A website created in 2008 offers investors one place to easily research and analyze stocks from a fundamental standpoint and with price charts: Stockrover.com.
By fundamental, I mean those metrics derived from balance sheets and income statements: earnings per share, free cash flow, book value, dividends and all that relates.
By technical, I’m talking about price charts and all of the ways to assess trend, support, resistance and the rest of it.
I spoke with Stock Rover Marketing Director Ken Leoni about the stock research site and here’s our conversation:
John Navin: Stock Rover is a web portal for individual investors (or any investor) to research stocks. What makes it unique? I mean, how is it different than other, similar types of services?
Ken Leoni: Many things. First, we think the software design itself is pretty unique. It is based on the paradigm used in the software development world of an IDE (Integrated Development Environment) which results in a user interface that is powerful, very fast and easy to navigate.
The UI, which is fully web based and mobile friendly, acts like a Windows app with right click for menus, re-sizable, detachable and collapsible panels and drag and drop. This means a familiar and efficient environment for our users.
Stock Rover is able to compare competing investment opportunities across many dimensions of financial, operational and price performance via our dynamic spreadsheet like table.
Over 500 screenable metrics are available. The ability to screen based on historical data. The ability of users to be able to write their own equations to screen. Examples of equations could be to find companies have increased their dividend by at least 5% per year over the last 10 years without increasing their payout ratio — or having improved their ROIC every year for the past five years.
Screener results can be ranked by user weightings so they can find the “top” stocks (or ETFs) that pass the screener. Users can also limit the number of items returned to the top “n” results.
We screen both stocks and ETFs. ETFs have around 70 specific criteria such as size, expense ratio, turnover ratio, Morningstar rating, management tenure, style, sector allocations etc.
We create unique Stock Rover stock ratings in key areas such as growth, profitability, valuation, financial strength and momentum.
We have many advanced metrics such as the Piotroski F, Altman Z, Beneish M, scores, Novy Marx Quality, Chowder Dividend Rules, Shiller P/E etc.
We perform stock fair value and margin of safety calculations based on expected future cash flow and cost of debt and equity capital.
We have an Investor Warnings facility to alert investors to many hard to know issues that may impact the desirability of an investment. For example, large discrepancies between GAAP and non GAAP earnings, late filings, missing data and excess share dilution to mention a few.
Stock Rover includes things like ratio charts, composite object charts (portfolios, watchlists and screeners), the charting of over 100 fundamental metrics, benchmark comparisons and extensive technicals and events like earnings and surprises as well as maximum drawdown.
Our website has a powerful built in correlation facility to help investors construct more diverse portfolios and reduce risk.
You can easily see how each holding is contributing to overall return, for example. So, it’s obvious who is punching above their weight and who is dragging returns down.
Navin: Okay, what else?
Leoni: You can also do things like see the aggregate P/E of your portfolio and filter stocks with high P/E’s that might no longer fit a value investor’s style. So screening isn’t just a stand-alone function that output lists of tickers — our integrated environment makes portfolio management easier.
Stock Rover has a built-in trade planning and re-balancing facilities to help with portfolio planning and construction– and addressing some of the issues described above, as well as ensuring adherence to any balancing rules.
Navin: It’s possible to screen for types of stocks using various metrics — and combinations of metrics — can you briefly describe how the screening process works?
Leoni: Yes, any metric can be screened. We also provided a library of 100 popular screeners pre-built and ready to go such as GARP, Piotroski-F, Novy-Marx quality, Magic Formula, CANSLIM, etc.
Navin: I use FinViz.com to screen for stocks using price/earnings ratios and book value, among other metrics. Why would I want to begin using Stock Rover?
Leoni: We can do a number of things they can’t. We can screen on over 500 metrics. I think their number is around 60. Some of our metrics are powerful financial indicators such as the Piotroski F score, Altman Z score and margin of safety. We can do things like screen on values vs. 5-year ranges, comparison vs. industry, adjusted P/E for net cash.
We allow for user defined equations in screening. We rank screened results. We can screen on historical data. We can screen ETFs.
Navin: When I talk to most individual investors in this era, I’ve noticed less interest in identifying individual stocks and much more interest in more passive types of investing — most mention ETF’s. How might I use your system to identify appropriate ETF’s?
Leoni: We can screen for ETFs using 70 specific ETF metrics including things like, size, fees, volume, performance, management tenure, Morningstar ratings, style, region and sector allocations, turnover ratio and much more. Via our correlation tool, ETFs can be measured against each other and other assets to ensure proper risk diversification.
Navin: I use stockcharts.com to follow price charts. I like the ability to annotate. What does Stock Rover offer for price charting types of investors?
Leoni: Chart base-lining to flatten one price line and chart the others relative to that one. Chart return with or without dividends, charting of over 100 fundamental metrics, extensive technicals (e.g. SMA, EMA, MFI, RSI, MACD) and volume charts. Ratio charts, chart events (earnings events and surprises, splits, alerts, maximum drawdown).
Navin: On the Stock Rover website, I notice that you’ve partnered with Interactive Brokers? What kind of partnership is that? I mean, how does it work?
Leoni: Our partnership with Interactive Brokers allows their brokerage users to integrate their portfolio holding directly with Stock Rover. The user simply makes a request to Interactive Brokers to do this and then they and we collaborate to provide the integration point for the user’s data to be incorporated into Stock Rover automatically.
Navin: Your company has received the “Editor’s Choice” rating from the American Association of Individual Investors. What’s the importance of such a designation?
Leoni: It lends credibility to the platform for sure. We received that designation fairly early in our company and product life cycle, so it was a validation to us that we were providing something valuable to the investment community.
Navin: What features are you working now on that might benefit stock researchers once you’ve developed them and made them available?
Leoni: Our focus has always been on providing extensive unbiased financial data to investors in a form that made it easy to understand and digest so that they could make better decisions given any investment strategy that’s chosen.
However, we came to realize that we could create much higher-level metrics from our data that could guide users towards better, more informed investing decisions. For example, calculating fair value and margin of safety. Or looking at the trajectory and predictability of various aspects of financial performance to scores and generating ratings in such areas as growth, profitability, valuation, financial strength, momentum and sentiment.
So, we are moving in the direction of providing services that tell people what we like, what we don’t like and why. This is a direction that our customers have wanted us to move in for some time. As the platform has matured, we are now comfortable using the wealth of data we have internally to boil it down and tell people which investments we like, which we don’t and why. There will be more services provided along these lines.
Navin: Ken, thanks
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