The reason I built this website is to build a “process” which will help members filter ideas through unconventional and time consuming screening techniques, which are widely avoided due to “cost-benefit” analysis.
Please allow me to explain: Let us take “CEO change” screening for example. Reading the background of the CEO and the situation around the appointment of hundreds of CEOs in a year is a quite time consuming task. Frankly, it does not make sense to invest time and energy on some research, which at the end of the day is just a “screening”. So, this type of screening gets scratched off from a fund manager’s list, even though it flags very unique companies that not captured in regular quantitative screening process.
Similarly, very few companies run into non-filing of quarterly/annual reports for several quarters. When they file and solve all the problems around the accounting, it is a “unique situation”. It is a fertile ground for hunting stocks. Since some company delay their filing for a year, it takes patience and disciple to track these companies.
This is exactly the focus point of “Snowball Research” – focusing on neglected/overlooked/time consuming screening process.
So, why track small and micro caps?
These sets of companies have fewer analyst coverage compared to mid or large caps.
Long term plan
My plan is to build various screening ideas and then build a process, team and reporting mechanism around them. The plan is to venture out to all possible ways to screen companies.
Please think for a moment – what if we have a list of 100 companies that have good management teams. One can simply monitor these stocks for price correction or run screens periodically on this “set of companies”.
If you are excited with this process, please subscribe to our membership plan. A significant portion of the subscription cost raised from members will be invested in developing future projects and strengthen our website infrastructure.
Please share your comments and blunt critics.