research and your stock selection guide - betterinvesting
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Research and YOUR Stock Selection Guide (SSG)BetterInvesting
1Adding Judgment to the Stock Selection Guide Series
www.BetterInvesting.org/AddingJudgment
Research and YOURStock Selection Guide
Ann Cuneaz, Education Program Manager, BetterInvesting
Ken Kavula, President, Mid-Michigan Chapter
October 10, 2012
Disclaimer• The information in this presentation is for educational purposes only and is not
intended to be a recommendation to purchase or sell any of the stocks, mutual funds, or other securities that may be referenced. The securities of companies referenced or featured in the seminar materials are for illustrative purposes only and are not to be considered endorsed or recommended for purchase or sale by BetterInvestingTMbe co s de ed e do sed o eco e ded o pu c ase o sa e by ette est gNational Association of Investors Corporation (“BI”). The views expressed are those of the instructors, commentators, guests and participants, as the case may be, and do not necessarily represent those of BetterInvestingTM. Investors should conduct their own review and analysis of any company of interest before making an investment decision.
• Securities discussed may be held by the instructors in their own personal portfolios or in those of their clients. BI presenters and volunteers are held to a strict code of conduct that precludes benefiting financially from educational presentations or public activities via any BetterInvesting programs, events and/or educational sessions in
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which they participate. Any violation is strictly prohibited and should be reported to the CEO of BetterInvesting or the Director of Chapter Relations.
• This presentation may contain images of websites and products or services not endorsed by BetterInvesting. The presenter is not endorsing or promoting the use of these websites, products or services.
• This session is being recorded for future use.
Research and YOUR Stock Selection Guide (SSG)BetterInvesting
2Adding Judgment to the Stock Selection Guide Series
www.BetterInvesting.org/AddingJudgment
WHY DO RESEARCH?
• Add to your factual knowledgey g
• Collect opinions
• Refine your own opinions
• Confirm your results
V lid t i• Validate your reasoning
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STANDARD SOURCES• Value Line Investment Survey
• Morningstar Investment Research Center
• S&P Stock Reports
• Yahoo.finance
• Company specific websites
• Additional websites or printed materials where appropriate
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Research and YOUR Stock Selection Guide (SSG)BetterInvesting
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CLASS MATERIALS
• Includes ALL standard sources specific to Coach, Inc. (COH)
• Download from: www.BetterInvesting.org/AddingJudgment
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Research and YOUR Stock Selection Guide (SSG)BetterInvesting
4Adding Judgment to the Stock Selection Guide Series
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Stock Research Form• Make it YOURS
• Use it consistently
• Think about the numbers you collect
• Remember that not all data exists or is easy to uncover for all stocks
• Form available to download at: www.BetterInvesting.org/AddingJudgment
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Sales or RevenueStock Research
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Stock Research Form:Page 1
Research and YOUR Stock Selection Guide (SSG)BetterInvesting
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Earnings
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Page 2
Low Price, ce,
P/E and Payout Ratios
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Page 3
Research and YOUR Stock Selection Guide (SSG)BetterInvesting
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Research and YOUR Stock Selection Guide (SSG)BetterInvesting
7Adding Judgment to the Stock Selection Guide Series
www.BetterInvesting.org/AddingJudgment
Remember…
• The goal is not to fill out the form.
• The judgments you make are yours.
• Your judgments are not right or wrong.
• You are trying to use the form to make more informed, better judgments.
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• The form should help expand, refine, validate and/or confirm your judgments.
Value Line
ANNUAL RATES BOX
COH Research: Page 1
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BOX
Research and YOUR Stock Selection Guide (SSG)BetterInvesting
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Value Line
DATA GRID
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Research and YOUR Stock Selection Guide (SSG)BetterInvesting
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Value Line
BUSINESS BOX
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Research and YOUR Stock Selection Guide (SSG)BetterInvesting
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Value Line
ANALYST’S
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COMMENTARY
Research and YOUR Stock Selection Guide (SSG)BetterInvesting
11Adding Judgment to the Stock Selection Guide Series
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Value Line
PROJECTIONS
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BOX
Research and YOUR Stock Selection Guide (SSG)BetterInvesting
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Research and YOUR Stock Selection Guide (SSG)BetterInvesting
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Morningstar gPDF Report(multi-page)
COH Research:
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COH Research: Page 3
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Comprehensive report is broken down into sections. It helps to read entire report.
The report frequently mentions and compares featured company to competitors.
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Research and YOUR Stock Selection Guide (SSG)BetterInvesting
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Valuation, Growth and Profitability section often provides long term estimates for sales growth and profit margins.
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Bulls Say and Bears Say sections are particularly useful in analysis of company.
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Research and YOUR Stock Selection Guide (SSG)BetterInvesting
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Morningstar reports data but does not make significant numbers of long-term projections.
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Standard & Poor’s Report (multi-page)
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Research and YOUR Stock Selection Guide (SSG)BetterInvesting
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Key Stock Statistics
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Highlights
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Research and YOUR Stock Selection Guide (SSG)BetterInvesting
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Highlights usually t i h t tcontains short-term
projections for revenue and earnings.
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InvestmentInvestment Rationale/Risk
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Research and YOUR Stock Selection Guide (SSG)BetterInvesting
19Adding Judgment to the Stock Selection Guide Series
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Investment R ti l /Ri k hRationale/Risk has similarities to Bulls Say/Bears Say from Morningstar.
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Business Summary id i i ht i tprovides insight into
how the company makes money and the strategies for future growth.
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S&P report al a s contains er sef l
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S&P report always contains very useful section on industry peer group.
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Research and YOUR Stock Selection Guide (SSG)BetterInvesting
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Research and YOUR Stock Selection Guide (SSG)BetterInvesting
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Where’s the Investor Relations section?
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Research and YOUR Stock Selection Guide (SSG)BetterInvesting
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I was also looking for a PPT
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gpresentation. I could not find one for COH.
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Research and YOUR Stock Selection Guide (SSG)BetterInvesting
24Adding Judgment to the Stock Selection Guide Series
www.BetterInvesting.org/AddingJudgment
ADDING JUDGMENTSERIES GOALS
• Present and explain the use of standard• Present and explain the use of standard sources
• Demonstrate one method for collecting and organizing data
• Further explain and refine the judgment u e e p a a d e e e judg eprocess on the Stock Selection Guide
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ADDING JUDGMENT SERIES• Adding Judgment 5-Class Series
– Begins Oct 18th and ends Nov 29th– Begins Oct 18 and ends Nov 29
– All class sessions are recorded and may be accessed until March 29, 2013
– For more information visit www.BetterInvesting.org/AddingJudgment
• Class 1, Oct 18th
– Chart a Course to Better Sales Growth Forecasts
– Complete page 1 of the Stock Research Form for Coach and project the future sales growth rate
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Research and YOUR Stock Selection Guide (SSG)BetterInvesting
25Adding Judgment to the Stock Selection Guide Series
www.BetterInvesting.org/AddingJudgment
READ
THINK
ANALYZE
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Questions or Comments?
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