What information outside the annual report may be useful to an investor?
Posted by admin in Finance Monday, 28 November 2011 19:57 2 Comments
Is that things like corporate culture? # employees, how long the company been in busy, the type of business? etc.
The annual report is very useful, but wouldn’t an investor want to see how a company’s making those numbers – their strategy?
I personally think the most important information is in a company’s annual report; however, there are really thousands of factors to consider outside the annual report.
Some of the key factors include:
Analyst Estimate Revisions
Track Record of Earnings Suprises
Analyst Upgrades/Downgrades
Insider Buying of stock
Management Incentives
Competition
Technical Analysis
Customer Satisfaction
I could go on, but think about what makes Coca-Cola such a great a dominant franchise. It is their combination of great product, history, marketing, competitive position, and management that make them one of the best in the world.
Many companies if not most give a conference call at the end of each quarter. There is useful information provided during the call that can offer further insight into the company. During these calls, analysts ask questions of management concerning their business. Usually, these conference calls are available over the internet by just logging in and can be replayed later.