Research Methodology

At TD & Co., we do not follow the crowd. We search for companies that are under-followed, and in our opinion, undervalued. Our analysts conduct daily searches for growth companies by considering and reviewing numerous criteria including:

Insider Buying Filings

We review SEC filings for companies where company insiders also buy their company's stock in the open market, with their own money.

Computer Screening

We run several computer screens that look for sequential revenue and earnings growth, strong balance sheets and companies selling at a discount to their growth rates.

New High List

We review the New High List daily to review strong sectors and strong stocks.

Examining Earnings Releases

We examine earnings releases and the company guidance that is given in these releases, searching for undervalued opportunities.
Once we find an interesting prospect, we frequently continue the process by doing some or all of the following:

Reviewing public financial information

(10K, 10Q, Annual Reports, Research Reports)

Interviewing the CFO and/or CEO and completing our in-depth research questionnaire

We ask the tough questions needed to form an objective opinion.

Analyzing management

Is the management credible? What is their background? History? We look for credible management teams that are excited about the company's prospects, without being promotional.

Developing data points

We talk to the company's suppliers, vendors and their competition to get a well-rounded objective view of the company.

Building a one year earnings model

With guidelines from the company's CFO, we develop a complete, detailed earnings model going over four quarters.

Once the research process is complete, our research team reviews our findings to determine if the company can meet the eight fundamental characteristics we have developed called the "Great 8."

Research and Methodology
Thompson Davis & Company  Copyright © 2011