In Philip Fisher‘s book “Common Stocks and uncommon profits” he talks of “scuttlebutt” which is intangible info that can be in the grapevine that is beyond the fundamental numbers. Fisher, Peter Lynch and other great fund managers may have access to CEO’s or other top people at companies. It is not so easy for individual investors as often you get scripted answers from investor relations from companies and from the News, so for me the answer is Seeking Alpha.
Seeking Alpha is in it’s own words:
“Seeking Alpha is a platform for investment research, with broad coverage of stocks, asset classes, ETFs and investment strategy. In contrast to other equity research platforms, insight is provided by investors and industry experts rather than sell-side analysts.”
“Seeking Alpha has three outstanding characteristics:
- Breadth: Seeking Alpha has remarkably broad coverage of stocks, including more than 4,000 small and mid cap stocks covered in the past year.
- Depth: With over 10,000 contributing authors and 280,000+ commenters, insight and discussion are informed and sophisticated.
- Influence: Seeking Alpha articles frequently move stocks, due to a large and influential readership which includes money managers, business leaders, journalists and bloggers.”
Seeking Alpha covers all types of stocks including Canadian so if I am considering a purchase particularly of a business I am less familiar with I will put the stock symbol into Seeking Alpha to find articles on the stock. There are so many contributors and many making comment on articles you can find out great intangible information.
An example of how this helped me was I was looking at a small cap pharmaceutical company whose fundamentals were outstanding. The stock had been going down big time and the dividend yield was high but with a low payout ratio. I was excited and thought I might buy but first I turned to Seeking Alpha. Most of the articles I read sounded positive but in the comments section I found out that the companies patents where going to expire at the end of the year which would significantly impact their earnings. I decided not to buy regardless of the fundamentals.
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