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Brett Wilson's  Instablog

Brett Wilson
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I am currently an undergraduate student who is studying economics. My approach to investing has been strongly influenced by the investment philosophy of Peter Lynch. I have a strong passion for investing and most of my investment research concerns long ideas. If you have any questions,... More
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  • Tools For Investing And Trading

    There are countless tools out there that claim that they will make a better trader or investor. It is often tough to distinguish whether these tools work or not. I figured that I would share some tools that I think make investing easier. One of the most useful sites for investing in my opinion is Yahoo! Finance (YHOO). Information is easy to find on the site and the news section is very informative. However, I don't use Google Finance (GOOG) because I noticed that some of there charts are inaccurate. For those of you who into investing in micro cap equities that are OTCs make sure that you look at, the site is very useful. I personally don't invest in OTCs because of the risky nature and many OTCs are just pump and dumps., it is much easier to tell if the company is worthy of an investment or if it is a pump and dump that should be shorted. For more information on pump and dumps, read my SA article on Northumberland Resources (NHUR), which is a classic example of a pump and dump. For actually finding companies to trade or invest in I would highly recommend trying out Equity Feed. The site advertises itself as being a "day trader's best friend", but I have used it in the past to find Nasdaq small caps. The software allows you to scan for certain stocks based on the criteria that you input. The scan that I normally run everyday is based on abnormal volume, which helped me to find great companies like Research Frontiers (REFR) and Ecotality (ECTY). Also, I usually get news from the scanner. However, the service is somewhat pricey at $180 dollars per month. In addition, I also like to use Y Charts. The free service allows investors to see things such as historical P/E ratios and historical dividends. My current broker is Fidelity and there service is fantastic. They provide high quality research reports about stocks and they have a feature called equity summary score, which provides an analyst score for stocks. I have also found that is an excellent places to find new financial products and tools. I don't use many tools for investing, but I hope that this post has helped you find some new financial tools and products that you can use.

    Aug 17 5:27 PM | Link | Comment!
  • TD Ameritrade Launches IMX

    TD Ameritade (NYSE:AMTD) launched a new trading tool on Tuesday called the Investor Movement Index or IMX. The new index gives us a feel for what the retail investor's current view of the stock market is. According to TD Ameritrade's website, it will be,

    Using data from a sample of six million accounts, the IMX gives you a snapshot of investor sentiment. It does this by analyzing the holdings/positions, trading activity, and other data from a sample of the real portfolios held by real retail investors."

    The is first index that reveals the behavior of small investors. Before the index was created Mutual Fund outflows were used to track investor sentiment. The index has shown that retail investors take more risks than we previously thought. During the fiscal cliff talks, many retail investors increased their risk levels because they believed that cliff would be resolved in a positive way. TD Ameritrade's competitors do not offer a similar index.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Tags: AMTD
    Feb 05 12:35 PM | Link | Comment!
  • 2 Small Cap Low PEG Stocks

    Investors are constantly on the search for the next Home Depot (HD) or Apple (AAPL). Those who owned these stocks in the early days and have been able to watch their stocks climb through the years. A single share of Apple cost $2.75 in 1980 and the stock broke through 700 dollar mark in September. Investors who are seeking these kinds of returns shouldn't't buy well established companies that have a large market capitalization. They should be instead looking for small cap companies that still have plenty of room to grow. The PEG ratio, which was popularized by legendary investor Peter Lynch, is a good indicator of a stock's true value. A PEG ratio between 0 and 1 may provide higher returns. Thus, small cap stocks with low PEG ratio's have the potential for phenomenal returns.

    1. Krispy Kreme Donuts (KKD)- Krispy Kreme Donuts are sold all over the world in grocery stores and there are 635 franchise locations. The stock has a market capitalization of 614.40 million dollars and a PEG ratio of .76. It's P/E ratio is also much lower than other restaurant chains. The company has plenty of room to grow overseas and they recently opened their 500th international retail location.

    2. Arctic Cat (ACAT)- Arctic Cat designs and sells ATVs and snowmobile. The fundamentals for this company are much better than rivals such as Polaris. The stock has market capitalization of 455.63 million dollars and a PEG ratio of .73. It has P/E ratio of 13.65, which is below the sector average. In addition to the low P/E ratio and PEG ratio, Arctic Cat has a P/S ratio of .76. Despite the great fundamentals, Artic Cat could be hit hard if we go over the fiscal cliff due to the cyclical nature of its business.

    Tags: ACAT, KKD
    Dec 26 11:49 AM | Link | Comment!
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