Buy or Sell recommendation of a stock(Immediate advice needed)

Greetings,
I have no background in equity research and I have to do a presentation of the company regeneron pharmaceuticals and use a qualitative analysis and a quantitative analysis in order to make a choice between buy and sell a company. Can someone show me an example as well as what to look for? Thanks in advance

7 Comments
 

And from there What I am sepcifically looking for ? And also there will be a Q&A after my presentation do you have any ideas on what questions they will ask me?

 

Hey just my two cents, they will ask you to justify every number and assertion you make if you have already done a comprehensive job of covering your bases. I am currently working on a pitch for a growth biotech firm and would be happy to share some of the steps I took/ my process and things I am looking for. Regeneron is a well established 36 billion market cap firm whereas mine is a 700m market cap firm so there will be differences but let me know if you need any help.

 

aj291 I definitely need your help!! What were the steps you took? What type of research did you do ? I am supposed to use both a quantitative and a qualitative analysis for my pitch

 
Best Response

remember that all assumptions are effectively BS and essentially looking into a crystal ball. If anyone could predict the future besides "we will all die" they would not be working today or on this board. You can justify most assumptions as long as they are not wild.

As for assumptions, you can look at previous assumptions the company has made in annual filings, for instance. If they have estimated 5% growth over the last few years, and have hit those numbers, you can use that or a little less (or more if you think there is some catalyst that will change that). If they have totally missed a lot, then be much more conservative. etc etc.

This is all helicopter style advice and it's all I can give since I have never been in your shoes. But I see tons of PE funds pitch to me and they always get stuff wrong and many assume management is bssing on growth figures to pump up valuation. In other words, there are not that many wrong answers and anyone who really grills you on a estimate in the future is probably lame for like more than a minute) is probably lame? Why? Because, like I said above, none of us can look that far into the future. Sh** happens all the time to change things.

Good Luck

I used to do Asia-Pacific PE (kind of like FoF). Now I do something else but happy to try and answer questions on that stuff.
 

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