I spent time this week updating and filling out the Resources page with helpful links from a value investing standpoint.
These are the items I use on an everyday basis to screen for undervalued stocks, analyze financial statements, determine appropriate valuations, and find new opportunities.
The links can be loosely broken out into several categories:
Graham Net / Net Screener has the widest collection of securities trading at a discount to their net asset value.
For more complicated screens, Stockscreen123.com provides the ability to create custom screening criteria, a major advantage over the other screeners which limit the investor to pre-set criteria.
The tool can handle extremely complicated scenarios for almost any line of a company’s financial statements, and is the best resource for identifying potential investments using new and original ideas.
The SMF Add-In is a free function in Excel that allows limitless information to be pulled into a spreadsheet automatically from a single ticker symbol. By itself, the add-in is incredibly powerful, but Jae Jun and his OSV Valuation Spreadsheets are the best stock valuation tool on the web.
The spreadsheet crunches numbers for several different valuation methods automatically including DCF, EPV, NCAV/NNWC, Piotorski score, and Z-score, along with giving historical financial statements.
They are constantly being improved, and Jae even gives away several outstanding free spreadsheets on the website as well. A must have for any investor, even a recreational one.
However, even with the best number crunching in the world, nothing beats reading through a company’s annual reports at the SEC EDGAR Database.
Special situations investments, or workouts, encompass a broad range of alternative investments including going private transactions, merger arbitrage, tender offers, distressed securities and spinoffs.
Each of these areas has been proven to beat the market over the long run, and make a great supplement to a traditional value investing portfolio.
SINLetter Merger Mondays (merger arbitrage), Fat Pitch Financials Contributor Corner (going private transactions), Bankrupt and Distressed (BAD) Research & Due Diligence (distressed securities) are great resources for learning about new opportunities.
The contributors at each site share a great deal of helpful info and sample analysis for those new to special situations.
Suggestions & Recommendations
What other resources do you frequently use for finding new investing opportunities?