There are several useful resources that can be used when it comes to performing a deep dive. What is key, is that reliable information is used for this research, and that all information is viewed from a negative perspective.
Why a negative perspective?
Viewing all information from a negative perspective allows us to properly digest the information. It assists in removing hype that may be centered around a stock. Additionally, it enables us to think critically about the data we are collecting. Ask yourself things such as:
- Who is associated with this? Does management have any associations?
- What is their rate of conversion? Do letters of intent frequently fall apart, or do they result in signed deals? What is the true benefit of this deal?
- Where are the assets located? If financials apply, what do they look like?
- When is this to take effect?
- Why was this particular deal being made?
- How is this going to be funded?
- Is this good or bad for the organization?
What resources are available for fundamental analysis?
There are a number of resources available for investors to utilize for their stock analysis. Information should be gathered from a variety of sources. Here’s a few examples:
- SEDAR – A directory of information for companies listed on public exchanges. Contains most filings a public company makes, including news releases, MD&A’s, financial reports, etc.
- The CSE – Where you can find information regarding securities listed on the Canadian Securities Exchange.
- TMX Money – Information for securities listed on both the TSX Venture, as well as the TSX. Contains invaluable data related to listed securities.
- ShortData.ca – Information related to short sales on selected stocks
- Canadian Insider – A directory of insider filings for listed Canadian companies.
- News sources – Quality media outlets, such as BNN, CTV, CBC, Global, etc. are excellent for finding past history on a company or its directories. Always be sure to verify the quality of data from smaller news organizations or media companies. The URL is often a good place to start.
What resources are available for technical analysis?
Technical analysis can be just as important as that of fundamental. It tells you where a stock has been, and as a result of reading the chart appropriately, it can tell you where it may go as well. Key to this is learning the appropriate patterns, how to use indicators, and how to set up your chart. Another key item is a proper platform from which you can view stock charts. Here’s a good start:
- Investopedia – A wealth of information for anything related to investing or trading. It provides excellent examples of stock patterns, as well as answers to any question you may have about the stock market. A great resource for inexperienced newcomers and seasoned investors alike.
- Questrade – One of the better trading and investment platforms available to Canadians. They offer some of the lowest fees in the industry, as well as free trades on ETF’s. They also offer an excellent mobile and desktop application for executing trades, as well as for charting. Note that we are an affiliate, and will receive a small fee for you signing up for the service via this link.
- TradingView – Although it does not list CSE stocks, this is a free high quality charting program. The program is web based, but also provides a mobile app. They display stocks from most exchanges, including crypto currency exchanges.