Stock case study

If you're new here, please click here to get my FREE page investment banking recruiting guide - plus, get weekly updates so that you can break into investment banking. Thanks for visiting! Numi Advisory is an expert in hedge fund and equity research recruiting, having advised over clients by providing career coaching, mock interviews, and resume reviews for people seeking jobs in equity research, private equity, investment management, and hedge funds full bio at the bottom of this article.

If you want to know how to pitch a stockit would be great to have a full stock pitch guide in one article… right? Also, interviewers will ask you to pitch a stock, often multiple times, if you want to get a job at a hedge fund. Finally, note that we are only covering stock pitches here — not credit pitches or distressed debt pitches or global macro pitches involving FX, commodities, or sovereign bonds.

You can use the same structure for those, but specific elements of the pitch, such as the valuation, catalysts, and risk factors, will differ. But where am I supposed to get ideas in the first place? And how do I complete the research process and build a valuation in only a few days? The blunt truth is that you need to be following industries or companies already to have a good shot of finishing a stock pitch, even a page one, in only a few days.

So, ideally, you already have in mind companies that are undervalued or overvalued and whose stock prices could change significantly in the next months. For example:. If you can screen by revenue, aim for companies with revenue in the hundreds of millions to low billions USD. Do not pick a company with 20 different business lines where each segment depends on different assumptions.

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In our example stock pitches here, I picked Jazz Pharmaceuticals partially because it had a manageable number of products — the main one, two smaller ones, and several even smaller ones that we consolidated:. A company that just announced an acquisition or divestiture, a major product or clinical trial results, or a major strategic pivot is a good bet. One final note: do not rely on equity research reports to find companies or investment theses. Equity research is useful for gaining background knowledge and finding market data, but you should not use it for building your investment thesis.

You will not be able to read thousands of pages if you have only a few days or a week, so we recommend the following steps:. You can understand the research and valuation process in-depth and financial modeling in Excel by completing our courses:. In this section, you present the most convincing arguments for your pick. We recommend the following structure:. It is not a great idea to give specific probabilities here e. In the PowerPoint version of the Jazz stock pitch, we added a price-volume chart because of the extra space available:.

In the investment thesis section, you must point out something that everyone else is missing or misunderstanding about the company. Besides arguments about pricing and market size, there are many other ways to build an investment thesis.

Catalysts are most important for Short recommendations because overvalued companies tend to stay overvalued until a specific event, such as an earnings report far below expectations, suddenly makes everyone come to their senses.

If a company is high-quality, appropriately valued or undervalued, and has solid growth potential, its share price might increase gradually over time, and specific events are not as essential to your investment thesis.

In this section, you must resist the urge to paste in sensitivity tables and instead summarize the output, with a focus on the implied share price in different cases. Focus on the DCF or DDM, or NAV Model depending on the industry because it demonstrates your differentiated, long-term views of the company more effectively than the other methodologies. In this section, you cross-examine your investment thesis and point out all the flaws and reasons why it might be wrong.

The worst-case scenario is worth mentioning as well, especially in Long pitches: if the company completely crashes, what might its Balance Sheet be worth in a liquidation scenario?Nasdaq is the single largest U. It took minutes, literally. On our first proof-of-concept, we saw results within an hour. Such a multitude of software created over time, plus new innovations Nasdaq is continuously introducing, results in a diverse and complex ecosystem of technologies and infrastructure.

Understanding the application environment holistically is a challenge, and pinpointing issues impacting performance and availability can be difficult given the level of interconnectivity and breadth of the platforms. Traditionally, Nasdaq has monitored and managed its applications using a variety of somewhat disparate monitoring, alerting and log aggregation tools. This broad ecosystem creates inefficiencies in tracing a problem to their root cause. Doing the analysis could take lots of person-hours, sidetracking development and operations team members from more important projects, according to Eric Poon, Director of Operations Analytics.

Nasdaq software technology powers over 70 marketplaces, regulators, central securities depositories, and clearing houses in over 50 countries. From every perspective, Nasdaq is a software-driven business.

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The team scrutinized how the solution was architected to gather data, and what kind of usability and traceability it offered right out of the box. The flow map that came out of the box just really sold the product The AppDynamics Application Intelligence Platform immediately demonstrated its ability to deliver value right out of the box. The flow map that came out of the box just really sold the product during the POC.

Case Studies

By seeing how an application interacts with the different components inside or outside of the environment helps our new application development, and it helps in working with legacy code that a developer may not be the original designer for.

Visibility and rapid time to resolution are the primary benefits AppDynamics brings to Nasdaq, along with the potential to access a whole new level of actionable data. Teams have been freed from the onerous task of scouring logs to pinpoint issues, and time to resolution has been dramatically slashed — from hours or days, down to minutes.

The platform quickly points to the offending issues, whether in the code, with remote services, or a database. That visibility was especially valuable when Nasdaq was migrating a platform from its internal infrastructure to Amazon.

The team and users at Nasdaq speak highly of the AppDynamics platform. Going forward, Nasdaq sees strong alignment between the direction AppDynamics is going and the direction Nasdaq wants its technology to go.On Sept. It was a sombre reminder that nothing is forever—even in the richness of the financial and investment worlds. Lehman was the fourth-largest U. Lehman's demise also made it the largest victim of the U. Lehman Brothers had humble origins, tracing its roots back to a small general store founded by German immigrant Henry Lehman in Montgomery, Alabama, in The company grew from selling dry-goods to the cotton trade.

After Henry died, the other Lehman brothers expanded the scope of the business into commodities trading and brokerage services. As the U. But Lehman still had to contend with plenty of challenges over the years. The company survived them all—the railroad bankruptcies of the s, the Great Depression of the s, two world wars, a capital shortage when it was spun off by American Express AXP in in an initial public offering IPOand the Long Term Capital Management collapse and Russian debt default of Despite its ability to survive past disasters, the collapse of the U.

The company, along with many other financial firms, branched into mortgage-backed securities MBS and other collateral debt obligations CDOs in and With the U. These were made to borrowers without full documentation.

At first, Lehman's acquisitions seemed prescient. Lehman reported record profits every year from to In Feb. Defaults on subprime mortgages began to rise to a seven-year high. On March 14,a day after the stock had its biggest one-day drop in five years on concerns that rising defaults would affect Lehman's profitability, the firm reported record revenues and profit for its fiscal first quarter.

He also said he did not foresee problems in the subprime market spreading to the rest of the housing market or hurting the U.

The Collapse of Lehman Brothers: A Case Study

Lehman's stock fell sharply as the credit crisis erupted in August with the failure of two Bear Stearns hedge funds. During that month, the company eliminated 1, mortgage-related jobs and shut down its BNC unit. Even as the correction in the U. In the fourth quarter ofLehman's stock rebounded, as global equity markets reached new highs and prices for fixed-income assets staged a temporary rebound.

However, the firm did not take the opportunity to trim its massive mortgage portfolio, which in retrospect, would turn out to be its last chance. InLehman's high degree of leverage was 31, while its large mortgage securities portfolio made it highly susceptible to the deteriorating market conditions. These measures were perceived as being too little, too late.

Over the summer, Lehman's management made unsuccessful overtures to a number of potential partners. Lehman's fragile financial position was best emphasized by the pitiful results of its Sept. Moody's Investor Service also announced that it was reviewing Lehman's credit ratingsand it found that the only way for Lehman to avoid a rating downgrade would be to sell a majority stake to a strategic partner.

By Sept. You're probably wondering where some of Lehman's key figures are now. The firm is an asset management firm that services high-net worth individuals.

Fuld sold an apartment in New York City, as well as a collection of art he owned. He is still fairly critical of the U.I do a lot of case studies. I recommend that any burgeoning value investor do as many case studies as they can, sprinkled in among reading annual reports and other filings. You may, in fact, be better off knowing nothing of these. That, of course, is not the prevailing view at most business schools, whose finance curriculum tends to be dominated by such subjects.

My short definition: A case study is reading about a specific investment result and then attempting to reverse engineer the thesis and the thought process that the investor had when he or she made the decision to buy the stock, and then taking note of how that thesis played out during the course of the investment. Why did the investor buy it? What were they thinking?

How did it turn out and why? Was their thought process correct? If not, what went wrong? Could anything have been done differently to prevent or avoid the outcome? What are my takeaways that I can apply to my own investment process?

I still learn something new each time. So sometimes case studies are simply listening when other great investors are doing their own post-analysis. I often read through old letters from various funds I follow and come across and investment that did extraordinarily well or extraordinarily poorly, but without further commentary. Buffett likens this learning process to compound interest. So these case studies compound on themselves over time, improving our investment skill set and streamlining our ability to make decisions.

Our filters get stronger… Our risk management process becomes more robust…. As Buffett did, we get faster at saying no … It becomes easier to identify problems that might harm the investment, etc….

stock case study

Studying past successful investments provide us with blueprints for what to look for in future ideas. Studying what Henry Singleton did at Teledyne gives us a blueprint for successful capital allocation strategies … Eddie Lampert gave us a similar blueprint at Autozone AZO.

Lebron James won the game for the Heat with a game winning layup as time expired. I found the sequence of events that transpired during that play interesting. There were only 2 seconds left. The play was clearly designed for James to receive the inbound pass and take a jumpshot.Baylor Cherry September 17, Case Studies 17 min read. Building an effective content marketing strategy that can take your prospects through every stage of the buyer's journey means creating a variety of content.

From relevant, informative blog content to engaging webpages, landing pages, whitepapers, and emails, a comprehensive content marketing strategy should run deep.

One powerful, but often underused, piece of content is the case study. Case studies are narratives that feature real world situations or uses of products or services to demonstrate their value. A well written case study will follow a customer as they define a problem, determine a solution, implement it, and reap the benefits. Case studies offer readers the ability to see a situation from the customer's perspective from beginning to end.

A marketing case study is one of the most compelling content items in your sales funnel. Because of this, case studies are uniquely useful as bottom of the funnel content. By the time prospects are ready to read case studies, they have a nuanced grasp of the problem in front of them. They also have a good selection of potential solutions and vendors to choose from. In fact, there usually is.

The challenge is figuring out which one. The more similar the prospect is to the customer in the case study, the more striking it will be. For that reason, you might want to have a case study for every buyer persona you serve.

And naturally, case studies pertain to specific products or services, not your whole brand. Great case studies should pack a lot of meaning into a small space. In the best examples, your reader can grasp the single main idea of each page in a short paragraph or two.

Note: Some businesses will have a brief case study in PDF form to use as sales collateral then a longer form, more in-depth version of the same case study on their website.

In this case, it can be normal to write a lengthier case study. Ideally, you should upload case studies somewhere on your website so new leads coming to your site have the opportunity to see just how kickass your business is at driving revenue and results for your current customers. Whether it's an online case study or a PDF version, making your successes available to the public can prove just how valuable your efforts are.

Plus, make sure every member of your sales team has access to your case studies so they can use them as sales collateral to send to prospects and opportunities! A quick PDF attachment to a sales email can be very convincing. It also makes your content easier to read. At the same time, it ensures that your team will know exactly what information they need to compile to design case studies in the future.

If your client or customer gives the ok to use their name and information, then you can add as much detail as you want to highlight who they are, what you helped them do, and the results it had.

Like any good story, a marketing case study has a beginning, middle, and end. Once you define the problem, the next step presents your offering, which serves as the answer to the dilemma.

Your product or service is, in a very real sense, the hero of the story.General Disclaimer: The stock discussed here is not a recommendation or advisory.

Stock Analysis: The Most Important Things (Plus, A Case Study)

This is a quick analysis and there might be much additional information that you need to refer to study the company completely. This case study is only for the educational purpose to teach the practical approach while investigating stocks.

Please research the stock carefully before investing or take the help of a financial advisor. I bet you have heard or used this product multiple times in your life. There were many famous advertisements that used to run on our television during the s.

stock case study

Pidilite Industries is a popular consumer-centric company whose products you might have already frequently used- knowingly or unknowingly. They are the leaders in the adhesive industry and focuses on ease-of-use and value-for-money products. The company started with a single factory that manufactured only one product, Fevicol in If we look at the financials, Pidilite is a financially strong company.

PBT has also doubled itself in the last five years.

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Further, Pidilite industries is a completely debt-free company for many years. As ofits current ratio is 3 Quick tip: Current ratio greater than 1 is considered decent. If we look closely at the last 10 years financial performance of Pidilite industries, we can find a healthy growth trend in sales, operating profit, net profit, and dividends.

Besides, the net profit after tax is consistently growing at a splendid CAGR of Here is a quick snapshot of the financial performance of Pidilite Industries for the last 10 years.

Source: Pidilite Annual Report. Valuation: Pidilite Industries is currently trading at a consolidated PE of You can learn more about the valuation of stocks on my online course here. Dividends: Along with growth, Pidilite Industries has also been rewarding its shareholders with healthy dividends per share year-after-year. The company has been maintaining an excellent average dividend payout ratio of Moreover, the significant point here is a steadily growing dividend over time.

Source: Moneycontrol.

EV/EBITDA - A Tesla Valuation Case Study - How to Value an Unprofitable Stock

Here are few key competitive advantages of Pidilite Industries that helps it to remain profitable for the long-term:. This eases the pressure on the sales of other brands and results in reduced investment in other businesses. And it clearly reflects in its share price. Source: TradingView.

stock case study

Anyways, I believe you would have got a good idea of how to study companies while researching and critical factors to check -through this short analysis. In short, start reading the annual reports of the companies.

And so, I am delighted to share my learnings with you. Pidilite Industries is very famous for their product fevicol. Superb analysis, thanks for sharing with us. Keep it up future posting. In the stock reached Rs and significantly dropped at Rs 12 in January. It remained pretty low for the 5 consecutive years. At that time most of the investor would have never thought or predict such a rise in the stock.

It is easy to analyse historical data but significantly hard to give dependable predictions for the future. Company employs not support distributors……sir rurarban div.Now all staff members have access to learning courses, available for viewing on computers and mobile devices anytime and anywhere.

[Case Study] Pidilite Industries: A No-Brainer Stock

Given that the majority of potential users were young people interested in digital technologies, one of the key requirements for the system was its high-end nature. Simply put, the system should have been easy to use and able to provide the learners with access to a variety of courses.

Keeping all those criteria in mind, we got to the project. The whole implementation process took us 6 months May through October During this time, we managed to create and commence unique courses, each of which includes a video, theoretical material, and a quiz.

What amazed us is that by that time, we had already been using a learning management system for two years. However, there were several reasons why we could not improve the system the way we wanted to:.

This is how our experience in deploying corporate training helped us understand exactly what we wanted to see in a learning management system. Another key criterion was developer flexibility. Based on this criterion, we abandoned half of the potential LMS providers.

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We also really loved their team approach, which helped us in every task we had. It felt like we were working on our 10 th common project, not the first one. We are now convinced that a system of values should also be a criterion when choosing a business partner.

We finally implemented iSpring LMS, a learning management system that meets all our requirements. It is a cloud solution, which contains special sections for different organizations and user groups. We have managed to create one of the most well-structured learning management systems on the Russian market. Certification programs are created for employees who are interested in getting comprehensive knowledge of the stock market.

Development should be continuous, so all 46 courses are divided into 2 learning programs — Green Belt the first level and Black Belt the second level. Each level includes 3 modules of different complexity. After completing them, employees receive completion certificates. Each course includes a tutorial, a quiz, and videos created by leading experts. Modules are oriented towards those who would love to learn more about certain stock market tools. The learners have access to a variety of courses on stocks, bonds, and derivatives.


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