Research tips

[dreilly]

Hi All,

Just asking how people conduct their research into companies. My method has been to check out the companies website. Troll through the prospectus, annual reports etc that are available and then use google to search for news on the company and then do the math and make my conclusions.

How do you all do it? Also, are there any other internet portals that give better links than just using google?

Thanks in advance...

DR

 

[Sean K]

I read all the finance magazines and the Fin to get ideas for companies to research. My stockbroker is HSBC who have recommendations on most of the top 200 stocks and provide a concensus best buys and sell list. I've also signed up with Fat Prophets who obviously provide a portfolio and weekly recommendations and comments. I also watch these sort of chat sites to get ideas.

Once their seems to be a good stock out there that has potential for whatever reason I'll check all the announcements they have made and search the news and their web sites. Then, I'll have a look at their chart and see what it looks like technically.

Also, my little bro is the General Manager of Research for a stockbroking company and that helps a little. Their Model Portfolio has done very well over the past few years.

So, in summary, I'm like any other of the general public: 'throwing darts at a board'. GG.

 

[cuttlefish]

The annual and half yearly reports are the main thing I use - mainly looking at P&L and balance sheet, and I'll go back through a fair few years of them as well.

 

[It's Snake Pliskin]

I check their liquidity, and then their budget for morning tea

 

[Sean K]

I'd be checking their open bar policy on Friday afternoons too! The more free piss, the happier the staff.

 

[nizar]

Hi All,

Just asking how people conduct their research into companies. My method has been to check out the companies website. Troll through the prospectus, annual reports etc that are available and then use google to search for news on the company and then do the math and make my conclusions.

How do you all do it? Also, are there any other internet portals that give better links than just using google?

Thanks in advance...

DR

i look at many factors before deciding to buy a stock:

-p/e ratio
-forecast earnings growth
-historical earnings growth
-the industry in which the co. belongs to... is it likely to succeed in current economic environment ie. a growth industry?
-is the industry too competitive ie. is what the company sells under risk from competition
-balance sheet: debt to equity ratio; long-term debt is most important, short-term can usually be covered by inventory
-management team; are they experienced and are investor relations upto scratch
-read through announcements and company presentations
-look out for director buying; share buy-back; look at the charts and try to explain any spikes or plunges to see how the stock reacts to news
-look at annual report; last few pages to see who the top20 shareholders are; plenty of instos is a good sign; these guys have alot of resources and do their research
-finally: never think that if a share price has run too hard, that it cannot run any further. and never think that if a share price has fallen too much, it cannot fall any further..

 

[dreilly]

i look at many factors before deciding to buy a stock:

-management team; are they experienced and are investor relations upto scratch
..

How do you ascertain this? how do you research the credibility of management?

 

[nizar]

How do you ascertain this? how do you research the credibility of management?

look at their experience; and wat theyve achieved in the past

 

[dreilly]

Great stuff guys. thanks alot.

So what is your primary source of information? i dare say the internet plays a big part. But are there any sites in particular that provide services for this kind of research?

DR

 

[TraderPro]

Great stuff guys. thanks alot.

So what is your primary source of information? i dare say the internet plays a big part. But are there any sites in particular that provide services for this kind of research?

DR

I use Factiva - which basically archives every news piece out there. Unfortunately its a user pays service - much like the online AFR. Luckily its free for university students!

 

[lewstherin]

I'm about the same in terms of research - all of the above with the Net being info source #1.

I've found that I try not to take stats on face value. When valuing a company's future earnings, I have several formulas and ratios I use to attempt to adjust/discount the prices, earnings, production output, time to market etc. to reach a NPV that reflects various scenarios on future market sentiment.

For example, I've tended to use 2005 prices (plus a set of ratios) when valuing commodity plays because I want to know whether the company can survive a commodity price downturn, plus it helps shake-out those that stand to make higher margins if commodity prices continue to go up.