The selling point:
This is your attention grabber and your introduction. The introduction can state why you think this company is even worth the reading.
Do Not State: Diamon Hands, It will moon or anything of that sort. You will get banned as we are not WSB and we do not condone Yoloing.
Key points:
Know the company that you are presenting. (Some people here will ask very specific questions and you should be able to answer or pinpoint them to the answer)
Helpful questions to answer
- What do they do?
- How do they make money?
- Why are they important?
- What are their products?
Next, you want to list the Pro’s and Cons
Pro’s: Strengths? Moat? Advantages? Opportunities? Growth? Catalysts?
Con’s: Downside? Negatives? Concerns? Weaknesses? Threats? Risks?
Growth . look into the financials to look at past growth. look into news, 10Q’s, 10Ks, investor presentations, and statements to look for future growth. find out new products, or a changing landscape. How will the company scale?
Financial health .
- Are the financials strong?
- Is the company financially healthy?
- Is the current cash flow from operations positive?
- How are Investing & Financing Cashflows?
- Is net income growing?
- Are profit margins Getting better?
- Is the Quick ratio over 2 to sustain operations?
- Is EPS growing? Income Statement Trend, etc.
ChartMill.com : https://www.chartmill.com/stock/quote/AAPL/fundamental-analysis
Earnings & revenue history.
- Is there growth?
- Is there potential? ook at the financials and the projections.
- Have they missed earnings?
- Have they beaten earnings?
- Have earnings remained flat or grown consistently?
GuruFocus.com : Apple Inc (AAPL) Stock Price & 30 Year Financial Data | GuruFocus
BarChart.com: AAPL - Apple Stock Income Statement - Barchart.com
Chartmill.com : https://www.chartmill.com/stock/quote/AAPL/financials/income-statement
Valuations .
- How is this evaluated? (PEG ratio, P/E ratio).
- Is it undervalued?
- How do the valuations compare to peers or competitors in the industry?
Validea : Validea: Guru Stock Analysis - APPLE INC (AAPL)
GuruFocus : Apple Inc (AAPL) DCF Valuation
Price upside/ targets & Analysts rating consensus . Your viewers are curious about what the analysts covering a stock think it’s worth. Look to see what the analysts covering it, have to say about the price targets.
TipRanks: https://www.tipranks.com/stocks/aapl/forecast
ChartMill : https://www.chartmill.com/stock/quote/AAPL/analyst-ratings
Charts Analysis and the technical indicators
People are always curious about what the charts have to say about momentum, and what prior prices and charting have to say about price prediction. Try to read and interpret the charts to see what previous trading patterns can predict.
- What are the short-term, mid-term, and long-term predictions?
Take a look at RSI, moving averages, MACD, Stochastic Oscillator, etc.
BarChart.com : AAPL - Apple Stock Barchart Opinion - Barchart.com
ChartMill.com : https://www.chartmill.com/stock/quote/AAPL/technical-analysis
CEO, Management Team and Leadership:
You can Glassdoor and Indeed or LinkedIn/social media to learn about the management of the company and google their CEO. A CEO with low/ bad ratings is a bad sign
US Senate and Representative Congress recent purchases and sales Thank you @DonDegenerate
US Senate and Representative Congress are required to disclose under Federal law.
- Why you may ask yourself? They have access to nonpublic information.
Remember that most of the time, they’re shifting around assets in a 401k, but still is a great indicator on deciding whether or not there might be a new regulation that would make a stock boom or bust.
Link: https://sec.report/Senate-Stock-Disclosures
Short selling.
- How much of this stock is sold short?
- Are people betting against it?
- If so, why are they?
Fintell https://fintel.io/
Ortex https://public.ortex.com/
What is the put/call ratio?
Are people betting against this stock? Then is so, research why. This might be a reason to be wary.
BarChart.com : AAPL - Apple Stock Put/Call Ratios - Barchart.com
Peers & competition, and competitive landscape .
- How does this company stack up against its competitors and peers?
- How do the financials compare?
- How do the products compare?
- Is there a moat?
Institutional Sponsorship. Are big banks and wall street holding this? How much of this company’s stock do they hold?
GuruFocus.com : Apple Inc (AAPL) Stock Holders - Institutional & Insider Ownership | GuruFocus
TipRanks : Apple (AAPL) Hedge Fund Trading Activity - TipRanks.com
Insider Trading . Is the CEO buying or selling shares? Is management buying or selling shares?
ChartMill.com: https://www.chartmill.com/stock/quote/AAPL/ownership
How many ETFs that hold this stock? Will they continue to buy it up and drive price?
ETFDB: ETFs with Apple Inc. (AAPL) Exposure
Recent News .
Google or Yahoo search the company and look at recent articles.
- What are people saying?
- What are bloggers saying?
- What is the news saying?
- Any new news?
- Bad news?
- Good News?
- Reasons for movement in recent stock price?
TipRanks.com : Apple (AAPL) Stock Price, Quote, News & Analysis - TipRanks.com
BarChart.com : AAPL - Apple Stock SEC Filings - Barchart.com
Social sentiment . check what people are saying on Twitter and Google search trends.
Average volume traded.
- Is this stock liquid?
- Would I be able to get my money back?
- How easy can I trade it?
- How large/small are the bid/ask spreads?
There are many sites you can use to dig into a stock such as the information mentioned above. My favorites are:
- Validea
- TipRanks
- GuruFocus
- ChartMill
- BarChart
- Ortex
- Fintell
Also, everyone should do their own DD for themselves. Always do your research, At the end of the day, this is your money, and no one cares more about it than you do.
As always make sure you state that you are invested in the company if you are and end with a disclaimer such as:
The Content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing in the Site / DD constitutes professional and/or financial advice, nor does any information on the Site constitute a comprehensive or complete statement of the matters discussed or the law relating thereto.
PS: I am not the original creator of this guide. This is a modified version by me with additional things and resources that I have added over the years while stuck in a pandemic.
Please DM me if there is anything I can add to this as it is still a work in progress. Thank you!
great job man!