Frequently Asked Questions:
1. How do I use Blue Gem Research (Pty) Ltd research reports? What should I buy? What should I sell?
At Blue Gem Research (Pty) Ltd we aim our research reports to be informative. While the reports are aimed to factual, by the very nature of forecasts and valuations many elements have to be subjective and opinionated. We suggest that you read the research reports in light of this, understand the benefits and shortcomings thereof and then use it as a foundation for your own research. Blue Gem Research (Pty) Ltd does not give any trade or investment advice nor recommendations, like ‘buy’ or ‘sell’, relating to this. We believe that you should know your own risk profile and portfolio better than we ever could, thus we think you are in a better position to give a advice to yourself than we are.
2. How can I ensure I get Blue Gem Research (Pty) Ltd’s very latest research report when and as they come out?
Either subscribe to this website’s RSS feed, its Feedburner account or enter your email address into the menu (top right of this page) to get email updates when we post anything new here. We recommend the latter approach to subscribing to email updates.
3. Can I forward the research I find on this website to friends and family?
Yes, but you are not allowed to change (add, delete and/or modify) anything and you are not allowed to distribute the research for your own gain (i.e. charge clients for it). See our disclaimer here for more details.
4. What stock brokerage firm does Blue Gem Research (Pty) Ltd recommend I use to trade stocks on the JSE?
Blue Gem Research (Pty) Ltd does not endorse any stockbroker over another one. We have decided to remain neutral with regards to questions of that nature. We are a research house, not a volumes based brokerage.
5. I want to contact Blue Gem Research (Pty) Ltd and/or its analyst(s) to discuss a (one or more) research report on this website, how can I do this? Can I book a meeting?
No, as a general rule, the general public cannot meet with Blue Gem Research (Pty) Ltd and/or any of its analysts. We simply cannot deal with thousands upon thousands of people. We really hope you understand this. Perhaps try tweeting at either us or Keith McLachlan, perhaps write on our Facebook page, but if we are too busy unfortunately we will not even be able to reply to tweets or comments… Apologies.
Proper, quality research takes time, which we cannot afford to spend answering endless questions.
If, on the other hand, you are an institutional investor, fund manager, portfolio manager, buy-side analyst or stockbroker and wish to meet to privately discuss the companies that we cover, drop us a mail here.
6. If Blue Gem Research (Pty) Ltd provides this level of research to me for free and it does not make any money on the volume traded thereon, how does Blue Gem Research (Pty) Ltd make money?
Blue Gem Research (Pty) Ltd has been set up as a prepaid research business. At Blue Gem Research (Pty) Ltd we believe that quality research that is freely available to everyone benefits the entire market. Especially for the smaller cap companies, often the greatest benefit of professional coverage is felt by them! Thus we charge the companies that we cover directly for being included in our coverage and, because these exciting companies pay for our research, you do not need to.
Is there a company that you want us to research? Rather than telling us about the company that you want us to publish research on, go speak directly to the CEO/CFO at the company and tell them to contact us concerning paying us for our coverage of them. If their listed company is really that good, they should have no worries about paying for professional coverage, surely? Beware the company that does not even want commissioned coverage…
So, our research is free for your use become someone else has already paid for it. Hence, we like to think of this as “prepaid research”.
7. How can I help Blue Gem Research (Pty) Ltd continue to provide me with such awesome research?
Firstly, tell all your friends about it, tweet about it, Facebook about it, Google+ about it… Get the word out there!
Secondly, push the directors of companies that you want Blue Gem Research to cover to contact us for professional coverage. We repeat (and this is probably the most valuable effort you can make to support us): If there is a company that you want us to research, we strongly suggest that you do not tell us about it, but rather tell the CEO/CFO at the company to contact us concerning paying us for our coverage of their company. If their listed company is really that good, they should have no worries about paying for professional coverage, surely?
Our research is free for your use become someone else has already paid for it. Hence, we like to think of this as “prepaid research”.
8. Where does Blue Gem Research (Pty) Ltd get its information from for its research?
From all the normal analyst avenues: management, site visits (where applicable and able), annual financial statements, SENS, and so on… Our data provide is I-Net Bridge, amongst some other sources. If in doubt, refer to the “source” posted within each report under each table, figure, graph or other such item.
9. Is Blue Gem Research (Pty) Ltd registered as a FSP with the FSB?
No, because Blue Gem Research (Pty) does not give specific financial advise to any clients, it does not need to register. The general public is specifically excluded from the definition of “client”, or else every financial journalist and TV presenter out there would need to register with the FSB.
But, also for this reason, Blue Gem Research (Pty) Ltd cannot give you specific financial advice. Please respect that we aim to operate within the limits of the law and, thus, we are not being rude when we do not answer your queries where we feel that to do so would constitute financial advice. The law is the law and we try our absolute best to comply with it in letter and in spirit.
See our disclaimer for more information.
10. Is commissioned research legal?
Well, firstly, we prefer to view it as “prepaid research”.
That said, commission research is absolutely, perfectly legal, within legal limits. Thus, we further attempt to fully disclose relevant details to enable you to form your own opinion as to our independence and the quality of the research. See our statement on ethics for more information.
11. Why are most of Blue Gem Research’s reports quite positive on the companies they relate to?
Firstly, the contract for coverage does allow for the specific company being reported on preventing (only) the Initiation of Coverage report on their company from being released by us once it is completed. This protects the company from being embarrassed with a negative report, but also understand that the company can only accept or reject the report in whole. No changes or additions or deletions can be made once we have decided that the report is final. The company either is happy with it and we release it here, or it is not and we don’t.
Now when a company rejects an Initiation of Coverage it wastes our time, it wastes their time and it wastes their money (the company pays for full coverage, whether or not the report is released!).
Thus, secondly, we are very selective about which companies we decide to cover. We prefer to cover those companies that we can see are likely to offer promising reports, exciting coverage, but yet are too small to have been covered by anyone else.
In this way, we are not wasting our time nor are we wasting the company’s time or its money and, hopefully, you get exciting, valuable research out of the process about promising companies offering excellent investment opportunities.
Any other questions or queries? Email us here.