Due Diligence - How to Investigate a Stock Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Due Diligence - How to Investigate a Stock

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Nazbuster who wrote (330)	4/26/1999 6:42:00 PM
From: Henry Volquardsen	Read Replies (1) of 752

Hi Daniel, Thats a tall order. Bloomberg is a very complex instrument. I'll give you an example. I like to sell short dated puts and calls in order to earn premium. With Bloomberg I can quickly review all the available options. I can check each options implied volatility compared to historic volatility. I can run some scenario analysis to see how the options will decay, how they will respond to changes in underlying, financing etc. I can then do some portfolio analysis for the options by analyzing the trading of specific stocks vs either a selected index or other stocks. There are also number of interesting technical tools, such as measuring current beta to historic beta (try finding that elsewhere). I also like trading bonds and convertibles. Bloomberg has the same array of analytical tools for these instruments. Bloomberg also has an extensive database. You can get historic information going back years. Do you want to analyze return on equity for the last 10 years? Doable. Also very easy to access press releases and filings for previous years. The only analytics I have seen that are better than Bloomberg are very high end packages targeted at very narrow user groups. There are a lot of analytics, such as the options analytics, that I have just not been able to find readily availble to the average investor in any form. Some of the analytics are available elsewhere. Also the technical analysis package while okay is not the strongest. But overall Bloomberg is a very good package. The downside is that it is pretty expensive. The advantage, if any, is that I can access info quickly and can perform some interesting analysis. But no matter how fancy your tools it still comes down to using common sense and analytical skills. I hope this answers your question. Henry

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next