Before we even consider making recommendations to our clients, it is essential that Preston Stanley carries out due diligence on the securities and/or products we will use in the development of each and every portfolio. Frankly, to recommend a stock or hard asset without first examining it from a variety of perspectives is quite unthinkable.
Preston Stanley's seasoned analysts are blessed with the ability to explore deep into the minutiae often buried in financial statements, earnings reports and projections. They use technical analysis which helps identify the most opportune time to acquire a security within the context of its price action as it trades on the market.
Some practitioners consider technical analysis (TA) to be on a par with the ancient "art" of reading tea leaves but our analysts understandably pay no mind to such disparaging comparisons since their aptitude with TA has been instrumental in our practice's realization of consistently impressive returns.
Technical analysis deals with the flow of buy/sell orders within the market which, in turn, are used to identify the cadence and patterns in the price activity of a security. TA purists have scant regard for the relevance of fundamentals since this form of analysis posits that the price of the security and the volume of trade in it at any one time is directly based on the market's assessment of any and all information relating to it has already being factored in.
Technical analysis is useful in the identification of trends in specific securities or, indeed, the financial markets upon which they trade.
Preston Stanley's analysts also make use of fundamental analysis. Fundamental news drives markets but, as our focus is on the long term, we tend to pay more attention to information like a company's sales, its margins on sales and its earnings.
To all intents and purposes, this represents what we like to call the "forensic" side of the analytical and research process where we look closely at the operations of the organization, evaluate the company's management and the way in which the business is run. We scrutinize the industry sector from a wide perspective and do our best to gain an indication of where it and the target company will be in the future.
Contact us today to learn more about how our financial management services can help you to realize your financial aspirations.