How Stock Doctor Works

Engineered to help you invest smarter, our methodology and algorithm take the guesswork out of investing.

No credit card required

Includes all features

Complex investing decisions require an equally complex – yet made easy for you – tested and proven solutions.

“Without understanding the Financial Health and true quality of a business, investors are purely speculating and at risk of serious loss.” 

Tim Lincoln

Stock Doctor Co-Founder and Managing Director

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GOLDEN RULE 1

Financial Health

The Financial Health model is the most important layer within Stock Doctor’s investment framework. Our algorithm is an academically validated quantitative filter that calculates industry-specific profit, debt, asset, equity and cash flow ratios and excludes 75% of ASXlisted companies from your investment universe that is statistically vulnerable to insolvency.  

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GOLDEN RULE 2

Financial Performance

The Financial Health model removes the vulnerable, the next layer in our framework helps identify the highest financial-performing companies available on the ASX share market. Depending on the sector, we aim to isolate companies that demonstrate adequate levels of capital efficiency, earnings quality and profitability. The trend line in these metrics is also important!

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GOLDEN RULE 3

Outlook and Active Risks

A qualitative assessment is applied to explore all the currently active business risks and whether these risks could negatively impact the business’ performance and outlook in the year ahead. A dedicated team of analysts report on the companies that pass the financial health and criteria; and can walk you through the complexities of stock selection.

Our team of in-house research analysts spend significant time talking to management, attending industry events, and speaking to industry peers to determine whether a business will likely meet the grade moving forward.

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GOLDEN RULE 4

Share Price Sentiment

A share price trend reflects the market view of a share. Should the price experience a retraction, Stock Doctor provides alert filters and technical strategy know-how to cater for a trading strategy that suits your individual preferences. 

Although we are not technical investors, the platform’s in-depth charting tools allow investors inclined to overlay technical indicators on price trends to provide further investment insight. 

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GOLDEN RULE 5

Share Price Value

All the tools to stay informed about share price valuations are available to you. Whether relative measures like price-to-earnings valuation or consensus price target estimates, Stock Doctor gives you real-time transparency about how market participants value share prices. 

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GOLDEN RULE 6

Liquidity and Size

Ensuring a business is liquid enough to allow for relative ease of getting in and out is important to ensure investors get a price that reflects the business’s current position. 

In the Stock Doctor Star Stocks selection process, all selected companies must have a minimum average daily dollar traded in the market of $200,000.

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GOLDEN RULE 7

Principal Activities

As a part owner of the business, it’s essential to believe in a company’s core business and be comfortable that it aligns with your personal values. Our platform provides a simple synopsis of the business model and breaks down the revenue and earnings drivers by operating segments.

Further, seeing key Executives and Directors aligning their interests with shareholders by maintaining material holdings in the business is a positive, and it’s particularly noteworthy if the business founder is still involved in the company in some capacity.

But the true value when investing confidently lies with access to the analyst that can articulate and identify the risks inherent in all businesses listed on the Australian stock market.

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GOLDEN RULE 8

Latest Price Sensitive Announcements

Staying informed about companies and their market announcements can be cumbersome and confusing.  But inevitably, these announcements can be material and have large implications to share prices. 

The combination of our algorithm and the analysts’ team captures all price-sensitive announcements released by a company.  As an exclusive benefit to Stock Doctor, you can call and speak to an expert industry analyst to dispel the fact from the fiction. 

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Follow your Appropriate Rules 

Build your investment framework around Stock Doctor’s algorithm and methodology according to your objectives and risk tolerance, and be disciplined in your portfolio decision-making process. 

Stock Doctor is a no-brainer

Self-directed investors, take the guesswork out of investing and let our powerful algorithm do the hard work for you.