A review of the tools we use to build up a multilayered view of the market. When we reach conclusions based on the input below we are quick to share our views with clients by e-mail.

The Market Status by Sectors Diagram

This simple diagram organises the sectors into categories of various degrees of bullishness or bearishness. It highlights the market direction and warns on stages of transition. Of course it also tells us which sectors to focus on.

FUNDAMENTAL ANALYSIS

The FTSE Number Cruncher

Trying to compare 1,100 bits of data on the FTSE stocks is a daunting task. The number cruncher simplifies the process by setting hurdles to sieve out the data we are looking for and then adding up the scores for stocks which jump the hurdles best. It is published with all the data shown and also contains forthcoming dividend details.

The Fundamentals Graphical Summary

Each time we look at a chart our Updata software pops up a pictorial view of past and predicted turnover, profit, EPS and dividends providing a constant reminder of the consensus view of the stock. We often drop this graphic onto our option models when we publish them.

Charting Value as Well as Price

We can now chart the PE of any company. This shows the levels where institutions are prepared to buy the stock. You are seeing value rather than price and sometimes the difference is a revelation.

TECHNICAL ANALYSIS

A few of the top City Institutions have started to use Updata technical analysis software because it is simply the best of its kind in the world. We were using it years before them. Our favourite tools are the ‘pyjama’ charts which tell us whether a stock is in favour or not and we also find the point and figure charts particularly good for setting targets and expectations.

Options Strategy Modelling

We have a one page model for the short straddle, strangle and buy write. After taking dividends into account the models show exactly what will happen if the shares are called or put. The models read like a story so they are useful as educational tools for less experienced users. They can be configured quickly for e-mailing to clients.

Company Visits

Once or twice a week our partners meet with company executives to review results etc. There is nothing like sitting round a table to get a good insight into how a company is doing.

IPO’s and Placings

Apart from our own IPO launches we often participate in other IPO’s and placings giving our advisory clients a chance to get in on the ground floor.