Investtech.com
Finance pages

• Short description
• Copyright and use of the pages
• Fundamental and technical analysis
• Background and strategy
• Addresses

Short description

Copyright and the use of our stock pages

Information, data and material on Investtech.com's finance pages may be copied and passed on written or orally, but not electronically. It is prohibited to make use of icons, charts, information from the text or charts, or abstracts from such, in own or other's publications without a written agreement with Investtech.com. The pages may be referred if full source is given simultaneously. Links to the pages from Internet documents are welcome, but inclusion of Investtech.com's charts or data in one's own documents/pages is prohibited.

The data used in our finance pages are collected from various sources, all of which we consider to be reliable. Investtech.com do not, however, guarantee the entirity or the accuracy of such information, and will under no circumstances be responsible to the users of the information. We do emphasise, however, that investment in stocks and securities have a certain risk factor. Any investments made according to the advice and signals given are entirely the responsibility of the investor's.

Fundamental and technical analysis

There two main factors influencing the stock price development for a listed company. Firstly, the company's payback and future views, and secondly, the market's assessment, psychology and the number of buyers and sellers.

The first factor is established by analysing the company's accounts and budgets, the market situation, the pricing of competing companies, etc. This is called fundamental analysis.
The other factor is of a more complex nature, and is therefore difficult to measure. Often, however, one can get an indication by examining the patterns in stock prices and volume, and different technical ratios calculated from the stock prices. This is called technical analysis.

In order to be successful in the financial market, one has to buy and sell the right companies at the right time. In Investtech.com's opinion, this is best achieved using one of the following methods:

• Method 1 - First analyze the fundamental factors concerning companies, and choose those which seem fundamentally inexpensive. Then observe then the price charts for the companies and buy those that first give technical positive signals. (It is not enough to buy a company that seems fundamentally inexpensive if the market is of a different opinion and sends the price down.)


• Method 2 - First analyze all companies with technical methods. Choose the companies that have recently given technical positive signals and seem technically positive. Then judge the fundamental factors for these, and buy those which are fundamentally inexpensive. (It is not enough if the psychology for a company is positive if it is very expensively priced when measured fundamentally.)

For both strategies one ought to take other factors into consideration, such as the general market views, reported inside trades and, in some cases, the time of year.

Investtech.com's stock pages offer you good visual technical analyses. Various well known formations, such as head and shoulder, are automatically identified, verified and plotted into the charts. Trends and important support and resistance levels are also detected and displayed in the charts. This is, in other words, basic technical analysis with an emphasis on trends, trend changes and support and resistance levels. In addition, lists with positive and negative signals covering the last few days, coupled with a ranked list based on technical analyses, are shown.

The analyses are carried out automatically by Investtech.com's programme systems, ensuring wholly objective results. The software programme, which carries out the analysis, is based on advanced mathematics and demands powerful computing resources to function. The identification of trends and geometrical formations has long been recognized as an accepted method of technical analysis. The problem has been that it takes considerable time to go through the charts manually. Also, there is the risk of subjective interpretation so that one loses objectivity and sees only the signals one wants to. Investtech.com's finace pages on the Internet provide a survey of identifiable formations. Each formation is judged mathematically and its place on a probability scale is established, based on the similarity between it and the theoretical classical formation. This gives a good basis for judging if one should buy or sell the relevant shares. Our analyses are presented in a series of tables from, for example, the stock list on the Oslo Stock Exchange, and in relation to the type of analysis and its date. A chart is produced for each stock, which contains most of the information from the analysis. The tables and the charts presented, should be a good point of reference when deciding to invest, whether applying strategy method 1 or 2, mentioned above.

Background and strategy

From the autumn of 1990 to the spring of 1995, Investtech.com's founder, Geir Linløkken, studied computer science, mathematics and statistics at the University of Oslo. His main theses, which corresponds to 1.5 years in a full time job, was called Pattern Recognition in Financial Time Series. The results from the thesis were further developed, and in spring 1996 Geir Linløkken's stock pages were launched on the Internet. Share data for the analyses were provided by the Norwegian School of Economics and Business Administration in Bergen, and the service was free and non-commercial. Investtech.com was founded May 5, 1997 with the aim of commercialising these stock pages.

Several scientific surveys in recent years indicate that information on future stock price development can be derived from historical stock price development. Research has also taken place, which has established the existence of a clear relationship between fundamental conditions of companies and future stock price development. Such relationships between known data and future stock price development are very complex. This means that there are often huge amounts of data which must analyzed in order to find the most interesting companies.

The basis for these stock pages is the established existence of the relationship between publicly known company information (among others, the stock price) and future stock price development. This assumption is necessary if the analysing of a companies statistics is to be of any use. It is a well known fact that people are easily coloured by their own subjective opinions when analysing stocks. This is particularly true in the case of technical analysis, where one often sees only what one wants to see. With this being the case, letting a computer program do the job is possibly the best solution. A computer program uses the same rules for all companies, and is not influenced by subjective factors. The fact that the information involved in stock figures is both complex, and at times diffuse, is another valid reason for using computers in this area. Using new mathematical and statistical methods developed in recent years, combined with very powerful computers, our computer programs can now process enormous amounts of information. This means that the previously mentioned complex relationships can be interpreted, and used to the advantage of the investor. Computer programs can find assosiations and relationships that are too complicated for humans to see simply by studying the data material. Another argument for the use of modern computers in this area is that they are more efficient when analysing data. They can analyze masses of information in the matter of a few seconds or minutes, where people would have used several days.

The strategy behind the stock pages is to take advantage of modern methods within computer science, mathematics and statistics in order to make company analysis and rankings, including direct positive and negative signals. The analyses and signals presented on the stock pages is intended to be used as an informative guide when making investment decisions. They should be a supplement to fundamental analysis and subjective opinions, and not take completely over individual company analysis.

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