Locating Fish to Catch
When I was a teenager in the 1960’s, my father took my brother Russell and me fishing on several different Wisconsin lakes in Waukesha County. Pewaukee Lake was one of the lakes we fished. It wasn’t our favorite, but it was big, and it had some great crappie and big bluegill fishing areas. The trick was finding their habitats, based on the season and their feeding preferences.
Use a Lake Map
Pewaukee Lake was big, so knowing something about the lake was important. Most of the time we wanted to fish in deeper waters. Using a map of the lake to understand where the shallow water was, where the deep water was, and where the depth changed dramatically was better than hit-and-miss searching. Maps are helpful for finding fish, but they can also help you find the big and small fish in the investing world. One such map is provided by Wallmine in the form of a heatmap.
Using the Wallmine Heatmap Tool
Most of us know about Microsoft, Google, and Facebook (MSFT, GOOG and FB). But if you want to invest in a smaller tech company, what universe of ticker symbols might you explore? It is, of course, possible to look at the market caps of a couple of different companies to see which one is the biggest. But this is cumbersome.
It is better to have a tool that shows you many different companies and their relative sizes. Wallmine’s “heatmap” tool provides a snapshot of the companies by size and, using colors, if the stock is currently up or down in price. Red means down and green means up. The percentages are also provided.
By hovering over a section of the heatmap, you can get a nice ranking of similar investments. My eyes were drawn to MTCH and CTXS.
Hover over Google to get more information
When I hovered over Google, I looked at some of the companies that were showing green on a day when most stocks were down due to another round of Covid-19 scares. One that appeared was MTCH. I didn’t know what this company was, so I went to Seeking Alpha to get more information. I wouldn’t buy MTCH simply because it is not a dividend growth investment. In fact, it doesn’t pay a dividend.
We own shares of MSFT. I am not a big fan of Google or Facebook, from an investment perspective. If you look at the technology heat map, you will see some companies that I do own: INTC, AMD, TXN, IBM, and CSCO.