How to make a reasonable DD

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. :

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? : Apple Inc (AAPL) Stock Price & 30 Year Financial Data | GuruFocus AAPL - Apple Stock 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.


ChartMill :

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. : AAPL - Apple Stock Barchart Opinion - :

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.


Short selling.

  • How much of this stock is sold short?
  • Are people betting against it?
  • If so, why are they?



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. : AAPL - Apple Stock Put/Call Ratios -

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? : Apple Inc (AAPL) Stock Holders - Institutional & Insider Ownership | GuruFocus

TipRanks : Apple (AAPL) Hedge Fund Trading Activity -

Insider Trading . Is the CEO buying or selling shares? Is management buying or selling shares?

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? : Apple (AAPL) Stock Price, Quote, News & Analysis - : AAPL - Apple Stock SEC Filings -

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!


I greatly appreciate the time and effort that you put into this. Absolutely incredible resource.


A good read by the fire tonight. Solid stuff. TY.


Please send thanks to your dad for writing this, bro. :innocent: great job man!

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This is so helpful. Thank you.

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Useful for people that don’t post DD’s themselves! It’s a good index of what to look for when evaluating any company to trade. Thank you for that

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My Goal is that none should ever fear posting information in this community.

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Great write up, thank you.

I’d add one thing: US Senate and Representative Congressperson recent purchases and sales, which are required to be disclosed under Federal law. Why? They have access to nonpublic information. Most of the time, they’re shifting around assets in a 401k. But if you followed Kelly Loeffler in Jan 2020 buying Zoom, you’d have made money:


Will add this tonight thank you for sharing!!!

I appreciate this very much. I know what I’m doing over the weekend. Thank you so much for this


For someone who is new to creating their own DD, I appreciate this detailed and well thought out process. Thanks!

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Updated the guide thank you!!!

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Thank you for this Balu!

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