Ask Your Financial Adviser – What Insider Information Do Others Get?
Here is something important you should be aware of, especially when making your own market or portfolio management decisions, or when relying on the advice of your financial adviser. Do you know whether or not you have open and complete access to all the pertinent information you might need to make those investing or share trading decisions? In a perfect world, as an independent investor in stocks, you should be able to access and analyze the same information available to takeover experts and corporate acquirers, such as investment bankers, private equity investors, public accountants, and so on. This, regrettably, is not the case. Investors and traders in public market securities and securities analysts have access only to publicly available information. As a result, they have less than complete information available to them when they invest, trade, or in the case of securities analysts, prepare their reports and recommendations.
The information they don’t have is often just as important in the development of comprehensive, meaningful valuation determinations. This is not a criticism of public market participants (the financial advisers and analysts), who do not have access to this vital and relevant information. This is a result of securities laws that are outside their control. These investment professionals need to do much the same analysis as do those corporate acquirers, seeking to purchase 100% of a company. As opposed to public market participants, corporate acquirers and their advisers, (pursuant to the appropriate legal documents), have direct access to the directors and executives of the target company. These persons provide detailed responses to all requests for information made by the corporate acquirer, hence providing information that is both in the public domain and not in the public domain. Furthermore, they get access to all documentation in the target company’s possession related to its assets, liabilities and historic/prospective operating revenues, expenses and cash flows. But imagine if you did have much more information…almost the very same as the corporate acquirers.
I know of one independent investor who decided to do something about this. He conducted extensive investor and market research, and then used that knowledge – and his own industry experience – to assist those who want to manage their own portfolios, the financial advisors who assist them; and others who need unbiased, independent help. He used innovative thinking and the web. In the investment world, the Internet is helping to change things and level the playing field. Every week someone comes up with a great idea to harness the capabilities and distribution power the Internet provides. Advise Marketing.