When I'm researching stocks trying to find those 100%+
opportunities I feel like I have an unfair advantage, like secret weapons. In
this video I'm going to share with you my favorite two—coming up!
It's always great to see your smiling faces. At least you should be smiling because
these resources are going to jump-start or accelerate your stock research
process getting you much closer to your rapidly-growing, highly-diversified net
worth. And, one video a time, that's exactly what we're doing for you here on
this channel! I actually created a complete stock research resource guide
for you. All the tools I use, from the discovery process to complete analysis,
from blank slate to fully developed investment thesis. So, if a guide like
that would help, you can download it at StockResearchGuide.com. For now, I want
to deep dive into two of the most powerful tools I use that have
simplified my trading career compared to the time before I found them. They
literally have cut the time it takes me to develop a solid investment idea by
more than half. Probably one of the hardest parts of developing a sound
investment idea is knowing on which of the tens of thousands of stocks out
there to focus. These two tools both address that front end problem and they
do so masterfully. I've been using this first one for over a year now and can't
imagine stock analysis without it. I found it when I was researching and
trying out all different stock screeners
I was struggling to find one that really showed me everything. I didn't just want
to know the basic information. I wanted to be able to deep dive but at a glance.
And I wanted a screener that could search (screen) based on whatever
metric I wanted. Honestly, I probably cycled back and forth between 20 to 30
different screener options, trying to find a good fit. In fact, the first time
or two that I tried the one I'm about to show you, I wasn't too sure about it. It's
a lot to take in. I just didn't know how to use it, so I moved on to continue my
search elsewhere. But luckily something kept pulling me back until I finally
figured out how to use it and then discovered its power. It was then that I
realized I had found what I was looking for and so much more with Uncle Stock!
Now, it's not as visually stunning as the next tool that I'm going to show you, but
it's a depth of information is unmatched, and that is exactly what I need. Now, I'm
just gonna show you briefly behind the scenes of my account so that you can see
what I'm talking about. But if you want a full-on tutorial (because I'll try my
best to limit myself here—I get excited because it really is pretty awesome) but
I can do that, that full-on tutorial, I can do that in
another video. Just let me know if you're interested. If so, I'd love to deep dive
into either one of these tools (or any tool you want me to) to really show you
absolutely everything that they can do. So let's take a look. Here we are
inside Uncle Stock, inside my account. I just want to show you a few things
really quick so that you get an idea of how powerful this tool really is. First
of all, you can look at the stock screener capability. You click on "refine
query" and you can see all the different ways that you can break down your search:
based on all the different markets around the world; based on the sector's,
sub sectors, and industries; you can break it
down however you'd like. It you can really narrow your niche (your search) down
however makes sense based on what you're looking for. You can choose to include or
exclude the over-the-counter markets. You can include or exclude foreign markets.
You have a lot of powerful capabilities here, but what I love is how many
conditions you can look through. There's like more than 2,500 different
variables—different metrics—that you can you can search from. And, like I said, this
was overwhelming for me at first and it might be for you as well, just focus on
the things that you know and what you want this to do, and over time you'll
find value from some of the other features as well. And
you may even just start to pick up on and and learn what some of these other
things are. I could come in here and say that I want one of my conditions to
be, for example, (so here you can see all these different different categories
that you can search by and different views based on some
professional investors that you can use to search) but let's say I want
to look at EV/EBITDA (and if you aren't familiar with that metric I did a
video on it—I'll link out to that) but you can come into the valuation
metrics, you can scroll down to the EV/EBITDA. There it is and then you have all
these different time periods you can search through. And when you hover over
it explains them. I want to do it based on last year and let's say I want one
that is less than five. Let's say I want it to be on companies with a market
cap that is less than two billion. So it's small-cap companies [that's
greater than so I'll switch that] small-cap companies that have an EV/EBITDA ratio
of under five. So there's your criteria and then up here I can rank them based
on whatever I want. I could rank them based on their earnings yield. I could
rank them based on their (this is defaulted to the Piotrosky score—which is a
famous investor, if you're not familiar). You can rank it however you
want so that your search results (if there are thousands) you get the ones
based on whatever this category is they come up first. So this search capability,
the screening capability, is amazing. And its potential is as amazing!
But once you've run your search, then I want to show you some of the wealth
of information that you'll find down here at the bottom. This is a company
that I recently did a report on (I did a video on).
I'll link out to it here, as well, and definitely in the
description. This is the company—the most recent stock analysis report that I
did. Look at how much information you have! Again, this might seem overwhelming at
first, but once you get used to it you really value that in this one place
you can find whatever information you need. So you have your charts. You have
some technical analysis tools, if you want to use them. You have this summary
over here on the side, that's always there. You can hover over any of these
metrics and they they tell you why they're important. They tell you what
they think is a strong metric, what's weak, and they tell you what
variables are going into many of them. You can go into the "fundamental
overview" to see a snapshot of the company. You get the description. This is
usually where I start whenever I'm going through my search query, once I'm
trying to sort through those stocks, I usually start here to see if it's a
company that I'm interested in, and it gives me several of the most important
valuation metrics and yields things that I might want to quickly at a glance look
at that might say this is potentially a good opportunity (or really
quick, it's NOT a good opportunity). For example, they have a couple
bankruptcy metrics, and so if I just don't want to touch anything that has a
super high risk of bankruptcy, because it has so much debt, it's not a very
healthy company, then I can see that here. So, anyway, you have your overview here
and then you have your "fundamental details" and this is where you will find
absolutely everything that you could possibly want to know. It's all those
same metrics that you could use to screen a company but as you click on
them - so if I come in and find the valuation ratios, the yields, and go to EV/
EBITDA, it's gonna change the information over here on this side of the screen to
show me different metrics and different numbers that go into this calculation. So
if I wanted to see what made up enterprise value,
it's going to take me even further into the process. It's showing me
historically where it's been ...like I said, a lot of information! But it's super
valuable to have it all right there at your fingertips. You can also get an
overview of the company, which I also use. There's that description again. You
can find their website where you can go to get investor relations. You can see
their sector and their industry, and I can use this information to find
competitors—companies that are the same size, in the same industry, and that'll
help me know if this company really is under or overvalued. Because you can't
really look at just the market, you need to look at their closest competitors to see
if that's true. Anyway, there's so much more to this and I would love to do
a deeper dive, if that's something that you think would be valuable, just let me
know in the comments if that's the case. Now, full disclosure: I don't rely on
these numbers 100%. I don't rely on any tools numbers 100%. I've seen companies
as reputable as Morningstar and get it wrong—I actually had to sort through
that discrepancy with the company's legal counsel, but that's a story for
another time. I often just end up calculating the ratios
myself, pulling the raw data from the company's annual or quarterly reports.
But this, better than any other tool I've seen, saves me so much time by
aggregating every data point I could possibly want into one place, helping me
identify stocks that are worth my time to go into their annual and quarterly
reports to pull out those numbers and put it all into a spreadsheet. This
tool helps me get to that point. My second tool—my second secret weapon for
stock research and analysis—is called "Simply Wall St." Simply Wall
St provides a good balance to Uncle Stock. Uncle is insanely comprehensive
and complex while Simply is much more... well... simple! It's refined and polished in
the areas that matter most to me and probably most value
investors. Again, for a deeper dive, I'd love to, just let me know in the comments
if that would be helpful for you. But for now, let's jump behind the screen again
and just take a brief look inside. Alright, so here we are inside Simply
Wall St and the first thing that probably stands out is this circle chart
with the five different categories around the outside and the color blob in
the middle. That is a unique tool that Simply Wall St has created to
help you visualize these stocks and help you quickly assess whether or not
there's opportunity there. So, I want to run through it really quick with you
because it's pretty essential to understanding how this tool works, and
then, like I said, I will quickly touch on some other features, but I'll try to make
it make it brief. So there's five different categories that they're
looking at for any particular stock. Here's that stock that we pulled up in
Uncle Stock—the one that I've done an analysis on—Hi-Crush Partners. And
there, when you look at each of these five categories, there
are six check boxes—six criteria—that they're searching for within each of
these categories. So you can hover over them and see how Hi-Crush scored in
each of these areas. And if you want to know more information you can just click
on it, and it will take you down to that area, or you can just scroll through this
full infographic to gain insight into this company. And like I said this is
much more visually appealing! It helps you understand the company. And if you're
new to stock analysis, and you're new to this channel, and you haven't had an
opportunity to learn about some of these metrics they're talking about here,
Simply Wall St has this "Beginner Mode" button over here that you can turn
on and it explains a lot of the metrics; they're walking you through the
process that they went through so that you can understand why they have
measured things in a certain way, why they think certain things are important,
and why (probably) you should as well. Something that
is pretty cool about this tool is its ability to easily conduct a side-by-side
comparison. And as with all the things on Simply Wall St, it's a visual
comparison, which is pretty nice! One of the companies that I found that was
probably the closest competitor in this space (when I was searching on Uncle
Stock) was US Silica Holdings. It happened to show up right here, so I can
just click compare, and it'll pull up a side-by-side comparison showing that
same infographic. But you can see the information side-by-side, so I can see
how their health compares, I can see how their dividends compare, then I can use
that in my analysis process, and I can use that information to see if I really
do think, based on this information, that Hi-Crush is undervalued (or if Silica
is undervalued!). And I can come up here, and I can
add more companies to this comparison, and and continue to stack them
side-by-side, so that I can see them all next to each other, visually see how they
compare. And one final thing that I want to show you about Simply Wall St is
its screener tool and how it could be used as a screener. I use Uncle Stock
more as my initial screener but sometimes it can get overwhelming and a
little hard on the eyes staring at that screen of numbers so long. So I need
a fresh perspective, I need to take a break and look at things from a
different view, and that's what I love about Simply Wall St: it's just a
totally different perspective, it's totally different view on the market! So
when you use their screener you get this this visual comparison on the surface
level of just that snowflake, and you can use that snowflake as the screening tool
itself. For example, when you click on "Ideas" here they have all these different
pre-built screeners that are based around the snowflake. And they
outline what that actually means. Or you can come into a "New Filtered View" and
you can create your own screen, and for example, if you are a deep-value investor
you may want to pull the value part of the snowflake all the way up. And
it's going to show you the companies that fit in there and if you want to
only look at specific market caps you can adjust that down here. And if you
want to find something with deep value with a dividend, you can do that as well.
You could just look for healthy companies. All of this, it's a
great visual, easy way to analyze stocks or to go through the discovery
process to find opportunities and ideas that are worth your time to pursue. So,
like I said, we could do a much deeper dive tutorial and I would love to in the
future. If that's something that would help you, just let me know. We just went
through surface level (really surface level) information with both of those
tools. I wanted to share both of those tools with you, because when I'm in the
stock discovery process, it's not one or the other of these tools, I use them both!
Every time. I may mix it up a bit as to which one I start with, but I'm going
back and forth as they each provide me with unique and valuable perspective as
my idea continues to develop into full-on investment thesis. I hope these
tools are as helpful for you as they have been for me. I'd love to hear about what
you use in your stock selection process. Let me know in the comments: do you have
a go-to resource—your secret weapon? And don't forget, if you'd like the complete
list of all the resources like these that I use to go from blank slate to
fully developed investment thesis, go to StockResearchGuide.com. If you're new
here, I hope you can see that I'm all about helping you build your rapidly-
growing, highly-diversified net worth. And if that's something you want, then don't
forget to subscribe and click that notification bell! Like and share this
video if you found it helpful and keep learning! Keep taking those steps to
build your net worth! I'll see you in the next video.
Take care...