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Fat Prophets Equity Research Australia

Equity Research

Table of Contents

Contrarian Equity Research Trusted Since 2000

Based in Australia, Fat Prophets is a trusted authority in contrarian equity research and stock market analysis, helping self-directed investors identify opportunities across Australian shares, global equities and mining stocks for over 25 years. Members receive expert investment research, macroeconomic analysis, market insights, model portfolios and actionable stock recommendations designed to remove the guesswork from investing. Our three model portfolios and 150+ stock reports and recommendations and have consistently outperformed industry benchmarks over the long term.

Why Investors Trust Fat Prophets

  • Established in 2000 with more than 25 years of stock market research and wealth management experience, proven by a transparent and published track record.
  • Trusted by more than 25,000 members worldwide.
  • We don’t just recommend stocks — we are the only boutique firm in Australia that uses the same research approach to manage client wealth, including through our listed fund Fat Prophets Global Contrarian Fund (ASX:FPC) and Separately Managed Accounts (SMAs) with assets under management exceeding A$350 millions.
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What Is Equity Research?

Equity research is the process of analysing publicly listed companies to determine their financial strength, valuation, growth prospects and investment potential. Professional analysts evaluate financial statements, earnings potential, management quality, industry conditions and macroeconomic factors to identify investment opportunities and provide stock picks and recommendations.

Why Equity Research Matters?

Equity research matters because it provides self-directed investors with professional, data-driven analysis of companies, industries and market trends, enabling them to identify opportunities, evaluate risks and make informed investment decisions based on evidence rather than emotion or market noise.

Key Equity Research Benefits Include:

  • Identify undervalued companies by analysing financial performance, competitive advantages and future growth potential.
  • Assess investment risks by examining business fundamentals, industry conditions and market challenges.
  • Estimate intrinsic value by evaluating earnings, cash flows, balance sheets and valuation metrics.
  • Build diversified portfolios by identifying opportunities across sectors, markets and asset classes.
  • Discover long-term opportunities by focusing on fundamental value rather than short-term price movements.
  • Monitor changing market conditions through ongoing analysis of companies, industries and economic trends.
  • Improve investment discipline by replacing emotional decisions with structured research and investment frameworks.

How Equity Research Reduces Investment Risk:

Quality equity research reduces investment risk by helping investors avoid overvalued companies, identify deteriorating fundamentals, understand industry risks, evaluate management quality and assess balance sheet strength before committing capital.

Table: Benefits of Professional Equity Research

BenefitInvestor Outcome
Company valuationBetter stock selection
Risk assessmentReduced investment mistakes
Fundamental analysisImproved conviction
Market insightsBetter timing awareness
Portfolio constructionImproved diversification
Ongoing monitoringFaster reaction to changes
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How Fat Prophets Equity Research Is Conducted

With 25 years of experience refining its equity research process and framework Fat Prophets

Five-Stage Equity Research Process:

Professional equity research requires more than identifying interesting companies — it requires a rigorous process to evaluate business quality, valuation, risk and investment potential. At Fat Prophets, our five-stage equity research process is guided by a contrarian investment philosophy, using disciplined screening to identify companies that may be misunderstood, overlooked or undervalued by the broader market. Our approach combines detailed fundamental analysis, valuation assessment, investment recommendations and continuous monitoring to uncover long-term opportunities. This disciplined research framework enables our analysts to deliver independent investment research, high-conviction stock recommendations and timely market insights for investors seeking superior long-term outcomes.

Table: Fat Prophets Professional Equity Research Process
Stages Objective Investor Benefit
1. Screening Identify opportunities Better idea generation
2. Fundamental Analysis Assess quality Improved confidence
3. Valuation Determine fair value Better entry points
4. Recommendation Investment decision Actionable insights
5. Monitoring Track developments Ongoing updates

Equity Research Framework:

Fat Prophets applies a disciplined equity research framework that combines quantitative analysis with qualitative assessment to uncover opportunities that may be overlooked or undervalued by the broader market. Our analysts examine company fundamentals, earnings quality, valuation, management performance, competitive positioning and macroeconomic trends to develop a comprehensive investment view and identify attractive long-term opportunities.

Financial Statement Analysis:

  • Income statements
  • Balance sheets
  • Cash flow statements
  • Capital allocation

Earnings Assessment:

  • Revenue growth
  • Profit margins
  • Earnings quality
  • Forecast reliability

Valuation Modelling:

  • Discounted Cash Flow (DCF)
  • Earnings multiples
  • EV/EBITDA
  • Sum-of-the-parts valuation
  • Asset-based valuation

Management Review:

  • Executive track record
  • Governance standards
  • Strategic execution
  • Capital discipline

Industry Analysis:

  • Competitive positioning
  • Market share
  • Industry trends
  • Regulatory developments

Macroeconomic Assessment:

  • Interest rates
  • Inflation
  • Currency movements
  • Economic growth
  • Commodity cycles

Table: DIY Investing vs Fat Prophets Equity Research
Factor DIY Investing Fat Prophets Research
Research depth Limited Professional
Company coverage Narrow Extensive
Valuation models Often unavailable Comprehensive
Analyst expertise Self-directed Experienced analysts
Portfolio guidance None Structured
Monitoring Time intensive Ongoing
Investment insights Variable Consistent

Fat Prophets Contrarian Equity Research & Investment Philosophy

Contrarian Investing Philosophy

Markets can misprice assets due to investor emotion, short-term thinking and behavioural biases. Fat Prophets seeks opportunities where market sentiment diverges from long-term fundamental value.

Core Principles

Independent Thinking

Research-driven investment decisions.

Valuation Discipline

Focus on intrinsic value.

Long-Term Investing

Avoid short-term market noise.

Market Inefficiencies

Identify opportunities overlooked by consensus.

Fat Prophets Equity Research Model Portfolios

Fat Prophets has 3 main model portfolios:

  1. Australasian Equities
  2. Global Equities
  3. Global Mining

Australasian Equities Portfolio

Purpose

Research-led exposure to Australian and Australasian large-cap ASX-listed companies.

Coverage:

  • 60+ stock reports
  • ASX-listed shares
  • Blue-chip companies
  • Emerging opportunities

Ideal Investor

Investors seeking:

  • Australian share exposure
  • Long-term capital growth
  • Fundamental stock selection
  • Medium risk

Key Benefits

  • Detailed company research
  • Buy, hold and sell guidance
  • Low, Medium or High Risk guidance
  • Core or Speculative share role guidance
  • Portfolio alerts
  • Sector diversification

Investment Approach

Contrarian investment philosophy focusing on quality large companies trading below intrinsic value.

Global Equities Portfolio

Purpose

Research-driven access to international investment opportunities beyond Australia.

Coverage:

  • 65+ stock reports
  • US equities
  • Japanese equities
  • European equities
  • Chinese equities
  • Global growth themes

Global Mining Portfolio

Purpose

Dedicated research covering mining and resources companies both in Australia and abroad.

Coverage:

  • 40+ stock reports
  • Precious metals
  • Base metals
  • Bulk commodities
  • Energy transition themes

Investment Approach

Focus on quality resource companies positioned to benefit from commodity cycles.

Table: Fat Prophets Portfolio Comparison
Portfolio Coverage Investor Type Reports Risk Profile Diversification
Australasian Equities ASX & Australasia Core investors 60+ Moderate Regional
Global Equities International Growth investors 65+ Moderate Global
Global Mining Resources sector Specialist investors 40+ Moderate-high Sector-specific
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Stock Disclosure

ASX- Listed Australian Stocks:
29M.AU, ANN.AU, ANZ.AU, BPT.AU, BWP.AU, CKF.AU, CBA.AU, EVN.AU, FID.AU, FMG.AU, GOR.AU, GMG.AU, GNC.AU, HUB.AU, ILU.AU, IGO.AU, JHX.AU, MGR.AU, NAB.AU, PAR.AU, QBE.AU, RRL.AU, S32.AU, SBM.AU, TLS.AU, TUA.AU, WES.AU, WBC.AU, WHC.AU, XRO.AUX, AGL.AX, AMC.AX, BHP.AX, CSL.AX, DMP.AX, GDG.AX, WIRE.AX, ATOM.AX, MQG.AX, NIC.AX, NST.AX, ORI.AX, PDN.AX, RMS.AX, RPL.AX, SFR.AX, STO.AX, SUN.AX, VAU.AX, WTC.AX, WDS.AX, GMD.AX, CSC.AX, RIO.AX, GTK.AX, SPK.AX & NEM.AX

International Stocks:
BIDU.CN, 9888.CN, 1211.CN, 268.CN, 3690.HK, 1818.HK, 9618.CN, ENX.FR, BT.A.GB, GENI.GB, FRES.GB, 9988.HK, 2282.HK, 700.HK, 1128.HK, 1876.HK, 8750, 7011.T, 8306.JP, 8031.T, 8411.T, 3994.T, 7974.T, 8604.JP, 8308, 6758.JP, 8316.JP, 8331.T, JP.8308, HEM.SE, GRAB.SG, BABA.K, GOOG.US, AAPL.US, CDE.US, CPNG.K, FLTRF.L, SIL, URA, BZ.O, MSFT.US, SBSW.K, 2840.HK, TME, GDX, GDXJ.US, YUMC.K, Z.O, IMPUY & ANGPY