How should you read a broker report?
Broker reports are one of the most widely-used information sources for equity investors of all stripes, and there is no doubt they can be a very useful source of background information on an industry or company. In addition, they provide financial forecasts, valuation estimates and, of course, the analyst’s overall conclusion: buy, sell or hold.
Tim joined Montgomery in July 2012 and is a senior member of the investment team. Prior to this, Tim was an Executive Director in the corporate advisory division of Gresham Partners, where he worked for 17 years. Tim focuses on quant investing and market-neutral strategies.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
Lester Green
:
Interesting article Tim. Enjoyed it, thanks.
Having worked in the O&G industry all my career, I could always find it easily to challenge and detect superficial arguments provided by both Sell/Buy brokers. Not too hard to understand why…..but I have always struggled to find a way to at least get enough knowledge on non O&L gas companies to be able to provide the same personal challenge when reviewing a brokers recommendation. I guess its all about…”read, read, read…….dig,dig,dig” ?
Or is there another process that could supplement this current labour of love process?
Tim Kelley
:
Unfortunately, Lester, I think “dig, dig, dig” is what it takes.