Research and YOUR Stock Selection Guide - BetterInvesting

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.




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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CLASS MATERIALS

• Includes ALL standard sources specific to Coach, Inc. (COH)

• Download from: www.BetterInvesting.org/AddingJudgment

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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




Earnings

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Page 2

Low Price, ce,

P/E and Payout Ratios

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Page 3




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Page 4

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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




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Value Line

DATA GRID

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Value Line

BUSINESS BOX

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Value Line

ANALYST’S

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COMMENTARY




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Value Line

PROJECTIONS

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BOX




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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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Page 4




Valuation, Growth and Profitability section often provides long term estimates for sales growth and profit margins.

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Page 4

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Bulls Say and Bears Say sections are particularly useful in analysis of company.

Page 5




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Morningstar reports data but does not make significant numbers of long-term projections.

Page 10

Standard & Poor’s Report (multi-page)

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Page 11




Key Stock Statistics

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Highlights

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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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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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Page 12




Page 14

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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Page 17

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Where’s the Investor Relations section?

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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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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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READ

THINK

ANALYZE

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Questions or Comments?

[email protected]

[email protected]

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Research and YOUR Stock Selection Guide - BetterInvesting