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chapt2 C&&C > FINMAN 8 CHAP1 > Flashcards

FINMAN 8 CHAP1 Flashcards

1
Q

primarily means analyzing the
company’s financials, performing ratio
analysis, forecasting the financials and
exploring scenarios to make a
BUY/SELL stock investment
recommendation.

A

equity research

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2
Q

what is the purpose of equity research?

A

To study companies, analyze
financials, and look at quantitative and
qualitative aspects mainly for decision:
whether to invest or no

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3
Q

he / she works for both buy-side
and sell-side firms in the
securities industry. They produce
research reports, projections,
and recommendations
concerning companies and
stocks

A

equity research
analyst

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4
Q

equity research process

A
  1. Economic Analysis
  2. Industry Analysis
  3. Company Analysis
  4. Financial Statement Analysis
  5. Equity Research Report Writing
  6. Presentation & Recommendation
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5
Q

refers to evaluating costs and benefits to check the
viability of a project, investment opportunity, event, or any other matter.
In other words, it involves identifying, evaluating, and comparing costs
and benefits.

A

Economic analysis

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6
Q

a marketing process that provides statistics
about the market potential of your business products and services. This
section of your plan needs to have specific information about the
current state of the industry, and its target markets.

A

industry analysis

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7
Q

example of step ______ in equity research process

collecting data related to the economic situation of the
country, the demand for the product/service, statistics related to the
income per capita of citizens within the economy, inflation,
employment rate, etc

A

STEP 2: INDUSTRY ANALYSIS

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8
Q

Business Industry / Sectors

A

Financials
Mining and oil
Media
Services
Logistics
Construction
Real estate
Retail
Agriculture
Manufacturing

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9
Q

Give companies that are under: financial industry

A

BDO
EASTWEST
PNB

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10
Q

Give companies that are under: mining and oil industry

A

ATLAS Mining
NAC
MARVENTURES

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11
Q

Give companies that are under: media industry

A

ABS CBN
GMA
TV5

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12
Q

Give companies that are under: logistics industry

A

2GO
ROYALCARGO
J&T EXPRESS

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13
Q

Give companies that are under: construction industry

A

NMADES CONSTRUCTION
DMCI HOLDINGS INC.
SAN MIGUEL CORP.

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14
Q

Give companies that are under: retail industry

A

SM SUPERMALL
ROBINSONS MALLS
WALTERMART

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15
Q

TYPES OF SERVICES IN BUSINESS INDUSTRY

A

➢ Transportation
➢ Hotel and Leisure
➢ Retail
➢ Education
➢ Casinos and Gaming
➢ Information Technology
➢ Telecommunications
➢ Other Services

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16
Q

(a.k.a.
fundamental analysis) examines a
firm’s financial condition, products
and services, and competitive
strategy. Typically, this allows us to
better identify how an organization
responds to external threats and
opportunities

A

Company analysis

17
Q

are a basic tool in analyzing a firm.

A

SWOC AND PESTLE

18
Q

things your company does well

A

STRENGTHS

19
Q

things your company lacks

A

WEAKNESSES

20
Q

underserved markets for specific products

A

OPPORTUNITIES

21
Q

emerging competitors

A

THREATS

22
Q

examples are gov’t policy, political stability, corruption

A

POLITICAL

23
Q

examples are economic growth, exchange rate, interest rate

A

ECONOMIC

24
Q

examples are population growth rate, age distribution, career attitudes

A

SOCIAL

25
Q

technology incentives, level of innovation, automation

A

TECHNOLOGY

26
Q

weather, climate, enviromental policies

A

ENVIRONMENTAL

27
Q

discrimination laws, antitrust laws, employment laws

A

LEGAL

28
Q

involves gaining an understanding of an
organization’s financial situation by reviewing its financial reports. The
results can be used to make investment and lending decisions.

A

Financial statement analysis

29
Q

Includes all the components of an
equity research

Can be used in the CFA equity
research competition

A

REPORT WRITING

30
Q

SKILLS REQUIRED FOR Equity Research

A

Excellent financial analysis and equity research skills

Global and business awareness / knowledge

Presentation and writing capabilities

Correct judgement

Great assumption bias

Teamwork

31
Q

BENEFITS OF Equity Research

A

❑It gives us a glimpse of what’s going on in
the industry
❑Provides information about private
companies
❑Serves as a credible tool in evaluating the
“true” condition of a company

32
Q

TOP MARKET RESEARCH
COMPANIES IN PH

A
  1. Stitch
  2. Spectacle
  3. BIXA
  4. Prestige Research
  5. Kadence International
  6. Antedote Research Co.

chapt2 C&&C (10 decks)

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