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Investing Research Tools

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Many free research tools available online. MSN Money. Yahoo! Finance. BigCharts.com ... RELM Wireless' new APCO 25 radio. New Management. An industry shift. Ex. ... – PowerPoint PPT presentation

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Title: Investing Research Tools


1
Investing Research Tools How to Use Them
  • Mike Appleby Bart Stout
  • Georgia Tech Student Foundation
  • 2006 Mentor Program
  • Tuesday, September 26, 2006

2
What do you need research tools for anyway?
  • Stock Reports
  • Stock Picking
  • Company Analysis
  • Fundamentals
  • Technical Analysis
  • Industry Analysis
  • Competitive Analysis
  • Stock Re-evals
  • Sector Reviews
  • Industry/Economic Reports to the Committee

3
What do we have access to?
  • The IC provides many resources which are not free
    to the public
  • Wall Street Journal
  • Investors Business Daily
  • MorningStar
  • Reuters PowerScreener
  • GATECH has other resources available
  • See library Value Line
  • Investext
  • Many free research tools available online
  • MSN Money
  • Yahoo! Finance
  • BigCharts.com

4
Stock Picking Things to keep in mind
  • The STORY is everything (Peter Lynch)
  • We want Strong Fundamentals (outstanding or
    better than industry)
  • ROE
  • Margins
  • Growth Rates/prospects
  • Insider ownership
  • Institutional buying
  • The Industry is just as important as the stock
  • Invest in issues we hope to hold for a long
    period of time.

5
The Stock Picking Process
  • Decide what criteria you desire
  • Market Cap lt 2 Billion
  • ROE gt 17
  • Net Margin gt 7
  • Quarterly earnings growth gt 25
  • Plug it into a Stock Screener
  • Try to find the STORY (what is this company doing
    to grow in the future)
  • Read annual report
  • Read analyst reports
  • Read industry reports
  • Revise screen and try again

6
The Story What am I looking for?
  • Look for something interesting but could easily
    go unnoticed, something that the numbers dont
    already tell you
  • This is how you make the BIG on Wall Street
  • New exciting product
  • showing promise and rapid growth
  • Ex. Hansens Energy Drink
  • Ex. RELM Wireless new APCO 25 radio
  • New Management
  • An industry shift
  • Ex. APCO 25 industry standard
  • Ex. A new need for ethanol (replace additive)
  • Intriguing business model or expansion plan
  • Ex. La Quinta Inn targeting business travelers
  • EX. Praxair building on site facilities and
    locking in 20 year contracts

7
Our Stock Screener
You can edit the Screen
Or View the Results
Click on a Saved Screen
8
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10
View Results Check out Companies
11
Stock Picking IBD 100
  • Another great source for stock ideas is the
    Investors.com IBD 100 list.

You can download these at www.investors.com
look on the left toolbar for IBD 100 Use our GTSF
login NOTE Some of the stocks towards the top
of this list will already be discovered watch
this list frequently to see which ones are moving
up!
12
Stock Picking ValueLine Investment Survey
  • Another great tool is available at the GT
    library.
  • Contains several lists including
  • Most Timely Industries
  • Timely stocks
  • Timely stocks in timely industries
  • Highest yielding stocks
  • Biggest "Free-Flow" Cash Generators
  • Stocks with widest discounts from Book Value
  • Stocks with highest percentage earned on capital
  • There is both a general and Small/Mid Cap edition

13
Stocking Picking Process
  • Form a list of prospects
  • PowerScreener
  • Valueline
  • IBD 100
  • IBD Small Stocks under 10
  • Now we have to do deeper research into the
    individual companies and industries

14
What we are researching
  • Fundamentals
  • Story/Industry
  • Technicals

15
Company Analysis - Fundamentals
  • Yahoo! Finance (http//finance.yahoo.com) is my
    personal favorite for fundamentals.
  • Also MSN Money, SmartMoney.com, Investors.com,
    MorningStar.com

Yahoo! Finance Toolbar
MorningStar EPS Growth Chart
16
Company Analysis Fundamentals
  • What are you looking for?
  • Profit and Operating Margins need to be as high
    as possible
  • ROA and ROE (ROI) need to be as high as possible
  • Quarterly and yearly earnings growth needs to be
    positive (especially for a small company)
  • Low debt and Debt/Equity ratio
  • Institutional Ownership needs to be less than
    60-80, but increasing, especially if it is a
    growth stock
  • Remember, you are comparing these fundamentals to
    its competitors and its industry, all industries
    are different but we want the leaders in each
    industry

17
Company Analysis Technicals
  • BIGCHARTS.COM

18
Company Analysis Technicals
  • ALWAYS include a 50 and 200 day Simple Moving
    Average (SMA)
  • Under moving averages, select SMA then enter
    50,200 in the box next to it
  • Look at both Long and Short term charts
  • 6 month
  • 1 year
  • 3 year
  • Things to include Volume, SMA 50, SMA 200,
    draw trend lines if you think you can

19
The Story/Industry Analysis
  • Perhaps one of the most difficult things the
    research!
  • START WITH THE ANNUAL REPORT
  • Use WSJ, Investors.com, GOOGLE, Yahoo! News, GIT
    Library INVESTEXT PLUS Database.
  • Look for articles, analyst opinions, research
    reports.

20
Competitor Research
  • Finding an appropriate competitor for a company
    can be difficult NEVER rely on Yahoo!s
    competitor list without first checking them out.
  • Use multiple sites to find competitors. Also use
    annual report and web searches to find other
    companies which are in similar markets

21
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22
10 things to remember when doing a stock report
  • DO NOT fall in love with any stock
  • Know everything about the company and its
    COMPETITORS
  • FUNDAMENTALS are the key to long term investing
    technical analysis is more of a short term tool
  • Avoid companies with too much debt.
  • Look for companies with new products that are
    gaining traction, the STORY is everything
  • Know the INDUSTRY like the back of your hand
  • DONT be afraid to ask for help

23
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