Value Investing: Fundamentals Analysis

The hype around GameStop two weeks a go, made us all become aware of things we ignored the existance few weeks back.

Here is what I learned myself:
Reddit/WallStreetBets: a group in reddit, where people dont share anymore any good content, rather, they try to influence eah others, and it works. (To future-self, Look at some good websites and tools that do sentiement analysis of groups like wsb).
r/DeepFuckingValue: Is a reddit user/retail trader, that made hell a lot of money out of his investment in GME. But that’s not the end of it. The guy showed himself to the media and is called “Keith Gill”, Now he has a wikipedia page. Well that’s not the end of it, He also has a 6-month youtube channel, under the name of Roaring Kitty (Amazing channel/top humble guy). And he identifies himself as a deep value trader.

Well, That’s all I needed to start looking everywhere to understand this new descipline “Value Focus trading”.

Nothing in live is black and white, and as everything in life, when we speak about gategories, is only to model the things in a way our brains can understand, reality in more of a continues spectrum rather than really split categories, but I dont care, I will categorise:

So Investing/Trading styles is mainly devided into 3 categories:
1 — Value Investing: People that look into fundamentals, cash flows, balance sheet stuffs, … Will come back to it.
2 — Growth Investing.
3 — Momentum Investing.

What to trade: Look at fundamentals.
When to trade: Look at Technical analysis.

Quantitative Fundamentals are all driven from earning statements of a company, There are 3 statements:
1- Imcome statment (P&L statement)
2- CashFlow statement
3- BalanceSheet statament.

What are the fundamentals we need to look as:
What a company made as an earning over the last few years:
Basically its Earnings minus Maintenance costs
Earning = Operating CashFlow-Maintenance Capital Expenduture
I beleive “Operating CashFlow” can be found in yahoo finance statistics tab (To future self, find a way to stream it into googlesheet).

(To be continued)