Ask Colin

With respect to the 3 fundamental filters of your Fundamental Value Scan, you run it on Industrials only: With the categorisation of the stocks listed becoming so specific, would you define "industrials"? For example would The Gribbles Group be so classified? Village Roadshow Ltd?

The Australian stock market is divided into two broad sector groups - Industrial stocks and Resources stocks. Each of these broad categories is then divided into specific industry sectors. So, everything that is not a resources stock is an industrial stock. We then exclude trusts from the industrial list.

If you look at the Australian Financial Review Weekend edition, you will see all the stocks set out in their sector groupings. This will help you to understand the sector division of the market. As well, every stock has a sector designation, which is listed in Shares magazine tables section.

Basically, an industrial stock is any company that makes or markets goods or services, other than mining companies, energy producers and property or investment trusts.