Fundamental Analysis To Stock Choosing And Case Study

Stock choosing wisely puts the way to success stock investment. Controlling risk and increasing return are the fundamental task of stock choosing which not only need quantitative analysis but also need to make sense of the source. Our goal is to form an integration system on stock choosing that combines the external environment and internal conditions analysis. This is a meaningful thing.We put SWOT method, five powers of competition environment, and VRIO method together to analyze stock choosing. Corporate exists general and specific environment that provides opportunities and threats. In order to get the opportunities and shun the threats, we apply Michale.Porter's five powers of competition environment and market structure theorem to analyze the general and specific environment effect.Interestingly, when we take IS-LM tool to analyze the macroeconomic environment effect, we find the tool generates more policy cost in our country and can't be eliminated in the short run. We introduce elasticity and sensitivity methods to analyze the practice of IS-LM model in our country, through strictly analyzing, we find that increasing resources allocating efficient, improving the utility of fiscal and monetary policy depend on factors such as level of economy development, national education, knowledge and techniques of all investors that can't be improved fundamentally in a short period of time.In order to make clear the advantage and disadvantage of corporation internal behavior, capability, and resources, we combine Michale.Porter's general value chain and Barney's VRIO internal analysis model. First, you need to draw the corporation's value chain which every behavior, capability and resource on the chain generates consumer value as well as cost. Then, analyzing valuable, rareness, imitability, and organizable for every of them. On corporation level, we study the capitalization of income pricing model based on the dividend discount mode (DDM), financial index analysis, expectation versus variance analysis based on stock's history return, and stock's security characteristic line (SCL).Having finished theoretic research on stock choosing, we apply the integration system to practice and form a case about Taiji Group stock choosing. First, we carefully study the specific opportunities and threats originating from general and specific environment. Then, we analyze the corporation's background, capital operation, or...