Review My Stock Pitch
Hello,
I recently put together a few stock pitches and wanted to get some feedback since I am using these for job applications. I made them relatively simple and straightforward, with not much financials included besides a valuation and segment projection. It would be helpful to get your perspective on 1) Content/Argument of my investment thesis and other points 2) Overall presentation (financials, graphs, style, font, etc).
Thank you for the help.
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nvidia_stock_pitch.pdf 209.91 KB | 209.91 KB |
For some reason my file is not viewable. Anyone know how to fix this?
edit: it works on internet explorer but not chrome for some reason.
Comments on the writeup:
Comments on aesthetics:
Overall, your discussion in the writeup feels very broad/vague, as if there is a lack of fundamental understanding of the technology. I might be totally wrong on that, but that's the impression I'm getting. Take it all with a grain of salt; other than that, I think it's looking fine. It really depends on what type of investor you're trying to convince here. Some prefer brevity, some prefer depth. You just need to figure out who the reader is.
Thank you for the help. I definitely lack adequate understanding of the company/industry and violated one of my principles of only looking at companies that I truly understand. I only did it because the company had really strong financials/industry role, and the sharp decline in the market price sparked my interest.
I also didn't know how in depth to make the report since I was aiming for something basic (2-4 pages). I concentrated on the main points, but I will incorporate competitors and the business model as well.
Thank you for all the pointers, I'll work on them.
agree on it being a bit brief. also, be more honest with your bear case, a 40% profit in 12 months is not bearish. bear cases assume the company fails to execute, something macro happens, or their multiple gets re rated, that doesn't usually add up to a 40% profit.
for good examples of student written reports, check out columbia's GSB newsletters: https://www8.gsb.columbia.edu/sites/valueinvesting/files/Graham%20%26%2…
NVDA is an interesting one, because looking at the financials, it deserves every bit of price growth, but it's also had a PE expansion up until the price declines of late. if I'm reading a report on a stock that's down over 50% from its 52 week high, I want you to address that more thoroughly. did the market give it too high a PE and take the price well beyond fair value? did the company have a temporary sales bump that won't repeat itself? did their major capex in 2018 send the wrong signals? look more under the hood.
also, don't use the AI/autonomous driving thesis. the companies making those products admit that they're still a ways away. Or, maybe I'm wrong and they're closer than expected. address this. "Waymo (GOOGL's autonomous vehicle division) estimates that spending on semiconductors will grow by 30% more yoy beginning in 2020, as the average AV needs 100x the number of semiconductors as a ford focus. NVDA's pre-existing relationships with these vendors puts them in a unique position of being an early mover with the manufacturing capacity, quality, and buyer relationships to take advantage of the coming mobility revolution." that was totally made up, but that's better than just saying they have partnerships. tell me about WHY that matters. how many more chips does that mean they can sell? how are those deals structured? do they get 1/3 of the chip allocation or is it all-or-nothing?
tldr: good start, needs more meat and some polish. pls fix thx
Thanks bro. My bear case was that their growth will slow down because it has been so high. I didn't see how their profit would be negative though since their margins are so high. It is not 40% though, you probably misread.
Good point on the high PE valuation (the company might have been overvalued in the first place). From what I have researched so far, nothing has changed in the company besides the downfall of crypto (which should not make the price drop by 50%), and everything else looks favorable.
I agree that the AI thesis point is weak and I considered not including it since there is not much data to back it up and my understanding is limited. I will research further or exclude it altogether.
Thanks for the help.
I did misread, but a bear case should almost always be negative, so the advice stands. they can have positive profit but negative stock price performance
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