Fundamental analysis (Part 1)

The fundamental analysis is based on investing. It helps you to determine the status of a company exploring a number of factors such as income, profitability, liquidity and other factors. Of these "foundations" investors calculate whether the stock price of a company are over or undervalued.
Fundamental analysis can be applied as an individual commodity, and in the context of large companies. Explores questions such as: Is the company is competitive in its industry? This industry expands you or shrinks in comparison to other sectors?
Companies with strong fundamentals tend to rise, as fundamentally weak companies will see their share prices to fall. This makes fundamental analysis especially valuable for the long-term investors.