Researching Stocks

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Researching Stocks

• The Cursory Review

Lynn Ostrem, VP Crow River Investment
Club www.bivio.com/crowriver
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Preliminary Review

• In our Nov. 2001 handout, we learned where to
  find good stocks.
• In Dec., Jan. Feb. we learned how to complete
  an SSG.
• In Mar., we passed out our detailed Research
  Guidelines Handout.
• In this lesson, well work toward beginning our
  in-depth research.

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First Things First

• Complete an SSG to make sure the quality is
  there.
• Next, go to Quicken or Multex Investor
• to make a preliminary check.
• Well use Multex Investorhere we go!

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www.multexinvestor.com
First, go to the site!
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Enter your Ticker
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Well work with this section.
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Check the News And Significant Developments
first! If the News is BAD Move on!
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Need Some Examples??
ALL BAD!!
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Company Overview andBusiness Description
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Company Overview provides a brief
description are you interested??
It also provides valuable links to a TON
of Company Information!
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The Business Description provides a more detailed
overview...plus a bonus!
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VectorVest Report
This is a free analyst report. Never use it by
itself only as part of your overall
information-gathering
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Officers Directors
Who are they? How much are they paid? How much
stock do they own?
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(No Transcript)
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Highlights Report
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The Highlights Report not only gives you
the Normal stuff at the bottom, it gives you
ownership and stock info, too!
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Earnings Estimates
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The first box will give you Long-Term Growth
Rates. Do they meet our goal?
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Ratio Comparison
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Compare your company to its industry, its sector,
and the SP!
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Ready for SomeAdvanced Review??
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Insider Trading
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Officers receive options in lieu of
compensation. Oftentimes, they sell those
options. This is not a problem. You are
looking for lots of people buying or selling for
no apparent reason!
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Positive Cash Flow
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• The first Sub-Total is Operating Activity or Cash
  From
• Operations! Is it positive??
• Free Cash Flow is Operating Activity minus
  Capital
• Expenditures.
• Here, 23.3M - 4.8M 18.5M in Free Cash Flow

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Accts. Receivable Inventory

• Neither should be growing faster than sales.
• So what ifsales grew at 18 last quarter, but
• Accounts Receivable grew at 21?
• Inventory grew at 30?
• The answers are

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• The company isnt collecting its money from
  customers in a timely manner anymore!
• The company isnt moving its products as
• fast as it used to!
• BOTH are RED FLAGS!!

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• Sales are on the
• Income Statement
• Accounts Receivable
• is on the Balance
• Sheet
• Inventory is on the
• Balance Sheet

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And if you like what you see

• Order that Investors Packet early!

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Questions??