“Everybody looks ... we see”

When generating trade recommendations for our clients, we utilise a blend of three levels of analysis, giving us the WHAT, WHY and WHEN, in terms of the key sign posts within the trade. In particular, in arriving at a trade recommendation, the opportunity must meet our vigorous criteria for high probability trading. Every recommendation we communicate with our clients is written in plain English and is also published with defined and specific entry, exit and stop/loss levels, designed to ensure there is total clarity on the trade.

fundamental

The first stage of our stock selection process is to get a gauge on the overall fundamentals
behind the trade. This reflects our top down approach to the market. We take into account
economic growth, where we are in the cycle, exchange rates and commodity prices, in order
to identify areas of the market where we believe there is scope for out-performance. Using the
fundamentals gives us the reason WHY we would invest in certain businesses.

Quantitative

Having identified our preferred sectors, we then look to identify the stocks within that sector that
offer the best prospects in terms of out-performance. This helps us identify stocks that have
both earnings and price momentum, as well as good quality earnings, in addition to a variety of
other ratios and screens. Giving us the WHAT.

technical analysis

Finally, we then utilise the power of technical analysis to assist us with our trade timing.
Support and resistance, trend analysis and technical indicators provide entry, exit, take profit
and stop/loss levels. Technical Analysis tells us WHEN.