Australian Stock Market Newsletter Reviews - Part 1 of 2

This is a 2-part post looking at some of the leading Australian stock market newsletters, or stock reports as some are called. In these volatile market times it is more important than ever to spend more time researching market trends and related stocks before buying or even selling. Having a detailed review and recommendation done by professionals that provides in-depth objective analysis on the facts and figures is very useful. Also, it provides a way to stay in touch with some of the smaller and up and coming stocks which have strong growth potential. These reasons are what got me to start looking at some of the leading newsletter and reports covering the Australian stock market. This article provides a summary of my findings and basis for my future subscription decision.

So how did I find the “leading” stock market newsletter and reports? I already knew of a few from being an active investor for a number of years and also did various Google searches around the keywords “Australian stock reports and investment newsletters”. Further, I did some research across the leading finance/business publications and media to see which newsletters were the most prominent. I then picked the Top 6 from a list of about 15. This post looks at the first three newsletters, with the second post looking at the remaining three. I will provide recommendations at the end of the second post as well and perhaps another reader poll to get your opinion.

Disclosure: This is an independent review. I have not got a paid subscription with any of the newsletter/reports and am not affiliated with any of the reports and their employed staff as of the publishing date of this article.

Eureka

Report Review (based on sample provided): This report is headed by Alan Kolher, one of Australia’s most well known commentators and journalists. The team is also comprised of other notable writers with considerable experience. From a sample report I reviewed, (Best of 2007), the analysis is presented by the various contributors who talk about general market trends or factors around a particular stock. Given the caliber of people they have on the team, they also have managed to get interviews with leading analysts and senior management at a variety of the ASX companies. They also cover a broader range of topics, like superannuation and managed funds, compared to other newsletters that focus on specific stocks. I found they have excellent commentary on a variety of topics, but wish they had a summary of specific buy/sell stock recommendations and price targets.

Free Stuff Available online: The Eureka website is well laid out, but most of the news items are for subscribers. However, there is “Finance Television”, available for free which provides streaming audio and video market updates. This is a good link to add to your reading/viewing list. There are also some links to externally sourced investment articles.

Trial Subscription Available: Yes a 21-day free trial to the report is available. You can also sign up (via email) for the free Daily Market Report.

Newsletter Frequency and Cost: Three times a week, with a weekly PDF roundup. Annual subscription is $A 295 p/annum & monthly subscription is $A29.95. You also get access to the website which contains various market resources, stock information and investor education articles.

The Intelligent Investor

Report Review: The newsletter focuses on a value based investing approach. The team behind the report is not as well known as some of the other newsletters, but has some experienced staff that know what they are talking about. I signed up for a trial subscription (in under 2 minutes) and was able to get a recent report, which was the basis for this review. The report was about 20 pages and easy to read. It contained overall market/investor news and about 12 specific stock reviews. For the stock reviews, each one is around 1 to 2 pages long and provides an insightful view into the stocks past performance, economic factors impacting the stock and future upside/risks. They complete the review by providing a trading recommendation and include their past recommendation and stock price at that time. This is a good sign of transparency. Another notable item was the investor education articles, which are great for beginners.

Free Stuff Available online: The website is well designed and there a number of free articles, based on past newsletter content, available for downloading.

Trial Subscription Available: Yes, you can sign-up for a free 2-week subscription.

Newsletter Frequency and Cost: Bi-weekly newsletter which can be delivered online or via post (slightly more expensive due to postage). 12 issues (6 months) cost $345 & 24 issues (1 year) costs $545. With a paid subscription you also get access to the website which has stock recommendations, Q&A forums and various other investor resources.

Fat Prophets

Report Review (based on website sample): Fat Prophets is probably one of the better-known names in the stock market newsletter world. Founder and CEO Angus Geddes has made regular media appearances and along with the rest of the team have a solid investment market background. They tend to pick out-of-favour and/or small mining stocks that they think have significant upside potential. The weekly report I reviewed (Fat 332, available on the website) looks at 3-4 stocks, plus an overall market theme (like Gold and Oil prices in this newsletter). The stock reviews were pretty good and they have a unique rating system for stocks (Great White, Signature dish). I felt that they could provide more information on the risk factors for the stocks they have a buy recommendation on. For those who like trends, they provide some detailed charts showing price movement and indicate where they previously had a buy/sell recommendation for that stock (good transparency). Overall the report is concise and easy to read on a weekly basis.

Free Stuff Available online: Sharp looking and well organized website. They actually have a “Free Services” menu item available. If you register your email address you can get access to their market reports and a selection of stocks they review. Worth getting this even if you don’t sign up.

Trial Subscription Available: No trial subscription available, but you can see sample newsletters on their website to get a flavor of their writing style. They do provide a 30-day money back guarantee for any paid subscription.

Newsletter Frequency and Cost: Weekly newsletter with a 1 year Australasian subscription costing $695. 2yr option is also available for $995. A mining and resources add-on is also available.

The following are newsletters I will review in the second edition of this post.

- The Rivkin Report
- Huntleys Newsletter
- Invest4Profit

I have purposely not talked about performance of the above stock reports/newsletters. One is because the only performance figures I have would be what I see on their websites – which is not going to be entirely objective. After all who will subscribe to a report that said last year our performance was negative 10% compared to the index. Secondly, and more importantly, the newsletters should be used to improve and/or augment the information you have available for making your investment choices. They should not replace your own research and decision making process. So pick the newsletter where you feel that the writing style is something you can understand, adds value to your decision making process and provides a thorough analysis (pros and cons) of the stock you are interested in.

I will look at this list in a few months again; so if you have any comments on the above newsletters (based on your own or others experience), please do leave a comment. Let me also know if you have any other newsletters worth looking at.

Photo courtesy epidenver