Disclosure:
I don't use screens, I read sedar everyday bro (everyday bro). I read for earnings report, that way within three months I am aware of every single company that exists in the Canadian exchanges, that's a lot of work. Some people may not have time.
Start:
A lot of great companies before they get bid up spend lots of money on research and development and sales and marketing. These are not true costs and are more of an asset**, they artificially reduce operating earnings, making the valuation look bad. But it can't be further from the truth. That's why screens are useless and you must look in the filings directly. Many companies make so much money relative to market cap, but spend everything on R&D and S&M that there's nothing leftover for net income, but the revenue next year is even higher, surges. These are the companies I look for, these are the companies whose stonk prices will surge. What you want to buy is these companies before the market realizes how much money they make and before they show up on screens, the operating earnings are artificially reduced by R&D and S&M, that's why you must read the actual filings (earnings report), not just generic websites financial statements.
I will show you an example, Vigil Health Solutions ($VGL.V), $6.5 MM market cap, $700K annual net income, $3MM net income without R&D and S&M. This is a growth company, growing heavily. I will make a video about it. Disclosure: I am long. I am ballz deep. I am still buying this is gonna take a huge percentage of my portfolio. I am going to be buying a lot, please don't buy before me, I will say it in the video also.
Also another example: AirIQ ($IQ.V), I am not long, I don't like the CEO he has no skin in the game and looks like doesn't give a shit. I might go long, if it's cheap enough.
**The reason this is an asset is because SG&A is more of a cost, but R&D and S&M are assets because these are things that increase future earnings.
