The Need for Efficient Investment: Fundamental Analysis and Technical Analysis

Bonga, Wellington Garikai

doi:10.2139/ssrn.2593315

Cited by 9 publications

(12 citation statements)

References 9 publications

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“…All this supports decision making when forecasting stock prices (Chen 2013). Its application also requires the assessment of companies' future growth prospects and competitive landscape (Bonga 2015) as well as potential changes in GDP, sales strategies and other different indicators relevant not only for individual businesses but for the industries as a whole in which they operate (Kartašova, Venclauskienė 2014). In order to forecast stock prices the Residual Income Model (RIM) with its strong theoretical background can be applied with reference to the financial data sourced from accounting (Sarikhani, Ebrahimi 2012;Tareq 2012;Kariuki, Oyugi 2013).…”

Section: Review Of Theoretical Stock Price Forecast Methods and Modelsmentioning

confidence: 99%

Formation of an Integrated Stock Price Forecast Model in Lithuania

Dzikevičius

Šaranda

2016

Business, Management and Education

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Technical and fundamental analyses are widely used to forecast stock prices due to lack of knowledge of other modern models and methods such as Residual Income Model, ANN-APGARCH, Support Vector Machine, Probabilistic Neural Network and Genetic Fuzzy Systems. Although stock price forecast models integrating both technical and fundamental analyses are currently used widely, their integration is not justified comprehensively enough. This paper discusses theoretical one-factor and multi-factor stock price forecast models already applied by investors at a global level and determines possibility to create and apply practically a stock price forecast model which integrates fundamental and technical analysis with the reference to the Lithuanian stock market. The research is aimed to determine the relationship between stock prices of the 14 Lithuanian companies listed in the Main List by the Nasdaq OMX Baltic and various fundamental variables. Based on correlation and regression analysis results and application of c-Squared Test, ANOVA method, a general stock price forecast model is generated. This paper discusses practical implications how the developed model can be used to forecast stock prices by individual investors and suggests additional check measures.

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Section: Review Of Theoretical Stock Price Forecast Methods and Modelsmentioning

confidence: 99%

Formation of an Integrated Stock Price Forecast Model in Lithuania

Dzikevičius

Šaranda

2016

Business, Management and Education

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“…Studies conducted in different stock markets to compare fundamental and technical analysis found that fundamental outperform technical models (Jakpar, Tinggi and Tak, 2018;Beyaz, Tekiner, Zeng, and Kean, 2018;Kulkarni and Kulkarni, 2013). Although various scholars suggested using a hybrid model that combines both fundamental and technical analysis for best results (Souza, Ramos, Pena, Sobreiro and Kimura, 2018;Bonga, 2015;Drakopoulou, 2015;Waworuntu and Suryanto, 2010;Markwat, Dijk, Swinkels, and Zwart, 2008), few of them show the clear methodology of merging these two models. Several studies were confined to the standard fundamental analysis framework by looking at screening criteria extracted from audited financial statements.…”

Section: Literature Reviewmentioning

confidence: 99%

The Combined Effects of Managerial and Operational Performance of Various Fundamental Components on Stock Selection

Moh’d¹,

Ramasamy²,

Mohd³

et al. 2021

jeb

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This study aims at quantifying fundamental components such as the country economy, stock market development, economic sectors, and company’s performance computed by Data Envelopment Analysis (DEA) built-in MATLAB program and combined using a top-down approach. It was conducted in the East African region specifically Kenya, Tanzania, Uganda, and Rwanda from 2015 to 2018. A secondary data extracted from the listed company’s websites, capital market authorities of each country, and World Bank. The study found that the combined performance of various components has a great impact on screening the stocks to be used for portfolio construction. It gives a signal to the authorities of capital markets, investors, policymakers, and other regulatory bodies to take immediate measures on designing policies and best practices. Further recommendation to the capital market authorities within the region is to ensure the growth of managerial and operational performance of stock exchanges. Also, regulatory bodies, policymakers, and higher-level administration of each country within the region to take responsibility to uplift the country's economy as well as economic sectors growth. The board of directors and management of listed companies should formulate strategies to improve both managerial and operational performance.

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“…The Combination of the Elliot Wave and Fibonacci series is very helpful in determining stock trends [4]. It mainly analyzes the market factors themselves, rather than focusing on other factors [5]. An important assumption of technical analysis is that history repeats itself.…”

Section: Introductionmentioning

confidence: 99%

“…A big flaw in technical analysis is that it ignores the value of the company itself, known as fair value. It simply emphasizes the impact of people's psychological gaming on stock prices [5]. Use this idea to go back to the original question and evaluate Tesla's recent stock price move.…”

Section: Introductionmentioning

confidence: 99%

Analysis of Tesla investment based on Multiple Valuation

Song¹

2022

BCPBM

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It is not very accurate to use multiple Valuation method to evaluate the stock of a company with a special structure like Tesla. In this paper, multiple valuation is used to evaluate Tesla, but some improvements are made to the traditional process. According to the cost of revenue structure of Tesla, Tesla is regarded as a combination of a new energy company and an ordinary car company. Then, the two parts are evaluated separately, and then the fair value of Tesla is calculated by adding these two-part after making some adjustments. Finally, it is concluded that the current stock price of Tesla is overvalued, and investors should pay more attention when investing. This may be because people are overoptimistic about innovative companies such as Tesla, leading to part of the bubble.

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The Need for Efficient Investment: Fundamental Analysis and Technical Analysis

Cited by 9 publications

References 9 publications

Formation of an Integrated Stock Price Forecast Model in Lithuania

Formation of an Integrated Stock Price Forecast Model in Lithuania

The Combined Effects of Managerial and Operational Performance of Various Fundamental Components on Stock Selection

Analysis of Tesla investment based on Multiple Valuation

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