Industrial sector confusion

william_G_4

Does anybody know of a definitive system of classification for equities on the FTSE and AIM? I get one thing from ADVFN another from the FT and yet another from The Times.

None of these sources can seem to agree on how industries are carved up and/or named even at the first level let alone within a sector. For accurate comparisons there must be a 'benchmark' system that for example the LSE uses to classify and sub-classify companies. Does anyone know what it and how I can find out about it?

I'm trying to teach myself fundamental analysis with an eye to portfolio sector diversification and the task of doing so is hampered by not having a fixed set of goal posts to work to.

Any books that anyone can recommend on sector analysis and cyclic/ performance characteristics of therein would be much appreciated

cheers

Will

withnell

Sector classification is a major issue, and one I face in my day job - each search engine uses its own classification. Ring them up and ask for their classification index by SIC code, then you can piece together who puts what where

william_G_4

Thanks for that.

Ive found the SIC codes page on the National Statistics page. As you say - bear no relationship to other systems which seem to be prettymuch however they feel like carving it up.

Think I'm going to focus in on one major sector at a time and compile my own list of 'peer' companies based on personal research which includes looking at the company's divisions.

For anyone wondering what were blathering on about- any fundamental market and price analysis (at least in theory) starts with understanding the way a company operates within it's industry and against it's direct competitors in that field. The number and quality of competition within a sector can shape a calculation on growth potential when combined with fundamental analysis.

Once again 'in theory' this is how the investment analysts go about pricing shares and for my part I'm trying to more as far away as possible from the end of investment motive spectrum titled 'punt' as possible and attempt to bring some rigour and order to an otherwise incomprehensible stream of data.

Our current circumstances are clearly ones of a global macro economic nature as opposed to sector behaviour which makes it difficult to work out which 'ships' will survive the storm that's buffetting the entire 'fleet' but within that the fundamentals are still churning on and a good grasp of the basics is going to help when the seas finally turn calm....whenever that is.

apologies for hopeless metaphor

hat,coat,wallet:beer:

Will

Richard_DandR

The London Stock Exchange has sector classifications for many UK companies. This is for BP - see foot of the page under Trading information.

http://www.londonstockexchange.com/en-gb/pricesnews/prices/system/detailedprices.htm?sym=GB0007980591GBGBXSET10798059BP.

Not always available for the smaller companies on AIM.