What do you find is the best way to research prospective stocks in your portfolio?
Being basically lazy, and loath to spend ages looking through Ann. Rpts, I look on Simply Wall St, Shareclarity, Chris Lee’s blog and Sharetrader to see what everyone else is saying about the background to shares.
I head over to sedar.com for Canadian issues.
Without mentioning specific tools, here is the process I go through.
- Read the business section of the newspaper.
- Find what interests you and what company is doing that.
- Look at the investor centre on the companies website. Read the annual report and any recent presentation
- Search specifically for news and history of the company, to find meaning as an investor.
- Do due diligence with pricing, understanding what a good price to pay for the share is.
- If SP is not rising I don’t bother with research , buying on the “cheap” and falling knives have lots in common imo . Once I see trend is up , I am keen to fond out why . Only then research begins .
Ditto #2 - I take a core satellite approach and my satellites are basically all tech or SaaS companies which I’ve worked in for years. Academically speaking I know this would be considered concentration risk but “the devil you know…”
Agree and sympathetic to Doug as also concentrate. Otherwise … and apologies for obvious;
1/ Strive to be very clear what I am looking for - eg in my case includes high return on capital, lo/no debt and low capital business models
2/ Read FT incessantly and use their stock screener
3/ Once found targets consider/research institutional shareholders and understand their buy/sell behaviour/read their insights
4/Dig into industry/sector media to validate/understand company strengths, market position
5/ Learn / research as much as possible on CEO, board member backgrounds and interests for clues on focus/capability/strategy
6/ Regularly interrogate, learn from successful portfolio company data and look for analogues
The two things which will drive the share price is EPS and Growth in Sales. Find those and you are on the right track
EPS growth and SPS growth of at least 5% per year , combined with DE of under 50 is good start , personally if ROE under 12%-15% I am not very keen , plenty of fish out there with good numbers why waste my hard earned on “maybe, maybe” stock. Look at PEG to be as closer to 1 as you can get too . BTW PR high or low and dividends do not bother me .
I also use SWS….and CIBC’s Refinitiv service by Thompson Reuters, Morningstar
I do the exact opposite. I look for high quality undervalued companies with rising earnings and falling share price at the same time and than I buy it and hold forever or until it very overshoot into overvalued territory.
That way I got great bargains like 9% yielding Prudential, 11% yielding Altria etc. It works like a magic. Like my purchase of Bristol myers squibb in 2019. It was in a 5 year bear market or so and since my purchase it delivered 26% a year and still sooo undervalued.
But honestly I dont care much what share price does I only focus on fundamentals of the company as its the only what matter in the long term.
I like the approach of Joel Greenblatt and use the same. I look for companies with the highest earnings yield which is calculated as E/P (earnings/price) and than I look for the highest quality (highest ROI) companies. Than I do more research of these companies like their expected growth, risks, dividend yield and dividend growth etc.
That way you can find and buy the most undervalued highest quality companies in the market. True hidden gems waiting to revard you hugely once they return to the fair value.
This approach is back tested and beat the market for decades. But it requires very long time horizon 5-10 years minimum.
Grovestre , great for you , I’ve done that for over 30 years too, but now "forever " is not a strategy I am willing to follow any more . I need to sleep at night and like I say to many of my friends " at this stage of my life if I double or triple my money, my life will not change, but if I lose half it will " . I can now live knowing that estimate and possible future earnings are not facts any more … the only fact is the price. Share price is now the king in my PF and when trend starts going down , I go out . BTW some of the best companies on ASX are in my PF atm , like ALL, ANN, ATEC, AX1, BAP, BRG, CAR, CCP, CSL, DMP, FPH, JBH, JHX, LSF, MFG, MQG, NCK, NDQ, PNI, REA, RMD, TNE and XRO. Some are still flying , others will be cut off if they breach 200 D. P.S I am sure you are aware of these three but in case you are not please pay attention to steady NDQ, LSF and PNI . Best to you
Farming1 I see that you have now become a pure momentum trader
Hey Wim , I tried to create bit of havoc around here but no bites so far It’s almost as boring as it was on SA , I tried my best to create many topics but it was becoming time consuming . I’m always the opposite , someone speaks long term - I say trade . Someone speaks trade - I change to long term
Is the forum here a little clunky? First time for me to look at it. MF is very familiar to me and I still like the banter on the SA site, but get limited ones on PRO
g’day Wim and Farming, nice to see you over here!! didnt realise sharesight had a forum until today
Today is my first day here too
Hello ya old bugger… come back & annoy me. Some people miss you
Hey Shaven , how the kids over there , still counting how many sweets they have in their pockets ? I hate you for giving us Sleepy Joe what a disaster , if you guys puled your act together we could have had strong US with out sleepy Joe and without mongrel too . As you can see ( 5 am ) I am up and trading US , lots of free time now and putting it to good use . Best