Three Questions need to be answered in your Pitch…..Who? What? Why?
General Background of the Company: Headquarters, Number of employees, store/manufacturing locations
C-suite: The Executive-Level Managers Within a Company.
- CEO, CFO, CIO
- What is their experience in the industry?
- New, old, scandals?
- Detail the company culture
- What product or service does this company provide?
- Understand and be able to explain exactly what the company does, never pitch a company you don’t understand.
Why?: Catalyst: An event, or expectation of an event, that drastically changes the price of a stock.
- Why Buy now?
- Why is it undervalued?
- What will change that will increase the share price?
- Is there a different reason to invest?
- Diversification, income
Market Cap, P/E Ratio, 52 Week Range, Beta, Reported Earnings + Earnings Estimates, EBITDA
- Talk about what you know and Keep it simple
- Revenue, profit, margins
Compare to a Rival and Industry Average
- Why this company instead of a competitor?
- What makes it superior?
- Nice way to summarize pitch in the middle
Don’t be afraid to share the risks of your proposed investment.
- No company is perfect and an Educated audience knows this.
- This legitimizes your argument
- Don’t dwell and have a good defense
- Spin it to benefit your argument
- Always check a Company’s Investor Relations page on their website for Earnings, Annual Reports, Etc.