The document provides information on investment analysis, including definitions, methods, and concepts. It discusses two main types of analysis: fundamental analysis and technical analysis. Fundamental analysis examines basic company data like earnings, sales, and financial statements to determine a stock's intrinsic value. Technical analysis uses historical market data like prices and trading volumes to identify patterns that can predict future price movements. The document also covers the efficient market hypothesis, which proposes that stock prices reflect all publicly available information.

1. INVESTMENT
ANALYSIS

2. INVESTMENT ANALYSIS
Definition :
 defined as the process of evaluating an
investment for profitability and risk,
ultimately has the purpose of measuring
how the given investment is a good fit for
a portfolio.

3. INVESTMENT
ANALYSIS METHOD

4. Investment
Analysis Method
Fundamental Technical
Analysis Analysis

5. FUNDAMENTAL
ANALYSIS

6. 1. FUNDAMENTAL ANALYSIS
Definition
 The study of the stock value using basic data such as
earnings, sales and others.
 This basic state any securities have intrinsic value. In
equilibrium stock prices reflect the intrinsic value of the
stock.
 An investor who has a good fundamental knowledge can
make a profit from the difference between the market
price and intrinsic value to move quickly before the
market price aligned with the correct information.

7. Fundamental
Analysis
a)
Market / c)
Economic Company
Analysis Analysis
b)
Industry
Analysis

8. A) MARKET/ ECONOMIC
ANALYSIS
 This analysis will examine the general economic, with
emphasis on variables that affect the economy of a
country in a given period.
 These variables can affect the aggregate economy and a
significant impact on vested industry and company. Thus
any developments that are likely to occur can affect the
movement of share prices on the stock exchange.

9. B) INDUSTRY ANALYSIS
 This analysis is known as sector analysis
because it examines the industrial sector in
a certain period.
 In an analysis of industry needs to know
the life cycle of industry analysis. The
analysis must identify the period in which
the company is located.

10.  There are 4 stages in the industry life cycle.
i. Pioneer stage (innovation)
 At this stage of rapid growth in demand occur, especially among the
nature inovatif.
 With the sales levels continue to increase with high growth rates. At
this time there are also interesting opportunities outside the
company to compete. Weak companies will be excluded at the
outset. However, analysis are still having problems to identify
companies that are able to survive in the industry.
ii. The development stage
 At this stage is a high level of sales growth rate this time moderate.
 The industry improve product quality and try to reduce prices. More
stable market conditions and strong seta can attract more investors
into the industry.

11. iii. Level Stability / Maturity Stage
 This stage show is still high level of sales but a lower
growth rate. All products and less innovative over standard
among manufacturers. At this time there are many
competitors in the market and cost are stable or nearly the
same.
iv. Stage Fall
 At this stage most of the companies suffered a decline in
sales levels that cause the company's revenue also fell and
may result in losses. Most companies out of the market.
However, companies are still in the market are companies
with loyal customers.

12. C) COMPANY ANALYSIS
 Detailed analysis of the company made ​with the internal
and external aspects.
 To study the structure of the internal aspects of the
organization of a particular company board of directors,
key areas of business, subsidiaries, associated companies
and business records.
 Final objective of the analysis is to find the intrinsic value
of the company. This intrinsic value is compared with the
value of the stock market as a basis for making investment
decisions.

13.  Intrinsicvalue of the information derived from
the financial statements of the company that
provides financial data of the company.
 Balance Sheet shows the position of the assets
and liabilities of the company.
 Statement of income to evaluate the performance
of management and to estimate the future
profitability of the company.

14. TECHNICAL ANALYSIS

15. 2. TECHNICAL ANALYSIS
Definition
 Technical analysis is a method of evaluating
securities by analyzing the statistics generated by
market activity, such as past prices and volume.
 Technical analysts do not attempt to measure a
security's intrinsic value, but instead use charts
and other tools to identify patterns that can
suggest future activity.

16. DOW THEORY
 Dow Theory was created by Charles H. Dow in
1921.
 It concluded that the stock price in the market as
a whole does not move at random but influenced
by three cycles and price movements, namely: -

17. 1. Primary Movement
 Cyclical price movements for a few years, that
early - first year and at least three years. It involves
long periods of time.
 Usually the development of the rise is longer than
the development of the decline.
 Upward movement show the market 'bull' and
downward movement show the market 'bear‘.

18. ii. Secondary Movement
 Cyclic secondary movement for several months, that as early -
first six weeks and at the latest of six months.
 It acts as a force to improve the deviation occurs in the primary
cycle.
 It appears because of the correction in the primary cycle of
falling prices due to current market prices lifted or when the
market plunged.

19. iii. Small Movement/ Daily
 Daily movement is occurring randomly.
 It is cyclic for a few hours to a few days.
 Cycle effect is not as felt by investors as relatively
short duration and of no importance to the technical
members in making predictions.

20. TECHNICAL INDICATION
i. The Advance Decline Line
 Fluctuation line is the net difference between the number of stocks
experiencing price increases with the number of shares of the price
decline by subtracting the number of shares up to the number of shares to
come down in price.
 These calculations are made ​using cumulative data. The results obtained
are plotted in order to form the line on a daily or weekly basis.
 These lines are compared with the average line to indicate whether the
stock market indicator movement is also experienced by the market.

21. ii. Moving Average
 Moving Average is calculated by determining the number of
such average closing price for 200 days, 30 weeks and so on.
 The new calculation is made by adding one day and the first to
drop one day to the next. This calculation is made over and
over and the figures are plotted to form the moving average
line.
 Moving average price compared to the market to decide
whether buying or selling.

22. iii. The New High Price Low
 These market indicators could reflect either bullish or
bearish market.
 Market is considered bullish if there is a number of
shares of a new show the highest price significantly
over 52 weeks.
 Instead the market is weak if there are only a few
stocks only the highest price of a new show.

23. iv. Transaction volume
 These market indicators also reflect bullish or bearish market.
 High transaction volume as a whole shows the market is bullish. This condition
is stronger if followed by an increase in price.
v. Mutual Fund Liquidity
 Market conditions have a direct relationship with this liquidity ratio. The higher
the liquidity ratio of the market is bullish.
 High liquidity ratio shows potential purchasing power and its stock price will
rise.
 On the other hand if the liquidity ratio is low potential purchasing power also
lower and its market will be fall.

24. vi. Others Technical Indication
 Contrary Opinion
 Short Interest Ratio

25. CHARTS
1. Bar Charts

26.  Prepared by plotting a bar chart of daily share
prices over time. Every day stock price movements
drawn vertically, the upper part shows the highest
price, the bottom shows the lowest price, while a
horizontal line marked showing the closing price.
The underside of the bar chart shows the daily
sales volume. Technical members to use a bar chart
to see patterns and charts are used to forecast
future price movements.

27. 2. Point and Figure Charts

28.  The chart is prepared by plotting stock prices suffered a
significant price change. Transaction volume is not shown in
the chart. Horizontal line shows the time but according to
calendar time is not important. The symbol 'X' and 'O' is used
in the above chart. 'X' indicates an upward price movement.
Signs 'O' show downward price movement. All the 'X' or 'O'
represents the value of Rs 1, Rs 2, Rs 5 and so on depending on
the value of the stock price changes. The 'X' and 'O' only
recorded when a certain amount of price movement.

29. 3. Relative Strength Index

30.  Relativestrength index is the ratio of stock prices to a
market or industry index or ratio compared to the
average share price of the stock price. This ratio is
plotted over time. This line shows the strength of the
stock relative to the foundation selected as industry,
market and so on.

31. EFFICIENT MARKET
HYPOTHESIS

32. CONCEPT OF EFFICIENT MARKET
HYPOTHESIS
Definition
 Efficient market hypothesis is the market in which
security prices fully described all known information
quickly and accurately.
 It is key to the determination of share prices in the
market.

33. CONDITIONS THAT CREATE
EFFICIENT MARKETS
 There are many investors who are rational and
seek to maximize profits and is actively involved
in the market.
 Information can be easily obtained without any
restrictions or conditions that make it difficult
for a person to get information.

34.  Information can be obtained at random where the
announcement was made independently. This means
that all announcements made by the company should
be done when necessary, without any connection with
the announcement made by other companies.
 Investors
respond quickly and fully to new
information in the market and cause the stock price
quickly adjusted in line with the new information.

35. THE TYPES OF INFORMATION
 Past information
This is information that is relevant to the valuation of
shares by analyzing past market price data.
 Public information
This is information about a company, the industry and
the world economy can be obtained through a public
announcement.
 Internal information
This information is only held by a few individuals who
have a position in a company.

36. FORM OF THE EFFICIENT MARKET
 Weak Form
It states on the share prices already reflect all kinmi time stock
quotes ago.
 The Semi-Strong Form
It states that stock prices reflect all information that has been
around or known. information include stock prices, accounting
reports, economic data, company earnings announcements and
other information relevant to investors in the valuation of a
company.

37.  Strong Form
It states that stock prices reflect all information either has
been announced or yet to be announced. This means that
the information has yet to be announced can also be
absorbed by the market as reflected by the market price
of shares

38. THANK YOU…