“Investing is simple, but not easy” – Warren Buffet
Investing is simple – if you stick to the rules.. The main problem is ourselves. We get over excited, too confident, sloppy. When that happens we make mistakes. One of the biggest mistakes is to rely on the recommendations and advice of others. The talking heads on financial television, the research reports of investment banks, the tips you read in a newspaper.
Instead you need to do your own research and work out what investments are right for you. That’s where Stock Flare comes in. Stockflare presents data that the professionals use in an easy to understand and interpret manner
This newly launched stock investing site, believes that investors can maximize their long term wealth creation by sticking to purchasing high quality stocks at attractive prices.
What is StockFlare?
Stockflare allows you to search for any publicly listed stock in the world and puts all the data the professionals look at in an easy to understand manner. It allows you to understand the financials of a stock in seconds and allows you to compare the stock of the company with its competitors to see which is cheaper and which will give you a higher return on your money.
Stockflare’s aim is to give everyone the tools they need to be a better investor. The founders believe that this is an alternative to the expensive, poor performing service the investment industry provides. With Stockflares innovative tools and analysis, everyone can take control themselves and make better investment decisions.
Stockflare essentially allows you to find, understand and invest your money in the stock market in just a few clicks.
How stock flare works?
The team at stock flare first take all the information from Thomson Reuteurs (a leading financial data company). They then present all the key metrics on the website so that users can make their on informed investment decisions. Some metrics include, is the business profitable, how is it growing and what do the experts think about the stock.
The core functions include:
- Authoritative, easy to understand analysis of every stock in the world.
- A search tool that helps users find stocks that is right for them.
- The simplest way to keep track of how you are doing.
- Only alerting you when there’s actually something critical to think about.
- Available on the web and via smartphone
What stock can you search for?
Stockflare allows you to search for stocks and shares in all the stock markets around the world from New York to Nairobi, London to Lusaka, Tokyo to Tel-Aviv and Singapore to Sao Paulo.
Does StockFlare charge a fee?
No, stockflare is completely free and its founders maintain they it will always be so. There is also no advertising on the website which is always a plus.
Can you buy stocks and shares directly from stock flare?
Not at the moment but I am told that the company is working hard on this and will begin to allow people to buy shares cheaply from thus year.
Users will be able to open an investment account so that they can open an investment account, research stocks, and buy them all within stock flare itself.
How to search for stocks on stock flare?
You can search or find the stocks you want in the following way:
- If you know what stock you want, simply type in the company name or the ticker symbol on the search box and stock flare will bring up all the information you need.
- If you don’t know what stock you want:
- you can filter stocks by market value, sector, country, investing style, business metrics or valuation to find the stock that is right for you.
- You can explore pre-grouped stocks for you to find stocks in certain industries or stocks that will aloow you to capitalise on certain trends.
The 5 star rating on stockflre.
Stockflare rates every stock on its database on a scale from 1 to 5. With 5 stars meaning that This is a way to judge the quality of a stock, and immediately identify any key risks.
The 5 tests or metrics applied to each stock to come up with the rating are:
- Test 1 looks at whether a company is profitable. Profitable businesses tend to be less risky than non-profitable ones.
- Test 2 checks if a stock pays dividends. Businesses that pay dividends are generally of higher quality and more established that businesses that don’t, other things being equal.
- Test 3 looks at the long-term and short-term growth forecasts for a business. Obviously, a business that is growing has better prospects than one that isn’t.
- Test 4 look at the valuation of the stock, using the price-to-earnings ratio and compare it with the company’s peers. In this case, a stock with a lower/ cheaper valuation compared to its peers ought to be a better investment than one with a higher valuation than its peers, all other things being equal.
- Test 5 looks at the opinion and recommendation of the stockbrokers. We get the average recommendation of all stock brokers as provided by Thomson Reuters, and we look at whether the price target forecast is higher or lower than the current price These two elements give us our last test. The brokers will rate some stocks a Buy, some a Sell. They forecast price targets that are sometimes higher, sometimes lower than the current price. A business which the consensus of experts on “Wall Street” think is a Buy with a forecast target price that is above the current share price may be better quality than a business that is rated a Sell with a price target below the current share price.
Using these 5 metrics helps to identify the relative strengths of one stock versus another in respect of these data points. With these metrics you can start to judge the quality of a business, how it compares to its peers and what the professionals think.
But please, don’t make a leap, and assume that a stock that passes all 5 tests is a better investment than a stock that passed a lower number of tests. In every walk of life quality and price diverge. High quality products can be over-priced. Low quality products are sometimes selling at bargain prices. It’s the same for stocks.
It is important to note this 5 star rating is solely based on data and thus it is not advice or recommendations.
What data is available on stockflare.
Stockflare offers a wide range of data on each and every stock. Lets look at BT Group PLC for example. Once you search for the stock and pick it, this page comes up.
As you can see, BT Group Plc has 4 stars as it is cheap compared to competitors, pays dividends, is profitable, has a good broker recommendation but unfortunately has weak growth.
In order to look at more details, click on the Breakdown button as is in the picture. This will bring up a new screen and wiill include the following tabs:
- Cheap or Expensive – Values the company based on the Price Earnings Ratio and compares it to its competitors.
- Growth – Shows the company’s growth rate vs its 5 fastest growing competitors.
- Wall Streets opinion – Gives the upside potential of the stock vs its competitors.
- Profit/Loss – Gives the short term Earnings Per Share forecast and the short term profit forecast.
- Dividend– Gives the short term dividend forecast as well as the average dividends paid by competitors
- Peer List – Gives a quick analysis of the valuation of the company’s competitors as seen by the picture.
- Company Description – Give a description of the company including what industry the company is in and what products the company offers.
- Key stats – Gives various stats such as enterprise value, market value and net debt. Also gives a wide array of ratios like PE ratio forecast and historic, dividend yield forecast and historic, Price to Sales, Price to Operating Profit, Return on Equity, Price to Book value and Free Cash Flow Yield
- Latest Results – Gives the latest financial results of the company
- What its worth – Shows the long term gain of the stock by adding long term growth, change in valuation and dividends
Who is Stockflare good for?
- Individual investors who want to research stocks and take control of their own portfolios.
- New investors who want to understand how shares are valued.
Who Is Stockflare not good for?
- Passive investors who want to buy index funds.
Advantages of Stockflare over other platforms
- Covers stocks and shares on most stock exchanges in the world.
- Data is well presented and easy to understand.
- Its Free