- your competitive edge| 4 Pillars of Quantitative Information | |
| Investment decisions are prone to arbitrary thinking. Inputs can be as limited as a dinner party conversation, something a friend heard, or a broker’s call with a discussion of only minutes. Not exactly a structured approach with objective reasoning. There is any amount of data about companies. So why make investment decisions that are not based on a clear and consistent rational? The challenge is to filter the company data and analyse it in a way that converts it to information. This provides a means to act consistently. |
Knowing when to buy, hold and sell shares based on a criterion of well founded investment decisions, that you understand, makes for a sound portfolio. To enable a consistency in decision making Market Shares presents information about each company’s Profile, and its share Value, Risk and Momentum. Comparisons to a company’s peers, in addition to benchmarks against the market and indices are covered. Overall, it is an approach that is structured to support investment in companies you really like. An overview of company and share information follows. | |
| Profile | |
| Overview | The company’s business and strategy are explained. Its participation in market indices along with details of share return, extent of major ownerships and how the price has tracked are graphed all with past comparisons. |
| History | Extracts from published accounts cover performance and financial position along with key business ratios all with up to 10 years of comparisons. |
| Performance | Graphs and tables cover share price performance for a range of periods. Benchmark comparisons against indices provide an understanding of how the company performed relative to the market. |
| Peer Comparisons | Peer comparisons cover companies in the relevant indice. This provides both a benchmark and a means to understand alternatives. Coverage is across Value, Risk and Momentum criteria with a choice of characteristics that you select. |
| Options & Warrants* | In addition to shares many companies have ASX exchange traded options and warrants. These are profiled to provide details of your alternatives. |
| Value | |
| Fundamentals Valuations | Current and past P/E ratios together with analyst consensus profit growth are used to compute a company’s fair value. The components are based on your choice and may be changed to assess alternatives. Graphs and tables that include benchmarks for earnings, dividend yields and more, provide a basis to set appropriate valuation ratios. |
| Technicals | Traders in particular often use price bands to make buy and sell decisions. Bands are provided based on both weighted and unweighted trade volumes. A choice of periods over which they are calculated enables an assessment of holding periods. |
| Risk | |
| Fundamentals | Valuations are dependent on factors that can change both positively and negatively. Graphs and tables with benchmarks for price volatility and stability of earnings and dividends are provided to assist you in understanding valuation risk. |
| Technicals Value | Short and long term investors may consider the volatility of a share’s price. This is covered on both an intra and inter-day basis for daily, weekly and monthly periods. Additional insight is provided with a summary in graph and table form of positive and negative price performances for each period. |
| Business | Business continuity influences valuation and share price. Insights are provided across cash flow, earnings and financial health. Additionally, business concentration on both an industry and geographical basis are graphed. |
| Liquidity | Liquidity of shares varies greatly. Illiquid shares may be slow to buy and sell. Investors may consider liquidity in a decision about whether to invest and the size of the holding. 'Trade volume' and 'days traded' are graphed and tabled across a range of periods. |
| Momentum | |
| Price to Earnings & Dividends | Timing trades impacts performance. The momentum of a shares price can be influenced by changes to earnings and dividend expectations. But price may not respond if the market has factored in the change. Accordingly, grids of price to earnings momentum and price to dividend momentum are provided. |
| Technicals | Charting tools may be used to time trades. Some incorporate buy and sell trade triggers. Frequency of triggering is affected by the time interval used. Popular charting techniques are provided including triggers with your choice of daily, weekly and monthly periods. |
| Markets | Share price movements can vary across different economic cycles. Analyses of each share with indice benchmarks are provided. Coverage is across all market cycles, GDP rising and falling, official interest rates rising and falling, and bull and bear markets. |
| * = coming Soon |
