How to research companies before investing

Hi readers

This is for all the new readers who have found my email I put up many moons ago and are asking how I find companies.
I am a fundamental trader.
I do not look at break out or chart lines or anything of this nature. You can if you like and it a personal choice.
Charts can be manipulated in ways I'm not prepared to discuss .

Fundamentals are I believe the foundation of what a company is about, all companies have ideas some good other pie's in sky stuff.

I tend to look at how can it be used ?
What are the benefits or who will it benefit?
Is it a growth market ?
Can the company scale up should the growth come?
What is its export capability should market become available?
In the event of delays can it continue?

Once most of these come back as a potential positive then we look at the structure.

Who's on the board?
Who's running the company.
How much are they being paid and how is there funds being spent.
I don't look at liability and assets because on small cap there are no assets, and liabilities are way more.

If the CEO is young then I'm more open to giving them a chance to prove themselves as they seems to want to make a name for themselves.
Ive notice old guys if there in a small cap then there is what we call a superannuation payout on the horizon.
You need to ask yourself why would someone in there 60s want to start something from scratch on shit money when they can take a CEO in an established firm and be paid millions?
It's usually because they intend to make 10s of millions on the backend as opposed to being paid 1-3 million a year.

Then there is the issue also you need to look into where his been and what has he achieved.
Boards are the same you need to look into that too.
Experience is important.


Then you look at the register how many share are issued, usually on small cap stock as the beginning stages should be around 100-150 million tops. Anymore than that and flags go up for me .
As the business progresses the company will issue more to grow which is fine but be aware more than 500 million I usually start to worry about management ability to execute.

Basically comes back to error made on the top questions.
You will make mistakes and they will cost you either time or money, but you will learn from it to pin point exactly what your looking at.

Then I look into the financial astrology of the company to determine whether it's got a future or if it's a moment thing.
A moment is 5 years , a future is 10+ years

Again this is just to give you an idea of how I look into potential companies to invest in.
If your getting tips from financial chats then it's only a matter of time before you get burnt badly.
As it's been proven that people set out to pump stocks up only to dump them on uneducated traders who follow charts.

If the ASX allowed naked short trading on any stock on its exchange then these influencers/ rogue companies will close there operations as they wouldn't have the protection they enjoy.
That's the beauty the US markets do have.

So yes you do need to investigate to find the gems in the market.
You have to invest the time to find them.


As always use the above as research to your own research.
I am not a financial advisor.
I'm a Financial Astrologer.