TechNews.org aims to be the most trusted supplier of independent, accurate news covering the global technology sector.
We realize that many institutional and hedge fund investors rarely get their ideas from Wall Street research coverage. However, we also realize that investors and money managers are yearning to get back to the fundamentals of analysis and proprietary studies. They want independent, unbiased, untainted research—proprietary information.
The data from Investars (independent service tracking performance of analysts’ stock picks) shows that stock picks by six of the better known independent research firms, on average, have outperformed a half-dozen Wall Street firms over the last 5 years. Wall Street analysts are shifting their coverage from small caps to large caps, according to Majestic Research. Since late 2003, the number of smaller companies with any following at all has plunged. Investors and money managers face abundant information. They often perceive that stocks with little or no analyst coverage are simply unworthy of attention.
At TechNews.org we feel that the absence of research coverage has a significant effect on the valuation of companies.
According to a study conducted by Equity Development, firms without research coverage can be expected to trade 32% lower than those with even one analyst following them and the bid/offer spread is 50% wider. Research by Reuters showed that over 4,000 publicly traded companies have no discernable analyst coverage. Also, about 25% of stocks traded on the NYSE have no coverage.
TechNews.org uncovers undervalued securities. These are securities that are undiscovered because they are unattractive for traditional M&A and other financing activities. However, they have excellent potential for growth hidden in past history and they stay below the radar. Unable to communicate strategy effectively, these stocks trade at a valuation discount to their higher profile peers.
Our goal is to provide initiation reports and quarterly updates for approximately 140 tech companies. In most cases, our analysts research companies that are not covered by any other firms.