Stock Research
Homework Steps:
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THE KEY FACTS:
(quick snapshot... understanding your stock)
100   Stock ticker & Company Profile
110   Anatomy of a Stock - company snapshot
120   What the company does and how it makes its money
130   What Sector & Which Industry?
140   What Competitors?
150   Knowing The Share Price History
160   Knowing Number of Shares Outstanding
     
INTERNAL FACTORS:
(what the company controls)
200   Company Website
220   Annual Report (10K)
230   Latest Quarterly Report (10Q) & Other SEC Filings
240   Conference Calls
250   Earnings Guidance Provided
260   Insider Buying & Selling
270   Stock Splits
275   Secondary Offerings
280   Dividend & Yield
     
EXTERNAL FACTORS:
(what others control)
300   Analyst Ratings & Expectations
310   Major Holders
320   Major Index Membership
330   Short Position
340   News Headlines
350   Industry Events
     
KNOWING YOURSELF:
(what you can control)

400   Your Available Time
410   Age/Risk Tolerance
420   Don't Buy All At Once
430   Diversification
     
CHECK THE EXPERTS:
500   Jim Cramer's 25 Rules for Investing
510   Warren Buffett's Stock Portfolio
520   Business News - TV & Newspapers
530   Business News - Websites
540   Last check: Cramer's latest comments on MadMoneyRecap.com
     
TRADING RESOURCES:
600   Stocks 101: The Basics
610   Online Trading 101 (vs. paying a broker)
620   Anatomy Of A Stock:  The Parts
630   Mad Money Recap
640   Setting up your own free Yahoo! Finance Portfolio
650   Stock/Investing Glossary
     
ADVANCED TOPICS:
(coming soon)

700   Open Step
750   Open Step
790   Open Step
     
FREE HOMEWORK WORKBOOK CHECKLISTS:
800   Ongoing Weekly Homework for each of your stocks
WB   Free Stock Homework Workbook - PDF Download

 

 

 

 

 

 
 

Next Step:                                                                                                         Last updated:      
  230  Latest Quarterly Report (10Q) & Other SEC Filings                                                  Share

Reading more, beyond the bottom line... 

It's all in there!  You just have to know where to look...
Yes, that, and you can't get driven away by the boredom of the somewhat "legalese" style of writing.  I mean, it really is like reading a bill from Congress, or a court document.  Why is that?...

What the Company Said Last Quarter:
Anyway, the latest Quarterly Report, or 10-Q, as it is called, provides a current "temperature" for your stock's company, against which it is judged based on what it told the market it would accomplish in the form of a dollar amount as earning-per-share (EPS) for that reported quarter. For example, a company might have claimed in the previous quarter that it would make $0.14 cents per share in earnings in this quarter.  If it actually made $0.20 cents per share, it "beat earnings" and that "beat" could cause the stock price to go up, as long as the other news for the quarter (including the estimated earnings they project for the next quarter - i.e., "earning guidance") is not disappointing. If it made less, then that is an unfortunate "earnings miss" and the stock will likely go down as a result.

What the Analysts Expected (i.e., "Analyst Estimates"):
Another interesting dynamic in this quarterly reporting process is that the analysts who cover the stock may think they know much more - beyond what the company has indicated - about what it will make for that quarter.  Therefore, before their quarterly report (actual results) are officially announced, analysts will provide their own projections, up or down, based on the changing market or industry environment in that quarterly period, or based on factors that they think positively or negatively affected that company during that time.  For example, while the company may have stated they would make $0.14 cents per share, the analysts may believe that they exceeded these estimates due to much stronger sales, and therefore they make the claim that they believe the company will make $0.17 a share.  Taking the average of all the analysts' estimates who cover the stock, becomes the "analysts expectations," or target EPS, for the stock. 

This could be bad for a company that was right in line, reporting $0.14 cents a share, as they said they would.  Because they may have met their predicted EPS, but they "missed analyst estimates" by $0.03 cents.  Again, in this situation, the stock price could go down as a perceived "earnings disappointment" on Wall Street (even though they did what they stated they would do the previous quarter).

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Hover over this text to see enlarged image

 

 

What the heck are all those "8-Ks?"...
Looking at the image above for Intel, they submitted a heck of a lot of Form 8-Ks in that list.   "In the interest of full disclosure..."  That's what the 8-K report is all about.  It is typically used as a universal form to submit notices to the SEC (and the public) of all changes that occur at the company.  For example, every time they hire or appoint a new Officer or Board Member for the company, they will submit this Form 8-K to the SEC to alert them of these changes in their leadership.

And, did you ever wish you had a "decoder ring" for all those SEC Form numbers?...  Well we found that for you on the SEC's website, and provided a link for you here >

Just go to each form, click the Form name, and then read the first section, "A.  Rule as to Use of Form __."  That will tell you its purpose and why it is used.

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What you should find in this step:

 
Our Key Findings from this step (and where we found the information)...
From this step, the conclusions you should find regarding _____ are in the following key points:
 
 
 

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