Restarted Work On My Stock Analysis Web Application

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I have restarted work on my stock analysis web application. It is into four stages and I am now making progress on all the stages:

  1. Financial Reports Gathering
This is the first stage and I have been doing this since 2012.  I have been gathering the PDF copies of the financial reports of companies listed on the Nigerian Stock Exchange. For some companies I could only get as far back as 2008 and for others I got either earlier than that or later. The great thing is I have them in easy to share/downloadable versions.

I currently share them for free via my SlideShare account and you can go there to download any annual report of a company publicly listed on the NSE (that I could get their report; some companies still don't post their reports online so I couldn't get them). Here's the link to my slideshare account: 

2. Standardized (IFRS) Analysis Template (lots of ratios pre-analysed)

I am sort of done with this stage. I bought a hands-on guide from an investment analyst with one of the top global investment firms and taught me how to make the very type they use for their own analysis.

It makes it possible to do a standard comparison of different companies even if they had used very different lines in explaining the income statement, balance sheet statement and cash flow statement. It's like what Morningstar does in US. I have once worked for a US client and the reports I was to work on where from Morningstar, already standardized and easy to work with. Mine will be doing same but with lots of quantitative analysis also done in it.

It captures ratio analyses like:
  • Revenue Growth
  • Gross Margin
  • Operating Profit Margin
  • Net Margin
  • Return on Assets
  • Return on Equity
  • Return on Invested Capital (ROIC)
  • Cash Flow as a % of Rev
  • Cost of goods sold as a % of Rev.
  • SG&A as a % of Rev.
  • Interest Income,net as a % of Rev.
  • Income tax expense as a % of Rev.
  • Current Ratio
  • Quick Ratio
  • Debt to Total Assets
  • Inventory Turnover
  • Days Sales Outstanding
  • Days Inventory Outstanding
  • Days Payable Outstanding
  • Cash Conversion Cycle
  • Accounts receivable as a % of Rev.
  • Inventories as a % of Rev.
  • Prepaid expenses and other as a % of Rev.
  • Deferred taxes as a % of Rev.
  • Bank lines of credit as a % of Rev.
  • Trade accounts payable as a % of Rev.
  • Accrued liabilities as a % of Rev.
The little piece I am yet to completely sort out is for the banks and insurance companies. Their reports require a customized template. 

3. Data Entry into the Template

I used to do this myself but now that I am too busy; I now outsource that part to a Ukrainian freelancer. She helps me with inputting the records from the financial reports into the analysis template. So I can say this stage is well covered.

4. The Web Application

Originally, I was planning to learn to do it and build it myself. Now I have realized that it might take years for me to get to doing it. So I have put adverts out for a competent web developer who can help build it for not more than $500. 

It will be a subscription based website. You register and get access to the financial reports in their original downloadable form, also access to the analyses and charts, and be able to run quantitative comparison of two or more stocks.

It is at this stage I will be putting in a monetization plan. Maybe there will be a paid subscription option (premium users) and there will also be custom services (maybe you want us to do bespoke analysis and reports for you).

I still have the details of everyone who asked me to put them on the invite list when it's ready. It won't be ready this year but at the rate I am kicking things back into action, it should be ready next year. Thanks!


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