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Accounting and Company Analysis
Dan Pickett

Accounting and Company Analysis

Training session recap

The slides we used in the latest training session are attached. During the session we discussed some key accounting concepts and reviewed where to find useful financial reports in Factset. We also discussed different types of businesses and how the competitive nature of the industry in which a company operates can be revealed in the company’s financial reports.

Following the accounting discussion, we reviewed the key elements of a stock pitch: a business overview, the investment thesis, and forecasts and valuation. We also outlined the steps in the research process that allow an analyst to put together an effective pitch:

  1. Understanding the business
  2. Assess a company’s competitive position
  3. Identifying a stock’s key drivers
  4. Evaluating current trends in the drivers
  5. Estimating market expectations for the drivers and the stock
  6. Identifying and diligencing tension points (where investors most disagree)
  7. Articulating an investment thesis and forecast
  8. Valuing your view
  9. Pitching the idea

The remainder of the session covered the first two steps - evaluating and understanding a company’s business and competitive position highlighting useful information sources.

We are still planning on the Associate Member Pitch Day Tuesday April 21. As a reminder, for the Associate Member Pitch Day teams research their assigned company using the concepts and techniques we discuss in the training sessions and then prepare to present their work in a pitch to the club membership. The last page in the attached training session slides suggests work you can do to better understand your company and its financial trends prior to the next session when we discus stock analysis and forecasting.  If you would like to participate in the Associate Member Pitch Day, but  haven’t signed up for a team yet, you can do so here.

We are planning to continue with the original training schedule using zoom videoconferencing. Stay tuned for updates with dates and times. We hope you are able to participate.

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