If confidence in a company's stock is perpetually high (Coca-Cola, Walmart), you can assume that investors won't see a relatively high return on their investment. People invest in these kinds of companies because they're confident that the company is a stable investment. The buy low / sell high kinds of companies are investment risks and depending on who you are (or when you buy/sell) you might be happy to see confidence fluctuate! That's the reason …showed first 75 words of 245 total…

…showed last 75 words of 245 total…be lost. It is very easy for the stockholder to lose confidence especially if the industry that company is in isn't doing so well. I believe that financial analysis are very important, although analyzing financial statements can be quite complex. Financial data represent the concrete results of the company's strategy and structure. The analysis of a balance sheet for example can identify potential liquidity problems. These may signify the company's inability to meet financial obligations.