Monitoring of Listed Companies: Basics

Coordinator Loic Grasset

Updated

To invest wisely, it is best to have the right information in the moment. T. Tips and best practices shared by Franck Morel, Founder and President of Stock Media Zonebourse.com and Marketscreener.com.

TAKE CARE OF THE BASICS “It is important to behave like an entrepreneur. You buy securities of listed companies. To hope to make a profit in the long run, you cannot just invest without being interested in the basics. It is necessary to pay close attention to the development of their market, to see that they grow, earn money and how, so that they do not become over-indebted by consulting their accounts. It’s about understanding the origins of the company you’re planning to invest in, which can provide insight into how it might develop in the future. »

LEARN FROM THE SOURCE “Most online brokers, and even more so ‘neo-brokers’, these low-cost new entrants, compete for prices and market coverage, but they offer little or no information and customer service. Therefore, you should look for information elsewhere than with your broker. The most reliable source is the listed companies themselves, who are required to maintain standardized, transparent and regular communications. Regulated information is the source of all news released by the press and analysts. Social media has its uses, less so for influencers whose job is also to create buzz, but rather to determine the cause of a sudden price move in the stock market almost instantly. Several editorial writers set the tone every day, such as Mark Fiorentino, Anthony Bonden, Thomas Veye or Xavier Féno. They make it possible to perceive the atmosphere of the day or week. To gain height, the decipherings of forecasters such as Christophe Barrault or Xavier Delmas are invaluable.

What happens after this ad

VIEW FUTURE EARNINGS ESTIMATES “On a site like ours, you have access to estimates of one to three years of listed company earnings made by financial analysts and compiled by global financial information providers. If the samples are limited to small and medium values, we can count more than fifty ratings for a company like Apple. One of the most interesting things to watch is the evolution of earnings expectations. This allows you to understand the state of observers regarding their expectations for the next quarters. Their revision up or down has a significant impact on the share price, unlike opinions and price targets, which are more subjective. Very often, analysts are too cautious in their assessments in both directions. A sequence of upward revisions is often synonymous with an uptrend in price. »

What happens after this ad

BASIC EXCHANGE ORDERS YOU NEED TO KNOW
There are different types of stock market orders to buy and sell your securities. Each follows a certain logic according to the desired goal.
MARKET ORDER. Also called an order at any price (ATP), it allows you to be sure to buy or sell a security, whatever its price. Its use should be reserved for highly liquid high value trades that need to be executed as quickly as possible.
LIMITED ORDER. This is the safest way to control the amount of a transaction. It allows you to determine the number of securities, as well as the price above which you do not want to buy and below which you will not sell. The disadvantage is that it may never be executed or only partially executed.
TRIGGER ORDER. Also called a stop order, it allows you to set a price limit from which a buy or sell will automatically start without a price cap. Thus, this order does not allow you to control the execution price.
ORDER IN THE TRIGGER RANGE. It combines the logic of a trigger order with the logic of a limit order. This order is not a priority order, but it has the advantage that it controls the price.