On-Line Brokers: Stock Screens and Stock Research

WALL STREET SMARTS, THE BLOG, IS NOW WALL STREET SMARTS, THE BOOK.  FULLY EDITED AND REVISED WITH NEW MATERIAL ON AMAZON

When we completed our stock screening in the last blog, Stock Screen (2), we were left with 64 possible investments.  Since the screen was pretty basic and for illustration purposes only, we won't bother looking at the companies with these rudimentary financial characteristics.  On the other hand, it is worth exploring the next step an individual investor must take in order to find the investment candidates to consider in making his or her final buying decision.  The computer saved us quite a bit of time, but now an investor must spend that time reading.

Many companies produce stock market and individual stock research; however, their reports are not free to the public.   Standard & Poors (S&P) and Value Line are two well known US research companies.   Although their websites provide information and commentary, an investor must subscribe in order to receive stock reports.  Such research companies sell their reports to individual investors and to stock brokerage companies.  In order to access them at no charge, the individual investor must establish an account with a brokerage firm.  Obviously, this is not a real issue since the investor has to do this anyway in order to place buy and sell orders in the market.

I recommend that the individual investor open his or her account with an on-line broker in order to save trading fees and expenses.  Most of them have a fixed trade fee, which is usually less than $10 per transaction.  Some of the well known US on-line companies are Charles Schwab, E*Trade, TD Ameritrade and Scott Trade.  I assume these companies offer their services over the internet to investors in other countries.  There may be similar on-line companies in other countries around the world since stock trading is such a global business.

All of these on-line firms have a link on their websites which will send the investor to their research tools.  Those tools include stock screeners, third party stock reports, such as those published by Standard & Poors, and research reports provided by the broker.  I have not seen the Value Line reports offered by any brokerage firm I have used; however, they are available at most public libraries.  For no cost, the investor can set up a stock screen with the investor's requirements and then review reports on the matching companies identified on the screen; all without leaving the broker's website.  In the last blog I also provided a link to the Google stock screen site, which is also free.

I have been gratified by the number of viewers who have read this blog.  Since I started posting in November of last year, over 1,700 people from more than 40 countries have visited this site.  I can think of only one product which is undoubtedly familiar to all of them.  In next Monday's blog, I will describe the contents of an S&P report on a publicly traded company with a truly global product, Coca Cola.  If you have access to S&P reports, either through a broker or, maybe, at your local public library, try to get a copy of their August 27, 2011 report on KO, the company's stock symbol.  It will be more informative to follow my review if you have a copy in front of you.  It's your choice if you want to have a Coke as you read.  It is said that Warren Buffett's favorite drink is Cherry Coke.

Comments are always welcome.