Wednesday, October 10, 2012

Do Not Forget That Externalities Can Affect Your Stock Pitch

While it is true there are a few fundamental variables that will probably make or break your stock recommendation, do not forget there are externalities that you should also consider before heading into an interview to defend your pitch.  For example, what happens to your earnings estimates if there is a currency move?  What would reduced public sector spending from the U.S. Federal Government's impending fiscal cliff mean for your stock?  What happens if interest rates move?  What if Iran's nuclear development facilities are attacked by Israel or the United States?  Could the U.S. elections affect your pitch's key drivers?

While the answers may or may not be perfectly clear, you should step back and consider how big picture issues could change you recommendation.




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Copyright © 2012 Kingdom Ridge Capital, LLC. All Rights Reserved. Not a Public Solicitation.


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Tuesday, October 9, 2012

Stock Market Words of Wisdom (XVIII)


This idea of anticipation is key to investing and to business generally. You can’t wait for an opportunity to become obvious." 
Eddie Lampert



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Monday, October 8, 2012

Do Not Pitch a Stock and Say it is a Hold

I received a good question from a reader about stock pitches...does a stock pitch have to be a "Buy" or a "Sell" (or short)?  The quick answer is YES.

Interviewers will want you to take a stand and in their minds a "Hold" is not a stand.  The only exception I can think of is if a stock pitch you already prepared and submitted has moved to a price where your recommendation is no longer valid (e.g., you said to buy stock A at $30 and the day you walk into the interview it is $35 and your target price is $37).   In this instance you should note that the stock has already moved but if it comes back in to $30 you would be a buyer for reasons X, Y and Z.

Your interviewer might not like this and in this case will probably ask you to pitch another stock.  This is another reason why I recommend you have multiple longs and shorts to pitch in an interview.


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Copyright © 2012 Kingdom Ridge Capital, LLC. All Rights Reserved. Not a Public Solicitation.


Kingdom Ridge Web Site

Thursday, October 4, 2012

Want Feedback on a Stock Pitch? (Part II)

As previously posted, I am willing to give feedback on a Hewlett-Packard (HPQ) stock pitch.  HPQ's analyst day was held yesterday in San Francisco.  If you are creating an HPQ recommendation and want to see the analyst day webcast (or any of the management presentations), please check out the HP Investor Relations page.



                                                                       Hewlett-Packard CEO Meg Whitman




Copyright © 2012 Kingdom Ridge Capital, LLC. All Rights Reserved. Not a Public Solicitation.


Kingdom Ridge Web Site

Wednesday, October 3, 2012

Stock Market Words of Wisdom (XVII)


In this business if you're good, you're right six times out of ten. You're never going to be right nine times out of ten.

Peter Lynch



















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Monday, October 1, 2012

Stock Market Words of Wisdom (XVI)


"If I’d only followed CNBC’s advice, I’d have a million dollars today.  Provided, of course, I’d started with a hundred million dollars."   

Jon Stewart


















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