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NWT Newmark Security Plc

74.00

0.00 (0.00%)

29 Jan 2025 - Closed

Delayed by 15 minutes

Newmark Security Investors - NWT

Share Name	Share Symbol	Market	Stock Type
Newmark Security Plc	NWT	London	Ordinary Share

	Price Change	Price Change %	Share Price	Last Trade
	0.00	0.00%	74.00	08:00:00

Open Price	Low Price	High Price	Close Price	Previous Close
74.00	74.00	74.00	74.00	74.00

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Posted at 26/1/2025 14:14 by hedgehog 100 "Trump wants to take Greenland: Four ways this saga could go By Laura Gozzi in Copenhagen and Robert Greenall in London BBC News 11 January 2025 ... Trump has been threatening universal 10% tariffs on all US imports which could, among other things, significantly disrupt European growth, and some Danish and other European companies are now considering setting up manufacturing bases in the US. ..." Trump told the World Economic Forum in Davros this week that they could either produce their goods in the US or face widespread tariffs. Which, for a different reason, Newmark has been looking into for quite a while now:- 23/01/2023 07:00 UK Regulatory Newmark Security PLC Final Results LSE:NWT Newmark Security Plc " ... People and Data Management division - Grosvenor Technology Looking ahead, we will continue to build on the positive momentum we have achieved in Human Capital Management and Access Control, focusing on converting a rising number of opportunities in these fast-growing markets with our newly developed products and software. Our goal, to create longer-term and higher margin contracts with our partners and customers, will be accelerated as we launch our upgraded HCM SaaS platform, GT Connect. This will further increase recurring revenues, driving towards an ambitious ARR target. A key component of this success will be achieved by maintaining our ongoing commitment to deliver highly secure data processing, complying with international standards such as ISO 27001. To mitigate further supply chain effects and logistics, we are exploring the establishment of a new manufacturing facility in North America, with the intention of streamlining the delivery of in-country products in this fast-growing market. ..." Newmark are obviously very bullish on their North American growth outlook, to be exploring the establishment of a new manufacturing facility in North America. And this could dovetail perfectly with a spin-out floatation of Grosvenor Technology in America. This is precisely the sort of capital investment that IPO investors love to fund, as opposed to just covering ongoing losses, especially in the current risk-averse environment. Newmark's CEO Marie-Claire presented at the Security Investors Conference in New York last month, and doubtless this was an issue she discussed with strategic investors. GT relocated to a new US HQ two years ago, with trebled space, further demonstrating the great growth success of this business, and with plenty more to come:- "GT Clocks Powers Up with Office Relocation GT Clocks Soars to New Heights with its new Florida Headquarters: In-House Fulfillment, Total Control, and a Growing Team at the Ready" Read Full Thread Reply
Posted at 23/1/2025 12:35 by hedgehog 100 23/01/2025 07:00 RNS Non-Regulatory Newmark Security PLC Investor Presentation via Investor Meet Company LSE:NWT Newmark Security Plc "Newmark Security plc (AIM: NWT), a leading provider of electronic and physical security systems, is pleased to announce that Marie-Claire Dwek (CEO) and Paul Campbell-White (CFO) will provide a live presentation relating to the Interim Results via Investor Meet Company on 31 Jan 2025, 10:00 GMT. The presentation is open to all existing and potential shareholders. Questions can be submitted pre-event via your Investor Meet Company dashboard up until 30 Jan 2025, 09:00 GMT, or at any time during the live presentation. Investors can sign up to Investor Meet Company for free and add to meet Newmark via: Investors who already follow Newmark on the Investor Meet Company platform will automatically be invited. Newmark Security plc Tel: +44 (0) 20 7355 0070 Marie-Claire Dwek, Chief Executive Officer www.newmarksecurity.com Paul Campbell-White, Chief Financial Officer Allenby Capital Limited Tel: +44 (0) 20 3328 5656 (Nominated Adviser and Broker) James Reeve / Liz Kirchner / Lauren Wright (Corporate Finance) Amrit Nahal, Tony Quirke (Sales & Corporate Broking) About Newmark Security plc Newmark is a leading provider of electronic, software and physical security systems that helps organisations protect human capital and provide safe spaces seamlessly and securely. From our locations in the UK and US, we operate through subsidiary businesses positioned in specialist, high-growth markets. We foster an open and inclusive work environment amongst our c.100 employees, serving hundreds of blue-chip customers. Our product portfolio consists of Human Capital Management and Access Control Systems providing both hardware and software and Physical security installations to various sectors. Newmark Security plc is admitted to trading on AIM (AIM:NWT). For more information, please visit: www.newmarksecurity.com Safe. Seamless. Secure" Read Full Thread Reply
Posted at 15/1/2025 16:34 by hedgehog 100 "Thalassa Holdings Ltd – 9.92%" NWT's fourth largest shareholder, Thalassa Holdings, has just recently raised £2.1775M.: to invest in excellent undervalued UK shares like NWT:- 11/12/2024 07:30 EQS Regulatory News Thalassa Holdings Ltd: Proposed Equity Placing LSE:THAL Thalassa Holdings Limited "Introduction Thalassa is a diversified holding company with investments in a range of public and private businesses in the FinTech/RegTech, MedTech, Deep Tech/Robotics & Real Estate sectors. Thalassa aims to target a limited number of acquisition opportunities in both the public and private markets. Thalassa is an opportunistic, fundamental value investor willing to back excellent management teams over the long term. Professional Integrity, honesty and accountability are the pillars of our business. Thalassa’s goal is to deliver long term shareholder value from a limited number of holdings. We actively engage with the management and boards of our holdings and contribute experience and expertise to support growth plans, encourage operational transformation or facilitate product extension and market expansion. The board of Thalassa (the ‘Board’) believes that the US markets are currently significantly overvalued and long overdue for a correction, whilst the UK and European markets are likely to suffer further headwinds due to increased political turmoil (France, Germany) exacerbated by the war in Ukraine, increased global competition, and the increasing risk of trade wars and punitive tariffs. The Board sees the aforementioned problems as opportunities to benefit from coming price dislocation and has decided to seek further equity capital by way of a placing, described further below, in order that it is in a position to maximise its ability to participate in such opportunities. Placing Thalassa is pleased to announce that it has entered into a placing agreement with Peterhouse Capital Limited (“Peterhouse”) to carry out a placing which will be targeted at selected financial institutions and existing Thalassa shareholders (“Placing”). ... Mr Soukup, and parties associated with him, have indicated their intention to participate in the placing up to £2 million at a price to be determined independently of each other and by the outcome of the 'Dutch Auction' process. ..." 16/12/2024 07:30 EQS Regulatory News Thalassa Holdings Ltd: Results of Placing LSE:THAL Thalassa Holdings Limited "Further to the announcement on 11 December 2024 in relation to the Placing, the Company is pleased to announce that Peterhouse Capital Limited has successfully conditionally placed 8,710,000 new ordinary shares of $0.01 each in the capital of the Company (the "Placing Shares") with institutional investors and existing shareholders ("Placees") (the "Placing"). Following the Dutch Auction process, the independent directors of the Company set the placing price at £0.25 ("Placing Price"). At the Placing Price, the Placing has raised gross proceeds of approximately £2,177,500. The Company expects to publish a Prospectus in connection with the Placing on 20 December 2024. ..." THAL's existing large shareholding in NWT would doubtless have been a strong attraction for these investors: including a very large new investment from THAL's Chairman Duncan Soukup. And it will be interesting to see where THAL invests these monies. Read Full Thread Reply
Posted at 11/1/2025 15:33 by hedgehog 100 From Hargreaves Lansdown "Investment Times", Issue 159 - winter 2024:- "Looking past the AI mega caps 3 share ideas Aarin Chiekrie Equity Analyst Companies like NVIDIA, Microsoft, Alphabet and the other mega-cap US names dominate the narrative around artificial intelligence (AI). But new AI technology will benefit many more businesses outside this small cohort that usually grabs headlines. Here are three shares that could benefit from the global AI transition. ... Remember, before you can trade US shares, you need to complete and return a W-8BEN form - the easiest way to do this is on our website. Palantir Technologies - the data king Palantir helps government agencies and companies make sense of large, complex data sets, which in turn supports smarter decision-making. In our increasingly data-driven world, these solutions have become incredibly valuable. Palantir's platforms are already well-established in industries like national security, healthcare, and financial services. In the AI landscape, data reigns supreme. The more data you have, the more powerful AI can be. Demand for palantir's AI-powered solutions is rising as more businesses seek to tap into its capabilities - a trend we expect to continue. Palantir's growth potential is closely tied to expanding its customer base, while navigating the regulatory challenges of data use. As a software name, its earnings are high quality. There's plenty of cash to back up its accounting profits and it doesn't need to spend loads to generate revenue. From an accounting perspective the company turned its first profit in 2023, though it's been free cash flow positive since 2021. We don't think the lack of long-term profit history is a major issue - it's a relatively young business and investment in expanding the product range and market reach has been a priority. However, this focus does add extra risk if current investments don't pan out. Perhaps the biggest risk to short-term performance is around expectations. The valuation is lofty, and analysts have been upgrading profit estimates after a run of good results recently, leaving little room for missteps. Salesforce - on the front end Salesforce might not be the first name that springs to mind when you think of AI, nor does it usually grab headlines like some mega-cap tech giants. But with a market cap of around $280bn, it's certainly making waves in the AI space. Salesforce is best known for its cloud-based software, which helps businesses manage customer relationships. It's essentially a one-stop platform where companies track customer interactions, sales, marketing, and now, data. With years of client relationship management (CRM) experience, Salesforce has built up a massive catalogue of customer data. This treasure trove of data is ideal for AI-driven insights, and because it's embedded across Salesforce's suite of cloud products, it's become a critical tool for many businesses. As companies prioritise efficiency and personalisation, Salesforce's AI offerings become even more relevant. Salesforce's ability to deploy AI at scale helps businesses pull actionable insights from their data, enhancing both decision-making and customer engagement. The sheer amount of data within Salesforce's ecosystem gives it a real advantage here. There are challenges though, as businesses remain selective in their software spending. The 8-9% revenue growth expected this year is down from the mid-20s we saw a few years ago, and investors will want to see improvement in this area. The added value AI brings could be the catalyst for renewed top-line growth. Its recent focus on cost control has improved profitability and cash flows, setting Salesforce up well for its next phase. With new products in AI and data-management, Salesforce seems well-positioned for the AI revolution. But it won't be a one-way street. Expectations are high, and execution risks remain. Taiwan Semiconductor Manufacturing Company (TSMC) - picks and shovels TSMC's cutting-edge manufacturing capabilities are crucial for creating the high-performance, energy-efficient chips needed to power AI workloads. Companies like Apple and NVIDIA rely heavily on TSMC's expertise to bring their products to life, especially as AI becomes a bigger part of their offerings. While companies like NVIDIA are celebrated for designing the powerful chips behind AI technology, it's important to recognise that it doesn't actually manufacture them. Chip production is incredibly complex, so designers like NVIDIA often outsource this to TSMC, which dominates the global foundry market with a market share of over 60%. The surge in AI demand is already boosting TSMC's performance, with recent third-quarter results showing revenue and profit growth of over 35%. Demand has been so intense that TSMC has had to relocate equipment and open new facilities to keep up. However, supply likely won't catch up until next year. Financially, TSMC is in a solid position, with high-quality earnings backed by robust cash flows and a healthy balance sheet. Although recent expansion efforts have led to some new debt, it remains manageable. Ultimately, you can't have an AI transition without chips, and you can't have chips without a manufacturer like TSMC. That puts it in a strong position, and investors can get exposure to the AI revolution without having to worry too much about which designer ends up on top. Given its location in Taiwan, TSMC's key risks are around geopolitics and potential supply chain disruptions. Investors will need to keep an eye on global relations between Taiwan, China and the US. This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. ..." Palantir Technologies (NASDAQ:PLTR):- Salesforce (NYSE:CRM):- Taiwan Semiconductor Manufacturing Co (NYSE:TSM):- Read Full Thread Reply
Posted at 02/12/2024 16:57 by hedgehog 100 Guess who's presenting in New York (again) next week! - "Imperial Capital is pleased to announce the 21st Annual Security Investor Conference (SIC) on December 11-12, 2024 at the InterContinental New York Barclay." "SECURITY INVESTORS CONFERENCE 2024 PRESENTERS as of 11/18/24 ... Newmark Security (ION NWT) ..." NWT's share price rose 40% last December (from 53.5p to 75p), helped by this news:- Hedgehog 100 6 Dec '23 - 08:42 - 244 of 742 Edit 0 0 0 "Thanks to Dab808 on LSE for flagging this up yesterday:- "Security Investor Conference Hear from our CEO, Marie-Claire Dwek on 13 – 14 December in New York. Find out more" ..." See also these posts:- Hedgehog 100 6 Dec '23 - 09:17 - 245 of 742 Edit 0 0 0 "Some more material on the Security Investor Conference in New York next week:- ..." Hedgehog 100 6 Dec '23 - 10:22 - 246 of 742 Edit 0 0 0 "NWT's presentation on Thursday of next week will be immediately followed, in the same room, by SoundThinking, Inc. (NASDAQ:SSTI):- ... Grosvenor Technology's results for its year ending 30.4.23, i.e. pre-tax profit of £2.196M. on revenue of £15.574M., combined with a SSTI-style valuation multiple, could potentially give it a market cap. of up to c. US$100M. in a US spin-out from NWT." Hedgehog 100 14 Dec '23 - 17:06 - 267 of 742 Edit 0 0 0 " ... Good luck to our CEO in her New York presentation later today (at 6.15p.m. London time, as we're 5 hours ahead of NY), and thanks to Dab808 on LSE for this message this morning:- ..." Read Full Thread Reply
Posted at 22/10/2024 15:45 by hedgehog 100 "UK INVESTOR MAGAZINE Investor Evening at the London Stock Exchange Group 22nd October 2024 Join us at the UK Investor Magazine Investor Evening 5.30pm 22nd October 2024 ... UK Investor Magazine Investor Conference 22nd October Tue, 22 Oct 2024 17:30 - 21:00 BST ... Speakers ... Marie-Claire Dwek CEO Newmark Security Paul Campbell-White Chief Commercial Officer Newmark Security ... This UK Investor Magazine Investor evening will bring together investors and growth companies for investment presentations, followed by a drinks reception at the London Stock Exchange Group Investors are able to join us in person at the London Stock Exchange Group in the heart of the City of London Featured Companies: CornishMetals ... Yellow Cake plc ... Newmark SECURITY PLC ..." So today will be 'CAPPED' by Newmark's third (& last) of three investor presentations this month. And unlike their virtual presentation at MelloMonday on 14th. October, today's event is 'physical' ... Blondie - "In The Flesh" Read Full Thread Reply
Posted at 07/10/2024 12:52 by hedgehog 100 NWT'S THREE IMMINENT OCTOBER 2024 INVESTOR PRESENTATIONS:- 1. "Tuesday, 8 October Proactive One2One Forum - Tuesday 8th October Proactiveinvestors One2One Forums have rapidly gained global recognition as the preferred format for hundreds of listed companies across the Date and time Tue, 8 Oct 2024 18:00 - 21:00 BST Location The Chesterfield Mayfair 35 Charles Street London W1J 5EB About this event Event lasts 3 hours Presenting Companies will include: Faron Pharmaceuticals (LON:FARN) Ananda Developments (ANA.AQ) Newmark Security (LON:NWT) Eco Animal Health (LON:EAH) Atome (LON:ATOM) Proactiveinvestors One2One Forums have rapidly gained global recognition as the preferred format for hundreds of listed companies across the world's leading stock exchanges seeking to present to an audience of astute high net worth investors, fund managers, private client brokers and analysts. Our format is simple. The directors from a maximum of four companies present to an audience of up to 120 attendees. Each company has a maximum slot of 20 minutes to present followed by a Q&A session for a further 10 minutes. Once all the companies have presented, networking continues for a further 90 minutes over wine and canapés. Our forums are completely free to attend, but we do actively vet our audience to ensure attendees on the night are genuine members of the investment community." 2. "MELLOMONDAY INVESTING IN GOOD COMPANY MelloMonday, 14th October 2024, 5pm - 9pm Company Presentation – Transense Technologies ... Company Presentation – Newmark Security plc Stockopedia Stock Report on Newmark Security Newmark Security PLC (AIM:NWT) delivers long-term shareholder value through the provision of products and services that protect both personnel and their data while ensuring security for an organisation’s physical assets. Listed on the AIM market of the London Stock Exchange since 1997, we design and manufacture a range of specialist products and services that ensure safe, secure and productive workplaces. From its locations in the UK and the US, the organisation operates through subsidiary businesses positioned in specialist, high-growth markets. Safetell provides physical security installations to numerous end-user sectors. Products and services range from Asset Protection Solutions to Counter Terror Deployments. Grosvenor Technology serves the Access Control and Human Capital Management markets globally providing both hardware and software to collect and secure data while maintaining privacy, ensuring compliance and reducing operating costs for its clients. This is typically provisioned through a recurring software as a service model. Generating a great proportion of its revenues from recurring services through Software as a Service (SaaS) and Clock as a Service (ClaaS) provisioning is part of Newmark’s overarching strategy which is dedicated to building a business that has long-term stability and sustainability at its core. Marie-Claire Dwek was Marketing Director of Newmark Technology Limited (specialised electronic security systems) 1996-2000, responsible for the planning, leadership and strategic marketing. Between 2002–2013, Marie-Claire was responsible for the management and investment in various property portfolios for Motcomb Estates and joined Newmark Security as Chief Executive Officer in 2013. Paul is a Chartered Accountant, having qualified with KPMG in 1999, and has over 20 years of experience working in finance in the technology and media sectors. Paul was previously Chief Financial Officer of Brave Bison Group plc (AIM: BBSN), a digital media and technology company, and Chief Financial Officer of Warner Bros. TV Production UK. Prior to those appointments, he was Group Financial Controller of Shine Group, an international television production and distribution group and Interim Group Financial Controller at Channel 4. Most recently, he has been Interim Chief Commercial Officer of CognitionX, a technology company in the events space. ..." 3. "UK INVESTOR MAGAZINE Investor Evening at the London Stock Exchange Group 22nd October 2024 Join us at the UK Investor Magazine Investor Evening 5.30pm 22nd October 2024 ... Speakers ... Marie-Claire Dwek CEO Newmark Security Paul Campbell-White Chief Commercial Officer Newmark Security ... This UK Investor Magazine Investor evening will bring together investors and growth companies for investment presentations, followed by a drinks reception at the London Stock Exchange Group Investors are able to join us in person at the London Stock Exchange Group in the heart of the City of London Featured Companies: CornishMetals ... Yellow Cake plc ... Newmark SECURITY PLC Newmark Security produces products and services that protect personnel and their data and ensure stringent security for an organisation’s physical assets for over three decades. Listed on the AIM market of the London Stock Exchange since 1997, we design and manufacture intelligent technology and services that provide safe, secure and productive workplaces. ..." Yes - "Wonderous Stories" Read Full Thread Reply
Posted at 02/9/2024 14:31 by hedgehog 100 02/09/2024 07:00 RNS Regulatory News Newmark Security PLC Notice of results and investor presentation LSE:NWT Newmark Security Plc "Newmark Security plc (AIM: NWT), a leading provider of electronic, software and physical security systems, announces that the Company's final results for the year ended 30 April 2024 ("FY 2024") will be announced on 10 September 2024. Marie-Claire Dwek (CEO) and Paul Campbell White (CFO) will provide a live presentation relating to the FY 2024 results via Investor Meet Company on 10 September 2024 at 11:00am BST. The presentation is open to all existing and potential shareholders. Questions can be submitted pre-event via your Investor Meet Company dashboard up until 9am the day before the meeting or at any time during the live presentation. Investors can sign up to Investor Meet Company for free and add to meet Newmark Security plc via: Investors who already follow Newmark on the Investor Meet Company platform will automatically be invited. Newmark Security plc Marie-Claire Dwek, Chief Executive Officer Paul Campbell-White, Chief Financial Officer Tel: +44 (0) 20 7355 0070 www.newmarksecurity.com Allenby Capital Limited (Nominated Adviser and Broker) James Reeve / Liz Kirchner / Lauren Wright (Corporate Finance) Amrit Nahal / Tony Quirke (Sales & Corporate Broking) Tel: +44 (0) 20 3328 5656 Yellow Jersey PR Limited (PR & IR) Charles Goodwin / Dominic Barretto Tel: +44 (0) 203 2004 9512 About Newmark Security plc Newmark is a leading provider of electronic, software and physical security systems that helps organisations protect human capital and provide safe spaces seamlessly and securely. From our locations in the UK and US, we operate through subsidiary businesses positioned in specialist, high-growth markets. We foster an open and inclusive work environment amongst our c.100 employees, serving hundreds of blue-chip customers. Our product portfolio consists of Human Capital Management and Access Control Systems providing both hardware and software and Physical security installations to various sectors. Newmark Security plc is admitted to trading on AIM (AIM:NWT). For more information, please visit: www.newmarksecurity.com" Read Full Thread Reply
Posted at 14/5/2024 11:33 by dab2 Hi Marie-Claire, Congratulations to you and the team on today’s trading update. It is fantastic and our approaching £10m valuation is deserved. Here’s my highlights of todays announcement played back. I’ve also been in touch with some other investors today, so there is some feedback from them as well. Revenue >£22m. This is an important statement. Revenue for 2H 2023 was £9.7m. So 2H 24 at £11.6m is 20% higher. The issue with a 2H comparison is that we cannot see when in Q3 UKG stopped so this is somewhat more impressive than it appears. 1H 24 revenues stood at £10.4m, so 2H 24 revenues are up 12%. It appears we have steady growth embedding at around 5% a quarter. If we continue on this basis revenues for FY 25 will likely be in the region of £26.8m! As the £22m is a minimum revenue number, we have to wait for the results to see how much higher this projection will go! Subscriptions to £2.9m (28% growth). This is a fantastic result. We need more information on the length of these subscriptions and forward projections but this is now 15% of revenues and growing. This is guaranteed income (less a customer goes into administration, or cancels for which there will be penalties?). Our investor presentations should be looking to forecast the growth of this model out at least 5 years, let’s show how it underpins our business. The statement of winning three new customers earlier in the year, which contributed to a stronger H2, is a powerful one. More growth to come from these, again how can we get this across to shareholders? I’ve been chatting with Benedikt Bessmann (via X). He is keen to know which three HCM partners we have, can we talk about them, do we have any giants like Paychex? Financial position. Cash at £1.1m is up £1m in the 2H. Debt down by £1m. This is a £2m swing. Suggesting the balance sheet will be improving significantly each period. Some of this will be inventories running down but cash in the bank is good. Profit - So no doubt there will be a significant profit. Inventory levels dropping have added to the cash flow but should also add to the profit as less new inventories have been purchased. Last year there were references to under deployed resources, what might be good about that is revenue growth falls straight to the bottom line. I’m predicting a profit in excess of £1.2m-£1.5m for the 2H. So £1.1m to £1.4m for the FY 24 (taking into account £0.1 loss in 1H 24. But FY 25 is looking like £3m+ and thus a PE of 3 on a business growing at 20%+ a year. Outlook, one of our investors sold 10,000 shares today. Whilst not many it was on the back of the fact that we are acting like a private business and just not promoting our story enough. We need to be more confident in our outlook and provide forecasts. I’m with them, there is a big opportunity to further promote ourselves, consider what would we be doing if we were a US business? Driving our social media reach to investors, reaching out to Investors Chronicle, Proactive Investor (I’ve seen Ian’s coverage but it is matter of fact), Motley Fool etc. etc. A market valuation of £20m, 200p is in reach this year if we get this right. Happy to chat as always. Regards David Read Full Thread Reply
Posted at 03/11/2023 18:12 by hedgehog 100 "AAII Journal - January 1997 The Peter Lynch Approach to Investing in "Understandable" Stocks By Maria Crawford Scott No modern-day investment "sage" is better known than Peter Lynch. Not only has his investment approach successfully passed the real-world performance test, but he strongly believes that individual investors have a distinct advantage over Wall Street and large money managers when using his approach. Individual investors, he feels, have more flexibility in following this basic approach because they are unencumbered by bureaucratic rules and short-term performance concerns. Mr. Lynch developed his investment philosophy at Fidelity Management and Research, and gained his considerable fame managing Fidelity’s Magellan Fund. The fund was among the highest-ranking stock funds throughout Mr. Lynch’s tenure, which began in 1977 at the fund’s launching, and ended in 1990, when Mr. Lynch retired. Peter Lynch’s approach is strictly bottom-up, with selection from among companies with which the investor is familiar, and then through fundamental analysis that emphasizes a thorough understanding of the company, its prospects, its competitive environment, and whether the stock can be purchased at a reasonable price. His basic strategy is detailed in his best-selling book "One Up on Wall Street" [Penguin Books paperback, 1989], which provides individual investors with numerous guidelines for adapting and implementing his approach. His most recent book, "Beating the Street" [Fireside/Simon & Schuster paperback, 1994], amplifies the theme of his first book, providing examples of his approach to specific companies and industries in which he has invested. These are the primary sources for this article. The Philosophy: Invest in What You Know Lynch is a "story" investor. That is, each stock selection is based on a well-grounded expectation concerning the firm’s growth prospects. The expectations are derived from the company’s "story"--what it is that the company is going to do, or what it is that is going to happen, to bring about the desired results. The more familiar you are with a company, and the better you understand its business and competitive environment, the better your chances of finding a good "story" that will actually come true. For this reason, Lynch is a strong advocate of investing in companies with which one is familiar, or whose products or services are relatively easy to understand. Thus, Lynch says he would rather invest in "pantyhose rather than communications satellites," and "motel chains rather than fiber optics." Lynch does not believe in restricting investments to any one type of stock. His "story" approach, in fact, suggests the opposite, with investments in firms with various reasons for favorable expectations. In general, however, he tends to favor small, moderately fast-growing companies that can be bought at a reasonable price. Selection Process Lynch’s bottom-up approach means that prospective stocks must be picked one-by-one and then thoroughly investigated--there is no formula or screen that will produce a list of prospective "good stories." Instead, Lynch suggests that investors keep alert for possibilities based on their own experiences--for instance, within their own business or trade, or as consumers of products. The next step is to familiarize yourself thoroughly with the company so that you can form reasonable expectations concerning the future. However, Lynch does not believe that investors can predict actual growth rates, and he is skeptical of analysts’ earnings estimates. Instead, he suggests that you examine the company’s plans--how does it intend to increase its earnings, and how are those intentions actually being fulfilled? Lynch points out five ways in which a company can increase earnings: It can reduce costs; raise prices; expand into new markets; sell more in old markets; or revitalize, close, or sell a losing operation. The company’s plan to increase earnings and its ability to fulfill that plan are its "story," and the more familiar you are with the firm or industry, the better edge you have in evaluating the company’s plan, abilities, and any potential pitfalls. ... Summing It Up Lynch offers a practical approach that can be adapted by many different types of investors, from those emphasizing fast growth to those who prefer more stable, dividend-producing investments. His strategy involves considerable hands-on research, but his books provide lots of practical advice on what to look for in an individual firm, and how to view the market as a whole. Lynch sums up stock investing and his outlook best: "Frequent follies notwithstanding, I continue to be optimistic about America, Americans, and investing in general. When you invest in stocks, you have to have a basic faith in human nature, in capitalism, in the country at large, and in future prosperity in general. So far, nothing’s been strong enough to shake me out of it." The Peter Lynch Approach in Brief Philosophy and style Investment in companies in which there is a well-grounded expectation concerning the firm’s growth prospects and in which the stock can be bought at a reasonable price. A thorough understanding of the company and its competitive environment is the only "edge" investors have over other investors in finding reasonably valued stocks. ... Stock monitoring and when to sell • Do not diversify simply to diversify, particularly if it means less familiarity with the firms. Invest in whatever number of firms is large enough to still allow you to fully research and understand each firm. Invest in several categories of stock for diversification. • Review holdings every few months, rechecking the company "story" to see if anything has changed. Sell if the "story" has played out as expected or something in the story fails to unfold as expected or fundamentals deteriorate. • Price drops usually should be viewed as an opportunity to buy more of a good prospect at cheaper prices. • Consider "rotation"-selling played-out stocks with stocks with a similar story, but better prospects. Maintain a long-term commitment to the stock market and focus on relative fundamental values." Read Full Thread Reply

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