Was wondering if someone could quickly look over my short (4 page) research report and give me some advice on things I could add or let me know if I made any obvious mistakes.
Thanks
| Attachment | Size |
|---|---|
| SodaStream ER Report.pdf 853.08 KB | 853.08 KB |
| SODA DCF.xls 47 KB | 47 KB |
just post it online and let everyone read...
Uploaded the files. Thanks
That's a pretty aggressive growth rate.. the company is tripling in size in 5 years.
Also, how did you come up with your tax rate? (10%?)
What is the point of doing these write ups in college? Are you bored? I don't think I've ever heard of any associate skill test or interview where someone was given the task of writing up a comprehensive note like that. You won't impress any analysts with these.
90% of the college "ER reports" being posted are awful and while they might look pretty most would never get through compliance/supervisory analysts in the real world. The phrasing and the overuse of adjectives/adverbs makes me cringe. Your "Main Takeaways" section is like reading a news article or one of the company's ads.
Come on Flake, don't give me the bullshit. I'm not bored - its for an ER internship I'm currently involved with - this is my first report so I would like it to be the best it can be (for a sophomore). I understand it wouldn't get through compliance in the real world, like I said, I am only a sophomore. I value your opinion and have read all your interviews here on WSO, so if you wouldn't mind, could you read it through a little more thoroughly and give me some more feedback? Thanks, much appreciated.
I just took the growth rate from management's recent conference call regarding their Q4 and year end performance. The company is pretty new and has a ton of growth potential (1% household penetration rate in USA vs 25% in other markets - lot of room to expand into)
Kind of a dumb question, but how does one determine a growth rate if you cannot use the one provided from management itself. I understand you can use comps and get a consensus that you can apply to SodaStream, but in this case, there are none. Can I take the 25% and discount it to 20%? I am not sure how much to discount it by. Can you clear this up for me?
The 10% tax rate was taken right out of management's comments from the conference call. The company had an abnormal tax rate of only 1% this past year due to high subsidies from the Israel government because SodaStream basically brings money into the country by giving the population a place to work and make money, rather than making pebbles doing whatever it is they do there (farming? I honestly don't know.)
I think you could start at 25%, but I would start decreasing it after that. Growth tends to decrease as a company matures.
*I didn't read your report originally, but just did and it sounds like the consensus is that the company is and will continue to grow rapidly, so you could be right on revenue growth.
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