QuantJock_MBA Wrote: ------------------------------------------------------- > newsuper Wrote: > -------------------------------------------------- > ----- > > Only problem with bank stocks is that most of > the > > analysis covers areas that is pretty unrelated > to > > most other industries. > > > > Read a bank research report and then read one > for > > say Wal-Mart or even a mining company - the > bank > > reports are way more complex and pretty damn > > boring. > > > > Another thing to think about is this, if the > > future is all about a world with less emphasis > on > > financial services, then getting into bank > sector > > research will suffer too. > > > > The hottest demand I’ve seen is for resource > > analysts, but of course it’s fairly cyclical. > > > > IMO financial sector research is just too > > quantitative - immediate snooze-fest once I > start > > reading an in-depth research report. > > > > Energy or tech may be more interesting. > > Thanks for this. I was under the impression that > if you could cover financials, you could cover > anything. Many say it is the most challenging > industry. It certainly would be the most challenging, only because the business models and valuation models are so different and complex compared to every other industry. The skills/techniques used in covering financials would be very different compared to just about every other industry. Print out a couple of reports - a couple of banks - a couple of retailers - a couple of energy and mining companies - a couple of tech companies - a couple of capital goods - a couple of utilities and read through them and see which ones were interesting (and note the differences in analysis techniques). If you still find financials to be interesting, then go for it.
I might put TMT, energy and mining at the top as well. chemicals as well, but I have personally seem most analyst with this sector focus, seem to come from fields as chemistry majors or worked as a mining analyst somewhere first. They have 1st hand experience that you can’t get behind working the numbers. They usually come from different schools in texas where petroleum and all that is a big focus
Semiconductors
And the verdict is, Telecom. Just so I can get a jump start on covering this industry, can anyone recommend a good book or website to follow? My friend got financials and I mentioned I would help him along since I’m interested in that industry.
My suggestion is to look at industry websites and newsletters in addition to the company websites/ press releases. Good telecom sources of info include Light Reading, Fierce Telecom, Fierce Wireless, CTIA website and newsletter, FCC website.
In the book Confessions of a Wall Street Analyst, I believe the author covers telecom.
1Gaming/Entertainment 2Aerospace/Defense 3Energy
naturallight Wrote: ------------------------------------------------------- > In the book Confessions of a Wall Street Analyst, > I believe the author covers telecom. yes, sounds so boring.
jayjay77 Wrote: ------------------------------------------------------- > My suggestion is to look at industry websites and > newsletters in addition to the company websites/ > press releases. Good telecom sources of info > include Light Reading, Fierce Telecom, Fierce > Wireless, CTIA website and newsletter, FCC > website. This is helpful. Thanks for the jump start. @Nattielight - You are correct. I have that book and found it very informative with what really goes on. I emailed Dan Reingold after I read it to ask a few questions and tell him about my loss on WCOM. He promptly and politely replied offering more information. Perhaps I’ll touch base with him again and ask how I should begin covering the Telecom industry. Can’t hurt.
^that book is pretty dated if you’re looking into “what goes on” in SS ER
you want to read a good BS SS analyst book? “The Super Analysts” by Andrew Leeming. a lot of fundamentalist in it discussing a variety of industries from telecom to tech to healthcare, etc.
Telecoms might have been a good choice. It isn’t an industry in which you will lack an edge as someone mentioned, like for example mining/commodities against someone with a chemistry background, tech against someone who did engineering, etc. It is my experience that real estate also seems to be very specialised. In any case, so far I have found RE projects really boring at my firm. Energy also is pretty specialised. You need technical knowledge about for example wind parks, solar farms… A good understanding of subsidised programmes as well. But not a nut you can’t crack. It’s pretty big here in Germany. So far one of the industries that I have found very interesting and relatively unknown is temporary staffing. Nice margins and low capex, low fix costs. Watch it become hugely profitable in continental Europe as labor becomes deregulated… Don’t know why I’m writing all this…Oh yeah. Don’t feel like correcting my Schweser mock exam. 
The Super Analysts… $100+ it seems. Is this setting up to be the next Margin of Safety (Klarman) with respect to price?
Jscott24 Wrote: ------------------------------------------------------- > ^that book is pretty dated if you’re looking into > “what goes on” in SS ER I don’t remember too many parts being off, but there was one in particular. I’m not sure if I have it quite right, but I think one of his companies was going to miss on earnings, so he ushered them up to Boston to have meetings with places like Fidelity so that the company could let the big investors down softly (and obviously get out of their position). And then the author called his other clients. Finally, the company announced its disappointing earnings. And it was like in 1999, not 1959. I had been ingrained by the CFA ethics that you can’t do stuff like that. Wonder what the CFA ethics policy was like before Reg FD.
darkxfriend Wrote: ------------------------------------------------------- > The Super Analysts… $100+ it seems. Is this > setting up to be the next Margin of Safety > (Klarman) with respect to price? the price is $27 bucks hardcover, you are looking at some amazon rip off man. Its a good book, gives you some insight, right after the dotcom era. Goes into how they look at stocks, what ratios or models they have used, methods applied, sectors covered. They start off talking about their background and education, etc. Its pretty interesting, they are all interviews with top analysts. I got the book before I finished my undergrad as a gift, I had no idea the differences between buy and sell side at the time and how they coincide and work together.
I find media interesting. At the moment there are lots of value and/or distressed plays in traditional media (radio, TV, newspapers) and lots of growth plays in emerging media/technology. The downside is that media doesn’t really produce anything “tangible” and is heavily reliant on advertising as the main driver of performance.
^^ Hence the high value-added of people who can value media stuff.