Bnny - Annie's food stock pitch help

targetkid142's picture
Rank: Monkey | 62

Hi all,
Anyone have any thoughts on Annie's? I have a stock pitch coming up soon at a big fund on this stock. Any tips on valuation, or how to make a good half hour stock pitch? Appreciate any help, I really want this one.

Comments (8)

Oct 26, 2012

Do you have to pitch this? It looks like a better short than long.

Did you choose this name or were you given? You should have a pitch (or two) that you can talk about in depth to differentiate yourself from other candidates at this stage.

Oct 26, 2012

make sure you emphasize that it's cheap at current levels with a P/E of just 292

Oct 26, 2012

yeah, i was assigned annie's. i have a pitch ready for hpq too for the other interviews before the stock pitch presentation

Oct 26, 2012

I'm short. Does it have to be a long pitch?

Theres a public BNNY short pitch on VIC currently. Very convincing.

Oct 27, 2012

Read the VIC pitch (don't make it too obvious if you do in fact pull things from this).

Make sure to take a stance (buy/short/do nothing) - some people will talk about a stock but will be afraid to make a recommendation. Talk about the risks in the investment. When I pitched to a fund I recommended shorting a company that supported the dividend through capital raises. A risk there is that the capital raises could perpetuate for quite some time. There's risk in every investment - make sure you know that risk and talk about it. It shows you think about risk/reward and not just the reward. Investing's about putting the odds in your favor and investing in situations where there's asymmetries in the risk/reward scenario.

I have a suspicion that the fund has a strong view on the stock they asked you to look at, which is why you need to come prepared. Read the prospectus, 10-K, 10-Q, etc. Try to do that for competitors if you have the time. If you can only read one, read the prospectus, IMO.

Look at valuation (EV/EBIT, EV/EBITDA, etc.). Do you know how to calculate these? If you don't I'll try to get back to you and do it for you.

Also, since this is a recent IPO (recent meaning this year), talk about how IPOs are inherently not in your favor. You have the most knowledgeable sellers selling their stake to you - it's hard to develop an edge there, and this leads to overvaluation due to the incentives in place (IBs earning their fees by placing a high valuation on the company, management/early investors cashing out, etc.).

Good luck!

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Nov 2, 2012

It can be buy, sell, or hold. Def leaning towards sell based on initial impressions and without having been in the financial statements yet. Sorry if this is a noob question but what is VIC? Would like to find that article

Nov 2, 2012

VIC = valueinvestorsclub.com

Nov 2, 2012
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