Screening Stocks for Pitch Ideas
Let’s say you need to prepare a few pitches for equity l/s pod interviews and aren’t assigned a specific coverage yet. How do you screen for ideas and be the most efficient with your time spent on research? Getting grilled in banking rn and so have very little free time for prep. Are PMs only going to want to hear pitches on companies that they cover or can you prepare pitches on a broader universe because they care more about the quality and presentation of the idea rather than sector specific knowledge?
You can pitch anything, make sure it's actionable and framed around incremental change and where you're differentiated on the numbers. Not the fluffy good moat good business 30% return across 3 years pitches.
Don't need to screen, pick a stock and start reading the 10-K and transcripts, get to modeling and understanding the business drivers. Grasp the bull/bear debate and pick a side.
Just try to pick something they won’t know (so they can’t drill details) and that pitches well. Doesn’t have to work. Just has to demonstrate what a good pitch sounds like. Something you can do a little primary research on to pretend you have a variant view. Don’t pitch a mega cap or growth darling cause you think it’ll go up. That is an entirely different goal
Maybe screen for something with a wide range of analyst near term estimates - which would suggest there is at least some key disagreement to highlight, pick a side and add a little demonstration of creatively evaluating that debate with primary research like customer calls, site visits etc.
pitch a short
Will give you a good one: VALE
Why?
(1) Don't screen, (2) find a small cap in a vertical they cover with earnings in 2-4 weeks ("actionable").
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