| How to Care for a Sugar Glider Posted: 19 Jan 2017 04:00 PM PST Are you the proud new owner of a sugar glider? These little marsupials are sweet, cuddly and very sociable, traits that make them wonderful pets. Sugar gliders are omnivorous, so they need a balanced diet of fruits, vegetables, and protein. They stay in a tall cage with plenty of branches to climb on, but they like to come out and play as often as possible. Learn how to provide a safe and enjoyable environment for your sugar glider. EditKnowing Sugar Glider Basics - Take the time to bond with your glider. One of the most special things about sugar gliders is their need for socialization. Gliders are capable of a lot of love and if you spend time with them and give them respect, they will grow to trust you. Gliders form strong bonds and can become despondent when the bond is broken. Before bringing home a glider and starting the bonding process, make sure you want to keep the glider for its entire lifespan, which could be up to 15 years.
 - Though some breeders will sell single gliders, gliders do much better in pairs or colonies. It's much better to get two gliders if you want them to stay happy and healthy.
- Starting the bonding process is as simple as wearing some fleece squares on your person for a few days, then putting them inside their sleeping pouch. They are very scent oriented and this will help them recognize you as part of their colony.
- Carrying them in a bonding pouch during the day is a great way to bond. They'll mainly sleep and you can coax them into the pouch with treats. Carry them close to your chest and don't let it bounce around too much. This also helps them get used to your scent.
- Give them treats, but not too many. Offer them when you wake them up to put them in a bonding pouch or when you want to play with them. This will help them understand they shouldn't fear you.
- One useful technique for play time is "tent time." Playing with your gliders in a tent allows them freedom to roam without worrying about making a mad dash to catch them before they end up somewhere you can't coax them out of.
- Another great idea if you don't have a tent is "tub time" where you can sit in a clean bathtub with them. Make sure a towel is covering the hole underneath the door, a plug is in the bathtub, and the toilet seat is down.
- Find a veterinarian for exotic animals. Just like dogs and cats, sugar gliders occasionally get sick. Before you bring a pair of sugar gliders home, make sure you have a vet in your area who specializes in glider care. You should bring your gliders in for a checkup about once a year to make sure they're doing well.
- Neutering your male glider is highly recommended unless it has lineage to prevent possible inbreeding if paired with a female. If you have males together, it's still better to have them neutered to help prevent fighting.
- Try to find at least two emergency vets in the area and have their numbers in case something happens.
- Look out for common illnesses that affect sugar gliders. When conditions are right, sugar gliders are relatively low maintenance pets. However, from time to time they may become ill due to lack of essential nutrients, not getting enough playtime, and other causes. If you see signs that your sugar gliders aren't feeling well, take them to the vet right away. Here are the common illnesses that affect them:[1]
- Calcium deficiency, which can cause paralysis and is preventable as long as you feed your gliders the correct diet
- Constipation or indigestion
- Open wounds from getting scratched or caught on a sharp part of the cage
- Parasites like ticks, fleas, or worms
- Obesity due to eating too many fatty foods
- Stress caused by poor socialization
- Connect with other glider owners in your area. It is great fun to connect with other glider owners to share the joy. Plus they can be a great resource when you have to ask questions. There are many forums and message-boards that are glider-related.
- Be careful when you take your gliders outside. Sugar gliders, even when fully bonded, may run off to explore nearby and any nearby animals will be a risk to them. It's not recommend to have them outside unless you absolutely know they'll stay with you.
- Be watchful of other pets and loud noises that might scare them up a tree or into the drain pipe. They are very fast escapees.
- Play with them as often as you can. They are social animals and require a lot of attention.
- Don't stop using all the bonding techniques and keep playing with them even after they're fully bonded.
EditSetting Up a Cage and Keeping it Clean - Buy or build a sizable cage. One amazing qualities sugar gliders have is their ability to spread their legs and glide through the air. In order to do this, in captivity, they need a nice tall cage. Though many breeders will give you a cage with your purchase, it may not be big enough. The minimum cage size for a pair of gliders is high by wide with no more than bar spacing. If you have extra room, the bigger (and taller) the better. There are several sources for cages online, or you can check your local pet store. Many glider owners build custom cages that fit the needs of their household.[2]
- Avoid galvanized steel cages because they can rust and cause urinary tract infections in gliders.
- Make sure the cage is either made with mesh or has horizontal bars that will allow the gliders to climb.
- Check that the wood if safe for gliders, of building or buying a wooden cage. Remember that wood is harder to clean and absorbs odors though.
- Place the cage on a large tray lined with bedding. This is useful for absorbing waste and stray food, and you can easily change out the bedding when it gets soiled. A plastic or metal tray works just fine. Use paper bedding such as CareFresh or other nontoxic bedding available such as yesterday's news cat litter or puppy pads. Change it out once a week or so.
- Only use kiln dried bedding. The oils in other wooden bedding can cause health problems for sugar gliders.
- If you don't want to buy bedding, you can use newspaper or another nontoxic material from around the house.
- Provide a pouch. Sugar gliders are nocturnal, and in their natural environment they sleep in trees. To replicate that experience in captivity, place a wooden birdhouse (made of safe wood such as manzanita or eucalyptus), or a fleece pouch with a slit in the side, Attach it to the side of the cage by using plastic c-links to affix it to the mesh or bars. Be sure any pouches are sewn safely for gliders, with small, hidden seams to keep their nails from catching on it. Many vendors online sell glider safe pouches and cage sets.
- It's important to make sure the nesting box is made from nontoxic materials. A fleece or 100% cotton (outside only) bag is a good choice, or an untreated manzanita, applewood, or eucalyptus bird house is good. It's always good to enhance their lives and buy both.
- Hollowed-out coconuts are another popular choice. Provide more than one to add some variety.
- Add safe branches and toys to the cage. Sugar gliders are intelligent and need an engaging environment. You need to stimulate your gliders' minds with interesting things to look at touch, smell and climb.
- Use eucalyptus branches. Attach them to the sides of the cage to replicate their natural environment, as well as cut down on smell and give them something to chew on.
- Toys can be bought from vendors online, or made from plastic baby toys and chains. Always make sure they are safe though, with no places they could get stuck or pinched.
- Always be sure to have a glider safe wheel, as the ones at pet stores are almost never safe for them. There are a many brands that are safe, of these Raptor wheels and Stealth wheels are most popular. Consider rotating toys and rearranging the elements in the cage on a regular basis.
- Check online for ideas on how to make the best possible habitat for your gliders. Glider forums are filled with great ideas for toys and other interesting things to add to the cage.
- If your gliders are understimulated, they will become depressed. This can lead to long-term health problems.
- Avoid cleaning too often. As sugar gliders are scent oriented, if nothing smells like them they will mark everything even more and make it smell worse.
- Clean the cage itself one week, the pouches the next, and the toys the next. This will help prevent them from over making.
- You can use unscented baby wipes daily to wipe down particularly dirty sections.
- Use a vinegar and water mixture with a few drops of eucalyptus essential oil to clean the cage and toys. The pouches and any other fabric can be washed by hand or in the washer with little to no detergent.
- Check for any loose pieces or seams in the cage, pouches, and toys when cleaning and repair or replace accordingly.
EditFeeding Your Sugar Glider - Provide a healthy diet. Sugar gliders are native to Australia, where they live on a diet of sap, bird eggs, lizards, insects, and other wild foods. Preparing food for sugar gliders is more like feeding animals in a zoo than opening a bag of kibble. There are several diet plans available, such as TPG, BML, or OHPW, which all provide a Step by step guide for feeding gliders. All these diets are accompanied by fruits and vegetables nightly. Be sure to follow them exactly as if you don't you may throw off the ratios. Both help the gliders get the calcium they need to avoid malnutrition and HLP (hind leg paralysis). Do some research online to find one that works for you, add some of them are more strict than others. Never feed gliders pellets as a total diet, while they are okay as a snack or emergency food, they are not a good diet. They have too little protein as well as fillers. [3]
- It may seem as though food prep for sugar gliders will take a lot of time, but once you get the hang of it you can prepare enough food for the whole month in one day. The important thing is to make sure you provide the right ration of protein, sugars, and fats, and ensure your gliders are getting the minerals they need to stay healthy.
- Do not feed sugar gliders dog food, cat food or other foods not meant for sugar gliders. They don't contain the nutritional makeup that sugar gliders need to thrive.
- Keep snacks on hand. Gliders love snacks, and can be a great resource for bonding. One of the favorites is live meal worms, though they are high in fat so feed in moderation. Seeing how much your little guy loves mealies will help you get over the "ick" factor (most pet stores sell plastic tweezers).
- Other snacks include fresh fruit, dried unsulfured papaya, dried unsulfured coconut, yogurt drops, pine nuts (in limited quantities), peas, and "lickey treats" which could be yogurt, applesauce or baby food. (Hawaiian Delight and chicken with apples are favorites.)
- When choosing snacks avoid all artificial sweeteners, colors or other non-natural ingredients.
- Never feed sugar gliders plain sugar, candy, or chocolate, as these will cause health problems. Only white chocolate is safe, any other chocolate is toxic to them.
- Provide fresh water at all times in the cage, and feed them at night. Using a weighted food dish is best or they may tip it over. Keep the water bottle or silo full at all times, but only feed them the specified amount of food each night. You should feed them at night around the time they wake up, and then take out the dish and any leftover food in the morning.
- You can leave a tablespoon of glider cereal, sold by The Pet Glider, in their cage during the day in case they wake up and are hungry.
EditLearning the Truth about Common Misconceptions - Sugar Gliders do not need heat lamps or heat rocks. They are able to regulate their body temperature like we can.
- During the winter, consider using a space heater in the room with them and providing a cage cover or small fleece squares in their sleeping pouch as blankets.
- Know that they need a specialized diet. They are exotic animals with specific nutritional needs, and not having a balanced diet can cause illness and eventually death.
- Pellets should not be a part of their diet. While it is find for a snack or emergency food, this should not be a main part of any glider's diet.
- Sugar Gliders can and will breed with their relatives. This can cause birth defects or disorders in joeys, and can cause the parents to cannibalize them.
- If your gliders do not have lineage proving they are not related, you shouldn't breed them.
- If you have two males together they should be neutered as this helps prevent fighting.
- Know that they need companions. They are very social colony animals, and without other gliders they get depressed and will self-mutilate. It is not healthy to have only one.
- They can over groom and pull out small tufts of fur, they may stop eating or running in their wheel and sometimes they may even start chewing on their tails which can lead to the tail having to be amputated.
- Even if you spend a lot of time with a lone glider, you can not speak their own language, you can not cuddle together with them in their sleeping pouch during the day, you can not groom each other like gliders do. They need cage mates.
- Refrain from buying from Malls, Fairs, or Flea Markets. These places are very similar to a puppy mill. They often sell underage and sometimes even sick sugar gliders. They charge too much compared to what you'd pay a breeder or for a rescue. They also usually sell unsafe and even dangerous supplies like leashes, wire or wodent wheels, tiny cages, etc. These people usually push a pelleted diet, as well.
- Consider adopting or rescuing. Many people purchase gliders as "impulse buys" because they are very cute, then come to regret the decision when they realize how much work is required in caring for them. You can usually find at least a few locally on Craigslist or Sale groups on Facebook. They will normally be much cheaper than buying joeys from a breeder.
- Also consider buying from a reputable breeder. They will charge less than a Mall, Fair, or Flea Market vendor, but usually more than a rescue or adopting.
- Make sure to watch your glider, if you let them out around your house, because they could get lost or stuck.
- Sugar gliders are marsupials, not squirrels. Do not feed your glider nuts.
- Consider adoption. Many people purchase gliders as "impulse buys" because they are very cute, then come to regret the decision when they realize how much work is required in caring for them. Adoption will often require a bit of additional work to establish a bond and build trust, but is very worthwhile.
- Check to make sure sugar gliders are legal pets and not classified as exotics in your area. They are sometimes called "pocket pets."
- Make sure you have a big enough cage for your glider to spread.
- A frightened glider will bite, but it will be more of a pinch then a bite. Don't try to keep doing what ever frightened it.
- Limit fruit intake and don't serve it any grapefruit. Too great a quantity of acid containing foods can kill them.
- Plastic bags terrify gliders. No one has a definite why, but your glider will freak out if it hears them.
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| How to Get Wider Shoulders Posted: 19 Jan 2017 08:00 AM PST Wide shoulders are a desirable physical trait for many men. However, it can be difficult to get this kind of physique. If you are interested in building up your shoulder muscles with strength training exercises, then there are several great exercises that can help to target your shoulders. If you just want to get the look of wider shoulders without the work, then you can also try wearing certain types of clothing to make your shoulders appear wider. There are also some lifestyle changes that might help, such as improving your posture, losing weight, and building up your confidence. EditUsing Strength Training - Try partial side laterals. One good exercise for building up your shoulder muscles is the side lateral raise. However, it can be hard to do a full side lateral raise with heavy weights, so doing partial raises is a good alternative.[1]
- To perform this exercise, hold some heavy dumbbells in each of your hands and place your arms against the sides of your body.
- Then, raise the dumbbells up as far as you can. This should feel pretty difficult and you should not be able to raise them up all the way to your shoulders. If you can, then your weights are not heavy enough.
- Do three sets of 6 to 10 repetitions.
- Perform upright rows with a wide grip. Upright rows are also great for building wider shoulders. By performing upright rows with a wide grip, you can work the muscles on the outer edges of your shoulders and this may make it easier to widen your shoulders.[2]
- To perform upright rows, sit on the seated row machine and grasp the outer edges of the bar with your hands.
- Perform the exercises as usual, pulling the bar straight back. Make sure that you use enough weight to challenge yourself.
- Do three sets of 6 to 10 repetitions, or as many as you can do before you can't do any more.
- Do shoulder shrugs. Shrugging your shoulders with weights in your hands is another great way to build up your shoulder muscles. Hold a dumbbell in each hand and then hold the dumbbells down at your sides. Then, begin shrugging your shoulders.[3]
- Do as many repetitions as you can. You may want to do three sets of 10 reps to start.
- Try some rear deltoid raises. You can also work your rear deltoids to increase the width of your shoulders. These are similar to side deltoid raises, but you perform them while bent over.[4]
- To do rear deltoid raises, bend over so that your back is parallel with the ground.
- Get a dumbbell in each hand that is heavy, but not so heavy you can't lift it more than a few times.
- Then, begin raising the dumbbells out and away from your body until they are almost parallel with your back.
- Do three sets of 8 to 10 repetitions on each side.
- Perform front deltoid raises. You also have deltoid muscles in the front of your shoulders, which you can work by performing front deltoid raises. Stand with your feet shoulder width apart and hold a dumbbell in each hand.[5]
- Starting with your hand close to your body, begin lifting the dumbbell upwards and in front of your body.
- When the dumbbell is about at shoulder height, begin to lower it slowly back to its starting position.
- Do three sets of 8 to 10 repetitions on each side.
- Do overhead presses. Pressing weights overhead will also help you to add bulk to your shoulders and make them look wider. Start by standing with your feet shoulder-width apart and holding a dumbbell in each of your hands.[6]
- To do the exercise, press the dumbbells straight upwards above your head and then bring them back down slowly.
- Do three sets of 8 to 10 repetitions.
- Try wide-grip pull-ups. If you want to work with your own body weight, then doing pull-ups is a great option. Pull-ups will work your shoulder muscles along with your arm and back muscles at the same time. Using a wide grip will enhance the shoulder work as well.[7]
- Grasp a pull-up bar with your hands a little wider than shoulder-width apart. Then, pull your body weight upwards until your chin reaches the bar. Do as many pull-ups as you can.
- If you can't do regular pull-ups yet, then you can try doing assisted pull-ups with a machine. Most gyms have one of these machines. They use weights to counter your body weight and make the pull-up a little easier.
- Perform pike-style push-ups. Push-ups also use your body weight to work your upper body and core muscles. However, you can target your shoulder muscles more intensely if you do pike-style push-ups.[8]
- To do pike-style push-ups you will need a weight lifting bench or a sturdy chair. Get into the push-up position in front of the bench or chair and then put your feet up on the chair.
- Use your hands to walk your upper body back towards the chair until you are in the pike position, which is similar to a headstand, but with your feet on the bench or chair. Your body should be bent at the waist.
- To do the exercise, lower your face down towards the ground by bending your arms. Then, when you are close to the ground, raise yourself back up.
- Repeat this exercise 8 to 10 times and do three sets.
EditDressing for Wider Shoulders - Wear shoulder pads. Shoulder pads are a classic solution to narrow or small shoulders. Some clothes come with built in shoulder pads, such as blazers and coats.[9] You might also be able to get away with putting shoulder pads on under a thick sweater.
- Be careful not to overstuff with shoulder pads or they will look too obvious.
- Choose clothing that fits well. Baggy clothing can actually make your shoulders look narrower, so it is best to avoid it. Instead, choose clothing that fits you well, such as fitted jeans and shirts.[10]
- It is especially important to choose clothing that is fitted around your waist because this can help to create the V-shape that makes your shoulders look wider.
- Try some horizontal stripes. Wearing horizontal stripes across your chest and shoulders can also make your shoulders look wider. Try wearing a sweater that has a stripe or two going across the chest and/or shoulder area.[11]
- Opt for white shirts. White can make you seem like you have wider shoulders as well by making the top half of your body appear larger.[12] Try wearing white dress shirts and t-shirts to see if this enhances the size of your shoulders.
- Dress in layers. You can take advantage of the effects of layering your clothes in the winter to give the look of wider shoulders. Try wearing a sweater over a long sleeved shirt, or layer a t-shirt over a waffle shirt.[13]
- You can also try wearing two or three t-shirts in warmer weather to create this effect. However, make sure that the collars or sleeves of the other shirts don't peak out or it may look odd. Wear a larger shirt over the others to hide the edges.
EditMaking Lifestyle Changes - Lose weight if you are overweight. Carrying extra weight around your waist can make your shoulders look smaller in comparison. Along with sculpting your shoulder muscles, try to lose weight to decrease the circumference of your waist. This will help to create a V-effect and make your shoulders look wider.[14]
- To lose weight, you will need to reduce your overall caloric intake so that you are eating fewer calories than you burn. Try keeping a log of everything you eat to determine how many calories you consume and cut down as needed.
- Fill up on non-starchy vegetables, such as green beans, cauliflower, peppers, and zucchini to help reduce your overall caloric intake. You can also replace fatty proteins with lean proteins, such as skinless chicken, turkey burgers, tofu, and egg whites.
- Stand up straight. Good posture can make you seem thinner and enhance your shoulders at the same time.[15] Stand up straight with your chest out and shoulders back to make them look wider.
- Throughout the day remind yourself to correct your posture, such as by placing a note on your desk or by setting an alarm on your phone.
- Work on your confidence. Exuding confidence can affect the way that people see you. Being confident is also helpful for feeling good about yourself. If your confidence is low, then work on building it up so that you can look and feel your best.[16]
- Try writing yourself a letter from the perspective of someone who care about you and wants to boost your confidence.[17] What would that person say? Which of your strengths might he/she point out? After you write this letter, try reading over it once a day to help boost your confidence.
- Before you attempt any exercise program, it is advisable to consult your physician.
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| How to Research a Stock Posted: 19 Jan 2017 12:00 AM PST Researching a stock is an essential step before making an investment. If your investments are not informed by a solid research process, you could subject yourself to risks that would have otherwise been avoidable. A solid research process involves first learning the basics of the business, including what it does and how it makes money, as well as the economic environment it operates in. Then, it is a matter of delving into the finances of the business to determine its profitability, safety, and how it compare to its peers. EditResearching the Industry - Look for basic industry information. Start by figuring out specifically what industry your chosen company is in. Industries are split up into categories by the North American Industry Classification System (NAICS). These are numbered categories and refer to a broad industry within the North American economy. NAIC's numbers can be found easily online.[1] Then, do research to assess the size of the industry. Look for annual industry revenues and the number of companies in the industry. In addition, find figures on industry growth, including annual percentage growth and growth in the number of companies.
- Find out which companies hold the largest market shares. In order to assess the company, you will need some basic information on its competitors. Start by obtaining a Standard & Poor's Industry Survey for the company's industry. This report contains financial information for the largest companies in the industry and ranks them by size. You can also get historical industry surveys going back to 1971. This information can be obtained on the S&P Global Market Intelligence website.[2]
- Research regulatory issues. Look for any barriers, trade agreements, regulatory rulings, or other government decisions that might be affecting the industry either now or down the road. These regulatory rulings can be either positive or negative in their effects on an industry or specific companies. Look for regulatory news on market websites like the Wall Street Journal and Bloomberg.
- Assess future trends in the industry. Look into industry growth, trends, and expectations for the future. For example, consider any new products or types of products that might transform the industry in the coming years. Or, perhaps the industry is shrinking as another slowly replaces it. Look for consolidation or expansion in the number of companies in the industry. How these factors affect your chosen company can vary dramatically, but it is important to understand what's going on in the industry.
EditUnderstanding the Company - Learn what the company does. The first step to researching any company is to find out precisely what the business produces, and how it makes money. For example, assume you have heard good things about a particular fertilizer, and you are interested in investing in the company that makes it. You would want to familiarize yourself with the types of fertilizer it produces, who the typical customers are, and if there are other other products or services the business provides.
 - The best way to begin this process is by visiting the "Investor Relations" section of the business's website. Once there, most businesses have a "Corporate Profile" or "Company Snapshot" document that provides a general overview of the business.
- After you have read that, look for the "Investor Presentations" section on the Investor Relations page. Every quarter, as well as annually, many publicly-traded companies create a Powerpoint slideshow for investors. These slides not only provide an overview of the business, but also describe new developments, challenges, and results.
- These documents should give you a solid overview of the business. Expect that there will be parts of the documents you do not understand. When you encounter terms or concepts you don't understand, do a Google search to better familiarize yourself.
- Documents prepared by the company reflect facts and interpretations by management and are skewed to be positive. It is best to have a healthy skepticism of the information presented in these documents.
- Read expert commentary on the business. There is never any shortage of expert commentary on businesses, and reading what analysts and other experts have to say can help you to understand some of the major risks and rewards of buying a particular business. Look for consensus among analysts: is there a general belief that the stock has a positive outlook?
- Stockchase.com is a useful resource, which lists a variety of analysts' opinion on a stock, along with their recommendation whether to buy, sell, or hold.
- However, you should also seek to understand the reasons behind the recommendations. Analysts often have an ulterior motive for their recommendations; few ever give a sell recommendation.
- Your online broker typically has a research section as well, which will provide you access to free analyst reports on the stock you are interested in.
- Yahoo Finance and Google Finance also offer plenty of articles highlighting recent news on stocks, as well as insights by analysts. You can search your particular stock of interest.
- Doing a Google search of the company can also yield plenty of articles and opinions.
- Inform yourself on the macroeconomic outlook for the business. While "macroeconomic outlook" may sound complicated, it simply refers to the fact that the business you are interested in does not exist in a vacuum, and bigger economic forces could affect its performance.
- For example, you may be interested in buying a coal stock. However, coal prices have recently fallen dramatically due to the fact that the world's largest buyer of coal, China, is seeing a permanent decline in its economic growth.
- Being aware of the grim outlook for coal prices before you buy the stock is critical, since the business's profits are determined largely by how expensive coal prices are.
- Reading company reports, as well as news and analysis on the business, should let you know if there any major economic factors that are affecting and will continue to affect the company's performance.
- If you are investing in a commodity-based stock (a stock that sells things like oil, coal, copper, gold, zinc, natural gas, etc.), it is very important to look at what the price outlook for these products are.
- Assess the company's competitive advantage. Competitive advantage refers to a quality of a company or its products that allows it to earn money more easily than its competitors. For example, if a company is able to produce a similar-quality product to its competitors' products at half the price, its low price is a competitive advantage. Competitive advantages can include many other attributes as well, such as good customer service, a patent, a unique product, or a better distribution network. Companies with sustainable competitive advantages are likely to continue to experience growth in their share price.[3]
- Judge the company's management. A company's management has a critical impact on stock price performance. Assess the current management of the company for experience in the industry and past successes. In addition, look at dividend policies. A company that pays dividends should do so regularly and at regular (or increasing) amounts. Finally, look for positive employee relations. A company that cannot retain employees likely has other internal management issues.
- Decide whether the business is a potential investment. By reading company reports, analyst opinions, news articles, and learning any economic risks, you can likely come to a conclusion about whether it is worth moving on to the next stage of research.
- If the business is facing many challenges, there are major economic pressures, and analysts seem to agree the outlook is poor, it may be worth it to consider moving on to a new investment option.
- While it is often true that distressed companies or companies with a large amount of negative opinion from analysts can turn out to be great investments, these are often much higher risk options and are not suitable for new investors.
- If the company is in a stable industry, has been performing well, and does not have any major economic or operating risks, continuing to consider the company is a wise choice.
EditPerforming Fundamental Analysis on the Business - Understand fundamental analysis. Fundamental analysis refers to analyzing the financial information of a business to gain insight on what its future performance might be. Technical analysis, on the other hand, is stock price centered and uses past price movement data to predict future price movements. Technical analysis is used for short-term trading, while fundamental analysis is used when someone intends to become a long-term owner of the company. The ability to perform fundamental analysis is an essential skill to determine the merits of a particular investment.[4]
- Understanding fundamental analysis means understanding what it is not. Fundamental analysis is not concerned with the company's stock chart, recent movements in price, or how the stock price has performed over a particular time period.
- Fundamental analysis is concerned with the business itself. That is to say, if revenue is growing, how profitable the company is, how much debt it has, and how able it is to compete with its peers.
- The analysis concerns the three past and present financial documents: income statement, balance statement, and cash flow statement.
- Look at the company's revenues. A company's revenues are simply the total amount of money the company brings in before subtracting the company's expenses. Looking at revenues over several years can give you an idea if the business is growing, shrinking, or has remained stagnant.
- To locate a company's revenues, consider using morningstar.com. Simply visit the website, type in the stock you are interested in, navigate to "Financials," and then click "Income Statement." At the top, you will see the company's revenues going back 10 years.
- Ideally, you are looking for revenues that are stable and rising. Wild swings up and down year-to-year can indicate the business is in a very competitive industry.
- Examine the company's gross profit margin. Gross profit is calculated by taking the company's revenues and subtracting the raw costs and labor used to make the goods that were sold. When you take this number and divide it by total revenues, you get the gross profit margin.[5]
- For example, if revenue is $1 million, and gross profits are $500,000, $500,000 divided by $1 million is 50%. The gross profit margin would be 50%.
- You can examine gross profit margin on morningstar.com
- You should look for both high gross profit margins and stable gross profit margins. A good rule of thumb is that a consistent gross profit margin over 40% is considered very strong, whereas margins under 10% indicate the business may be in a highly competitive industry and lack the ability to set high prices, or has very high costs. Note that margins vary by industry, so you should always compare margins to competitor companies.
- Look at the company's debt. High levels of debt is a bad sign. It means the company has high interest expenses, and that the company is unable or unwilling to fund its growth with its own money. However, some companies may obtain high amounts of growth by using a large amount of debt to finance their operations, rather than relying on investors. This is called using leverage and increases both potential profits and risk. [6]
- The debt-to-equity ratio is one way to determine how much debt a company has. This measure simply divides debt by the company's shareholder equity. This helps compare how of the business is owned by debt compared to by shareholders. The lower the number the better.
- A debt-to-equity ratio of two means that the the business has two times the amount of shareholder equity in debt.
- Leverage can be good or bad, but high leverage must be sustained by stable earnings. Utilities and insurance companies for example are usually highly leveraged.
- Analyze return on equity (ROE). Return on equity simply determines what kind of profits a company is generating with its shareholders' money. It is calculated by dividing a company's profit by the company's shareholder equity (or how much of the overall business shareholders own as opposed to creditors). You can use morningstar.com to see return on equity.[7].
- Equity is found on the Balance Sheet.
- Returns on equity above 10% are generally considered strong, but it is important to compare your company's return on equity with its peers. For example, if you are considering purchasing McDonald's shares you may find its ROE is 10%. Comparing that to Wendy's ROE of 5%, McDonald's has a relatively high ROE.
- Examine the company's earnings growth. In investing, high levels of earnings growth means high levels of share price growth. It is for this reason that looking at past and future growth is important. Note that earnings are synonymous with profits.[8]
- You can see past earnings growth over time on morningstar.com by looking at "Net Income," or "Earnings Per Share." Net income is the company's profit, and earnings per share is simply the net income per share. Check to see if earnings grow steadily over time, or if they are declining. Stable, growing earnings are ideal.
- Many analysts compare EBITA rather than net income since the latter can be affected by external factors and management's decisions. It is also important to be consistent when looking at past earnings of the same company or comparing earnings of divergent companies.
- Future growth is always an estimate, but you can find these estimates using Yahoo Finance. Is a company's future growth higher than its competitors? If so, it may be a good buy, especially if all the other areas check out.
- Determine the company's price-to-earnings ratio (P/E ratio). The P/E ratio is a way to value a company. That is to say, it helps you determine how much you are paying for a dollar of the company's profits by dividing the share price by the earnings per share. If you are paying much more for a dollar of the company's profits than you are for a dollar of its competitors' profits, the stock is seen as being "expensive."
- For example, assume the company's share price is $100 per share, and its earnings are $5 per share. The P/E ratio would be 20. In other words, you are paying $20 for $1 of the company's profits.
- If all the company's peers have a P/E of 10, your company is considered expensive.
- Generally, you want to buy stocks with lower P/E ratios. This means you are getting a good deal for the stock, and may mean the stock is worth much more.
- Compare a company with its peers. Once you have analyzed the stock fully and determined its P/E ratio, it is time to compare the company to its peers. Generally speaking, you are looking for companies that outperform their peers on the factors mentioned above, while having a lower P/E ratio.
- For example, assume company X has gross profits of 40%, a return on equity of 12%, and steady earnings growth for the past 10 years, while having a P/E of 15. If company Y has gross profits of 40%, a return on equity of 8%, volatile earnings, and a P/E of 16, you would want to buy company X. This is because you are getting a better business for a lower price with company X.
- You can locate a list of a company's competitors on morningstar.com or by doing a Google search.
- Remember that no stock is guaranteed. You will always be subjecting yourself to risk when speculating on stocks.
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