Comments on: How To Find Companies Worth Analyzing http://www.fwallstreet.com/article/58-how-to-find-companies-worth-analyzing/ Value Investing Blog Mon, 16 May 2011 10:55:06 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Joe Ponzio http://www.fwallstreet.com/article/58-how-to-find-companies-worth-analyzing/#comment-3106 Joe Ponzio Sat, 19 Dec 2009 05:23:37 +0000 http://www.fwallstreet.com/article/58-how-to-find-companies-worth-analyzing#comment-3106 Looking for growth companies is one of many stock screens when searching for opportunities. Wall Street is bipolar. When times are good, they assume growth will continue forever; in bad times, they assume the worst. I don't only look for high growth. Sometimes I'll start a search by looking for asset quality. Sometimes I'm looking at panic-stricken industries, and analyzing whatever I can in that industry. Looking for growth companies is one of many stock screens when searching for opportunities. Wall Street is bipolar. When times are good, they assume growth will continue forever; in bad times, they assume the worst.

I don’t only look for high growth. Sometimes I’ll start a search by looking for asset quality. Sometimes I’m looking at panic-stricken industries, and analyzing whatever I can in that industry.

]]> By: Joe Ponzio http://www.fwallstreet.com/article/58-how-to-find-companies-worth-analyzing/#comment-3105 Joe Ponzio Sat, 19 Dec 2009 05:20:26 +0000 http://www.fwallstreet.com/article/58-how-to-find-companies-worth-analyzing#comment-3105 There's the rub. I couldn't answer that for 95% of the companies out there, so I avoid those. For the rest, it's not intuition, but knowing (before you buy) what your company does and what it needs to do/achieve to continue to increase its value. Keep in mind that most (literally – probably 98%) of market participants never even glance at the annual and quarterly reports. It's also important to remember that companies don't grow every quarter or every year. When your company hits a bump in the road, you need to be able to understand what that bump is, and whether or not it is insurmountable. To look at it another way: The reason your company is/may be cheap is because it has likely hit a bump, and you need to understand the size of that bump and have an idea of what your company needs to do (or what needs to happen) for your company to get beyond that bump and return to "normal" operations. I try to read every annual report almost in its entirety, going back ten years. Can it get boring? You bet! (That's why I drink so much coffee!) There’s the rub. I couldn’t answer that for 95% of the companies out there, so I avoid those. For the rest, it’s not intuition, but knowing (before you buy) what your company does and what it needs to do/achieve to continue to increase its value. Keep in mind that most (literally – probably 98%) of market participants never even glance at the annual and quarterly reports.

It’s also important to remember that companies don’t grow every quarter or every year. When your company hits a bump in the road, you need to be able to understand what that bump is, and whether or not it is insurmountable. To look at it another way: The reason your company is/may be cheap is because it has likely hit a bump, and you need to understand the size of that bump and have an idea of what your company needs to do (or what needs to happen) for your company to get beyond that bump and return to “normal” operations.

I try to read every annual report almost in its entirety, going back ten years. Can it get boring? You bet! (That’s why I drink so much coffee!)

]]> By: PeterLynchFan http://www.fwallstreet.com/article/58-how-to-find-companies-worth-analyzing/#comment-3096 PeterLynchFan Sun, 13 Dec 2009 00:05:08 +0000 http://www.fwallstreet.com/article/58-how-to-find-companies-worth-analyzing#comment-3096 You wrote that you search for stocks with growth rates greater than 15%, I have one question concerning that point. Doesn't Wallstreet value stocks by assuming growth rates will continue that way? 15% is already a pretty good growth rates, thus it will be hard for the company to exceed wallstreet's expected earnings growth, which would eventually result in a rise in the stock price. So I don't really understand why you want a high growth rate as a primary criteria, can you explain this real quickly? You wrote that you search for stocks with growth rates greater than 15%, I have one question concerning that point. Doesn’t Wallstreet value stocks by assuming growth rates will continue that way? 15% is already a pretty good growth rates, thus it will be hard for the company to exceed wallstreet’s expected earnings growth, which would eventually result in a rise in the stock price. So I don’t really understand why you want a high growth rate as a primary criteria, can you explain this real quickly?

]]> By: Howard http://www.fwallstreet.com/article/58-how-to-find-companies-worth-analyzing/#comment-634 Howard Thu, 25 Oct 2007 08:47:55 +0000 http://www.fwallstreet.com/article/58-how-to-find-companies-worth-analyzing#comment-634 Joe, You mentioned above: "it may be that Wall Street is overreacting to news that will otherwise not affect the future health of the company" Where's the best place to look to understand what the news is that is affecting the stock? Once you find that, what kind of things help you decide whether or not the news will badly affect the health of the company? Is it mostly intuition? Somewhat related question: What sections of the company financial reports do you like to read to find out the important issues in a business? Reading the whole thing would be way too time consuming for me, not to mention I'd fall asleep in the process. Thanks so much for all your awesome insight, Howard Joe,

You mentioned above: “it may be that Wall Street is overreacting to news that will otherwise not affect the future health of the company”

Where’s the best place to look to understand what the news is that is affecting the stock?

Once you find that, what kind of things help you decide whether or not the news will badly affect the health of the company? Is it mostly intuition?

Somewhat related question: What sections of the company financial reports do you like to read to find out the important issues in a business? Reading the whole thing would be way too time consuming for me, not to mention I’d fall asleep in the process.

Thanks so much for all your awesome insight,

Howard

]]> By: Joe Ponzio http://www.fwallstreet.com/article/58-how-to-find-companies-worth-analyzing/#comment-414 Joe Ponzio Sat, 06 Oct 2007 18:07:46 +0000 http://www.fwallstreet.com/article/58-how-to-find-companies-worth-analyzing#comment-414 There are certainly some that are cash poor (e.g., auto manufacturers) - and you should avoid those at almost all costs. Forget the traditional thinking of industries, sectors, and capitalization rates. Look for great ideas everywhere - technology, steel, clown temp agencies. If you try and narrow it down before you even begin searching, you'll miss a heck of a lot of good (or better) opportunities. (And no, I have never invested in a clown temp agency. It just rolled off my fingertips and I left it.) There are certainly some that are cash poor (e.g., auto manufacturers) – and you should avoid those at almost all costs. Forget the traditional thinking of industries, sectors, and capitalization rates. Look for great ideas everywhere – technology, steel, clown temp agencies. If you try and narrow it down before you even begin searching, you’ll miss a heck of a lot of good (or better) opportunities.

(And no, I have never invested in a clown temp agency. It just rolled off my fingertips and I left it.)

]]> By: Sanjay Shetty http://www.fwallstreet.com/article/58-how-to-find-companies-worth-analyzing/#comment-390 Sanjay Shetty Fri, 05 Oct 2007 04:32:48 +0000 http://www.fwallstreet.com/article/58-how-to-find-companies-worth-analyzing#comment-390 Hi Joe, During your time as an investor have you found any industries/sectors which are traditionally cash rich? Regards, Sanjay Shetty I blog at: http://indiainvestor.wordpress.com/ Hi Joe,

During your time as an investor have you found any industries/sectors which are traditionally cash rich?

Regards,

Sanjay Shetty

I blog at: http://indiainvestor.wordpress.com/

]]> By: Sanjay Shetty http://www.fwallstreet.com/article/58-how-to-find-companies-worth-analyzing/#comment-353 Sanjay Shetty Thu, 27 Sep 2007 20:59:36 +0000 http://www.fwallstreet.com/article/58-how-to-find-companies-worth-analyzing#comment-353 hi everyone, I decided to make a list of free stock screener's which I think everyone could benefit from. <a href="http://indiainvestor.wordpress.com/2007/09/20/free-stock-screeners/" title="Sanjay Shetty's List of Free Stock Screeners" target="blank">Sanjay Shetty's List of Free Stock Screeners</a> Feel free to comment and add other screeners and I'll add them out there. Regards, Sanjay Shetty <a href="http://indiainvestor.wordpress.com/" title="India Investor" target="blank" rel="nofollow">India Investor</a> hi everyone,

I decided to make a list of free stock screener’s which I think everyone could benefit from.

Sanjay Shetty’s List of Free Stock Screeners

Feel free to comment and add other screeners and I’ll add them out there.

Regards,

Sanjay Shetty

India Investor

]]> By: mm http://www.fwallstreet.com/article/58-how-to-find-companies-worth-analyzing/#comment-295 mm Wed, 19 Sep 2007 06:49:19 +0000 http://www.fwallstreet.com/article/58-how-to-find-companies-worth-analyzing#comment-295 You welcome.Another screen with Price/Owner's Earning. <a href="http://www.buffetteers.com/buffetteers_main.jsp" title="Buffetteers screener" rel="nofollow">Buffetteers screener</a> You welcome.Another screen with Price/Owner’s Earning.

Buffetteers screener

]]> By: Joe Ponzio http://www.fwallstreet.com/article/58-how-to-find-companies-worth-analyzing/#comment-290 Joe Ponzio Wed, 19 Sep 2007 03:34:22 +0000 http://www.fwallstreet.com/article/58-how-to-find-companies-worth-analyzing#comment-290 Thanks MM! Thanks MM!

]]> By: mm http://www.fwallstreet.com/article/58-how-to-find-companies-worth-analyzing/#comment-284 mm Tue, 18 Sep 2007 03:02:31 +0000 http://www.fwallstreet.com/article/58-how-to-find-companies-worth-analyzing#comment-284 Das ,try this screen- http://screen.finance.yahoo.com/fscr/us/launch.html Das ,try this screen- http://screen.finance.yahoo.com/fscr/us/launch.html

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