New buy side analyst - Who are you seeking when you need more qualitative information of a company?

As per topic, who are you seeking when you need more qualitative information of a company you covered ? Like business model , strategy, operating data etc.

Do you ask the sell side analyst or the management directly?

Appreciate for your helps.

3 Comments
 

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Most Helpful

Company reports, analyst reports, analyst calls, IR and management calls is the quick answer. All depends on my comfort level with the company or sector.

Here is a more detailed way to answer your question. Once I identify a company my typical process is as follows:

  1. Review investor / analyst day presentation if available. Otherwise latest major deck from company. This is a quick initial review
  2. Review latest two annual reports with emphasis on management discussion and drivers if the business (detailed financial review comes later). If a 40F exists or AIF for Canadian review those as well.
  3. Review most recent two years of quarterly reports (obviously you can skip quarterly report if an annual is issued at the same time) and associated call transcripts.
  4. Review any recent sell-side initiation reports.
  5. Reach out to bull and bear analysts that I have a trading relationship with. Usually a company overview call, chance to get some questions asked.
  6. Contact company IR for initial call.
  7. Commence modeling and digging into financials. Not qualitative but this is where it fits for me.
  8. Depending on position size speak with management before buying or within 12 months of initial purchase. Depending on your investment process this step might take place along with an IR chat.

Entire process would usually take me 2-3 weeks on sell-side (steps 1-7, excluding 5). Buyside I tend to modify step 5 and secure a few sell side models. Audit then adapt them to meet my needs.

This process doesn’t work as well for some emerging markets.

Before reaching out to management or IR I usually like to have a detailed chat on the company with a sell-side analyst.

 

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