Hey AF-er’s…I need your help!!! I’ve done a Bachelors in Finance and just wrote Level 2-am currently working in client service at South Africa’s largest asset management company. I’m trying to get into our investment yeam ( to become an equity analyst) …and one of our fund managers has assigned me a small-cap stock to build a model and write a report on…so the onus is on me to mightily impress him and leave the dark corridors of Client Service for good!!! Trouble is, apart from my theoretical background, i’ve never done anything like this before and am a bit friggen perturbed as to how much work actually goes into a single report! Can any of you who do this for a living please help me out…ie, once i’ve got a good background on the company, what steps should i follow next??? Would really appreciate any help as this could be huge for my career…!!! Thanks guys and gals.
Do you work for Sanlam?
Which company - I look after small cap financials on the JSE
Nope ,work for Investec Asset Management…the company is Jasco Electronics… Mukaranga-i’d appreciate any help mate!!!
Being on the sell side, I have never came across Investec reports - how do they look like (being buy-side). Build the model first (dont mind the assumptionts, you will chanbge them after meeting management). I would advise the report you follow the internal style. Here, we start with a biref description of the company (since its initiation of coverage), and then an industry analysis, followed by financial analysis of the company and then valuation and recommendation. Personally, I weigh the industry analysis (to include peer comparison/analysis) and valuation higher than the financial analysis - so the valuation and industry analysis would be detailed. I would think the dealbreaker would be the model you build and industry analysis.
Thnaks man, will give it a bash!