This overcomes some of the shortcomings of using a screening tool. Trawling through the entire stock exchangeĪ great exercise I recommend to all investors is to trawl through the entire company list of a stock exchange. If you are a wholesale or sophisticated investor looking for longer term capital growth then fill out the form on the right to request an Infopack There are certain nuances with companies that don’t screen well which makes them a highly prospective investment.
The biggest downside I feel is that often the best investment ideas don’t screen well. Screens are useful in that they help you come up with a focused shortlist of investment ideas for deeper research. We also have individual screens for specific industries or specific geographies. Some of our standard screens for our domestic managed funds include ‘ASX High Yield’ which is looking for high dividend yielding small cap companies and ‘ASX Value Microcap’ which looks for cheap growth stocks. These platforms allow us to identify a shortlist of companies by setting limits around market capitalisation, countries, industry sectors, profitability metrics such as return on equity, valuation metrics such as price-to-earnings ratios and financial health metrics such as gearings ratios. This is usually through Bloomberg or Capital IQ financial platforms. Our first port of call is to search for investment ideas using company screens. It could be we stumble upon them by trawling through all the companies on an exchange or through screening or even observing the holdings of other like-minded small cap value funds.
Identifying investment ideas, whether it is ASX listed companies or global companies can come about many ways. This is the question most prospective investors of our managed funds and anyone interested in small cap investing ask us.