Brian Meier February 15, 2011

Industry Analysis Research Tools Examples

Presentation Report

Industry Analysis Research Tools Examples

Presentation Report

Specific branch of manufacturing, service, or trade Consists mainly of company competitors Collection of producers of perfect substitutes

Future revenues Market size Threat of competitors Relative cheapness stock Short-term stock price pressure

Product differentiation Existence of monopolies Patents held by other companies Technological/procedural advancements Barriers to entry Foreign trade policy

Perfect substitution Imperfect substitution Size and scope of business

Competitors put fundamental analysis in perspective

4 Ps

Product Place

Quality Brand name Market location Distribution methods Advertising Sales force Product demand Costs

Promotion Price

World Economics U.S. Economics

Economic and Monetary Indicators

Unemployment Rate Industrial Production Durable Orders Corporate Profits Retail Sales Housing Activity

Global Economy

U.S. Economy
Sector

No one indicator is most important Composite of 11 leading indicators

Industry

Company

Takes advantage of industry trends Positioned to capture/create market share Demonstrated effective management decisions New products in pipeline News releases

Economic Data:

Economic Statistic Briefing Room: www.whitehouse.gov/fsbr/esbr.html

Industry Data: Competitors:

www.morningstar.com

www.investors.com www.finance.yahoo.com www.morningstar.com www.wsj.com

Industry Analysis Research Tools Examples

Presentation Report

Stock Reports
Stock Picking Company Analysis
Fundamentals Technical Analysis

Industry Analysis Competitive Analysis

Stock Re-evaluations Sector Reviews Industry/Economic Reports

The IC provides many resources which are not free to the public:
Wall Street Journal Investors Business Daily MorningStar

GATECH has other resources available:

See library Value Line

Many free research tools available online

MSN Money Yahoo! Finance BigCharts.com

Our timeline is infinite. Focus on extensive analysis of the current economic trends Work on refining our outlook for future economic trends Invest in issues we hope to hold for a long period of time

At bottom of this next page click Deluxe Stock Screener to install the MSN YOU MUST USE INTERNET EXPLORER after all this is MSN!

You can save your searches or import saved ones under the FILE menu. In the GTSFIC Private Docs section of the website is a great CANSLIM based stock screener [.IFF file] You can (and should) try to make your own, since the above one will not always return a high # of stocks!

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!

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

Three basic things make a stock worth a second look:

Fundamentals Value Industry

Exhibit A: Joe Stock

Fundamentals: Usually, unless you have some evidence otherwise, a company with bad fundamentals will continue to have bad fundamentals (all things equal) Value: It could be a great stock, but a Joe stock Industry: Could be a great, cheap stock, but if its in the wrong industry, it WILL NOT perform well

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

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 7080%, especially if it is a growth stock Dividend (if applicable) is always a plus

These are just a few GENERAL rules, use your head and ALWAYS compare any numbers to the INDUSTRY!!!

Look at the balance sheet (found on finance.yahoo.com also) Look at increases in spending on capital goods, equipment, long term investments, property plant and equipment, intangible assets, etc. Avoid companies with too many red items in any of their financial statements. Compare financial reports, recent news, and price movements to information on a stocks Annual Report. You can find the Annual Report on a companys given website. This is usually under Investor Relations.

Also use the Key Ratios from Yahoo! AND technical analysis (coming up soon) to VALUE a company. Make sure the P/E, P/B, P/S ratios are lower or equal to the industry average for the company. Look at a stock chart to see if the company has already had a run-up

PAY ATTENTION TO VOLUME AND PRICE MOVEMENT

BIGCHARTS.COM

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, but DONT use technical analysis on anything over 1 year! Things to include: Volume, Relative Strength Index (RSI), Money Flow, PE over time, Rolling EPS, MACD (advanced), momentum use Investopedia when in doubt!

Compare your company to an index and its industry. Analyze Index and Industry choices with your Mentor in order to find the right fit. If you cant find the right fit, bring in up to three possible charts and IDG will find the one that fits the stock price chart best.

http://www.fmcenter.org - Financial Markets Center http://globinvestor.com Lots of Stuff http://www.wto.org/ - Global Trade Issues http://www.nber.com/ - Economic researchers publications http://www.bls.gov - Bureau of Labor Statistics http://www.bea.gov/bea/dn1.htm - Latest GDP figures http://www.bea.gov/bea/regional/data.htm Regional/State Economic Data http://www.bea.gov/bea/di1.htm - International economic and trade data

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

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 just a tool Avoid companies with too much debt Look for companies with products hot today and tomorrow Know the industry outlook like the back of your hand Know whos managing the company and where theyre taking the company Never stop researching the economy Read about the market daily Do not fall in love with any stock

Industry Analysis Research Tools Examples

Presentation Report

Thank You! Questions?