What’s happenin killas? Y’all asked for a Deep Dive Due Diligence tutorial so here it is. A huge thanks to all 5k of you slappies, makin money wouldn’t be the same without you. Now get ready to learn some shit.
1. First off I use a scanner to narrow down my options, I use Finviz. I can track stocks with abnormal volume, low float, different SMAs, momentum, earnings, high/low, different chart patterns, and a ton more. Google will be your best friend to find settings for your screener.
1.5. Do some technical analysis on the chart, is it on a pullback, or a bottom reversal, or a squeeze? Many patterns can indicate whether or not you should be bullish vs bearish on a stock. Check daily volume as well, and learn about the different indicators on a chart.
2. Now I use google for a quick overview of the company, just look at its website, any recent articles about it, any general info about the stock. This doesn’t hold a ton of precedence but it gives me a good feel for the stock.
3. Next up I find financials, income statements, balance sheets, etc. Again, google is a perfect way to find out how to read a balance sheet, what is a good sign, and what is a bad sign. Remember that it is good to go back a bit of time, history matters.
3.5. A great way to dive financials is SEC filings (10-k and 10-Q). They give you a good look at cash flow, how much they make, how they make it, how much they spend, and what they spend it on.
3.75. Statistics to look into regarding financials: EPS, PE ratio, price to cash flow, debt, income, revenue, PEG ratio, profit, and many more (the more the better). Again google will help you with all of those
4. Management, this one is big, finding out as much as possible about the big officials of a company. I’m talking the name of the CEO’s childhood dog type shit. DEEP dive into their credentials and past. That will let you know their success probability.
5. Sectors, I like to then look at the sector it belongs to and determine if it is hot at the moment. Ex. Bio corona plays are poppin right now. During this time I look at comparable stocks and how they are performing. Ex. $FRSX compared to $MARK.
6. Catalysts, I check to see when earnings are, if they have a new product, new contracts, compliance, a shareholder meeting, a launch, appearances at a conference, anything at all, closed offering, could be as small as a tweet, anything that could bump the share price.
7. At this point you have enough info to decide if you believe in the company, do you like their business plan, their products, the management, their past, the future catalysts? Ask yourself if you believe in it and if you trust it.
8. A last small touch I like to add is the social media screen. I like to search Twitter, Reddit, Yahoo Finance, Stocktwits, etc to see how many people are talking about this stock. Hype can carry a stock by itself so this proves to be valuable. Hype is not always necessary tho.
Slappies, just use your resources, learn about the things I mentioned above, and keep expanding your knowledge. Good luck
I hope you all get something valuable out of this thread, spread it around so we can keep educating the squad. Oh and don’t forget to share it with all of us so we can print cash together. Thicc Boi out.
You can follow @ThiccTeddy.
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