How do you go about analysing a new stock or company that you just heard about?

What I usually do:

1. Find out what the company does by looking at its website

2. Download the annual report from the company's investor relations website

3. Look through the business overview and understand how the company makes money

4. Look at its past financial summary

5. If I don't understand the company (not within my circle of competence), I'll chuck it aside. If I do and things look interesting, I will put it on my research list to dig deeper at a later time.

I recently learnt from my colleague Rachelle through her Opinions piece on Tiger Brokers that Youtube provides a great summary of companies.

A few weeks back, I learnt about Unity through Youtube as well so I managed to somewhat skip steps 1 to 4 on top.

3 simple steps

i see the stock

i like the stock

i buy the stock

I'll find out the summary of its business.

Check history of sales, earning and cash flow.

Check its growth rate and if it is positive.

Check if it has any competitive advantage over its competitors.

Check its ROE, conservative debt.

All info can be found on Financial websites. ​​​

Google is my best friend. :)

Cheers.

- Jeffrey (jeffreyleezq.com)