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.
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.
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.