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Studying a Stock for Possible Investment

I'm making a presentation today (2007-06-09) to the East Tennessee Better Investing Chapter on Oracle Corp. This stock was selected based on Better Investing's Stock to Study for June 2007. Here are the resources that I am looking at in beginning to analyze the industry and the company.

Industry information:

  • Manifest Investing sector radar using Vanguard ETFs http://www.manifestinvesting.com/dashboard/1835
  • Standard & Poor's Industry Surveys - Computers: Software: approximately 50 pages long this analysis of the industry contains industry profile including basis of competition, state of profitability, competition, how the industry operates, and comparative company financial statistics. A great resource to dig into how companies in an industry operate and differences that exist between companies.
  • Standard & Poor's Sub-Industry Outlook - part of an S&P Stock Report, consists of one page analysis of the sub-industry and sector. Financial ratio's for the competition in the sub-industry only. Consider that many companies operate in numerous sub-industry's
  • Hoovers (http://hoovers.com) - the free information available on the web is more limited than the subscription (available through libraries). However, a valuable component is the industry breakdown. While S&P classifies companies by the major industry, Hoovers breaks out all of the sub-industry components that a business operates in.

Company information

  • Stock Selection Guide - Great for an initial look at the growth in sales, earnings and price over the prior 10 years. The consistency of looking at data formatting and the semi-log scale (represents growth percentage on the y axis rather than absolute dollars) are great tools for a visual analysis.
  • Yahoo Finance stock charts (http://finance.yahoo.com/) - the beta stock charts are an excellent tool for easily looking at price over the period you select. Also available is split and dividend info. A web 2.0 app with good interactivity, comparisons to individual stocks and indices.
  • Stock Charts gallery (example URL with ORCL: http://stockcharts.com/charts/gallery.html?ORCL ) - 3 charts are displayed: Daily, Weekly, and Point & Figure. Each has value in understanding price movements and trends. The site has extensive tutorials on using technical indicators.
  • BigCharts (http://bigcharts.marketwatch.com/) Advanced charting, 5 years, Weekly, with indicators: Rolling EPS, P/E Ratio, and Dividends (if any paid), BIG chart
  • Reuters (example URL with ORCL: http://stocks.us.reuters.com/stocks/ratios.asp?symbol=orcl) - Ratios comparing the company, industry, sector, and S&P 500.
  • Manifest Investing - check out the expected return based on expected PE and projected growth rate. Manifest is an excellent tool that you can use to filter quality factors simultaneous with growth and valuation.

Created: 2007-06-08

There is no security in following the call to adventure.

Joseph Campbell

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