Information includes the round number, round type, date, amount raised ($m), post-money valuation ($m) and company stage
If information is not available on financing rounds, include the logos of the investors
Company Filings – Press releases
Other databases such as Capital IQ, VentureSource, Thomson etc
Sources
Provides information about the owners of the Company i.e. who owns the majority stake, what type of investors are they
(strategic or financial)
This section provides the top shareholders of the Company by number of shares held & % held
Details include name of shareholder, shares held and percentage ownership
The top shareholders are calculated by considering all the shareholders (institutional, insider and float)
shareholders (institutional, insider and float)
In case of Multiple class of shares (MSH), shareholding of the primary listing is considered
Private Companies
In case of private companies, ownership is included in the form of a pie chart or qualitative text writing
Company Website or Filings
Other databases such as Capital IQ, Thomson, Bloomberg etc
Sources
Gives an overview about the key decision makers of the Company. Their affiliations provides additional information of the experience they have in the relevant industry
Includes the list of the top management team (C-Level) as per the following hierarchy
Always mention all the designations applicable for every individual e.g. if CFO is also SVP, Finance; the designation should be written as CFO & SVP, Finance
Abbreviations such as CFO, CTO, CIO, COO, SVP, EVP etc need not be expanded
Always cross check the Executive Management with the Company’s news section; sometimes a management change is announced but not updated on the website
State the management names in the format, <First Name> <Last Name>, preferably; Exclude middle names, nick-names, initials and titles (Mr. , Sir, etc.)
Company website (Management/Board/Executives section)
Company filings (Proxy filing/AR), presentations
Sources
Recent news section reflects the key happenings in the company, and its economic and regulatory environment
Primary objective is to give a quick snapshot about recent developments in the company in the past few months
Types of news to be included
Acquisitions
Types of news to be included
Customer contracts
DO NOT include news such as
Dividend declaration (a normal feature; usually declared every quarter)
Award wins
Participation in conferences
Launch of updated versions of any products, if the updates are too frequent
Law suits
Company Website
Other databases such as Capital IQ, Factiva etc
Sources
News Headline
News details Post formatting
Partnered with Novell Inc. to deliver Examples
Partnered with Novell Inc. to deliver hybrid options for high-performance computing, enabling users to balance server workloads using both SUSE Linux Enterprise Server and Windows HPC Server
News Headline
News details Post formatting
Announced the retirement of Robbie Examples
Announced the retirement of Robbie Bach from his position of the President, Entertainment and Devices division of the Company
Helps understand the business of the Company and its reporting structure
This section describes the products, services and solutions of the company
Each product/service should be briefly explained in 1-2 sentences focusing on what that product does/is used for
Provide explanation in a meaningful manner
If the list of products is too long to categorize, look for the same in the annual report/10K, which categorizes the products in a more suitable manner
Services, if ‘not very’ relevant (e.g.
24x7 support, training etc) can be mentioned in a single sentence
On the other hand if the company has 4-5 main product categories and each one of them includes 1-2 sub
categories, briefly explain all the products including the sub categories
Also pictures provides better understanding, Use as much as
Company Website or Filings
Presentations
Sources
Reflects the market / broker views on fundamentals of the Company i.e. a higher rating reflects strong
fundamentals & hence low level of risk and a lower rating reflects weak fundamentals & hence high level of risk
Indicates the analyst consensus
The Broker’s rating chart gives the breakup of the total number of Buy, Hold and Sell recommendations over an last twelve months (LTM) period
The section on Analyst Commentary provides commentary on the company from the analyst’s research reports – The commentary highlights the strengths of the company and how it has been able to benefit from these
strengths. It may also include the Company’s recent developments and which may have affected the share price and/or the analyst recommendation of the company
price and/or the analyst recommendation of the company
Databases such as Bloomberg, FactSet, Capital IQ, Thomson etc
Sources
Share trading analysis provides an overview of the share price and the various trends related to capital markets
This section is key to any of the books prepared
The purpose of this section is to understand and analyze the share price and capital market movements with respect to the chosen company
Various types of charts prepared – Relative share price performance – Annotated share price performance – Volume at price and liquidity analysis – Overview of Research analyst ratings – Development of Consensus Estimates – Broker Comment Frequency Analysis
– Valuation methods used by research analysts
Relative share price performance
Used to compare the performance of the company’s share with respect to the primary index in the market
Points to remember
– Always consider closing price of the stock instead of the last traded price
– The closing price to be considered should be of a day prior to the date on which it is created
– The index should always be rebased to the company’s share price in order to have an apples to apples comparison
Stock exchange websites
Databases such as Bloomberg, FactSet, DataStream, Capital IQ etc
Sources
Annotated share price performance
Prepared exactly as a normal share price performance chart with the only difference being the inclusion of news that reflect the changes in the share price movement
Always look for dates where there has been a drastic change in the share price movement vis-à-vis its primary index. Thereafter look for primary index. Thereafter look for news that have triggered those changes in the share price
Press releases from company website
Stock exchange websites
Databases such as Bloomberg, FactSet, DataStream, Capital IQ etc
Sources
Volume at price and liquidity analysis
Objective is to show in a chart how has traded volume of the share been distributed between different price ranges
Stock exchange websites
Databases such as Bloomberg, FactSet, DataStream, Capital IQ etc
Sources
Overview of Research analyst ratings
Gauges different analysts’ perception of the stock and what kind of recommendation they are making on it
The purpose is to understand the view of the market on the stock
Research reports
Databases such as Bloomberg, Capital IQ etc
Sources
Development of Consensus Estimates
Gauges the consensus estimates on Revenues, EBITDA and EPS for the future years and how they evolve
Consensus estimates represent the market perception on the future operational results of the company
Always calendarize the estimate to have a constant point of reference
Databases such as Bloomberg, Reuters, Capital IQ etc
Sources
Broker Comment Frequency Analysis
Conduct a qualitative analysis of the perception of the stock in the market, identifying key and
recurrent themes in the different analyst reports
Categorize these themes as positive and negative to indicate analyst comments
Key themes may include: trends in the industry, technological trends, extraordinary events, risks, challenges etc
Research reports
Sources
Valuation methods used by research analysts
To describe the valuation methods used by the research analysts covering the stock
Information to be included:
– bank/broker name
– main valuation methods used
– main comparable companies used for valuation purposes – key comments on the valuation of the company
Research reports