Transcript Secrets-of-Small-Company-Stock-Research.ppt

The Junkyard Dog
Find Treasures where You’d Least
Expect
Tom Garrity, Stock Analyst, Cabot Small-Cap
Confidential [email protected]
“
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How Does It Relate to Investing?
Investor
Shortcomings
4.2%
RETURN
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$
$
$
SELF-CONTROL
TIMING
KNOWLEDGE
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Percent of Investors Who
Outperform Benchmarks
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Why Professional Money
Managers Fail
 Researching
stock-by-stock =
competitors’
approach
 Starvation of
investor ideas In other words: They can’t see
the forest for the trees!
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Edmund Gettier, III
“Justified true belief is
not sufficient for
knowledge.”
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Hansen’s = Monster Beverage
1995—2012 =
55,662%
RETURN!
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Who will be the winner in
the investment marathon?
Hint: The answer requires
thinking outside the box
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Targeting Stocks Poised for
Growth
• Fills
a void
• Meets a need
• Causes a
paradigm shift
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Technology Sectors
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Mobile 4G broadband networks
Smartphones
Processing power in
network processors/CPUs
Mobile applications
Smarter bandwidth
Cloud computing
Social networking
NFC payments
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Med-Tech
Patient procedures
 Therapies

Leading to
Patient healing and increased life expectancies
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Know the company
and product
Time it right
Stock Volatility = Normal
Make Sure You Fall for Stocks
for the Right Reasons!
Be on the LOOKOUT for:
 Initial
Sales
 Back-Order Sales
 Pricing
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Avoid Companies
that are Sales-Dependent
on
Large Capital Expenditures
or
Turns in the Economy
“What percentage of
the coming quarter
sales forecast is
accounted for in
back-order?”
What is the Track
Record of the
Management?
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Up and Coming ….
Robots in Agriculture
Carbon Fiber
Composites
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Up and Coming ….
Stem-Cell Research
Thermal Energy
Technology
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Up and Coming ….
Value Based Insurance
Plans
Technology to
Reduce Emissions
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And still more …
Non-cash payment
technology
Genome
testing
Healthcare Informatics
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spr
Financial
Analysis
101
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Judge Not Yourself …
Instead, Judge Those
Around You
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The Rhythm of Stocks
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The Married Stock
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In closing . . .
 Take
a different path
 Listen to your inner child
 Get out of the box
 Look in places you’d lease expect to find treasures
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Find
Your
Inner
Junkyard
Dog