR 5M FOR US SHARES6.POSITIVE YIELD - DIVIDEND/SHARE PRICE
POSITIVE YIELD - DIVIDEND/SHARE PRICE A TYPICAL DATA SHEET
VODAFONE
IDENTITY CARD
ISIN: GB0007192106
Reuters Code: VOD.L
Local Code : VOD
Auditor: Deloitte &Touche
Number of employees: 60,109 ( 03/31/2004 )
66,667 ( 03/31/2002 )
EXECUTIVE TEAM
Chairman of Board of Directors: Lord MacLaurin of Knebworth
Chief Executive Officer: Arun Sarin
Corporate Secretary: Stephen Scott
Chairman: Andrew Halford
Data as of 31/07/2004.
CALENDAR
Annual report: 25/05/2004
Shareholder ’s meeting: 27/07/2004
Profits 1st half-year: 16/11/2004
INVESTORS CONTACT
Melissa Stimpson
Telephone: +44 (0)163 567 33 10
Fax: +44 (0)163 568 28 90
Email:
SHAREHOLDERS
The Capital Group Companies Inc: 5.6%
Fidelity Management & Research Company: 3.56%
LEGAL & GENERAL: 3.47%
BARCLAYS: 3.28%
KEY FIGURES
Year 2004 2003 2002 2001 2000
Net Operating revenues* 33,559 30,375 22,845 22,230 17,415
Net Profit* -9,015 -9,819 -16,155 -9,763 487
* in million(s) of Pound
EARNINGS PER SHARE
Year 2004 2003 2002 2001 2000
Earnings per share* -13.24 -14.41 -23.77 -15.9 1.8
* in pence
SALES PER ACTIVITY
Mobile communications: 94.5%
Miscellaneous services: 5.5%
Sector Data as of 31/03/2004
Looking at this oversimplified financials you can see that Vodafone was doing very well in 2000. between 2001-2002 there was a decline in profit. Between 2003 - 2004 there was profit growth. Another important feature the partnership looks for is institutional ownership. The partnership is not particularly interested in companies that have more than 40% institutional ownership.
A TYPICAL DATA SHEET
VODAFONE
IDENTITY CARD
ISIN: GB0007192106
Reuters Code: VOD.L
Local Code : VOD
Auditor: Deloitte &Touche
Number of employees: 60,109 ( 03/31/2004 )
66,667 ( 03/31/2002 )
EXECUTIVE TEAM
Chairman of Board of Directors: Lord MacLaurin of Knebworth
Chief Executive Officer: Arun Sarin
Corporate Secretary: Stephen Scott
Chairman: Andrew Halford
Data as of 31/07/2004.
CALENDAR
Annual report: 25/05/2004
Shareholder ’s meeting: 27/07/2004
Profits 1st half-year: 16/11/2004
INVESTORS CONTACT
Melissa Stimpson
Telephone: +44 (0)163 567 33 10
Fax: +44 (0)163 568 28 90
Email:
SHAREHOLDERS
The Capital Group Companies Inc: 5.6%
Fidelity Management & Research Company: 3.56%
LEGAL & GENERAL: 3.47%
BARCLAYS: 3.28%
KEY FIGURES
Year 2004 2003 2002 2001 2000
Net Operating revenues* 33,559 30,375 22,845 22,230 17,415
Net Profit* -9,015 -9,819 -16,155 -9,763 487
* in million(s) of Pound
EARNINGS PER SHARE
Year 2004 2003 2002 2001 2000
Earnings per share* -13.24 -14.41 -23.77 -15.9 1.8
* in pence
SALES PER ACTIVITY
Mobile communications: 94.5%
Miscellaneous services: 5.5%
Sector Data as of 31/03/2004
Looking at this oversimplified financials you can see that Vodafone was doing very well in 2000. between 2001-2002 there was a decline in profit. Between 2003 - 2004 there was profit growth. Another important feature the partnership looks for is institutional ownership. The partnership is not particularly interested in companies that have more than 40% institutional ownership.
A TYPICAL DATA SHEET
VODAFONE
IDENTITY CARD
ISIN: GB0007192106
Reuters Code: VOD.L
Local Code : VOD
Auditor: Deloitte &Touche
Number of employees: 60,109 ( 03/31/2004 )
66,667 ( 03/31/2002 )
EXECUTIVE TEAM
Chairman of Board of Directors: Lord MacLaurin of Knebworth
Chief Executive Officer: Arun Sarin
Corporate Secretary: Stephen Scott
Chairman: Andrew Halford
Data as of 31/07/2004.
CALENDAR
Annual report: 25/05/2004
Shareholder ’s meeting: 27/07/2004
Profits 1st half-year: 16/11/2004
INVESTORS CONTACT
Melissa Stimpson
Telephone: +44 (0)163 567 33 10
Fax: +44 (0)163 568 28 90
Email:
SHAREHOLDERS
The Capital Group Companies Inc: 5.6%
Fidelity Management & Research Company: 3.56%
LEGAL & GENERAL: 3.47%
BARCLAYS: 3.28%
KEY FIGURES
Year 2004 2003 2002 2001 2000
Net Operating revenues* 33,559 30,375 22,845 22,230 17,415
Net Profit* -9,015 -9,819 -16,155 -9,763 487
* in million(s) of Pound
EARNINGS PER SHARE
Year 2004 2003 2002 2001 2000
Earnings per share* -13.24 -14.41 -23.77 -15.9 1.8
* in pence
SALES PER ACTIVITY
Mobile communications: 94.5%
Miscellaneous services: 5.5%
Sector Data as of 31/03/2004
Looking at this oversimplified financials you can see that Vodafone was doing very well in 2000. between 2001-2002 there was a decline in profit. Between 2003 - 2004 there was profit growth. Another important feature the partnership looks for is institutional ownership. The partnership is not particularly interested in companies that have more than 40% institutional ownership.
A TYPICAL DATA SHEET
VODAFONE
IDENTITY CARD
ISIN: GB0007192106
Reuters Code: VOD.L
Local Code : VOD
Auditor: Deloitte &Touche
Number of employees: 60,109 ( 03/31/2004 )
66,667 ( 03/31/2002 )
EXECUTIVE TEAM
Chairman of Board of Directors: Lord MacLaurin of Knebworth
Chief Executive Officer: Arun Sarin
Corporate Secretary: Stephen Scott
Chairman: Andrew Halford
Data as of 31/07/2004.
CALENDAR
Annual report: 25/05/2004
Shareholder ’s meeting: 27/07/2004
Profits 1st half-year: 16/11/2004
INVESTORS CONTACT
Melissa Stimpson
Telephone: +44 (0)163 567 33 10
Fax: +44 (0)163 568 28 90
Email:
SHAREHOLDERS
The Capital Group Companies Inc: 5.6%
Fidelity Management & Research Company: 3.56%
LEGAL & GENERAL: 3.47%
BARCLAYS: 3.28%
KEY FIGURES
Year 2004 2003 2002 2001 2000
Net Operating revenues* 33,559 30,375 22,845 22,230 17,415
Net Profit* -9,015 -9,819 -16,155 -9,763 487
* in million(s) of Pound
EARNINGS PER SHARE
Year 2004 2003 2002 2001 2000
Earnings per share* -13.24 -14.41 -23.77 -15.9 1.8
* in pence
SALES PER ACTIVITY
Mobile communications: 94.5%
Miscellaneous services: 5.5%
Sector Data as of 31/03/2004
Looking at this oversimplified financials you can see that Vodafone was doing very well in 2000. between 2001-2002 there was a decline in profit. Between 2003 - 2004 there was profit growth. Another important feature the partnership looks for is institutional ownership. The partnership is not particularly interested in companies that have more than 40% institutional ownership.
