Case Study : Stock Picks for an Equity Research Company, USA
- Opportunity
To identify stocks (within a defined parameter) which are expected to post significant capital appreciation in the short/ medium run.
- About the Project
Our client is an equity research firm based in USA. According to their specifications, we were required to identify specific kinds of stocks currently trading at a particular rate. The Pi Business Research team also had to analyze the companies and spot those which had the potential to post significant capital appreciation in the near future. These would be good targets as Stock Picks for our client.
Other requirements given by client -
- The stocks had to be those that were listed on either the NASDAQ/ NYSE or Amex
- OTC/ Pink stocks (which generally trade at low values) could not be included
- Solution
It required a great deal of study and analysis in order to identify the correct stocks. The Pi team followed an exhaustive procedure to pick the relevant companies.
- Checked all the factors influencing a company's health
- Focused on the pertinent quantitative and qualitative factors
- Noted the mood of the market and the prevailing trends
The chief areas of analysis focused on recent stock movement, the Balance Sheet position, and the earnings momentum. Once our analysts were sure that a stock was undervalued and would trade at a higher price, we prepared a one page report, highlighting the reasons which made us believe that the company could do well in the near future. The target price for the short term period was also mentioned.
The stocks identified by Pi analysts continue to show impressive gains.
Pi Business Research team has had a success rate of 70% in this field of work.
- Client Comments
“Good Picks!”