Get the Inside Scoop on Companies

So you want to find intriguing companies in which to possibly invest? And you're looking for good sources of information on companies and industries that interest you?

One good solution is to become a bit of an insider. If you really want to know what's going on in the [insert industry name here] arena, you should check out the trade journals of that industry. Sure, you'll run across interesting articles in the mainstream financial press on the insurance industry or the food-service industry or the lumber industry. But in each issue of an industry's journals, you'll find pretty much nothing but content on that industry and its players.

One industry that interests me, for example, is fast food. Over the years, I've learned a lot from my subscription to QSR -- a trade journal named for the (warning: euphemism ahead) "quick serve restaurant" industry that it serves. Over the years, I've learned a lot about the industry from it. Just recently, for example, in its annual issue dedicated to packaging developments, I learned about hot-drink lids that change color according to the temperature of the drink. So if your coffee is pretty darn hot, the lid might be red. As it cools down, the lid might change to orange. A more revolutionary alternative is a thin film that gets placed over the top of a cup and shrinks over the rim when placed under a halogen bulb.

Recent issues of the magazine have featured interviews with the CEOs and bigwigs-at-large of established outlets, as well as with leaders of up-and-coming eateries. Getting to know small companies early is helpful because as they become better-known, you'll already be an old hand while others are just becoming familiar with them. For example, you might read "Why Cold Stone Creamery Is the Hottest Chain on the 2005 QSR 50," and if you later read about it being pursued by an acquirer, you'll know why. If you read about how Mexican food is America's second-favorite ethnic cuisine (after Italian and before Asian), you'll perhaps nod knowingly when a big food company buys or launches a Mexican food chain.

The August issue of QSR listed, among other things, the top 50 chains by system-wide sales. This is info you don't normally find in the mainstream press, including total numbers for 2002, 2003, and 2004 and also sales per unit. Here's some info on the top few:

You'll find a directory of many trade journals at Yahoo!, and here's a site that offers some free subscriptions. There are all kinds of interesting magazines about airlines, advertising, hotels, publishing, computers, health care, shipbuilding, textiles, travel, energy, apparel, cars, banking, and more.

Of course, there's a bit of a downside to trade magazines -- they keep you focused on one niche, and they're not always objective. To counter this problem, consider trying out one or more of our own newsletters, which deliver our best ideas to you monthly. You can try them for free -- they've been doing quite well. They may introduce you to some compelling companies in industries you hadn't considered before. And then you can dig deeper via trade journals.

Longtime Fool contributor Selena Maranjian does not own shares of any companies mentioned in this article, but she wishes she did. The Motley Fool has a disclosure policy.