Cliff Notes: HOW TO READ STOCK FUNDAMENTALS WITH WALL STREET TRAPPER

An illegal alien from Guatemala charged with raping a child in Massachusetts. An MS thirteen gang member from Al Salvador accused of murdering a Texas man of Venezuelan charged with filming and selling child pornography in Michigan. These are just some of the heinous migrant criminals caught because of President Donald J. Trump's leadership. I'm Christy nom the United States

Sponsored by the United States Department of Homeland Security.

We talk about like the core analysis a lot in companies. But you you're you're real big on breaking companies down, right, So can you just take a couple of minutes and just kind of explain your process as far as and shout out to my guy jose We gotta get him on head the Millennial money mentor. He's a really dope dud yea should follow him on Instagram and he had.

A dope jose Man. Yeah that's what yep, Yeah, he had.

A dope post. But he kind of broke down how to look at the company's balance sheet. Talked about like dead assets, liabilities. So can you just talk about like a few things that you might look at when you're evaluating a company.

All right, So for me, the first thing I want to do is I look at the company profile. I need to know everything that I can understand about that business before I even look at the numbers. Because what happens is we have this, we have this thing that where when we see the numbers, the numbers swear us one way or another. Right the numbers. We can look at the numbers a little bit like oh, a million dollars, a billion dollars, you go to we go to putting this idea in our head already we look at the

The next thing is actually seeing financially.

How have they grown? So I'm looking for financial growth. So now one of the things you're going to look at is that balance sheet. Right, fundamental analysis. Right, No matter what business you are, no matter where you are in business, the objective of your business is to make money.

That's the way you can survive. Right.

So and looking at a company's balance sheet, we want to look at the balance sheet tells us about assets and liabilities that a business has. Right, So you'll see four factors on it that's really important. You'll see current assets, current liability. So what current assets and current liabilities mean?

Right.

Working capital is the money that the business has on hand on deck are due to them within a twelve month timespan.

Think about this.

A lot of businesses that are going bankrupt now had negative working capital. Right, It's kind of like somebody telling you have an emergency fund.

It's equivalent to that. Businesses operate the same way.

They have to have money that they can use in case something happens within a twelve month time span.

They need that.

Then you'll have total assets total liabilities. You want that to be positive. When you take all a we a companies total liabilities from the total assets, you want that to be positives.

Overall that the company is ain't good financial.

So also we look in that is we can go to the actual income statement.

On that income.

Statement, we'll see we'll hear what's called top line and bottom line group.

Right.

Top line equals the revenue that comes into a business. Right, so all the money that comes in through sales is called revenue. Bottom line again is the profit net gross is everything net is once you take everything away, this is left over, right, So what we want to look at is when we're looking at the revenue, there's this thing called cost of revenue.

So now we need to see how much did it cost the business to make bring this revenue in.

So that's marketing, that's advertising, that's whatever they had to do to bring that in. So you're gonna take that cost, the revenue from the revenue, and then what's left from.

There, we'll see where the gross, where.

The net isn't there, and then we'll go to the income statement, I mean the balance sheet, and we'll look that the assets and liabilities and we can get into cash flow statement because that's what's important to me. What's important to me is cash flow. I want to also see the balance sheet positive. I want work in capital be the positive, but I want to see cash flow positive.

Cash Flow is the money that's going in and out of a business.

We want that to be positive because if the if the business is not investing money right, if the business is not loaning money right, if the business isn't investing shareholder capital right, there's some metrics that we look at.

We look at all o I S, return on invested capital right.

Businesses are actually just like banks, right, because a business is like, yo, we got all this money. We need to do something with this money. So a business will literally go to another business and be like, look, you got one hundred and twenty billion dollars.

On you on your on your book.

That you ain't doing nothing with Instead of me getting a bank loan, let me get a loan from you a business like okay, cool, we'll give you that.

We'll give you that loan. Businesses do this all the time, right, and so what.

Gets some business is called up and it's getting into something a little different is a lot of businesses will have these share buy backs. This is another thing that can cause businesses to go bankrupt because what happens is a share buy back is when the business takes.

And buy some of it shares off the market.

So when a business buys some of it shares off the market, this increases the stock price. So one of the most important things in business and investing. People always say that the customer is always right.

You only earners. What's up?

You ever walk into a small business and everything just works like the checkout is fast, or seats of digital tipping is a breeze and you're out the door before

An illegal alien from Guatemala charged with raping a child in Massachusetts. An MS thirteen gang member from Al Salvador accused of murdering a Texas man of Venezuelan charged with filming and selling child pornography in Michigan. These are just some of the heinous migrant criminals caught because of President Donald J. Trump's leadership. I'm Christy nom the United States Secretary of Homeland Security. Under President Trump, attempted illegal border

Sponsored by the United States Department of Homeland Security give.

That term inside of a store on the management supervisor level. Once you get into the investment level, the number one rule is add value to shareholders. How can we add value to shareholders? One of the ways we add value to shareholders is by buying that shares increasing the stock price. That's how we add value. Right, So now check this out. You're supposed to take money that you make and have it set on side for a rainy day. But instead you have greedy CEOs and what they do is every

It is keeping on a you know, on a level. We often dissect this.

You want to look at working assets, I mean current assets, current liabilities.

Take those away, you'll get working capital.

You want that to be positive, and then you'll have total assets, total liabilities.

You want to take the assets from that.

You want that to be positive, and you want to cast go from the business to be positive.

I hope I ain't go too deep. I try to that. I just I just had one follow up.

So everything you said was was free jewelry. I hope everybody paid attention put them put them houses up on YouTube.

Shot like I once again shout to my gout host.

He had a post and he said, like he goes to Yahoo finance to find out this stuff, like do you use y'aho find Like what what website do you use to actually look to see information?

Yahoo finance is good, but out right it's it's twenty twenty right now. We've into the second quarter.

For some businesses.

You'll go to Yahoo Finance and it'll still say twenty eighteen. You know what I'm saying. So you can use that. Somebody put it in there. You can use SEC dot gov or edgar. But for me personally, I'm going straight to the company website. I'm going straight to the website. I'm gonna straight to the investor relations page.

I'm gonna talk my talk. I'm gonna see, I'm gonna look at transcript. See. I'm an avid reader.

I'm a learning machine, right, So I would look at I'll look at an SEC dot gov all day.

I'll look at investor relation report all day.

I'll look at ammal reports from four years ago, to see how the revenue has consistently grown, how the income, how the earnings have consistently grained.

As it's great as a I'll say this like as a quick, as like something quick to go to.

But if you go there and it's twenty twenty and they still got four quarter twenty eighteen, now you're gonna be stuck.

You don't know what to go to now. So now you gotta go to so again, SEC dot up.

And I'm gonna be real too, that site can't confuse a lot of people SCC DOC. If you don't know what you're going on to look for, where you get lost there.

So the next best thing.

Is to just go to the investor relations phase of any company, right and just and they'll tell you everything you need to know there. So for me, I'll use the SEC. I'll use it, I'll who finance. But it ain't my goal to it ain't my goal. There's a whole lot, whole lot of houses going up there.

Real quick, even on the back side. Like remember like in the mid two thousand and early two thousands.

When the artists will come out and they'll be like, yo, he sold six hundred thousand, and you're like, I don't hear anybody playing this record though, right, it's a corporate version of universal and depth sham and buying.

All them records facts, and like you said, when.

You get it now you have no real money to invest into the actual business and to piggyback off what Trump saying, Like when you're looking at those numbers, when you go to the technical side, go look at Ford and see how their balance sheet was. Ford's been in trouble for a long GM been in trouble for a long time, and that's why we try to keep it simple with the analogies and the comparisons, like if you would not want to drive a Ford or a GM, then why would you want to put your money there?

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