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Stock Pitch Information Session Fall 2022

Big Red Investment Club

Brian Potts, Chief Investment Officer

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Agenda

  1. Learning Objectives of Stock Pitch
  2. Program Prerequisites and Application
  3. Provided Materials
  4. Attendance
  5. Program Roles and Organization
  6. Program Design and Policy
  7. Valuation Bootcamp
  8. Stock Pitch Competitions

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Learning Objectives

  • Perform Analysis of
  • Current Holdings
  • Sectors and Industries
  • Prospective Equities
  • Navigate Bloomberg Terminal
  • Become an Excel Expert
  • Discounted Cash-Flow Modeling
  • Valuation Education
  • Develop Professional Work

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Stock Pitch Course

You’ll contribute 5+ hours per week of:

    • Involved Engagement
    • Active Learning
    • Diligence

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BUT

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Stock Pitch Course

  • Internship Experience
    • Get a top job
  • Club Involvement
    • Create lasting relationships
  • Making Money
    • Find the right stocks and grow your investment accounts

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Prerequisites

  • UNL Students of Any Major
  • GPA Requirement of 3.00
    • To reduce risk of stock pitch interfering with performance on school work
  • Dues must be paid to Treasurer ($20)

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Materials

  • Bloomberg Market Concepts Course (Code Provided)
  • Wall Street Prep Premium Package (Highly Discounted through the University)
  • Equity Research Essentials and Guidelines (Documents Provided)
  • Industry Research Essentials and Guidelines

(Documents Provided)

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Attendance

  • Attendance on Tuesday and Thursday, 6:00PM -7:00PM in Trading Room HLH 104 (Must attend 60% of cumulative meetings, in-person)

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  • Attendance QR Code on the screen at the beginning of each meeting

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  • Highly recommended to meet with your group outside of class (this will happen naturally)

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Attendance

  • In general, arrive on time and stay the full scheduled time. If circumstances arise in which you must arrive late or leave early, notify me. If not excused, then this will result in a half-day deduction from the cumulative attendance policy.
  • Excused absences: do not count towards the attendance policy
    • Other Classes
    • Religious Observances
    • Etc.

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Course Design

Three Areas of Research

  1. Equity Analysis
    1. Forward-Looking; Potential Future Holdings
  2. Industry Research
    • Economic Based; More Broad than Equity
  3. Portfolio Analysis
    • Current Holdings; Revisit Past Reports
    • Allocations, Risk, and Performance Metrics

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Executive Roles and Responsibilities

  • Chief Investment Officer
    • Lead the program, organize program structure, develop educational material, make trades
  • Director of Equity Research
    • Emphasis on high-level strategies, advise equity teams on reports
  • Director of Industry Research
    • Lead industry and economic research, advise equity teams on industry/economic risks

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Executive Roles and Responsibilities

  • Director of Portfolio Management
    • Lead research on current holdings, past reports, allocations, and risk management

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Roles and Responsibilities

  • Associates
    • Lead an equity team, answer analyst questions, delegate tasks, research new equities
  • Analysts
    • Research new equities and LEARN

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Roles and Responsibilities

  • Portfolio Managers
    • Revalue current holdings, revisit past pitches, form equity allocation recommendations, manage risk
  • Industry Analysts
    • Research industry and economic trends, form sector allocation recommendations, advise equity teams on industry sections

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Organizational Structure

Chief Investment Officer

Director of Portfolio Management

Director of Equity Research

Portfolio Manager

Associates

Analysts

Director of Industry Research

Industry Analysts

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DER

Analysts

Stock Screening Assistance

Preliminary Report Feedback

Educational Materials

Direction on sources of research and analysis

Valuation Assistance, Feedback & Discussion

Assistance for Equity Research Teams

Serve as Liaisons with the Industry Team and Portfolio Team

Associate

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Course Design

  • Group Assignments
    • Dependent upon your Area of Research
  • Completion of Equity Research Report
  • Completion of Industry Research Report
  • Reevaluation of Reports

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  • Individual Assignments
    • Dependent upon your Tier

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Tier System

  • Separate from Leadership roles (Director, Associate, Analysts)
  • Based on:
    • Time with the Club
    • Individual Assignments completed
    • Reports completed
  • Bloomberg and Wall Street Prep modules

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Individual Assignments

  • Individual Assignments to be Completed
    • Tier 1
      • BMC, Analyzing Financial Reports
      • Valuation Bootcamp
    • Tier 2
      • Excel Crash Course, DCF Modeling
    • Tier 3
      • Financial Statement Modeling, Trading Comps

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Equity Research Division Goals

  • Educational & skills improvement of equity research members
  • Equity research report & presentation preparedness and quality improvement
  • Contribute to the goals of the portfolio and the goals of stock pitch members
  • Prepare equity research division members for leadership roles in the future

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Equity Course Design

  • Equity Research Report

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  1. Industry Report Submission

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  • Equity Research Competition – in Atrium
        • Before Dead Week

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Industry Research Design

  • Part 1
    • Industry Descriptions
    • Industry Dynamics
  • Part 2
    • Industry Trends and Performance
    • Leaders & Disruptors

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Industry Research Design

  • Part 3
    • KPIs and Economic Sensitivity
    • PESTEL and BCG/Ansoff Matrices
  • Part 4
    • Risks and News
    • Industry Recommendations

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Equity Research Design

  • Part 1
    • Basic Information
    • Business Description
    • Management and Governance
  • Part 2
    • Industry Overview
    • Competitive Positioning

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Equity Research Design

  • Part 3
    • Financial Analysis
    • Investment Risks
  • Part 4
    • Valuation
    • Investment Summary

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Industry Research Team

  • Conduct industry and economic research, create and update Sector Reports
  • Recommend sector allocations and opportunities to pursue, work with Portfolio Management team to choose sector allocations and equity weightings
  • Semester or more of stock pitch preferred, should have an interest in economic research and finding new markets
  • Members can handle as little as 1 sector or as many as desired

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Portfolio Management Team

  • Make and update valuations on current holdings and previous pitches, as well as new prospects
  • Calculate portfolio metrics, recommend changes in existing positions, work with Industry Research team to choose sector allocations and equity weightings
  • Semester or more of stock pitch preferred, should have a solid understanding of DCF and Relative Valuation
  • Members can handle as little as 1 equity or as many as desired

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6-8 Session New Member Bootcamp

Session Topics

    • Accounting Basics
    • Finance 101
    • Costs of Capital
    • Company Ratios
    • Equity Screening
    • Competitive Positioning
    • Financial Analysis
    • Valuation

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6-8 Session New Member Bootcamp

30-45 Minute Session starting at 6:45

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Material will be provided on the Canvas page before each session for those that aren’t familiar.

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Mandatory for new members, can be flexible for those with finance classes taken

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3-6 Session Valuation Bootcamp

Session Topics

    • What is Valuation?
    • Determinants of Stock Value
    • Accounting Principles
    • Financial Statements
    • Discount Rates
    • Company Ratios
    • Discounted Cash Flow Valuation
    • Relative Valuation

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3-6 Session Valuation Bootcamp

30-45 Minute Session starting at 7:00

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Material will be provided on the Canvas page before each session for those that aren’t familiar.

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Mandatory for tier 1 and 2 analysts

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Presentations and Competitions

  • No longer than 12 minutes (You will be cut off)

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  • 5 Minutes for Q&A Session

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  • Judged by Chartered Financial Analysts and Faculty Adviser using CFA Institute Rules and Rubric

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  • Chance to attend National Competitions

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Other Presentations

  • Industry and Portfolio Analysts will have opportunity to briefly present findings at general meetings
    • Industry Analysts - Tied in with the Market Update or a separate presentation
    • Portfolio Analysts - Pitch on Current Holdings or Past Reports - Approximately 10+ Minutes

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How to Join

  • Applications will be sent to everyone by email (BRIC E-mail List) Can also be found on Discord on Announcements Page
  • Fill out Stock Pitch Application by Monday, September 5th at 6:00 PM and send to

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potts.brian@huskers.unl.edu

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**MUST ATTACH YOUR UNOFFICIAL UNL TRANSCRIPT (3.00 GPA Minimum)

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