Our Approach
The passion of our three experienced market analysts (profiles) is to provide members with exclusive research based on an objective and methodical approach to stock analysis. By employing a unique combination of fundamental valuations and technical timing tools encompassed by a strict regimen of money management we provide members with clear, factual and unbiased recommendations.
The Shareholders aim is to help you put your stock portfolio on solid foundations by focusing on the opportunities that exist by identifying quality stocks that meet our stringent and methodical stock selection criteria. Many of these stocks will exist outside the top echelon of stocks and out of the bounds of many research houses. This provides you with a unique pool of stocks that will be off the radar of most traders and investors.
The performance chart on the home page is a guide as to what can be achieved using an objective methodical technical approach. The graph shows outperformance in both bull and bear phases with a low standard deviation or more simply put a steady and consistent growth path. This is exactly how a good portfolio should perform. While Stockradar uses only technical signals to generate its results the Shareholder now introduces you to a balanced mix of both technical and fundamental inputs.
A systematic rule based trade plan with the necessary risk management controls can easily be crafted to generate outperformance. The key to this approach is having the discipline to execute the trade plan precisely. Our analysis approach is easily followed by the consistent format our 3D reports take thus resulting in a consistently benchmarked output of reccomendations.
Our exclusive "On Demand" service then supports our 3D reports with an updating facility for you to request at anytime.
Fact: Less than 20% of market traders use a trade plan or read financial reports! Our focused use of these essential tools gives you that vital market "edge" you need to be in the right stocks at the right time.
1. Fundamental and Technical Analysis
The market price is a constant and fluid auction process that drives prices far above and below fundamental valuations so at the Shareholder we understand the effect sentiment has on prices and the advantage of combining the quality attributes of fundamental valuations and technical timing to drive optimum results. Thus you will notice while some stocks may qualify with a high fundamental rating the technical rating may be in conflict due to negative sentiment causing the price to fall. The Shareholder waits for a positive confluence of both ratings before making a buying recommendation.
2. Shareholder Stock Ratings
Stocks are rated on a fundamental value basis and then a technical timing rating is used to provide optimum entry and exit points. A stock with a strong fundamental value rating must have a confirming technical timing rating for the stock to qualify as a Shareholder BUY. Once the stock has qualified for a BUY the trade is then "money managed" until a sell signal is issued.
- A stock is given both a fundamental and technical rating between +10
and -10. Fundamental Criteria and Technical Criteria
- To qualify as a stock with sound fundamentals and compelling up trending attributes a stock must rate at +5 or greater for both fundamental and technical ratings to qualify as a buy.
- Once a stock has qualified as a BUY the position is then managed from a money management perspective until a sell signal is generated. The trade is then entered as an open position into the 3D Trader.
- Divergence of fundamental values and stock prices tells us clearly something else is driving the price or the market is not yet fully aware of significant changes that will affect the share price in the future.
- It is very hard to encompass all these issues in a rating system so although a stock may qualify any positive or negative attributes will be highlighted in the Verdict section of each 3D report.
- When a stocks technical or fundamental rating declines to -4 or less the stock is exited.
3. Money Management
You cannot trade the stock market successfully and consistently without a safe system for managing your money. FACT! This makes up a major part of our process for buying and selling stocks. We are not in the business of just selecting stocks for you to buy but actually helping you generate a consistently positive return through a regimented process of management supported by a comprehensive program of education.
4. How Do We Start?
Scanning each week updates the prospect list as we search for quality stocks across the market that meets our key indicator criteria. Fundamental Criteria and Technical Criteria
Fundamentally the stock is initially assessed using our key indicators being but fully aware of the pros and cons of this method and the need to assess each stock on its own individual merits with regard to such influences as special competitive advantages, capital management programs, or other unique stock attributes and advantages. Our analysts draw from their many years of experience in the market to successfully unearth these stocks for you and highlight soundly based opportunities.
As a stock qualifies on a fundamental basis we then assess the demand supply balance using price analysis to help us evaluate where a stock is in its stock market cycle of accumulation, up trend, distribution, downtrend cycle.
