Coverage

Foster Stockbroking (FSB) produces an institutional grade research product, which specialises in researching companies in the small to medium capitalisation sectors. Some of the industry groups we focus on and have developed a particular expertise in include:

Resources

- Uranium

- Base Metals

- Gold

- Coal

- Iron Ore

- Energy

- Geothermal

Industrials

- Media

- Chemicals

- Agriculture

- Mining Services

- Healthcare

- Financials

Writing research reports is a highly disciplined and rigorous process that involves gathering industry data, analysing annual reports and ASX releases, modelling the financials, deriving a valuation, visiting the company/management, report writing and submission of a draft to the company.

Research reports are generally updated at least every 6 months but interim reports may be produced if for instance there is a change in recommendation or if there has been a material change in earnings and if new information or a different insight materialises.

The timely release of research reports following material announcements and during the major reporting seasons is a key goal for our analysts. Adopting this approach improves the quality of information we are able to provide to investors.

Recommendations

Our research recommendations are structured on a three-tier recommendation categorisation ( Buy-Hold- Sell), which is in line with the rules recently introduced by the NYSE to reduce the ambiguity of recommendations for investors. An exception to this categorisation of recommendations is Spec Buys.

Our Analysts

FSB’s research team possess a diverse background in technology, science, economics, mining and finance, and they aim to provide timely research on small to medium capitalisation stocks that are viewed as being undervalued or neglected by the market.

More about our research product

Our research product adds an important dimension to our securities dealing and advisory service and we strive to provide value to our clients by:

1. Writing research on stocks that have little, if any, coverage by other stockbrokers. Such low coverage may result in some small capitalisation stocks being mis-priced by the market and therefore represent and investment opportunity for our clients.
2. Possessing an experienced and dedicated team of analysts with a focus on the small to mid capitalisation sector. This allows for comprehensive screening of potential stocks across many sectors that may warrant research coverage.
3. Producing high-quality research addressing company details, industry environment, earnings forecasts, cashflow, and valuation fundamentals and by minimising our output of “Maintenance” research.
4. Looking at distressed situations where the recapitalisation and new management teams need to be evaluated on whether they can make it work.
5. Organising and facilitating management meetings, company presentations, and site visits for potential investors. This allows clients to become more familiar with companies that may be overlooked by the market.

Stock Selection Criteria
Our stock selection criteria are critical attributes which we utilise to screen and identify companies that should deliver above-market returns.

These are:

1. The position of the company in terms of market share and market growth;
2. The company’s competitive strategy;
3. The forces impacting the industry in which the company competes;
4. Various valuation and financial measures.

Financial product advice warning

Our research reports contain “general financial product advice” only. In preparing the reports, Foster Stockbroking does not take into account the specific investment objectives, financial situation or particular needs of any specific recipient. The reports are published only for informational purposes and are not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. Foster Stockbroking is not aware that a recipient intends to rely on these reports and is not aware of the manner in which they will be used by the recipient.

We recommend that investors obtain “personal financial advice” from their investment advisor to determine whether the information contained in a research report is appropriate to their particular financial circumstances.