Research Approach

We are not momentum players. We are not interested in short-term gains or relying on point estimates. In our view, there are no short cuts or rules of thumb. Each company requires a unique research approach and it begins with a careful review of its financial disclosures.  

We issue absolute BUY and SELL recommendations only. We believe the decision to buy or sell a security is based on whether the underlying risk is correctly reflected in the company’s valuation. A detailed analysis of the disclosure and accounting choices made by management can often provide insight into risks that maybe unknown or underappreciated by the Street.  

We use intrinsic values calculated using discounted cash flow models and our recommendations incorporate five key analytical categories:

Accounting & Disclosure: Accounting rules have become increasingly complex. We help clients navigate through the accounting choices made by management to provide insight into quality of earnings and operating performance.      

Business Operations: Often the market loses sight of fundamentals and gets caught up in the “story”. Our analytical techniques ensure that the “story” is supported by the fundamentals.    

Corporate Governance: Understanding how an executive team is compensated provides insight into its business objectives and accounting choices. We have learned that nothing in accounting happens without a reason and understanding that reason allows us to gauge shareholder value creation and the overall quality of management.  

Balance Sheet: Time and time again, accounting scandals and unexpected losses prove that what is “off” the balance sheet is often more important that what is “on” the balance sheet. It is only through a detailed review of financial disclosures that such exposures can be uncovered.    

Cash Flow: Companies go bankrupt because they run out of cash, not earnings. Our reports focus on the sustainability of cash flows, not just earnings.

Our independence ensures that our clients’ interests are first