Read or listen to company conference calls

Hard at work

I have spent today reading conference calls for three of the stocks that I follow.  Although reading conference calls is not the most entertaining thing to do it is absolutely esseintial for stock traders and investors.  There is also an option to listen to company conference calls when they report their quarterly earnings but I like to read the transcripts.  You should read or listen to every quarterly conference call for every stock that you are currently holding or plan to trade.

The information in the conference call will include some general talk by the company officers followed by a question and answer session where analysts who follow the stock ask questions to the finacial officers. 

The conference calls are full of essential information about the companies well being, plans for the future and they can also provide valuable information about the specific sector a company is in and even the shape of the U.S. or global economy.  Some of the lingo and terms used in conference calls can be hard to understand.  Don't hesitate to look words and terms that you do not understand up so that you can gain a better understanding of what the company leadership and analysts are referring to.

The best place to find transcripts of conference calls on the internet in my opinion is, http://seekingalpha.com/.  Once on Seeking Alpha enter in a stock symbol and go to the quote page.  On the left hand side of the page you will see, 'Business Intelligence' and 'Transcripts' beneath that.  Click on transcripts for a transcript of the company conference call that you wish to read. 

Although reading conference calls is a bit daunting at first, it is essential for being a successful investor, will lead you to better returns, and you will find that you get better at analyzing the calls as you read more of them.