Value Investing with Stock Market Analysis Software – MyClime

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Published: 24th August 2011
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Different sources define value investing differently. Some say value investing is the investment philosophy that favors the purchase of stocks that are currently selling at low price-to-book ratios and have high dividend yields. Others say value investing is all about buying stocks with low P/E ratios. You will even sometimes hear that value investing has more to do with the balance sheet than the income statement.



Value investing is one of the two major investing strategies, the other is growth investing. The strategy is very simple ‘invest in good stocks having low prices'. The profit comes when the market realizes that the stocks are good and when the prices go up. But in reality, value investing is a hard strategy to master. The hardest part is finding undervalued and underestimated stocks with good fundamentals.



Good fundamental analysis is the first and topmost important process in the value investing strategy; and often the profitability solely depends on this. Investors should put their money only on stocks having very good fundamentals like good past earnings, intrinsic worth, book value, price to earning (P/E) ratio, cash flow, dividends, and good asset to liability ratio. Moreover, the growth and performance of the company is also important. It is also better to monitor the market trend and timings as entering a trade in market bottom can definitely boost the earnings.



Deep value investing is an extreme value investing strategy where investors look for very low priced stocks. They mostly invest in sunset company stocks, stocks of companies in which others show little or no interest. Deep value investing is a more complex process than value investing as the traders need good technical analysis skills in addition to the fundamental analysis skills.



Both value and deep value investing strategies have high profitability and high risk. Both need good investing knowledge, analysis skills and extreme money management. In fact, deep value investing strategy should be very carefully implemented with good diversification and risk-minimizing tools.



MyClime is innovative stock market analysis software that gives Australian share market or value investors all the information they need to accurately access stocks. The services at MyClime have been designed with value investing at it’s core. As value investors, Myclime believes that a company’s performance creates the value, the price creates the opportunity. Visit MyClime.com.au to use the world’s most rational and robust stock market analysis software for value investing.

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