The stock market is based on earnings, both past and present, but more importantly, future expected earnings. So, from a fundamentals point of view, it is important to find companies to invest in that are increasing their earnings. It is worth noting that any company that can maintain annual growth in earnings of 15%, will double their profit in five years. Such growth, you can be assured, will make the company a top performer.

Over the past several years, Ridley has not been in this category. Whilst its main businesses have been going well, stock feed and salt producing, its pig business has suffered very low prices. Upon release of Ridley's latest half year results, one can see a 70% lift in interim net profit.

The chart reflects this. Ridley Corp has now forecast full year net profit to be significantly ahead of the $15 million or so reported last financial year.

Do note the foregoing is not an invitation to buy this stock, merely to educate you to a process of market behaviour.

And whilst the released information has been by the company itself - and lets face it the company is only ever likely to brag about the good news - earnings are forecast to increase, so therefore this gives you a stock to investigate, as we teach in our introduction to the stock market, (fundamentals) class.