What do people mean by "fundementals" and how do u evaluate management?

Answer 1

Wow, some wild answers so far that you've gotten.

Here's the correct answer.

Fundamentals is one way people evaluate stocks to trade. They look for companies that are undervalued or overvalued. For example, Jim Cramer of CNBC's Mad Money is a fundamentalist.

In looking at fundamentals, one typically looks at things such as:

o EPS (Earnings per share)
o Accum/Dist (accumulation/distribution) - an indicator of institutional investment
o P/E Ratio - price to earnings ratio
o Insider trading
o Sector rating vs other sectors
o price rating vs other stocks overall
o price rating vs other stocks in sector
o Sales growth
o Earnings growth

and so on. These different attributes gives you an idea how and what management is doing and can help guide you to choose companies in which to invest.

Hope that helps!

Answer 2

Fundamentals of management would be the ability to lead team members; manage a crisis; how to hire the right people for your business; knowing the right thing to say when a question is asked; having the ability to solve problems.

Fundamentals of an employee are knowing how to do the job correctly; keeping the companies core values; respecting other team members.

How to evaluate management should be just a little more complex than evaluating an employee. Management has certain goals that they must keep, while running the business.

Answer 3

Fundamentals are the financial statistics. Its mostly data from the balance sheet and income statement. A lot of it is measured in ratios and percentages, such as debt ratio, PE, ROA, ROE, profit margin, growth in profits, growth in revenue.

I don't really know how to evaluate management. I listen to conference calls and decide if I like the direction the company is going, and listen for bullsh*t. If the management is 'spinning' the numbers, I don't trust them.

Answer 4

Fundamental means an essential component. As far as how management is evaluated there are a number of things to consider. "Is progress being made"-- is at large one of the key factors to deciding whether or not management is good or bad.