Ken:
I generally agree with all that is said. I also prefer 4 or so well researched stocks, to a more diverse portfolio. I am in NZ, and spread stocks in different industries between Australia, NZ, Canada and Norway.
Because my holdings are longer term than some (6mths - 5 years) even when the technicals / charts look positive, I then talk with staff and, if possible, visit sites. An alternative to visiting is to look in the local magazines (ie at a community newpaper level), particularly with the smaller companies.
Locals are often very well tuned in to the small companies, the credibility of the board members, its ability to pay debts on time (a surprisingly good indicator of a well run company, at a time when there are plenty of mining companies who are unlikely to be able to fund exploration or undertake the work required to actual mine anything) and whether they know what they are doing.
I also check public records. For example, with mining stocks, I check the licence / tenement applications databases in the regions. Often, the companies public the licences granted, but not those that they have applied for but have not been granted.
I also consider geo-political issues. A current (and easy) example, is WA. If your investing style is short term then, given the current premier, uranium licences in that region may be of limited use. In the longer term, perhaps it is less of an issue.
Can I suggest care with companies whose board and ceo have been reserved substantial options (say 25% or greater of the total shares) exercisable for for substantila discounts (ie less than 50% of the shre price at the time of grant). It show a lack of shareholder focus and has a significant dilution, and depression, effect.
The Weinstein analysis is a simple and sometimes effective method that I see some use (for shorter term trades) and you can but the book on that and find plenty of free information on line.
If you want a free, and good, charting program, then I commend www.bigcharts.com.
I think that the trick is not picking a good stock, of which there are acutally quick a few, but timing the purchase. That is why I am happy to by on good fundamentals and at an undervalue, and wait for a breakout. If the fundamentals are good, the downside risk is also more limited and, even with the best research, shares can always go down.
I generally agree with all that is said. I also prefer 4 or so well researched stocks, to a more diverse portfolio. I am in NZ, and spread stocks in different industries between Australia, NZ, Canada and Norway.
Because my holdings are longer term than some (6mths - 5 years) even when the technicals / charts look positive, I then talk with staff and, if possible, visit sites. An alternative to visiting is to look in the local magazines (ie at a community newpaper level), particularly with the smaller companies.
Locals are often very well tuned in to the small companies, the credibility of the board members, its ability to pay debts on time (a surprisingly good indicator of a well run company, at a time when there are plenty of mining companies who are unlikely to be able to fund exploration or undertake the work required to actual mine anything) and whether they know what they are doing.
I also check public records. For example, with mining stocks, I check the licence / tenement applications databases in the regions. Often, the companies public the licences granted, but not those that they have applied for but have not been granted.
I also consider geo-political issues. A current (and easy) example, is WA. If your investing style is short term then, given the current premier, uranium licences in that region may be of limited use. In the longer term, perhaps it is less of an issue.
Can I suggest care with companies whose board and ceo have been reserved substantial options (say 25% or greater of the total shares) exercisable for for substantila discounts (ie less than 50% of the shre price at the time of grant). It show a lack of shareholder focus and has a significant dilution, and depression, effect.
The Weinstein analysis is a simple and sometimes effective method that I see some use (for shorter term trades) and you can but the book on that and find plenty of free information on line.
If you want a free, and good, charting program, then I commend www.bigcharts.com.
I think that the trick is not picking a good stock, of which there are acutally quick a few, but timing the purchase. That is why I am happy to by on good fundamentals and at an undervalue, and wait for a breakout. If the fundamentals are good, the downside risk is also more limited and, even with the best research, shares can always go down.
Basically, I'm still the amateur looking for the excitement of the chase, although I should know better.)
