The management can be overly optimistic about its company and share only the good stuff. However, do note that we should not fully rely on and trust this first-hand information as it may contain bias. Scuttlebutt is one of the key techniques that we can use to gather useful information when we research in a company. Read also: 5 Biggest Money Blocks that Keep Investors from Getting Rich Note that you have to sign up and create a free account in order to do so. Type the company URL into the search box and Hunter will be able to uncover the email addresses of some individuals. Hunter.io is an effective tool that you can use to find the corporate email addresses of key employees or management that you wish to reach out to via email. For Hotcopper, it is also limited to stocks listed on the Australian stock exchange. There are three forums that you can consider: Motley Fool Discussion Board, Reddit, and Hotcopper. This information can be gathered and pieced together for a better picture when analysing the company.Īpart from Twitter, forums are also channels that you can utilise to reach out to shareholders. In some instances, other shareholders might have already reached out to the management as well for more insights on the company. Reaching out to shareholders are important as investment research about the company can be pooled together for better analysis. For some of them, you can also reach out to them via private message on Twitter. You can scroll down the tweets related to the company and pick out the shareholders that have active discussions on the company. Remember to put the dollar sign in front of the ticker symbol. On the Twitter search bar, type this: $PAR The stock ticker symbol of Par Technology is PAR. Using the company ‘PAR Technology’ as an example: Sometimes, you might be able to find major shareholders (they own a significant percentage of equity in the company) who are active on Twitter as well. Twitter is a great tool to use to find out who are the shareholders that are actively engaged in discussions. On the profile page of the individual that you wish to reach out to, you can either drop them a direct message, or send them an invitation to connect for further conversations.Ī lot of times, we might not know who are the shareholders that we can reach out to. If you are not sure about the name, you can type the position title and LinkedIn will filter accordingly: In the search bar, you can type the name of the management that you want to reach out to. On the company’s LinkedIn page, you can see the tab ‘People’. You can sometimes also use LinkedIn to send a direct message to introduce yourself and get acquainted with them. LinkedIn contains a wealth of information about the management, employees and board of directors. Read also: My Portfolio – What Has Changed in 2021 In the next segment, I will dive deeper into each of the methods. Find corporate email addresses of stakeholders that you want to reach out to (e.g.Find discussion forums (if any) and reach out to shareholders.Use Twitter to communicate with shareholders or management.Use LinkedIn to reach out to management, employees or board of directors.These are some practical ways that we can do scuttlebutt in our investment research: The types of people that we can talk to when we do scuttlebutt are the management, key employees (existing and former), suppliers, shareholders, competitors, board of directors and customers. Or it may give us insights on the things that we can be optimistic about in the company. The information may highlight certain red flags that prevent us from investing in the company. As investors, this gives us an edge as we have information that not many people know about. The information that we collect through scuttlebutt is not widely available on the internet, since this information is gathered from our private conversations with people that know the company well. employees, board of directors, competitors) when we research a company. The scuttlebutt concept refers to the process of talking to people in the company and industry (e.g. Phil Fisher, one of the most well-known investors globally, introduced the concept of scuttlebutt investing in his book ‘Common Stocks and Uncommon Profits’. Today I am going to share about scuttlebutt investing, a technique that we can use to collect first-hand information about the company. Collecting information about the company.There are two parts to the due diligence process: This process is called the due diligence process, which helps us to decide whether we should invest in the companies that we are looking at. Before we decide to invest in a company, it is important to do research and analyse the company.
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