5. Compare, screen and follow the money

Compare, screen and follow the money

Peers, screens, owners, insiders, short sellers and filings.

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  • 3 sections
  • 13 lessons
  • 58 min
About this chapter

This chapter puts one company next to its peers and next to the people who trade it: compare and screen, then see who owns, buys, sells and shorts it, what it files, and how much attention it gets.

What you will be able to do

  • Compare returns and valuations across a peer group without falling for different start dates or different accounting.
  • Read a correlation matrix and a regression between two stocks (beta, R²).
  • Build a stock screen from criteria and know what "covered universe" means.
  • Read who owns a stock: funds (13F), insiders (Form 4), members of Congress, short sellers.
  • Find a company's filings, its risk factors and what its executives are paid.
  • Tell real interest in a stock from noise, using research and social attention.

How the chapter is built

  1. Compare and screen: CMP, RV, GE, GF, PEB, GR, CORR, EQS
  2. Who owns it: HDS, 13F, INS, CG, SI, SIV, SIW
  3. Filings and attention: SEC, EK, RISK, EXEC, ATTN, BUZZ

Five words to know before starting

peer
a company in the same business, used for comparison
multiple
a valuation ratio such as P/E or EV/EBITDA
screen
a filter that keeps only the stocks meeting your criteria
holder
anyone who owns shares; big ones must report
short interest
the number of shares sold short and not yet bought back
  1. Section 15 lessons · 21 minCompare and screenCompanies side by side, and a screen for the ones you want.
    1. 1.1Comparing returns (CMP)4 min
    2. 1.2Relative valuation (RV)4 min
    3. 1.3Valuation over time (GE, GF, PEB)4 min
    4. 1.4How stocks move together (GR, CORR)4 min
    5. 1.5Screening the market (EQS)4 min
  2. Section 24 lessons · 19 minWho owns itFunds, insiders, members of Congress and short sellers.
    1. 2.1Big holders and 13F filings (HDS, 13F)4 min
    2. 2.2Insider trades (INS)5 min
    3. 2.3Congress trades (CG)4 min
    4. 2.4Short interest and squeezes (SI, SIV, SIW)5 min
  3. Section 34 lessons · 16 minFilings and attentionSEC filings, risk factors, executive pay and attention.
    1. 3.1SEC filings and 8-K events (SEC, EK)4 min
    2. 3.2Risk factors (RISK)3 min
    3. 3.3Executive pay (EXEC)4 min
    4. 3.4Attention: research and social buzz (ATTN, BUZZ)4 min

Educational material about reading market data, not investment advice.