Frequently Asked Questions


Below is a comprehensive list of answers to commonly asked questions. If you do not find the answer to your question/issue, please contact us at info@stocksinvalue.com.au or call us on 1300 136 225 during office hours.

About the service

What exactly is StocksInValue Professional?
Is it a type of software?
What securities do we cover?
What information is provided for each ‘covered’ security?
How often is each stock’s information updated?
Can I manage my portfolio through StocksInValue?
How can I find reports on a particular topic or security of interest?
What support is available with my membership?
Do you offer buy and sell recommendations?
Do you keep a record of past valuations?

About the valuations

What is value investing?
How do we calculate the value of a stock?
Isn’t value determined by the current market price?
Should I be looking at the current or future valuations?
Who derives our valuations?
How accurate are our valuations?
How often do our valuations change?
How do our valuations differ from other sources?
Can I generate my own valuations?
Can I trade shares through StocksInValue?
What has your performance been historically?
What protocols are in place to avoid conflicts of interest?

Professional membership compared to standard membership

Who should subscribe to the Professional service?
What are the key differences between the Professional and standard StocksInValue service?
The Professional service looks different to the standard service. Why is this?
I currently subscribe to StocksInValue Professional, is there anything in the standard service that I’m missing out on?

About the site

What should I do if I can’t log in?
How do I change my password and contact details?
What should I do if I’m not receiving your emails?
How can I ask a technical question about how to use the site?
How can I ask the analysts a question?
I clicked on a company and it says it is under review, what does this mean?
How do I export company financials into a spreadsheet?

Free trial, subscriptions and membership

How I can learn more about the platform?
Is there any obligation if I take the trial or walk through?
How do I subscribe?
I am a StocksInValue (standard) member, how do I upgrade to the Professional service?
As an existing member or trialist, on what date does my new subscription commence?
What happens when my subscription expires?
If I am temporarily unable to access my membership, can it be suspended?
What is the cancellation policy and do you offer refunds?
Where can I view your terms and conditions of membership?

Security and privacy of your information, managing email contact

Are my payment details secure?
Is my personal information safe?
How do I determine what emails I do and do not receive?

Who is behind StocksInValue

Who are StocksInValue?
Who are Clime Asset Management?
Where is StocksInValue based?

About the service

What exactly is StocksInValue Professional?

StocksInValue Professional is an online equity identification, valuation and research service. It is our premium service, aimed at sophisticated self-directed investors (especially SMSF owners), accountants and financial advisors. It provides users with deep information and reporting on the Australian Stock Market and powerful ‘filters’ for you to identify stocks suitable to your investment criteria. For > 400 stocks in the ASX that have regular positive earnings (many small cap ‘start-ups’ don’t make a profit!) our analyst team provide current and multiple future year valuations, as well as a measure of their financial health, a forecast dividend and a risk rating (required return) . We are uniquely transparent about the assumptions used to generate those valuations, and offer you the opportunity to make your own valuations or modify ours using your own inputs or those of market consensus. We will often discuss bull and bear cases in our own reporting.

In addition to this core valuation service, StocksInValue provides you with access to the insights of a leading funds management team. This includes economic, market and sector valuations to give you better insight on ‘when’ and ‘where’ to invest in equities, as well as detailed weekly company reports. Other features include access to a vibrant user forum (that the analysts participate in), a portfolio tool (to track your stocks), email alerts (for stocks with dramatic changes in price or value), and detailed company information.

Of course, as a Professional member, we don’t just offer an online service. Our client advisers are available to provide you with general advice on any stock covered in our system

Is it a type of software?
No, StocksInValue is web based platform. It does not require any special equipment or software installation to operate.

As with all internet sites and applications, the display and use of the service can differ between browsers and operating systems. Amongst more common browsers and operating systems, we will continually test and optimise the experience of the service.

StocksInValue commits to support the use of the service on the following recent ‘versions’ of common internet browsers.

Browser Version
Google Chrome 25 or later
Microsoft Internet Explorer 8.0 or later
Mozilla Firefox 24 or later
Safari 5.0 or later

StocksInValue commits to support the use of the service on the following operating system versions

Operating System Version
Microsoft Windows 7 All
Microsoft Windows 8 All
Mac OSX Snow Leopard or later

We recommend that you update your web-browser to the latest version and check that your browser and operating system are supported.

What securities do we cover?
Currently, StocksInValue covers over 1,700 ASX listed stocks with detailed financial information, and mean consensus estimates derived from up to 14 brokers. For >400 stocks that have a consistent track record of profitability, we run a series of proprietary valuations and other measures to provide insight on whether they present an investment opportunity. Within those 400 stocks, we give more focus to stocks that screen strongly based on our proprietary measures of ‘risk’ and ‘financial health’, and if they are identified by our analysts as a “stock we like”.

In 2015, we will extend our coverage to a very large selection of global stocks that may be of interest to Australian investors. This will be an incremental service.

Our expertise is in valuing Australian equities. We do not value listed investment companies (LICs), exchange traded funds (EFTs), foreign domiciled companies, or other non-equity or hybrid listed securities.

What information is provided for each ‘covered’ security?
As a professional member, you receive an expanded range of financial information and proprietary insights on companies.

For over 1700 stocks in the ASX, you will receive access to an institutional grade data-feed that provides (for companies with that history) decades of historical financials, as well as forecast consensus performance data. We believe this to be the richest source of data available to any retail subscription service!

For covered stocks, we provide a series of proprietary measures to help you evaluate their investment suitability:

  • A ‘current’ valuation, and up to three years of future valuations which rely on our analyst team’s forecasts,
  • A measure of the financial health of a company – the Clime Quality Rating — that helps identify the likelihood of it raising additional debt or equity, or facing insolvency
  • A risk rating (called a required return), that considers the percent return you should expect from a stock, to justify investing in it
  • Regular detailed reporting, including updates from analyst team meetings with company management, and ‘first alerts’ relating to valuation sensitive announcements

In addition to these measures, we also focus our full company reports and analyst discussion on stocks that are flagged as being in our analysts’ watchlist (called the ‘Universe’).

How often is each stock’s information updated?
The prices of the listed companies are updated four times per day.
We update valuations for a number of reasons and these include:

  • Half yearly and annual results.
  • Whenever there is an ASX announcement that has a material impact on the business (capital raising, change in level of gearing etc.)
  • Updated company guidance.
  • Changing economic and regulatory outlook.

Can I manage my portfolio through StocksInValue?
Yes, StocksInValue offers a comprehensive ‘Portfolio Manager’ tool which allows members to input stocks they hold and track their progress in the market. The tool is broadly divided into three views:

  • Overview – containing market data including purchase price, price movements, current price and percentage price change.
  • SIV View – containing the current valuation, next-year valuation, future dividend and financial health scores, risk measures and profitability figures for each stock.
  • Key Ratios – containing key financial ratios for each stock, including dividend yield, earnings per share, net debt to equity and price-earnings.
  • Projected gain – summarises the potential total return for an investment in that stock over 1 year, if it reaches our future valuation and pays our forecast dividend

Users can track multiple portfolios – for example growth and income portfolios.

For stocks listed in your portfolios, you can elect to have ‘stock alerts’ emailed to you, where the price of your stock moves by +/- 5%, or we revise our valuation.

How can I find reports on a particular topic or security of interest?
Within the Content Hub, reports, articles and lists are available under four sources. The first source “analyst team” provides you with the most detailed views and conclusions of our analyst team and our fund manager partners. This is only available to Professional members.

Source Description Publishing day and frequency
Analyst Team Research notes – Short insights from our team on issues that may affect a company’s valuation Ad-hoc
Management meetings – A summary of meetings with company management or investor presentations attended by our analysts. Note: not all management meetings are summarised for users, depending on the conditions imposed by management in meeting with our funds partners Ad-hoc
First alerts – Quick reactions to valuation sensitive company announcements Ad-hoc
Advanced Education – White papers written by our team on value investing topics Ad-hoc
Clime Quality Quarterly – our financial health ratings are a proprietary measure developed by the fund manager Clime. They provide a quarterly ‘must read’ update on the performance of this measure (to-date, a very strong indicator of success!) Quarterly
Reports Full length Company, Sector and Earnings seasons reports Weekly (Friday)
Stock Ideas Stocks we like – a list of all stocks that our analyst team believe have strong investment characteristics. Weekly (Thursday)
Value traps – stocks which have a valuation that is above their current price, but there is significant risk or uncertainty surrounding their business model, and should be excluded from investment consideration. Fortnightly (Tuesday)
Stocks to avoid – our analysts identify a list of high market cap stocks or popular stocks (with brokers!), that do not stack up from a value investor’s perspective. Monthly (Thursday)
Stock plays – ad-hoc stock list ideas generated by our analyst team. Ad-hoc
The View John Abernethy’s weekly macro-economic insights and views on stocks, the market and the economic outlooks of Australia and the rest of the world. Weekly (Wednesday)

What support is available with my membership?
When you invest with StocksInValue we commit to on-going support throughout your time with us, through:

  • Access to a client advisor over the phone or via email who can communicate the house view on individual stocks or sectors.
  • Access to our customer care team who can provide technical support on the product
  • Weekly ‘webinars’ – during live sessions, you can post questions to the hosting client advisor and they will either respond during or immediately after, the session;
  • Regularly updated videos and users guides that explain all aspects of the tool – found in the Support section of the site;
  • The support of your StocksInValue peers through access and use of forum. Given StocksInValue focuses on providing robust, detailed advice to serious investors, this forum can be a useful additional source of information for users.

Do you offer buy and sell recommendations?
No. While the client advisers at StocksInValue have a close understanding of the ‘house view’ on a broad range of stocks, they are not brokers or financial planners and WILL NOT provide personal advice.

We do not take into account the investment objectives, financial situation and advisory needs of any particular person. Any information and commentary provided by our advisers is general advice only.

Do you keep a record of past valuations?
Yes, a record of historical valuations can be found on the price value chart as well as in a table on the historical valuations tab.

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About the valuations

What is value investing?
The key principle of value investing is to purchase investments at prices that are lower than their intrinsic value. As such, we must distinguish between value and price. Simply put, price is what we pay for a  stock (ie, what the market is ‘pricing’ the stock at), whereas value reflects what that stock is actually worth. While the price is publically available, value is not and must be estimated. Valuing companies is our core competency. Value investing is hinged upon the notion that good quality, profitable stocks will yield a good return in the mid-to-long-term when bought at a discount to value. The reason this discount exists at all is because the market is not rational and market sentiment can skew perceptions of the ‘fair price’.

How do we calculate the value of a stock?
StocksInValue uses a modified NROE (normalised return on equity) model to calculate intrinsic value. The way we measure NROE is very unique – through what Warren Buffett refers to as ‘Owners’ Earnings’. This is achieved by looking at the cash flows from an owner’s perspective and how much equity is required to produce those cashflows for owners (shareholders’ equity). For example, the calculation of NROE takes into account the reported after tax profits the business earns throughout the year; the amount paid to shareholders as dividends (and any applicable franking credits on those dividends); those retained from shareholders and allowed to compound back into the business; and any new capital raised or bought back as well changes in accounting reserves (i.e. foreign exchange gains/losses, revaluations of assets) which are unrealised profits or losses that flow through profit and loss account. All of these amounts go into the calculation of NE (normalised earnings) and that is then divided by average shareholders’ equity over the period to give you NROE. Therefore our measure of NROE looks at all of the cashflows from an owner’s perspective.

Normalised figures (determined by our analysts) are used in all our calculations as they are able to eliminate the skewing from abnormals that occurs within company accounting records. Moreover, it is able to better account for the effect of franking and the Australian imputation tax system which regular ROE does not. In this way, our system is uniquely adept at valuing Australian companies listed on the ASX.

Of course, as with any formula, the valuations are only as good as the inputs used. StocksInValue has a partnership with a leading Australian fund manager, and its own team of analysts, who regular test and revisit their valuation assumptions – rather than just taking a consensus ‘data feed’.

For this reason, you should watch out for services:

  • That present value investing formulas that don’t account for this uniquely Australian aspect of franking credits
  • That are a ‘black box’ valuation and don’t have any experienced analysts behind their valuations

We have detailed information on our valuation approach in the Support section of our site.

Isn’t value determined by the current market price?
The market does not value stocks, it simply reflects transient prices determined by a minority of market participants whose reasons for buying and selling are likely to be influenced by a broad range of objectives and motivations. The opportunity lies in identifying divergence between the current market price of that company and the intrinsic value – to which, over time, price should gravitate.

Should I be looking at the current or future valuations?
Both the current and future valuations are relevant when considering investment decisions. The current valuation is calculated from existing interim and final reports while the future valuations are based on next-year forecasts. As a result, future values are based on forecasts that are the best estimates of our analyst team. This provides an important insight into how we think a company will perform in the future, but clearly has a greater degree of risk that our valuation will prove inaccurate.

As a Professional member, you receive up to three-years of future valuations for a company. As such, you should be particularly aware of the risks of longer term forecasting accuracy (you only have to look at broker consensus forecasts, to see how quickly expert views can change!), and we advise you to consider our forecasts (and the inputs behind them), as one input in your investment decision.

Who derives our valuations?
The valuations presented on StocksInValue are derived by the investment team of Clime Asset Management – one of Australia’s best performing value fund managers over the last five years, with over $500m of assets under management.

The team is led by Chief Investment Officer John Abernathy, and comprises six in-house analysts. In addition, StocksInValue has its own dedicated Equities Research team, led by David Walker.

How accurate are our valuations?
The Clime Asset Management investment team use these same valuations for their own investment activities. They invariably check and revise valuations daily, but as with any calculations which rely on forecasts and estimates, these valuations will always be an approximation.

How often do our valuations change?
As the valuations are based upon a variety of inputs, they will change if and when new information arises. Some of the inputs are made by our investment team – for example the forecast earnings of a company. If an analyst changes this input the value will change. Other inputs are based on reported company information – for example its current earnings. If this information changes, for example a company releases a new set of earnings results for the year, the valuation will change.

This means that typically valuations will change at least twice a year though in some cases, more frequently.

How do our valuations differ from other sources?
Valuations can be made using many different methodologies, which accordingly produce different results. Even when the same valuation methodology is adopted, where assumptions are required, the valuations will depend upon the sense and accuracy of input assumptions made by the investment team. Fortunately, StocksInValue is powered by one of the most successful investment teams in the country.

Can I generate my own valuations?
As a Professional member, yes, you can make your own valuations on our company valuation page by changing the value of a variety of inputs. You can also choose to save these valuations for future review.

Can I trade shares through StocksInValue?
No, you cannot trade shares within the platform. StocksInValue is an independent valuation service with a focus on identifying long-term investment opportunities. As such, we don’t want any real or perceived conflict of interest between our insights on stocks, and any profit that may be obtained from you trading, based on that research.

What has your performance been historically?
Unlike some investing ‘newsletters’ or ‘tipping’ services, we do not promote selected stock returns from recommendations. We prefer two more comprehensive measures for reflecting our performance:

  1. As the tool is used by the investment team of Clime Asset Management, and the valuations they determine for their portfolio stocks are reflected in our tool, there long term investment performance is a good proxy for the overall quality of valuations in the system. Click here to go to Clime Asset Management’s website, see the latest performance
  2. Within the tool we have a proprietary measure or rating of “financial health” for all covered stocks. Over the past 5 years (as of January 19 2014) the Top 50 stocks in this rating outperformed the All Ordinaries by 12% per annum! In the same period, the Bottom 50 stocks in this rating underperformed the All Ordinaries by -15% per annum

What protocols are in place to avoid conflicts of interest?
We strive towards total transparency and as such, have in place several protocols to avoid conflicts of interest. Wherever a stock is discussed in an article or report, if that stock is held within Clime’s managed portfolios, we will notify you. Analysts reporting on stocks, or contributors to articles, must also disclose any personal holdings. In addition to these disclosures, we have a stringent staff trading policy in place, to ensure compliance with ASIC regulations.

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Professional membership compared to standard membership

Who should subscribe to the Professional service?
The Professional service is aimed at sophisticated self-directed investors (especially SMSF owners), accountants and financial advisors. We target these types of investors, because we believe they will benefit most from a service which provides very detailed information, sophisticated commentary and research, the facility for users to adjust and vary any of our valuation assumptions, based on an alternative view of a stock, and who have the time to discuss specific stock inputs with our dedicated client advice team.

What are the key differences between the Professional and standard StocksInValue service?
The following table summarises the key difference in features between the Professional and standard service:

Standard Professional
Valuations
Current valuations X X
Future valuations 1 future year only X
Consensus valuations Mean only X
Other proprietary stock measures
Financial Health rating X X
 Risk rating “High, Medium or Low” only X
 Analyst universe X
Reporting and commentary
Full company reports  One page only X
Stock ‘ideas’  X X
Sector reports and earnings reports X
Daily analyst notes/reports X
Quality quarterly X
Forum X
Other tools
Portfolio manager X X
Charting X X
Market valuation X X
Sector valuations X X
Economic indicators and forecasts X X
Detailed company financials X
Advanced filters X
List of companies under review or recently reviewed X

The Professional service ‘looks’ different to the standard service. Why is this?
Within StocksInValue we categorise all stocks to provide some guidance – based on historical outcomes – on what investors should expect when investing in types of equities, which face different levels of cyclicality and are influenced by different local and global economic factors. For detail on our classifications and what they mean, please refer to the Support section of the user site.
I currently subscribe to StocksInValue Professional, is there anything in the standard service that I’m missing out on?
No. All information in the standard service can be found in the Professional service, although may be presented in different ways. Of course, there is substantial information in the Professional service that is not available to standard users.

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Using the site

What should I do if I can’t log in?
Difficulty logging on may be resolved in several ways:

  • Confirmations of your username and password are sent you on each email;
  • If you have set up a password hint you can click on the hint to help you with your password;
  • Click on lost password and a computer generated password will be sent to your nominated email address.

If, after trying the suggestions above you still cannot login, please call customer service on 1300 136 225 or email members@stocksinvalue.com.au.

How do I change my password and contact details?
You can change your password by clicking on ‘My Account’ located under the ‘Support’ tab. Within this section you are able to change your password, email address and any of your contact details. Please note if you change your email address, the new email address you enter will become your username.

What should I do if I’m not receiving your emails?
There are a number of reasons why you may have stopped receiving our weekly emails:

  • Check to see if your inbox is full – this can result in an email bouncing back and the system will automatically stop sending the regular newsletters.
  • Check your email security settings – it may be marking the emails as spam.
  • Check your junk inbox.
  • Add StocksInValue to your safe list.
  • Also if it is a work email address you may have to check with your system administrator.

If none of the above provide a solution, please call customer service on 1300 136 225 or email members@stocksinvalue.com.au.

How can I ask a technical question about how to use the site?
Questions can be submitted to our customer care team at members@stocksinvalue.com.au, can be raised in the StocksInValue Forum, or you can call 1300 136 225 during working hours

How can I ask the analysts a question?
Questions can be submitted to the analytical team via members@stocksinvalue.com.au or alternatively may be raised in the StocksInValue Forum.

I clicked on a company and it says it is under review, what does this mean?
This means the company is under review by our analysts. To view why the company is under review click on Updates and see Businesses Under Review.

How do I export company financials into a spreadsheet?
On any company valuation page, click on ‘dashboard’ and then ‘fundamentals’. You will then see a box: “Download to CSV”, which will allow you to download the financials for that company in CSV format.

I clicked on a company and it says it is under review, what does this mean?
TOn the support page, under the ‘Upcoming Events’ tab, you can view and register for events available to StocksInValue members.


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Free trial, subscriptions and membership

How I can learn more about the platform?
We offer a no-obligation 10-day free trial, which gives you full access to StocksInValue Professional. During the free trial process you can attend one of our regularly scheduled webinars, and/or, choose to take a guided, one-on-one walkthrough of the site over the phone, with one of our client advisors.

Within the tool we offer ongoing support. The Support button on the main navigation bar provides detailed written user guides, as well as a variety of videos that step you through key functions of the tool.

Is there any obligation if I take the trial or walk through?
No. You are under no obligation if you accept a free trial, or if you take a guided walk through with one of our client advisors. Please make the most of your free trial, as it is only available once per year.

How do I subscribe?
You may subscribe over the phone by calling 1300 136 225.

I am a StocksInValue (standard) member, how do I upgrade to the Professional service?
You can upgrade at any time to the Professional Service. To do so, please call us on 1300 136 225.

Our client advisers can arrange an immediate upgrade to a 1, 2 or 3 year membership to the Professional service, with your remaining standard membership rebated against this cost.

As an existing member or trialist, on what date does my new subscription commence?
To maximise your membership period, your new subscription will only begin at the expiry of your free trial or existing subscription.

What happens when my subscription expires?
After the final day of your subscription, you will no longer be able to access StocksInValue. Our client advisors will endeavor to contact you prior to your expiry date to arrange a renewal.

If I am temporarily unable to access my membership, can it be suspended?
YYou can suspend your membership once per year. The minimum length of time is one month and the maximum length of time is three months. If you wish to suspend your membership you must either call customer service on 1300 136 225 or email members@stocksinvalue.com.au.

What is the cancellation policy and do you offer refunds?
We offer a 30 day money back guarantee for new customers.

All of our memberships are based on annual membership commitments. These memberships can either be paid upfront, or for 1 year contracts, you can opt to be charged on a monthly basis.

After the first 30 days of membership, we do not offer refunds, except where a user’s membership has been automatically renewed and they do not wish to continue membership.

Where can I view your terms and conditions of membership?
You can review our full terms and conditions here.

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Security and privacy of your information, managing email contact

Are my payment details secure?
Yes, we take our obligations very seriously, and our payment procedures are PCIDSS compliant. PCIDSS is the Payment Card Industry Data Security Standard. Whether by phone or internet purchase, we do not retain credit card details of customers – they are securely stored in a format that is not accessible or useable by any staff member or third party at StocksInValue.

Is my personal information safe?
Yes. We adhere to a strict privacy policy, which can be viewed here.

How do I determine what emails I do and do not receive?
You can adjust settings for what emails you receive from StocksInValue by clicking on “My Account” in the user site.

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Who is behind StocksInValue?

Who are StocksInValue?
Stocks In Value Pty Ltd is wholly owned division of Clime Asset Management. We are a rapidly growing subscription business, with over 2000 members – all serious equities investors. We have a dedicated team of client advisors, equities insights analysts, and customer support staff. These staff work right alongside one of the best funds management teams in the country, who make large investment decisions for a portfolio of ~$600m. This ensures that we are always up-to-date on market movements, and always reminded of the importance of clear, accurate and prudent valuations.

Who are Clime Asset Management?
Clime Asset Management is an independent Australian equity funds manager. Run by an experienced team of investment professionals, they have a proven history of providing exceptional investment returns for their clients and proven to be one of Australia’s top-performing value funds over the last five years. Their investment philosophy is defined by three core values – integrity, transparency and conviction.

Where is StocksInValue based?
StocksInValue is based at Level 7, 1 Market St, Sydney. We are Australian owned and managed and our data is stored on Australian servers. StocksInValue shares its floor with Clime Asset Management’s fund managers and analysts allowing for frequent contact, discussion and the sharing of new insights.

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