Before making the decision to invest in a particular company, Scintilla conducts exhaustive investigations of both a quantitative and qualitative nature. This includes financial analysis, industry analysis and people analysis which is a review of directors and senior management.
As a starting point, we use a number of fundamental and technical filters to sift through the approximately 2500 companies trading on the ASX. Those that are short listed are then subjected to rigorous financial analysis to ensure they meet our financial health hurdles. Directors and their track records are then examined and meetings are arranged to allow us to meet executives personally and gain further insights into the company.
It is only after meeting with company directors and conducting intensive analysis do we begin accumulating shares in a particular company. We then closely monitor the company to ensure it is adhering to its business plan and stated business objectives.