At Excon Fuji Securities, rather than relying entirely on third parties, we conduct our own research and portfolio construction. We have our own highly-informed opinions and are not averse to taking contrarian positions if our analysis supports it.
Our high level strategic advice and our recommendations are rooted in quality, in-house research by seasoned professional with decades of collective experience in global financial markets. We also commission research from highly-reputable research houses including Oppenheimer and Goldman Sachs.
We believe that use of quality research to make investment decisions significantly improves investment returns.
Fundamental analysis attempts to forecast future price action by examining a business’s fundamentals. It encompasses macroeconomic analysis, specific research on the industry the company operates in, revenue, sales, debt interest payments, tax liabilities and a host of other factors.
This type of analysis aims to support the assumption that short-term perceptions of the value of a company are wrong and that, ultimately, the price will correct itself either to the up or the downside.
Profits can be realized by buying a mispriced stock and waiting until the market “realizes” its mistake. Fundamental analysis is often used to great effective by so-called “buy and hold” and/or value investors including Excon Fuji Securities.
Fundamental analysis seeks to determine a company’s intrinsic value and, if the current price of a stock is lower than this intrinsic value, it is usually regarded as justification for buying it.
Technical analysis relies on the gauging of a security’s past price action to forecast its future price action. Instead of focusing on the intrinsic value in the way that fundamental analysis does, it concentrates on the actual market prices themselves The factors that might affect those prices are ignored since it assumes that the market has already considered them in the current price.
It attempts to find meaning in the patterns and trends in a chart of price movements which it considers to be a gauge of sentiment toward the stock.
Technical analysis relies on charts since it assumes that all of the company’s fundamentals are echoed by the stock price a sit currently stands. It looks at models and trading indicators and regards volume, momentum, relative strength, moving averages and a whole host of others to predict where prices will go next.