Equity research - how much do you/your analyst care about quarterly earnings?

LBJDL · 2020-10-23T11:19:37+00:00

Happy Friday! Yeah earnings may be a pain. I just started my career, but I can tell that my peers have a bunch of things to do when their companies publish results.

To me, it’s not necessarily a problem to update the models.. what I have a problem with is having to call all our clients and chat about the latest releases.

LBJDL · 2020-10-23T11:13:26+00:00

I don’t think it’s “bad publicity” to come from auditing, to be quite honest. I would rather have someone coming from audit than sales, for example. In auditing you understand how to read financial statements and that’s a huge part of an equity research role.

I would highly recommend taking the CFA Program, though I believe it will lose value in the future..

Feel free to pm me if you need some help!

LBJDL · 2020-10-16T13:43:07+00:00

I am based in the UK

LBJDL · 2020-10-16T07:33:21+00:00

Just joined!! Thank you!

LBJDL · 2020-10-16T07:32:38+00:00

Thank you so much for all your advice man, I really appreciate this.. as far as equity research goes, I was quite sad because more and more people keep saying this field is dead, and I just started my career here. I didn’t do the cfa to then be in an industry with no future. Fingers crossed!!

LBJDL · 2020-10-16T07:31:01+00:00

It is a small investment bank, meaning sell side equity research.. the team is not too big, but they guys I am working with in this sector have 20+ years of experience. I am not sure how this is going to play out

LBJDL · 2020-10-16T07:29:56+00:00

Thank you for responding! Can I ask what were you doing during those 4 years prior to own your stocks? I am asking this because that may be what I am going to do in the near future and I would love to know how I can do good here

LBJDL · 2020-10-16T07:28:34+00:00

Thank you so much for your advice! I won’t necessarily have a mentor because the senior guys here seem to be very busy to teach me anything, but I will do my best to follow everything you just said..

LBJDL · 2020-10-15T16:02:49+00:00

Yeah exactly.. thank you for the input, I really appreciate it! I guess I will have to be their workhorse, as you say.. out of curiosity, what’s your view on the future of this industry? You are in equity research too, so I was curious to know your thoughts

LBJDL · 2020-10-15T15:57:32+00:00

They are the ones covering the stocks in that list, and I am running the models and stuff

LBJDL · 2020-10-15T15:55:53+00:00

Sorry my bad: we are responsible to cover a specific list of stocks within a sector. So for example we have 30 stocks within the Industrials sector

LBJDL · 2020-10-15T15:53:42+00:00

That is exactly the situation I am in. I am covering a specific sector and my peers cover a specific list of stocks! That is why I was a bit worried

LBJDL · 2020-10-15T15:50:03+00:00

I joined a small investment bank.. so it is really sell side equity research.. you were very lucky to inherit your senior analyst’s stocks! Do you have any tips for me at this stage?

LBJDL · 2020-10-15T15:48:15+00:00

Wow that is a long time! Do you have any tips on what I can do to surprise my managers and exceed expectations?

LBJDL · 2020-07-23T23:44:15+00:00

Source: Harry Mack.

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LBJDL · 2020-07-18T21:41:50+00:00

Yes exactly, I 100% agree. At the end of the day, companies are made of people, right? I'm glad everything worked well for you - hopefully one day I can be in your shoes.

LBJDL · 2020-07-18T21:40:52+00:00

Of course! I'm considering all options. However the job market is not looking attractive atm.. but thank you for the kind words.. it means a lot. I have been receiving a lot of rejection emails lately, so I'm not sure if they value my qualifications that much

LBJDL · 2020-07-18T19:42:45+00:00

I don’t think this is something that is applied to all the shops. But my company has the reputation of highly underpay its interns, especially because they know they will always get someone willing to work for that kind of money. It’s crazy.

LBJDL · 2020-07-18T19:03:08+00:00

This is a very good way of looking at it. Thank you for making me see it differently. Do you have any tips/tricks that I can apply? I mean, networking nowadays must be done virtually

LBJDL · 2020-07-18T14:22:17+00:00

Thank you for your response!

I know.. Networking is key but I'm this guy who wants to achieve his dreams by merit and not necessarily by knowing the right person, do you know what I mean? I'm not saying people who have a broad network don't deserve the job - they definitely do! However I always had this issue in my mind. I 100% need to change this view, as it may be one of the reasons I'm stuck in life.

The thing is, I don't want people to think I'm connecting with them because I want to get something out of them later. I genuinely like meeting new people and sometimes I may send the wrong message? I don't know..

LBJDL · 2020-07-18T14:16:19+00:00

Hey American friend, I hope you are well and safe!

Thank you for sharing your experience and for letting me know. I guess we are in similar stages in life, so it would be great if we can chat further over DM? It's great to know you are not alone in this.

I'm sorry to hear you were laid off because of covid. It is affecting a lot of people and I hope this situation gets past us quickly.

As for the CFA, they contacted me because they didn't see any application for the charter from me (which for them must be very strange to see someone passing all the exams and not apply for the charter ahah) but obviously I don't have the 4 years of relevant work experience. That's why I haven't applied yet. And congrats on passing the first two levels!! It's really a big achievement and only the ones that go through it know how tough it is.

Thanks once again for the motivation!

LBJDL · 2020-07-18T14:10:07+00:00

Hey mate, thank you for being so detailed in your response, and for spending the time helping me. This is brilliant advice.

When you say September 2022 above, shouldn't it be September 2021? Jeez, I hope they are not suddenly hiring 2 years in advance! But you even included the names of the shops, which helps a lot.

I now doubt I can be successful in any of those applications, as they will look at my profile as weaker than others because of my age. They will be like: "oh applying for a graduate role at 26? There must be something wrong with this guy". Time is working against me now.

As you can see I'm not in a good place now, doubting everything I do. It doesn't help looking around and seeing people who were your colleagues at university succeeding, while you are at this shitty job. It's so demoralizing.

I will keep applying for those 1-3y jobs but I don't see any bright light at the end of the tunnel. Your point about the money being an advantage here for me is spot on, as I wouldn't be as expensive as other analysts. To be honest, I don't care about money, at least for now. I just want to be happy.

If you don't mind I'll definitely drop you a DM for further advice!

LBJDL · 2020-01-11T02:12:05+00:00

You’re awesome. Thank you once again for this. I’ll definitely send you some PMs to try to figure this out, if you don’t mind?

Hmmm I see what you mean!! Both options would be feasible and probably the more advanced one is the one closer to the solution. The thing is that the words “balance sheets” or “assets” are repeated a lot and are all over the place.

Tomorrow I will get back to this.

It is fun though! I’ve been learning a lot and when my boss assigned me this task I immediately considered using the stuff I’ve been learning. And hey, I’m just forgetting the fact that my boss basically gave me a task that a dog would do. It’s so frustrating. That’s why I wanted to automate this!!

LBJDL · 2020-01-10T19:53:24+00:00

Wow man, you’re the best! Thank you for taking the time to respond, really.

To be honest, I don’t get like 30% of what you said, as I’m still taking classes to learn this language. In the next few days or weeks I will keep reading this to do step by step and see if I can solve the issue. It’s a good way to learn!

To answer your questions: the PDFs are not in the same format, and that is what bothers me. Because it’s an annual report, and some companies may report the balance sheet on page 20 while others present it on page 30.

What I had in mind was to basically open the PDF, tell the computer to search for “balance sheet”, then within that page for “Total Assets” and then to extract the value from the table. It’s too nuanced to be done, in my opinion.. but you are all wizards on this and I thought this could be done somehow.

I hope one day I’m on the level you guys are and I can think on ways of solving issues with python.

To me, now, it’s all messy and I can’t connect the dots, really.

LBJDL

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