Nikola (NKLA) Short Report Greg Edwards / Tuesday, September 22, 2020 0 175 Article rating: No rating Hi all, As a follow-up to a company mentioned in last week's training session, please feel free to check out a short-seller's analysis and report on the company Nikola (NKLA) at https://hindenburgresearch.com/nikola. From time to time, a public company stands out for (potentially) bending the truth to help promote its stock and business. Enron and Worldcom are classic older examples of this, Theranos and now (maybe?) Nikola are more current examples. Both the trading around stocks like these and the battle between company management teams and analysts that are negative on the stock can be absolutely fascinating to watch. Worth a read! Greg Read more
Corporate Credit Covenants & Documentation Corporate Credit Covenants & Documentation Betsi Hill video presentation Dan Pickett / Tuesday, May 19, 2020 0 378 Article rating: No rating Betsi Hill, corporate bond expert and Co-Director of the Hawk Center for Investment Analysis, recently held an online tutorial on understanding bond covenants and documentation. Understanding the importance of covenants in analyzing corporate bonds will be a significant differentiator for you relative to other undergraduates not only if you pursue a career in corporate credit research, but also if you are interviewing for an equity research role. A solid understanding of the capital structure will make you a better analyst. Read more
Research in a time of uncertainty Research in a time of uncertainty A framework for making decisions Dan Pickett / Saturday, March 28, 2020 0 330 Article rating: No rating I hope you are all doing ok. Obviously, there is a lot going on with the coronavirus and it may seem insensitive to talk about investing during a global pandemic, but you should understand that if you choose a career investing, you will be required to make decisions in times of great uncertainty. Having an investment process is essential to making good decisions and especially so in times like these. Read more
TRAINING SUPPLEMENT TRAINING SUPPLEMENT Readings and Video Dan Pickett / Saturday, October 5, 2019 0 503 Article rating: No rating We added three new readings to supplement the company analysis training session - found on the For Members>Resource Guide page of the webiste at the LINK TO TRAINING SESSION READINGS. Analyzing a Company – The Basics (Ch. 6) discusses evaluating the growth prospects, profitability, financial health, and risk of companies. The Five Competitive Forces that Shape Strategy reviews how analyzing the structure of an industry can help you understand what’s influencing company profitability and identifying trends in the competitive forces can help you anticipate changes in profitability. What Makes a Moat describes the concept of economic moats (structural barriers that protect companies from competition) and reviews Morningstar’s classification of moat sources: intangible assets, cost advantages, switching costs, network effects, and efficient scale. Finally, UW-ASAP alum Andrew Lane, a Morningstar strategist recently met with the 1st year ASAP students to discuss the Morningstar Moat framework for analyzing companies. A video of Andrew’s talk is here. Read more
11 Rules for Equity Valuation 11 Rules for Equity Valuation Enterprising Investor post Dan Pickett / Wednesday, August 7, 2019 0 550 Article rating: No rating Enterprising Investor, a CFA Institute publication had a nice summary of James Valetine’s CFA Institute 2017 Conference presentation: Equity Research and Valuation. Valentine is a former transportation analyst with Morgan Stanley who now runs AnalystSolutions, an equity analyst evaluation and training firm. He is also the author of Best Practices for Equity Research Analysts, an excellent how-to book for aspiring analysts. We assign numerous readings from the book in the Applied Equity Markets Research (AEMR) class and highly recommend it. The author describes Valentine’s 11 rules of thumb when determining equity valuations and setting price targets. Read more