About SADIF Equity Research
SADIF Investment Analytics, founded in 2005, is a European-based independent research firm providing unbiased and conflict-free research on 18000 companies in 24 countries for institutional investors and money managers worldwide. SADIF recommendations are derived from a value-driven quantitative rating model based on fundamental financial analysis complemented by technical inputs. Our ratings provide a comprehensive tool for analysis and development of actionable investment ideas.
SADIF Research Offerings:
Through the major research aggregators, SADIF publishes quarterly Due Diligence Reports on each company covered, with a public embargo period of seven days. The reports include a comprehensive set of ratings plus conventional stock recommendations, price targets and EPS estimates. Rating Update reports are issued for companies subject to a recommendation upgrade or downgrade. SADIF also publishes twice a year the SADIF Report on Global Industry Leaders & Laggards for each industry covered, as well as a Monthly Report of SADIF’s Contrarian Alerts on the stocks where we diverge significantly from the sell-side analyst consensus. Monthly Strategy Picks, selected through our InvestorLabTM Pro platform, are issued regularly for each market. Subscribers have immediate access to all reports released, receive a daily list of downgrades/ upgrades and can access our platform for back copies and daily updates of our research (note: Industry Reports and Strategy Picks are in the process of being redesigned).
SADIF Research Process
The research process is initiated automatically for all companies with financial data for at least three years and traded in organized exchanges. The research is solely derived from a proprietary rating algorithm – StockMarksTM – which uses only public data updated daily. It uses the most comprehensive rating system, combining financial analysis with advanced space-time mathematics in a mix of fundamental and technical analysis. Its methodology is tested and validated regularly for periods longer than six months. Internal back testing uses a methodology adjusted for out-of-bound and survivorship bias. These tests consistently put our accuracy above the market consensus. Regular external testing for USA stocks is also carried out by the BNY ConvergEx’s Jaywalk Independent Research Provider Performance monitoring system.
Our methodology does not allow analysts to introduce “subjective decisions” or to re-weight the rating criteria and it cannot be overridden to accommodate embarrassing or client sensitive information. Indeed, our reports are computer written instead of outsourced to analyst writers in India (a growing industry trend). We believe that a small loss in literary “attractiveness” is largely compensated by more consistent, easy to follow and cost efficient reports. The spread of our recommendations is not limited to give only a small percentage of sell recommendations. Indeed, our negative ratings often make up a significant percentage of the total, and we do not follow a pre-defined statistical distribution. The strength of our analysis derives from our truly unbiased approach and superior analytic methodology.
SADIF research release policy
Our aim is to release a quarterly report for each company, whenever possible timed around the date of a new earnings announcement. Except for technical reasons, we never revise or withdraw a research report. Since all reports are dated they remain “live” even when a company has been delisted or fails to publish the data required by our rating system. When we cease to cover a stock it is because our data supplier has not enough data on the company to run our rating algorithm or when the company has negative equity. In these cases we do not issue a formal downgrade of the company but an overdue rating must be regarded as a risk alert. Except for our subscribers, we do not issue separate daily notices when companies are upgraded or downgraded. Public notices are issued with a 7-day embargo through our Rating Update reports.
The SADIF research coverage
We currently cover approximately 18,000 companies in the major world markets. The breakdown in terms of geography and size (capitalization) is shown in the following table:
About SADIF Investment Analytics
SADIF Investment Analytics is an independent research division of Marques Mendes & Associados Lda (MM&A), running its top performing StockMarksTM rating system since 2005. MM&A is a family-run investment boutique established by Prof. Marques-Mendes in 1998.