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Are annual reports serving the purpose ?

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reportics
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Are annual reports serving the purpose ?  Reply with quote  

To the all financial wizards here - I started reading financial reports to get a good understanding of the direction of the stock. But soon I realized it makes me consume too much of coffee as it is too long , bulky and full of jargon. So I searched for summaries of 10-K reports that I can look at quickly but couldn't find much, especially for small and mid cap .
Are you experienced investors comfortable with reading the reports , or you would like to see a solution to this problem as well? I am working on summarized annual reports , and if you guys think it makes sense too , please share your thoughts here. Would love to understand if this problem is worth solving.

Thanks,
S.T.
Post Wed Jul 12, 2017 6:14 pm
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oldguy
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Forty, or maybe 50 years ago, when I did quite a bit of trading, I subscribed to Moody's. It was a thick book, maybe 2 inches thick. Each of the approx 7000 listed stocks was given one page - a chart plus a few pertinent paragraphs about the company.
It provided a much more succinct story of the company than a 10-K report (which is often 50 pages or more).
I would guess that a print-version is obsolete - but maybe you can register on Moodys and buy digital versions?

In practice a 10-K is mostly useless - the SEC requires it as a psuedo-regulation - it is mostly computer generated year-upon-year by low-level employees, scanned & initialed by mid-managers, and passed to an officer of the company for signature. Ie, a 'made-for-government' document, carefully screened to avoid having any actual content (Maybe I'm too cynical?)

Given that the 10-K is mostly useless, a summarized version would probably be even more useless?
Post Wed Jul 12, 2017 10:55 pm
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reportics
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I believe annual report or 10-K would still be relevant as it gives a detailed view of the stock / company. Though I agree the print version is surely absolute. Digital version should serve the purpose.
I did search if Moody / Edgar / SEC offer any such service but I could not find any. So I thought of creating one such service myself. I started doing some base work at fincubes.com , but I want to know from others if this is a problem of many - worth solving or not !
Feel free to drop in email ids if interested ! Looking forward to any feedback / suggestions.
Post Thu Jul 13, 2017 4:58 pm
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oldguy
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quote:
I started doing some base work at fincubes.com , but I want to know from others if this is a problem of many - worth solving or not !


10-K's provide factual data about the company's financial status/strengths/weaknesses.

But the stock price is really determined by the fickle feelings of the public.
Eg, a company may have a great balance sheet, good prospects, good earnings. But the media may report pesticides/herbicides, GMO, immigrant labor, born-again christians, discriminate against LGBTs, hate/love guns, and so on. Those things have way more affect on the price of a stock than the business stats.

Your software would need to factor in the whims of public opinion to be of any use to a trader - and traders know that. They also know that you cannot predict the future screw-ups of the media news.

Many traders pick stocks randomly, based on the 50/50 probability of a stock going up. And then they limit the downside with a mechanically-derived sell order. And never second-guess themselves, they let the sell-orders trigger no matter what.
Post Thu Jul 13, 2017 5:31 pm
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Amelia
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Yes, financial reports do matter to understand the market and stock trends are they going into the positive trend of negative, making a profit and not. So many ninja essay reviews things count. And one can decide better to invest in the market after viewing the market position in terms of all aspects.
Post Thu Jul 20, 2017 7:11 pm
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