Recording-2025-03-06T20:34:01.691Z

Stockpitch Competition Kickoff Meeting

Introduction

Kickoff meeting for the Stockpitch competition. Participants are encouraged to commit fully, as there is no penalty for dropping out, allowing students to evaluate their level of engagement without fear. Participants should be genuinely interested in learning and contributing to discussions and analyses throughout the competition.

Audience Participation

Participants asked to identify their year in school (freshman, sophomore, junior, senior). There is an acknowledgment that there are more freshmen and sophomores present than upperclassmen, which can influence team dynamics and mentorship opportunities.

Instructor Background

• Name: Brian

• Current Status: Senior at San Diego State University

• Experience:

  • Internships in various sectors including insurance, investment banking, and equity research.

  • Participation in multiple stock pitch competitions and CFA research challenges, giving him practical insights into competitive analysis.

  • Experience working under professional investment managers, providing a strong background in evaluating and managing investment portfolios.

Stock Pitch Competition Overview

• Purpose: Participants will learn to select, analyze, and pitch stocks through a structured process that encompasses both qualitative and quantitative analysis.

• Structure of the Competition:

  • Select a company from a provided list (5-10 companies) tailored to offer diverse industry exposure.

  • Conduct fundamental analysis:

    • Read earnings call transcripts to understand company performance and management perspectives.

    • Review SEC filings and investor relations websites for key data points and disclosures.

    • Analyze financials using Bloomberg terminal for in-depth market metrics and financial health assessments.

    • Perform relative analysis with peer companies to benchmark performance.

  • Develop a unique investment thesis that critically assesses the chosen company’s potential in the market.

Fundamental Analysis Techniques

• Importance of understanding a company's performance relative to its peers (e.g., Costco vs. Target vs. Walmart), which provides a context for evaluation.

• Analyze industry trends to gauge a company's performance amidst competition, taking into account market cycles and consumer behavior shifts.

• Conduct risk analysis to understand price fluctuations based on market conditions, identifying potential threats and opportunities for investment profitability.

Developing a Thesis

• Participants will establish whether a stock is undervalued or overvalued based on fundamentals, using metrics like P/E ratios, dividend yields, and earnings growth.

• Focus on disconnects between business performance and stock pricing, often seen in high-growth sectors where investor sentiment can diverge from financial reality.

• Search for unique catalysts (e.g., new products, management changes, regulatory actions) that could significantly influence stock prices in the near term.

CANSL Framework

Acronym to guide stock analysis:

• C: Current/quarterly earnings per share (growth rates).

• A: Annual earnings increases demonstrating consistent growth.

• N: New products or events that act as catalysts for price movement.

• S: Scarcity of supply affecting stock performance, such as market demand exceeding production capabilities.

• L: Laggards in the market that provide comparative insights for potential upside.

• I: Institutional ownership levels, which can signal market confidence.

Stock Market Basics

The stock market is a platform where ownership stakes in companies are bought and sold. There’s a clear distinction between private and public companies (e.g., brands like Arizona Tea that operate privately).

Investing in Stocks

Reasons to invest:

• Accessibility and potential for high returns compared to other assets like gold or bonds.

• Key factors influencing stock valuations include effective management and growth strategies, which can significantly increase a company’s market cap.

Key Factors and Expectations

Factors influencing stock prices include fundamentals (e.g., earnings growth) and speculation, where market sentiment plays a critical role. Investors often look for surprises that exceed market expectations, creating potential for price increases based on tangible results.

Team Dynamics and Reporting

Participants will form teams to collaboratively select their stock, conduct thorough analysis, and report comprehensive findings. Reports will encapsulate investment theses and are expected to be presented to finance professionals, enhancing public speaking and professional interaction skills.

Continuous Learning and Improvement

The instructor emphasizes the need for ongoing improvement in analysis and decision-making processes, encouraging participants to challenge assumptions and validate findings. The importance of utilizing resources and dedicating time to extensive research cannot be overstated, as these skills are vital for future finance careers.

Conclusion

Expectations for Commitment: Active participation and dedication to learning and teamwork are crucial for success in this program. The ultimate aim is to cultivate strong teams to enhance San Diego State's reputation in financial competitions, making this a valuable experience for all involved.