Nowadays, There’re two major investment strategies in the stock market. One is technical analysis and another one is fundamental analysis. Technical analysis relies on price, volume and different kinds of the index such as KD, MACD, MA, etc. Fundamental analysis is based on the company’s operation performance which can be known from the financial statement including balance sheet, income statement, etc.
According to the original purpose of stock, we should use fundamental analysis as our investment strategy. We focus on long-term relationships instead of being a speculator.
In this post, I won’t explain the detail of fundamental analysis. I’ll show you how to mine a valuable company(stock) in the Taiwan market by a dashboard developed by me. The dashboard will post in another post for a better user experience. This post is a user guide. Okay, let’s start.
The user interface is following, there are four blocks in this stock mining tool. I’ll explain the detail one by one.
Before clicking one company:
After clicking one company:
- Rank option and filters
- Select Rank Type: There’re four rank type by the price estimations, Klast, Kmean, Dlast and Dmean.
- K: calculated by company’s net value and ROE, you can think it is a price estimation according to the growth pontential of the company
- D: calculated by company’s dividend, you can think it is the price estimation according to the dividend value by the company
- last: calculated by nearnest year data of available financial statement such as 2021
- mean: calculated by near five years such as 2015-2020
- The rank is smaller, the market price is lower than estimiation price more
- Market Type:
- 上市公司 and 上櫃公司 are the market types in Taiwan stock market. In my opinion, the liquidity risk is higher in 上櫃公司. The purchaing process is no difference
- Industry:
- The industry the company belongs to from electronics(電子) to food(食品) industry. You can choose the industry you prefer
- Exclude Stock
- It’s a convinient filter for you to exlcude the companies during your mining process
- ROE Growth Rate & Average ROE Range
- These two filter is for shrink the mining pool. “ROE Gowth Rate” uses linear regression to get the slope rate and “Average ROE Range” uses five year ROE to get the average value. Suggest to keep it default
- Select Rank Type: There’re four rank type by the price estimations, Klast, Kmean, Dlast and Dmean.
- Stock rank table
- There’re nine columns in the table. And the green color is better and red color is not so good
- Rank: the underestimated degree of the current stock price
- 公司代號: the unique number of the company in Taiwan Stock Exchange Corporation(TWSE)
- 產業類別: the industry of the company
- 公司簡稱: the Chinese abbrevation name of the company
- Price: the current market price of the stock
- Klast: the price estimation according to the growth potential by the nearnest year financial statement
- Kmean: the price estimation according to the growth potential by the near five years financial statements
- Dlast: the price estimation according to the dividend value by the nearnest year financial statement
- Dmean: the price estimation according to the dividend value by the near five years financial statements
- ROE and Dividend information
- It is a line chart to show the ROE trend by year to know it’s increasing or drecreasing and it’s stable or not. It also labels the dividend of that year
- Hover and click to the dot. You can see an estimation price according to the dividend in that year and a link to Google the stock for more information on the internet(figure 3)
- Revenue by each month
- It shows the accumulation revenue by each month in a certain year
- The color lines mark nearest two year information for easy comparison whether this year grows and how good this year is
The user guide explanation is almost done. It may take you a while to digest the information, but it’s worth it. According to my experience, it really can provide a guide in the investment. Hope it can help you also. The tool link is here. Good luck!
*The article only provides suggestions. You need to take all responsibility for the investment behavior by yourself.
*The data is from The Taiwan Stock Exchange Inc. & Taipei Exchange. and quantmod(R package).The stock mining tool may need improvement still. Feel free to provide your comments
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