Financial Analysis for Adelaide Brighton Company- myassignmenthelp

Question: Discuss about theFinancial Analysis for Adelaide Brighton Company. Answer: Two significant piece of information to be considered for investing in Adelaide Brighton Company not included in the principal financial statements: There are certain factors that need to be taken into consideration for investing in the shares of Adelaide Brighton Company. However, two significant piece of information that could be taken into account, which are excluded from the principal financial statements, are depicted briefly as follows: Competitive advantage: Competitive advantage is a significant business consideration for the investors. The long-term success of an organisation is driven largely by its capability to maintain competitive advantage along with keeping the same (Lim, Soutar Lee, 2013). The powerful competitive advantage like the brand name of Adelaide Brighton Company and domination in the cement industry of Australia around the business form a moat enabling it to keep the rivals at bay along with enjoying growth and profits. Thus, achievement of competitive advantage could reward the associated shareholders and investors of Adelaide Brighton Company for decades. Open interest on option chains and news: The investors planning to invest in the shares of Adelaide Brighton Company need to look at the open interest on option chains to find out the number of people planning to purchase and sell the stocks. In addition, they need to evaluate the buying price and selling price of the stock carefully. This primarily serves as opinion poll on the expected performance of the stock (Obamuyi, 2013). In addition, if the stock of Adelaide Brighton Company is on the news constantly, the investors might think of avoiding the stock. The stock price would often depict the perception of the stock from the perspective of the investors. However, this might not be a correct valuation of Adelaide Brighton Company. Hence, the investors need to obtain an insight of the insider activity for obtaining a clear picture of the stuffs happening within the organisation. References: Lim, K. L., Soutar, G. N., Lee, J. A. (2013). Factors affecting investment intentions: A consumer behaviour perspective.Journal of Financial Services Marketing,18(4), 301-315. Obamuyi, T. M. (2013). Factors influencing investment decisions in capital market: A study of individual investors in Nigeria.Organizations and markets in Emerging Economies,4(1), 141-161.