G'day all Vayama, personally I have found fundamental analysis less than ideal. For starters there so many disciplines involved, all sorts of accounting factors, macro and micro economics, depending on the sector any particular stock may be in, you would need about a 100 phd's or stick to just one sector, in which case just a few might do. Even then experts in the field get it wrong. The common wisdom sets the price all the way, including tops and bottoms. In the spec end of the market I don't think many companies really set out to make a lot for their shareholders. Tell a nice story, raise some cash, enjoy a well paid job, find something good to tell the market when the cash gets low. Get on a few different boards and really rake it in. Spec stocks are mostly about mining the shareholders bank accounts. Even blue chips you can look at all the pe's etc you want but you are always making a lot of assumptions. In case you haven't noticed :-) my bent is trying to understand the picture the market paints. Probably the most successful are those that can combine fundamentals and technicals. I think it's relatively easy to make money using technicals only, or fundamentals to select stocks and technicals for timing. A method that purely relies on fundamentals is difficult. But only my opinion. It really is a case of finding your own way, something I couldn't understand when I started out. Discipline, ie a plan which includes a stop loss (money management) is always the key IMO cheers Rod
