Research

"safety-first" research

The essential requirement for implementing our safety-first strategy is that you buy only companies with strong sustainable competitive advantages. Our research reports are stock study resources that help investors pinpoint great companies worth buying as well the many, many more mediocre companies that should be avoided in order to protect capital and earn superior risk-adjusted returns. The process for determining whether a company is a great or a mediocre company is straight forward. First we study the company’s competitive position, then its fundamentals, then its earnings and cash generating power, then its yields and rate of return potential, and then its risk.

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In our 15-page equity research reports, we offer a fair value estimate for each company based on a rigorous and transparent discounted cash flow process and a market-based price multiplier process, assess the attractiveness of a stock based on a firm-specific margin of safety, and provide short-term valuation targets based on the results of 6 proprietary fundamentals-based technical indicators. Each report includes a detailed financial statement analysis, explicit fundamental forecasts, and probability of loss estimates. Our analysis provides an assessment of a company’s competitive strength and durability, while our trend-lines offer insight into the momentum of a firm’s stock direction. We believe our methodology helps identify the most attractive stocks at the best time to buy, helping to avoid value traps and lagging performance due to the opportunity cost of holding a stock with great potential but at an inopportune time. Members can access our 15-page company research reports from our "Report Downloads" page. Join Today!

used by analysts and portfolio managers of:

Arrow
Blackrock
Credit Suisse
Morgan Stanley
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Edward Jones
US Bancorp

in addition to our stock research reports, all subscribers gets access to our "BLUE Book". the blue book is our price guide that offers individual investors quarterly price updates on all 200+ american and canadian companies we have under coverage. the blue book helps to keep things easy for you. In no time at all you can quickly skim through our valuation targets, assess historical data, and view our key forecasts.

qualitative and quantitative attributes we look for in businesses

qualitative
quantitative
  • Sell differentiated products
  • Possess scale economies
  • Have distributional advantages
  • Receive favourable government treatment
  • Are market leaders
  • Have high built-in switching costs
  • Face few powerful competitors
  • Operate in growing industries
  • Face few substitute products
  • Have buyers that are highly dependent on the firm for its products/services
  • Have non-unionized labour
  • Have a high rate of inflation pass-through
  • Have many suppliers that are dependent on the firm for its business
  • Stand to benefit from product/service complementarities
  • Continue to grow sales or at least maintain their market shares
  • Are highly liquid with sizeable cash positions
  • Have inventory, receivables, and operating costs under control
  • Have stable and growing operating earnings and cash-flows
  • Have short-term and long-term debt loads that are easily managed
  • Operate on high margins
  • Generate above average returns on assets, equity, and invested capital
  • Have an expanding book-value
  • Have above above inventory and asset turnover
  • Have high earnings quality
  • Are cash generators with high cash margins and cash returns on capital
  • Generate positive residual income with minimal historical decay

Access our Research Services

Research services, model portfolios, and market timing indicators to help boost your risk-adjusted returns