Hi all,
Have a BB research superday this week and am pitching a short. I have an IB superday the day before and therefore have limited time - is it a better use of my time to build out a DCF for my existing pitch (have solid qualitative reasoning, including Q2 results, already) or should I spend my time working out a second pitch that is long? The people I've spoken to have made it sound like I'll only be asked to pitch one stock and that it doesn't matter if it's short or long, but this doesn't seem in line with what I've read about interviews at other places.
Thanks!
Highly doubt you'll be asked to short but I would have one good pitch and one back up.
Building your own DCF is almost always a waste of time if you're interviewing as an undergraduate. A DCF is only as good as the qualitative assumptions that go into it; the DCF itself merely proves that you know how to read instructions on the internet.
Instead, I'd recommend spending the time strengthening your existing stock pitch (i.e. Does it have 3 key points that clearly differentiate you from market consensus? Could you answer 5-10 minutes of followup questions on the company's financials, operations, and competitive position? Since it's a short, it's especially important to know the catalysts and risks. And etc.) And if you think you have all of that covered, then spend the time putting together a second stock pitch. You most likely won't be asked for a second one -- personally, I never was. But it never hurts to have it in the back pocket, and it's still a more productive use of your time.
Thanks for the thorough response! Agreed on the DCF, got partway into it last night and realized my assumptions would be totally worthless.
Trying to work out hard catalysts other than next earnings announcement and more macro factors that would be hard to time— is there anything I should particularly consider, especially relevant to the casino/gaming industry?
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Haven't been able to find anything publicly available— are there specific places I can find this?
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For what it's worth, if you have a short idea, even if they don't ask for one, will really make you stand out. The ex-DoR of Morgan Stanley told me that.
Otherwise, make sure to back up your pitch and defend it. But, if you don't know something, don't make stuff up. Automatic DQ.
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