How to Pitch a Stock
Three Questions need to be answered in your Pitch…..Who? What? Why?
Who?
General Background of the Company: Headquarters, Number of employees, store/manufacturing locations
C-suite: The Executive-Level Managers Within a Company.
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CEO, CFO, CIO
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What is their experience in the industry?
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New, old, scandals?
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Detail the company culture
What?
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What product or service does this company provide?
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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.
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Why Buy now?
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Why is it undervalued?
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What will change that will increase the share price?
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Is there a different reason to invest?
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Diversification, income
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Financial Metrics
Market Cap, P/E Ratio, 52 Week Range, Beta, Reported Earnings + Earnings Estimates, EBITDA
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Talk about what you know and keep it simple
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Revenue, profit, margins
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Compare to a Rival and Industry Average
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Why this company instead of a competitor?
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What makes it superior?
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Nice way to summarize pitch in the middle
Risks
Don’t be afraid to share the risks of your proposed investment.
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No company is perfect and an Educated audience knows this.
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This legitimizes your argument
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Don’t dwell and have a good defense
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Spin it to benefit your argument
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Research Resources
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Always check a Company’s Investor Relations page on their website for Earnings, Annual Reports, Etc.