What kind of reports do you guys send out as a work example when firms contact you? How long; 5 - 10 pages?
this is tricky because if you work in buyside and none of your work is “published” I don’t see how you can do it without breaking confidentiality rules
5 pages. i pick a really large cap stock i like not followed at work.
how long does it take you to do a write up on a co? im curious. like no follow up work. like 10-k investor relations segment analysis, summary etc. like a first look of sorts.
Does it matter if it’s IB, ER, or corporate finance, etc.?
some value in doing a small cap that is a real actionable opportunity…
most small cap companies suck. so you have a higher probability of sucking. i would go mid cap minimum. plus most small cap have no published work or any following on them. makes it harder to work on.
if you’re in buy side just do a quick model on excel and post DCF (cash flow summary) sheet on word with brief explanation about the company and the methodology used. Also don’t forget buy, sell or hold rec and write couple sentences on risks or concerns about the company. Remember to use citation if you are summarizing someone else’s report or idea. Also helps to use citation for information you retrieved from sec filings in your writing.
Attach ebitda by segment IF you want. some of my simpler models use ebitda contribution margin % to come up with pro forma ebitda by segment numbers which then is used to do multiples valuation. this looks cleaner as you don’t have to do the whole guesstimation on each lines on the income statement.
2 pages max on Word and don’t send your excel file.
Nobody is going to read 5-10 pages unless you have real insight and experience. Keep it 2-4 pages long and make it easy to follow. They have to read a dozen of these from potential candidates so thats the easiest way to stand out.
Send them report on activities of neighbor Aleksei, who we suspect to be Western Spy. 5-10 pages, it is easy. He will hear soon from the secret police. Ho ho ho.
^ Good insight. Beware of tea though…
This was good writings. It make me laugh, how you say, hit the funny bone?