How to Ethically Spy on Your Competitors

Ever wonder what your competitors are up to?  You should. They might be creating new products, planning to enter new markets -- or maybe they took a big hit in sales in certain states.  If you knew this information, it could give you an edge.

Uncovering competitive information doesn't require that you become a computer hacker. The easiest way is to learn about your competitors is if they are public. Publicly held companies MUST file Annual Reports with the US and Canadian Securities and Exchange Commissions.  Public companies must continue to keep their shareholders informed on a regular basis by filing periodic reports and other materials with the Securities Exchange Commissions

Public Companies disclosure obligations begin with:

Think of 10-K's as puzzles or treasure hunts. 10Ks usually start with a letter to the shareholders about the company's performance over the past year, and where they see the company headed in the future and what challenges they may have encountered. 

Take this Cannabis Lab for an example -

From the same the same cannabis company, there is a discussion about an acquisition of another competitor. Management reveals the price they paid, the stock they offered, and other terms of the deal.

Warren Buffett has said he loves to curl up with companies' annual reports. Many Cannabis companies are going public in Canada and the US. They are using the public markets to raise money and currency for acquisitions. Curling up to a competitor's 10k can give you insight into how a company's management is handling their growth, the challenges they are facing, specific details about acquisitions, compensation, not to mention all the financials. They are a treasure trove of information.

Cheers,

Jon Stoddard

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