Australian (ASX) Stock Market Forum

Researching Companies

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I am just wondering how the more experienced go about finding companies particuarly in the small and medium cap sector. It would be greatly appreciated if you just provide some advice on how it should be done

Thanks
 

So_Cynical

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The ASX announcements are one of the best sources of random info...the stock im going to try and buy tomorrow i happened to find by looking though the recent announcements of one of my portfolio stocks...one ann lead me to another ann and another and so on.

I've probably found the majority of the stocks ive held by simply going over the days ASX announcements, find something that looks interesting, or look at a business that you have never looked at before...one thing leading you to another and so on.
 
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I am just wondering how the more experienced go about finding companies particuarly in the small and medium cap sector. It would be greatly appreciated if you just provide some advice on how it should be done

Thanks
I borrow magazines ie "Paydirt"

If I get rivetted by a story, I do like So_Cynical does.
a). follow the reports on ASX!
I start with the latest quarterly report.
I check that the company has sufficient funds to operate.
Nothing (excluding disaster) knocks the price of a small cap like a Capital Raising.
b). put them on a watchlist.
check the chart and watch the Share Price.

If I buy some, I like to go for a walk on the beach!
It relieves the tension!! :D:D
 
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I read ASX announcements, blogs, forums, talk to people, read research reports, read the paper (AFR, SMH). Basically, 99% of it will be junk.
 

So_Cynical

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I do like So_Cynical does.
a). follow the reports on ASX!
I start with the latest quarterly report.
I check that the company has sufficient funds to operate.
Nothing (excluding disaster) knocks the price of a small cap like a Capital Raising.
b). put them on a watchlist.
check the chart and watch the Share Price.
Yep its a real journey of discovery hey :)

Dive into the announcements.

  • How much money do they have?
  • How much did they burn last FY?
  • Where did they get the money from?
  • Are they making money?
  • When will they need more money?
  • What have they got?
  • Who's running the show?
  • Who's put money into this?

Its exciting when you find a stock and everything seems to line up and make sense.
 
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... simply going over the days ASX announcements, find something that looks interesting, ...
I did this for a decade, interesting what you learn there.
But recently I stopped seeking new companies.


I now have enough companies on my short-list to last me!!
 
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I would not say I am experienced as I have only been doing this for a couple of years but would advise that you tailor your company research to your investment strategy. I use a stock screener on ft.com and only focus on companies that pass a couple of screens that I have developed for my investment strategy. This forum, HC and magazines to keep myself "in touch" with what is going on. Once you have identified some to research I find reading a few years of annual reports with an investment checklist very useful.

My main point is to tailor your research to your investment strategy. I go looking for mispriced small caps which I make big bets on.
 

tinhat

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I subscribe to Lincoln Stock Doctor. They follow a list of companies which is filtered by their proprietary fundamental analysis model. They provide a good level of analysis of the companies they follow. The software, however, allows you to analyse, run filters, etc on all ASX listed companies based on fundamental and technical analysis. It also has a good charting program and portfolio manager.

http://www.lincolnindicators.com.au/stock-doctor
 

skc

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I am just wondering how the more experienced go about finding companies particuarly in the small and medium cap sector. It would be greatly appreciated if you just provide some advice on how it should be done

Thanks
Comsec offers a free account and you can run a filter within that.

Say all companies with market cap <$250m in the IT sector that's made a position EPS in the last year and D/E under 25%.

This will give you a short list to start research from... and the allow you to do more in depth search on these companies on ASX announcements, forums etc.
 
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I would not say I am experienced as I have only been doing this for a couple of years but would advise that you tailor your company research to your investment strategy. I use a stock screener on ft.com and only focus on companies that pass a couple of screens that I have developed for my investment strategy. This forum, HC and magazines to keep myself "in touch" with what is going on. Once you have identified some to research I find reading a few years of annual reports with an investment checklist very useful.

My main point is to tailor your research to your investment strategy. I go looking for mispriced small caps which I make big bets on.
What is HC and which magazines do you read
 
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HC is Hot Copper a competing forum
Out of interest which forum has the most members?

To the OP:
-ASX
-AFR
-WA Business News
-Broker Reports
-Annual Reports
-A whole other bunch of news publications I have available to me through work (miningnews, resource stocks, factiva etc)

Realistically though once its hit the news, it's already happened but it is still a great way of finding out what companies are doing and planning on doing in the future

Regards,

Steve
 
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Thought i might as well add forexfactory.com
Pretty useful for more macro oriented information
 

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