Not only is it difficult to find high-quality stock research reports, but many of these reports, or analyst research reports more specifically, are sometimes unreliable. Why, you ask? Many times these analysts have ulterior motives which can include pumping stocks they have a position in or are trying to unload bags to retail traders. Sometimes these firms will load up on short positions and then release a negative report on that particular stock, driving the price down. All it takes is for them to emphasize a bull/bear case and modifying a price target. Unfortunately many of these tactics are legal as firms use loopholes to get around any sort of liability. “ThIs GaMe iS RiGgEd” you might say, but how does someone lose while knowing the game is rigged?
These days it can be difficult for an investor to navigate through the clutter of biased stock research reports or clickbait article headlines. What’s real and what’s fake news? This is where SwaggyStocks comes in. Check out Swaggy’s “Due Diligence” page where we take deep dives into various factors that influence a company’s stock price. From sentiment trends, google search trends, company website ranks and product channel checks, and fundamental analysis on quarterly earnings, we put together where a company produces it’s revenues and what some of the risks are. Our intention is not to have a bias on a particular stock and pick sides, we simply highlight some important data that we think anyone investing into the company should know about.
Here are some of the fundamentals and subjective data we look at in our stock research reports
Is the stock overly hyped? Has retail sentiment gone through the roof causing the stock price to trade at insane valuations? We take a look at where the best risk for reward lies within the trade. For example, AAPL is currently trading at $108 post-earnings. Would you say AAPL is a good buy here? Would you buy it at $150? How about at $90? The answers to all these questions is extremely relative, and we take a look at the “hype” that surrounds a stock to avoid anyone becoming a bag holder in a stock they will not be able to get off their hands.
Google Trend Analysis & Product Channel Checks
Google trends and product channel checks are one of the classic methods firms use to gauge how well a product or service-based company is performing. Is traffic to their website increasing exponentially? Are products sold out or in high demand? We take a look at all of this to look at a company’s growth in the short-term.
More importantly, we look at a company’s earnings reports and fundamentals. What is their growth quarter-over-quarter and year-over-year. Where do we see them accumulating more clients and increasing revenues. We also look at international markets (if applicable) and how the company will grow in countries such as China, India and other emerging markets.
Many people believe using the discounted cash flow (DCF) model to truly gauge what a company’s value is. At SwaggyStocks, we don’t look at any of that. Our stock research reports aim to emphasize where the growth lies and how a company’s management is going to get there. In our opinion the DCF model is archaic in these times where most investors are looking for high-growth tech stonks rather than value investing, especially when investing in companies can easily be done from your iPhone. Use SwaggyStocks’ due diligence and sentiment reports to understand some of the catalysts that might move be moving the stock in the short to mid-term.