When playing the markets, it is difficult to find value in a bull, stocks keep rising, market.
Using Morningstar.com, there is the option to do a comparison of all companies within a specific area of business. The list may not be accurate; therefore, you can look up a stock index for this sector to see if any companies have been missed or added inadvertently.
From there, you can go to RBC or SEDAR and download the documents for reading. RBC is shown below from SEDAR.
The important documents are the 10K (Annual financial Report) and the 10Q (Quarterly financial report). Since the financials are posted online on various websites with breakdowns, ratios calculated and peoples’ opinions, I read the footnotes at the end of the financial reports.
The footnotes can contain information that will give you second thoughts about buying shares in a corporation. Therefore, this is a must read for any investor who bases his/her decisions on the fundamentals. It is rumored management likes to bury unfavorable information in the footnotes.
It is easy to make money in a bull market. Unfortunately, when it crashes, the reality of stock trading hits the inexperienced hard.