Select Equities Research
Select Equities produces equity research on market listed securities. Select Equities employs a number of expert research analysts to help the firm analyse these securities. A list of Select Equities employees and a description of their job title, job function, qualifications and experience is provided elsewhere on this website.
Select Equities publishes a range of research reports including stock research (initiation reports), stock updates and stock briefs. The level of detail contained in each type of research report varies according to the publication. Our stock research and stock update publications contain the greatest level of detail of these reports, while a stock brief is of a preliminary and incomplete nature only.
Select Equities generally provides equity research on securities that are listed on the Australian Securities Exchange and are outside of the top 100 largest stocks. These businesses will normally have a market capitalisation of between $50m to $1b. We focus on industrial businesses, as opposed to resource companies, and businesses that we believe are under researched.
At any given time we might be conducting detailed research on 20 to 30 different small cap industrial stocks. These securities can generally be found in either the S&P/ASX Small Ordinaries Index or the All Ordinaries Index, which contain circa 200 and 500 securities respectively.
Quality is one of the filters that Select Equities applies when selecting stocks for research or conducting research. A simple example of how this filter can be applied is that we will generally exclude unprofitable businesses from our research universe. Stocks selected for research by Select Equities may therefore be considered, to a greater or lesser extent, best of breed and this may explain why our research reports do not often contain sell recommendations.
Select Equities standard research process involves looking for high quality businesses, which have a sustainable competitive advantage, and identifying investment catalysts relevant to those or other businesses. We apply outlook, valuation and risk filters to the businesses that we research. We also consider how a business that we research is performing compared to market expectations and industry peers.
We normally conduct due diligence on a business before publishing any research on the company. This due diligence generally entails reviewing announcements from the issuer to the market, interviewing management of the business and assessing competitors of the business. Our standard research process also involves looking at the industry within which the business operates and any macro trends to which the business is exposed.