Here is something important you should be aware of,
especially when making your own market or portfolio
management decisions, or when relying on the advice of your
financial adviser.
Do you know whether or not you have open and complete
access to all the pertinent information you might need to
make those investing or share trading decisions?
In a perfect world, as an independent investor in stocks,
you should be able to access and analyze the same
information available to takeover experts and corporate
acquirers, such as investment bankers, private equity
investors, public accountants, and so on.
This, regrettably, is not the case. Investors and traders
in public market securities and securities analysts have
access only to publicly available information. As a
result, they have less than complete information available
to them when they invest, trade, or in the case of
securities analysts, prepare their reports and
recommendations.
The information they don't have is often just as important
in the development of comprehensive, meaningful valuation
determinations. This is not a criticism of public market
participants (the financial advisers and analysts), who do
not have access to this vital and relevant information.
This is a result of securities laws that are outside their
control. Still, that does not change the fact that these
investment professionals need to do much the same analysis
as do those corporate acquirers, who seek to purchase 100%
of a company.
As opposed to public market participants, corporate
acquirers and their advisers, (pursuant to the appropriate
legal documents), have direct access to the directors and
executives of the target company. These persons provide
detailed responses to all requests for information made by
the corporate acquirer, hence providing information that is
both in the public domain and not in the public domain.
Furthermore, they get access to all documentation in the
target company's possession related to its assets,
liabilities and historic/prospective operating revenues,
expenses and cash flows.
But imagine if you did have much more information...almost
the very same as the corporate acquirers. I know of one
independent investor who decided to do something about
this. He conducted extensive investor and market research,
and then used that knowledge - and his own industry
experience - to assist those who want to manage their own
portfolios, the financial advisors who assist them; and
others who need unbiased, independent help. He used
innovative thinking and the web.
In the investment world, the Internet is helping to change
things and level the playing field. Every week someone
comes up with a great idea to harness the capabilities and
distributive power the Internet provides.
© Roy MacNaughton, 2007
----------------------------------------------------
To learn what was revealed by the research mentioned in the
story above, go to:
http://www.stockresearchddblog.com
Roy MacNaughton is a "niche" marketing adviser. He's a
seasoned marketer, with more than 25 years of international
experience, including eight years online. Read his blog
at: http://www.UmarketingU.com
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