Step #1 - Company’s Website
Start at the Source
There is no better place to start your fundamental analysis than directly from the source - the company’s website. This is your opportunity to see and hear all the content presented to the world, as well make your first analysis of the information.
Corporate websites can vary drastically because there are no requirements for how the site should look or what information needs to be available. That said, pretty soon it will be very easy to distinguish a well maintained websites from one that was simply an afterthought.
By no means does a well maintained website equate to a better likelihood of success. However, given the reach of technology, more and more companies are emphasizing their digital presence, starting with their websites.
Getting Started
The first thing you will need to do is find the corporate website. This should be as simple as an online search of the Company’s name or stock ticker. There may be some added difficulty looking for a penny or foreign stock’s website; however, never underestimate the power of the internet.
Once you are on the company’s site, The Chart Readers suggest taking a quick overview of the whole website before diving into the content. Spend a few seconds looking over all the images, visiting each page and skimming the headlines.
A few things to consider when first visiting the site:
Is the website well designed and user-friendly?
Is the content relatively recent or is everything several months, or years, old?
Is there a cohesiveness between the various site pages?
Is it easy to find the contact information - phone number, email address, etc.?
Is there information about the Executive team and the Board of Directors?
Realistically, the quality of the website may not have any impact on your ultimate decision to invest. That said, as basic as these suggestions seems, the smallest details can be the first signs of a flawed investment.
Use every resource available as a possible analytical tool!
Digging into the Content
After completing your overview of the company’s website, it is time to read ALL the content and watch ALL accompanying videos.
Depending on the complexity of the industry, or the depth of archived content, reviewing all the website’s content can take several minutes to many hours. Take your time to truly absorb the information provided, and do not be afraid to do a little extra research where needed. Fact checking anything the company claims only adds to the strength of your analysis.
Take some notes as you review the content because there are opportunities to get more information than what is provided - more to come in upcoming sections!
Lastly, try to view the content in a few different lenses. The website you see is the same website everyone in the world sees, so how would others use the company’s website and information?
Would a million dollar account that the company was dying to sign even give then an opportunity based on what is presented?
Would a large company leave their current supplier for this company because there is a clear value or savings they provide?
Would an average consumer understand the information and actually pay for the product or service?
Investors Relations Page
Arguably the most important section in a publicly traded company’s website is the Investor Relations page.
Covered in more detail in our next section, the Investor Relations page stores critical information including: Earnings Calls, Financial Statements, Press Releases, and Contact Information.
Knowing how to navigate this section should be the treasure chest of information you have been looking for!
