A Quick Reference Guide to Official Forms ie 10k, SI, W4BEN etcVarious posts to our threads often refer to some official form ie 10k S1, W4BEN etc. The aim of this blog is to list each with a brief Plain English explanation of its main purpose and uses, so Gummaratti can quickly get a handle on each. if you post info, please make each post specific to just one form. Also, only post replies if adding specific info or a correction or we will end up with an alphabet soup of info and not be able to find anything (pls dont add ’thanks’ messages, just tick the like button). You may find more detailed info here or elsewher on the net. http://www.investopedia.com/slide-show/sec_filings/
Natch the list wont be sequential, but using CtrlF should help find what you want.
This is a discussion topic or guest posting submitted by a Stock Gumshoe reader. The content has not been edited or reviewed by Stock Gumshoe, and any opinions expressed are those of the author alone.
Please remember: Post as often as you like, but only about one form per post or the list will become unweildy. The format should be….
W4BEN: This form tells you about….. xxxxxx. Its main uses are yyyyyyyy. You can also establish zzzzzz from it.
How to speed read often ponderous filings for pertinent information in 3 steps as provided by Investopedia.
“Most people would prefer to avoid reading 100-page documents whenever they can, but lengthy and technical 10-Q and 10-K SEC filings are a necessity for success. Fortunately, these filings consist mostly of routine descriptions and disclosures that can be avoided, and this article will take a look at how to speed read these filings to quickly pull out the important information.
Why Read 10-Q and 10-K Filings?
SEC filings provide investors with a useful and reliable source of information, as companies are required to routinely update shareholders. Aside from the quarterly and annual financial statements contained within these filings, investors can also look behind the numbers and discover why the results fell short of, met or beat expectations for the period.
Effectively reading these SEC filings can also help investors steer clear of fraudulent activity by uncovering certain types of accounting fraud. For example, companies may try and switch inventory accounting to more favorable accounting types or mask drops in net income by adding or subtracting non-cash elements – all of which becomes visible in these filings. (For more, see SEC Filings: Forms You Need To Know.)
Finding SEC Filings Online
SEC filings can be found on the U.S. Securities and Exchange Commission’s web site by going to its EDGAR system. Other third-party websites, such as SECFilings.com and EDGAROnline.com, also provide the data along with other value-added services to help investors sort and digest the SEC filings. (Learn more in Policing The Securities Market: An Overview Of The SEC.)
A Look inside 10-Q and 10-K Filings
Investors looking at a 10-Q or 10-K filing for the first time may be a bit surprised by the size of the document, which can often be in excess of 100 pages. However, all of these filings are divided into easy-to-understand sections in order to make them easier to follow.
These three sections include:
Business Overview – A description of the business, risk factors associated with the business, legal proceedings for and against the company, and matters to vote, among others.
Financial Overview – A review of the company’s performance over the period, management’s discussion and analysis of the results, changes in accounting procedures or disclosures and supplementary data, among others.
Governance Overview – A review of executive compensation, beneficial ownership by management, relationships with directors and accounting fees, among others.
While all of these sections contain important information for investors, there are a lot of regulatory disclosures that can be ignored. In the following section, we’ll look at a quick three-step process to quickly ascertain the information needed in just minutes.
Three Steps to Speed Reading 10-Q and 10-K Filings
Get the Information from the Source
The Financial Statements and Supplementary Data section represents the meat and potatoes of the 10-Q and 10-K, by providing a comprehensive financial overview of the period.
The section includes:
Business Overview – A description of the business, risk factors associated with the business, legal proceedings for and against the company, and matters to vote, among others.
Financial Overview – A review of the company’s performance over the period, management’s discussion and analysis of the results, changes in accounting procedures or disclosures and supplementary data, among others.
Governance Overview – A review of executive compensation, beneficial ownership by management, relationships with directors and accounting fees, among others.
Investors should begin analyzing this section by computing the percentage increase or decrease versus the prior period and comparing the numbers to price-earnings multiples and expectations.
Next, investors should compute the current ratio by dividing current assets by current liabilities, and look at long-term debt and cash levels to ensure that no problems exist on the balance sheet.
And finally, investors should take a look at the cash flow statement to make sure the cash coming through the door is from the business’s operations, and not from creative accounting. (For more, read Fundamental Analysis: Introduction To Financial Statements.)
Get the True Story Behind the Headlines
The Management Discussion and Analysis section is perhaps the most important section of the 10-Q or 10-K filing and helpful for investors to read in its entirety. The section includes:
Balance Sheet – A review of the company’s assets versus its liabilities; this is useful for checking liquidity ratios, cash on the books and the level of debts owed to others.
Income Statement – A review of the company’s revenues and profits; this is useful for seeing how the business is performing on the top and bottom line.
Cash Flow Statement – A review of cash flows in and out of the bank; this is useful for cross-checking with the income statement to verify net income figures.
Investors should read this section in its entirety to understand the reason for changes in revenues, margins and other metrics on the financial statements. Essentially, this section provides the true story behind the news and headlines showing just the numbers.
The section can also contain guidance for future periods as well as addition notes, such as updates on major contracts, which are necessary to create accurate earnings and revenue forecasts for future quarters or years. (Learn more in Top 9 Questions Investors Should Ask Management.)
Check for Accounting Irregularities
The Footnotes to the Financial Statements contains important information that can help investors avoid potential fraudulent situations. The most common areas for fraud include:
Company Description – A review of the company’s historical and current operations, as well as a briefing of the company’s industry.
Operating & Financial Results – A review of the company’s operating and financial results for the quarter, including reasons for changes in results, margins, or other metrics.
Future Guidance – A projection of the company’s expected performance during the next quarter or year, based on management’s opinion and judgment.
Additional Notes – Any additional notes or comments that management would like to convey to shareholders or potential investors, such as contract news/awards.
There are countless ways for companies to inflate income and assets or hide losses – from recognizing revenues before they should to underestimating doubtful accounts – but everything is disclosed in the footnotes. Therefore, it is important for investors to check these footnotes, especially when things look suspicious on the financial statements.
Conclusion
While 10-Q and 10-K filings may seem intimidating at first, they can be quickly scanned for important information in three steps. Using these techniques, investors reading these documents can avoid misleading news headlines and understand the true story behind the scenes, as well as avoid potential fraud in just minutes instead of hours. (Learn more in Don’t Forget To Read The Prospectus!)”
Speed Read SEC Filings
http://www.investopedia.com/articles/stocks/09/speed-read-filings.asp
I have certain search criteria set and bookmarked for a handful of possible quicker trades (swing plays, etc.) when I get bored watching the ticks in my port and also for DD purposes of course. Here’s my SC 13G SEC search where I watch For Public Offerings for example:
https://searchwww.sec.gov/EDGARFSClient/jsp/EDGAR_MainAccess.jsp?search_text=*&sort=Date&formType=FormSC13G&isAdv=true&stemming=true&numResults=10&fromDate=03/10/2015&toDate=03/10/2015&numResults=10
This is a decent and straight forward scan for SEC filings of all types, a little less ponderous than using Edgar or the SEC site imo.
Nuance – Investor Relations – SEC Filings
http://phx.corporate-ir.net/phoenix.zhtml?c=110330&p=irol-sec
Forms 3, 4, 5: https://www.sec.gov/answers/form345.htm
https://en.wikipedia.org/wiki/Form_10-Q
Form D: http://www.sec.gov/answers/formd.htm
http://www.investopedia.com/terms/s/sec-form-d.asp
510k: Overview
Section 510(k) of the Food, Drug and Cosmetic Act requires device manufacturers who must register, to notify FDA of their intent to market a medical device at least 90 days in advance. This is known as Premarket Notification – also called PMN or 510(k). This allows FDA to determine whether the device is equivalent to a device already placed into one of the three classification categories. Thus, “new” devices (not in commercial distribution prior to May 28, 1976) that have not been classified can be properly identified. Specifically, medical device manufacturers are required to submit a premarket notification if they intend to introduce a device into commercial distribution for the first time or reintroduce a device that will be significantly changed or modified to the extent that its safety or effectiveness could be affected. Such change or modification could relate to the design, material, chemical composition, energy source, manufacturing process, or intended use.
Listings of CDRH Substantially Equivalent 510(k)s are normally available about the 5th of each month for the prior month. See the links on the left side of this page to find monthly listings of 510(k)s cleared by FDA.
https://www.fda.gov/MedicalDevices/ProductsandMedicalProcedures/DeviceApprovalsandClearances/510kClearances/default.htm