Equity research writing

S

solarpower03

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Hi all,
I have never written any stock report but I have published some scientific papers in international journals (very academic). So, I will be thankful if some could illuminate on writing good equity research reports.
Many thanks
S
 
Read some; then copy & paste the text, change the analyst name at the bottom of the page, and you’ll be in good shape.
 
“Steal” on from one of the major brokerage house.
 
Best way to do it would be to try to get some sell-side research reports and just try to emulate one or two. Just start by grabbing a company you like (best if it’s relatively small and not global, to keep it simple), and try to copy the format for your company: “monkey see; monkey do” style.
Once you have the format down, you can start to figure out how to work it in a way that maximizes whatever kind of analysis you think you can add.
Where to get sell-side research? I think if you sign up for Morningstar.com’s free membership (premium isn’t too expensive either), you can get access to some of their reports. Yahoo also has some for selected (mostly large) companies.
 
read CC transcripts, 10k. do research. then write it
investment thesis
company info
business model
*change, outlook*
financials
uses of FCF
management
valuation
write 30 pages, shrink it to 10
 
start with sell side reports like the other dude said and work on your valuation. no one has time for a 30 page report - get your thesis down and focus on valuation.
 
yes focus on valuation. Basically the first page should tell the story. Talk about the most strking feature. For instance if lets say you are valuing a bank talk about loan/deposit growth, the yield v/s funding cost. You should have a paragraph on the first page solely for valuation. Of course in the report itself you shouls have a whole segment on valuation. Also work on a little table showing eps, revenue, their growth rate along with some efficiency ratios ROE, ROA etc. Then input some valuation ratios as well P/E PBV.
Also depending whether you are a bottom up or up-down stock picker your whole perspective change.
Most importantly give it a go.
 
June07_guy Wrote:
——————————————————-
> And then tell us who is interested in equity
> research these days.
try again main. my firms revs are up in a down market b/c people need good ideas when the tape is this bad. boutiques are killing it, bulgies are burning. We cool with that
 
I agree with Daj
A lot of clients have just been looking for places to hide. If you run a major mutual fund you need to be invested because if customers haven’t pulled their money, they still want it in the market. If mutual fund X is sitting at a max of 10% cash and its equity declines 20% it needs to put ~20% of its cash back to work. And now with such a strong investor disconnect on certain individual stocks its not about just finding a place to hide, its about finding quality cheap, growth companies trading at value multiples, companies trading at cash, companies that are going to increase mkt share in a down environment, weather the storm, be the first out of the box, etc.
 
June07_guy Wrote:
——————————————————-
> And then tell us who is interested in equity
> research these days.
Right. Even if you recommend lousy stocks, you can always ask for your bailout anyways
 
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