Research Overview and Methodology

Research Overview

and Methodology

Enter our Research Room to get a scoop on our methodology, which can help you make more insightful research based and data driven decisions.

Kalkine’s Stock Selection Framework:

At Kalkine, our research moves beyond the traditional boundaries of the stock selection process. The key stock-picking approach has evolved over the years considering both external and internal factors. Kalkine’s research team keeps a close watch on the key macro-economic indicators that may impact the market sentiments including inflation, interest rate, socio-political environment, GDP growth rate, etc. Typically, a distinctive framework is followed to conduct the fundamental company-specific research as charted below:

Our Unique Methodology in Valuing Stocks:

Our rich understanding of the industry dynamics and the evolving businesses per se strikes the right chord with prudent investors. An extensive research based on both fundamental as well as technical analysis is conducted before providing any stock recommendation.

At Kalkine, the research team takes a holistic view to help investors undertake insightful investment decisions post requisite in-depth due diligence at their end. The key attributes driving our stock selection process are noted below:

Trending Sectors

The research team understands the pulse of the market and apply a theme-based approach. Sectors that are trending and carry the potential to unlock the underlying stock value are considered. Typically, sector in-built characteristics are looked at to identify stocks that are industry best fit.

Robust Fundamentals

Our investment philosophy is built on our unique approach to deep-dive company fundamentals as highlighted above coupled with resilient management in steering the business cycles and uncertain environment.

Corporate Actions

Scanning the company developments including corporate actions, and their weight on the stock analysis is practiced diligently before any recommendations.

Appropriate Valuation Method

The valuation method (Relative Valuation, DCF Valuation etc.) is carefully chosen to reflect the fundamentals and strength of the sector. The key business prospects with management guidance to give a real-time sense of valuation are factored in.

Technical Analysis

Stock prices often move up and down creating an identifiable price-pattern. Typically, technical analysis can gauge this pattern. To benefit from price trends, the key technical indicators are considered before providing any recommendations.

Investment Risks

Both systematic and unsystematic risks associated with the sector and relevant stocks are considered while providing our recommendations.

Classification of Companies (in USD):

Kalkine is versatile in covering companies with different market capitalization. Our valuation approach is crafted to suit companies with varying fundamentals.

Recommendations:

Kalkine’s recommendations are of generic nature and do not take into account your investment objectives, financial situations or needs. They have been classified into the following categories:

BUY

This recommendation stands for stocks that can be considered for further evaluation by investors for a ‘Buy’ position. An extensive analysis-based methodology is used for this purpose. Though there are no guarantees, all odds and probabilities are considered instead of certainties.

SPECULATIVE BUY

Speculative Buy recommendation is given on stocks that have the potential to yield higher returns, however, they carry higher risks which may be due to the underlying business model, low market capitalization, evolving fundamentals, etc. For simplicity purpose, certain recommendations are indicated as Buy in the overview section of the report, and in later part of the report depending on the risk factors they are considered as Speculative Buy.

HOLD

These are the stocks investors may wish to consider holding in the expectation of an improvement in their prices and potential upside.

SELL

‘Sell’ recommendation on stocks is provided after carefully evaluating all the parameters impacting the stock price. Sell Recommendation given is not entirely dependent upon market movement instead a stock-specific approach has been followed.

EXPENSIVE

These are the stocks that may be trading at higher valuations, and therefore are assigned an ‘Expensive’ rating considering the current trading levels, underlying risks, and associated reward profile of the business.

AVOID

These are the stocks that investors should ‘Avoid’ considering the risks involved, and potential reward expected from the business at the current trading levels.

WATCH

These are the stocks that investors should ‘Watch’ for the right entry price point and direction confirmation considering the risks involved, and potential reward expected from the business at the current trading levels.

Attractive

Simply defined, if the performance of a stock as evaluated on certain fundamental parameters like cash flow yield, EBITDA margin, returns on equity, revenue growth etc. and or valuation metrics such as P/E, EV/EBITDA as well as technical parameters looks favourable relative to the peers or historical average an ‘Attractive’ stance on the stock is indicated in certain reports.

Unattractive

Simply defined, if the performance of a stock as evaluated on certain fundamental parameters looks unfavourable or the stock has touched technical support or resistance levels as indicated before, an ‘Unattractive’ stance on the stock is mentioned in few of our reports.

Neutral

Simply defined, if the performance of a stock as evaluated on certain fundamental parameters like cash flow yield, EBITDA margin, returns on equity, revenue growth etc. looks moderate relative to historical average and or industry peers a ‘Neutral’ stance on the stock is indicated in certain reports such as IPO reports.

Our focus is on building long term relationships with our clients:

As a business, Kalkine endeavors to be always:

Disciplined and Consistent

A rigorous process to identify the investment opportunities is adhered. A team of intellectually curious, analytical, creative, and deeply passionate analysts prepare the research products.

Innovative

A streak of innovation is generally required in identifying the real opportunities that may have the potential to outgrow the market. Kalkine helps you research such businesses and provides you with the new investment ideas every week.

Client-Focused

Closure of certain Recommendations Provided on stocks Based on Technical Analysis

Any stock which has been provided with a “SPECULATIVE BUY” recommendation at a particular date, along with the ‘Entry Price’, Technical ‘Support’ and ‘Resistance’ levels can be closed either when a subsequent ‘SELL’ recommendation report later or the recommendation is closed driven by any of the automatic triggering events as explained below:-

1) ‘Indicative Stop-Loss (SL)’ Hits or 2) Resistance levels Mets or target Hits’. In all such cases, a ‘ SELL’ Recommendation Report is not published.

Also, the ‘Exit Price’ mentioned in case automated triggers can either be the
1) Recommended ‘Indicative Stop-Loss’ Level
or
2) ‘Resistance Level/Target Levels’ of the stock mentioned in the report at time of providing the recommendation as appropriate. In such cases, a reference notes as stated below will be mentioned in the Recommendation Report:-

NOTE: IN REFERENCE TO ‘SPECULATIVE BUY’ RECOMMENDATIONS INVESTORS MAY EVALUATE FOR ‘SELL’ POSITION IF THE RESISTANCE LEVELS INDICATED ABOVE ( AS PER TECHNICAL ANALYSIS) HAVE BEEN MET. HOWEVER, THIS IS SUBJECT TO RISK TAKING APPETITE OF THE INVESTOR AND OTHER FACTORS AS DISCUSSED IN THE REPORT.

Product Portfolio:

Weekly Research Products: Research reports which are published weekly include Investor Report, Dividend Report, Technology Report, Growth Report, Gold Report, Healthcare Report, Resources Report, US Report, Market Event Report, Penny Report, Under 20 Cents Report, Sector Report, and Technical Analysis Report, Earnings Hunter Report etc.

Fortnightly Research Products: Research reports which are published on a fortnightly basis include American Tech Report, Global Green Energy Report, Global Fully Charged, Global Big Money Report etc.

Every year during the Easter Week, Christmas Week, and New Year Week, Weekly Main Research Report and Fortnightly Main Research Report as mentioned above are not published. However, Kalkine Dailies are published during all the trading days.

Member Support:

As a part of membership to “KALKINE” Reports, we provide subscribers the ability to call and speak to their account manager in regards with any questions that they may have about the reports between 9:30 – 18:30 Monday to Friday. The information given by “KALKINE” and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. In summary, “KALKINE” is happy to answer calls regarding our published material, however, due to strict compliance requirements, we simply cannot answer questions related to your personal financial circumstances.

Disclaimer:

The advice given by Kalkine Pty Limited, including by email and on the Kalkine website, is general information only. This means that it does not take into account your objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated websites are published by Kalkine Pty Limited ABN 34 154 808 312 (Australian Financial Services License Number 425376). Before accessing any of our services, please ensure that you read and understand our Terms & Conditions and Financial Services Guide.

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