Researching ASX 200 Companies

Successfully researching companies on the ASX 200, or even any company on the Australian stock market, is all about knowing where to look. The companies listed on the ASX 200 are basically Australia's 200 biggest businesses calculated on market capitalisation, and the bigger the company, generally the easier it is to find information.

Certainly, the bigger companies have better resources for delivering information to the public, and the ASX 200 blue chip companies are typically established giants with a solid foothold in the market and a developed plan for the future. Regardless, as intelligent investors, it is our obligation to investigate these companies before we invest our money in them so we can minimise risk and increase the chance of personal rewards.

To begin to understand how to research an ASX 200 company, you can start by looking at the following things.

• Annual Reports - Every year, most ASX 200 companies make an annual report available to let people know how the company is doing financially and any strategies for the future. Make sure you pay attention to how the company uses terms, and take the time to understand what is and isn't being disclosed. As a shareholder or potential investor, you have the right to know what is going on.
• AGMs - This stands for Annual General Meeting, and you can attend these to hear speeches and presentations from people throughout the company. You may also be given the chance to pose questions, and it is recommended you do some basic research before attending an AGM. For example, any recent news or stock market reports from the company, or the last annual report to judge if the company has achieved its goals/aspirations.
• Company Statements - You may receive a concise financial statement from the company, or you can often choose to view a full statement. You should look at the figures to gain an overall impression of the company, and frequently there are management comments to take on board when assessing the figures for yourself.
• Other Company Documents - If and when you become a shareholder in an ASX 200 company, you may receive a variety of documents ranging from reports and announcements from offers to vote on certain proposals. Take the time to understand these documents.
  If you have not been given clear information or do not understand the documents, ask your company secretary for additional information or seek the help of a financial professional. You can also complain to ASIC or seek help from the Australian Shareholders Association (if you are a member).
• Announcements - The financial media will often report on important company announcements, but you should also monitor the actual ASX stock exchange website and the relevant company website. Most ASX 200 companies will have comprehensive websites, and directors of listed companies must keep you informed on the position of the company as part of upholding corporate governance standards.
• Check the Public Record - While most ASX 200 companies are fairly transparent, you can still check the public record to cross-reference any data or reveal information that may not have been otherwise publicly disposed. It's especially useful if a company is not reported on regularly or you cannot easily access company information.
  Companies have legal requirements to dispose certain documents to ASIC, and you can check the public record by searching the Australian Securities and Investment Commission (ASIC) website.

Using these resources will allow you to evaluate a company more accurately and decide whether you want to become a shareholder with a personal stake in an ASX 200 company's business activities. While it still takes time and effort, information is easier to access than ever before, and it's usually worth the effort to manage the risk on your investment money.