In this chapter you will find practical and useful information about how to invest in shares in general and more specifically about how to start investing in stocks in the energy and mining sectors.
I will inform you about where to get the necessary data to enable yourself to make an investment decision and how you can use this information practically. Of course, I will also inform you about which (free) resources I use to execute my due diligence. In short, you will learn how to invest in shares – the UndervaluedEquity.com way.
As my stock portfolio mainly contains American and Canadian listed stocks, I have limited the resources I describe to those which are relevant to these stock markets. Nevertheless, many resources I use for my due diligence on American and Canadian listed stocks, can also be used for analyzing a stock from anywhere else in the world.
Thus far I have created the following (sub)pages in this due diligence section:
- Analysts’s Stock Ratings – What Do the Equity Research Analysts’s Stock Recommendations Mean. Not all stock research firms use the same stock recommendation system. Therefore I have created a reference table on this page with an explanation of the different stock ratings.
- Country Risk Assessment – 14 Free Resources for Conducting Your Stock’s Country Risk Analysis. In this article you will learn all about how to use these 14 free resources for conducting your stock’s country risk assessment yourself.
- Management Assessment – How to Evaluate the Quality of a Company’s Management. In this part of my management assessment, I explain how I evaluate the company’s Management Discussion and Analysis (MD&A), their latest investor presentation and their press releases.
- Key Management Positions – What Competencies to Look for in Your Stock’s Management. In this article you read which management functions I have qualified as key management positions. I have also included their job descriptions so you know what skills to look for.
- Management Compensation – Where to Find Your Stock’s Management Compensation Data. As I mainly invest in American and Canadian listed stocks, I have only included the management compensation data sources of these countries in this article.
- Management Evaluation – 11 Questions to Ask Yourself When Assessing Your Stock’s Management. My management evaluation consists at least of answering these questions to help me form an opinion about the quality of a company’s management.
- Insider Stock Trading – How to Interpret the Secret Information Revealed by Insider Transactions. On this page I explain what to look for when interpreting the insider stock trading data for bullish or bearish trade signals as part of assessing a company’s due diligence.
- Insider Stock Ownership – Which Exclusive Type of Stock Owners Are Your Fellow Shareholders. I divide your fellow shareholders into 3 well defined insider stock ownership groups and explain how I use this subdivision in the due diligence process of my stock analysis..
- Company Ownership Search – 5 Free Resources to Find Your Stock’s Current Shareholders. I reveal 5 free resources to conduct your company ownership search, which all reveal different insights into the stock holdings of the various ownership groups.
- Insider Trading Rules – When do Insiders Need to Report Their (Change in) Stock Ownership. Canadian and American regulators have both set different insider trading rules as to when insiders need to report their initial filings and change in stock ownership. Read about it here.
- Insider Trading Canada – 3 Free Resources for Tracking the Change in Canadian Insider Ownership. This article: “Insider Trading Canada” reveals the 3 best resources to find detailed information about the change in insider ownership of a specific Canadian listed company.
- Insider Trading USA – 3 Free Resources for Tracking the Change in American Insider Ownership. This article: “Insider Trading USA” reveals the 3 best resources to find detailed information about the change in insider ownership of a specific American listed company.
- Personal Stock Holdings – The Risks of Holding Your Stocks Exposed. On this page I reveal the risks related to your personal stock holdings. Depending on which method your securities are held your risk level varies. Further, are you really protected by the SIPC?
- Monitor Your Portfolio – How to Monitor Your Stock Portfolio with Google Alerts. On this page I describe how to use a simple, but highly effective tool which can help you monitor your portfolio: Google Alerts.
- Share Structure – The Different Types of Company Shares Explained. I explain why you need to know what the share structure looks like and what the difference is between the different types of shares outstanding.
- Employee Stock Options – How Do Stock Options Work. Read why employee stock options are offered to the company’s employees and why you should not confuse them with the term “ESOP’s”.
- Flow-Through Shares – What Are Flow Through Shares Really Worth. Read here why you should always be cautious when Canadian listed resource companies turn to the markets to raise capital by offering flow-through shares.
- Short Stock Positions – How to Short a Stock and Where To Find Short Interest Data. Next to exemplifying how short sales work, I reveal which resources I use to find data about short stock positions, short interest and days to cover.
- Stock Warrants – Where to Find a List of Outstanding Canadian Stock Warrants. I will not only explain what a stock warrant is, but I will also inform you where to find a list of outstanding Canadian stock warrants.