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| author | nic <ra@afu.re> | 2024-07-30 20:54:47 -0400 |
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| committer | nic <ra@afu.re> | 2024-07-30 20:54:47 -0400 |
| commit | 973b079c7dded19fcf84f600c9dc230dc110503d (patch) | |
| tree | 0e4d5b1c784a3a39fcf0be77e603acfe7d52f925 /Finance/The Trade Idea Thesis.md | |
| parent | 0b29ebeaff0ff89f921496ec25046db99965a564 (diff) | |
Auto from nzxt - Tue 30 Jul 2024 08:54:47 PM EDT
Diffstat (limited to 'Finance/The Trade Idea Thesis.md')
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diff --git a/Finance/The Trade Idea Thesis.md b/Finance/The Trade Idea Thesis.md deleted file mode 100644 index 26e4968..0000000 --- a/Finance/The Trade Idea Thesis.md +++ /dev/null @@ -1,64 +0,0 @@ -# The Trade Idea Thesis - -Quantitative Analysis: Macro, Sectors & Stock Data - -Qualitative Analysis: The Story. Understanding the company business & commenting on it. - -KPI’s: Understanding the metrics that drive Revenue & Earnings - -Catalyst: Potential event that will drive alpha - -Time Horizon: Shortest time frame that will capture the catalyst(s) - -Price Target: Quant and Volatility analysis - -Trade Structure: Stock, options , spread trade ? Risk management ? - - -## Quantitative Analysis - -Numbers, Numbers and Numbers ! - -EPS0, EPS1, EPS2, PE1, PE2, EG1, EG2, PEG1, PEG2 - -To work out these numbers you would only need stock price, reported EPS and forward looking EPS. - -## Qualitative Analysis - -Why inferior/superior earnings and/or revenue growth ? -What are the drivers of growth ? -What advantages/disadvantages in relation to the sector ? -Will it continue ? -What are the future catalysts ? -Do you agree with the market ? -Will you have conviction medium/long term if in the short term it goes against you ? -Are you willing to buy/short more to back your idea ? -What are the risks ? -What changes the story, what changes your mind if you are wrong ? -Who is the management and is it any good ? -Who are the shareholders ? -What will affect earnings ? -What is the sector doing ? -What is the product ? -How do they fit in the supply chain ? -Who are the suppliers ? -Who are the customers ? -Who is the competition ? -What is the company share of the market ? Gaining / Losing ? - - -## KPI’s - -Most sectors have different KPI’s, find them usually in presentations, earning calls or industry reports. - - -## Catalysts - -Earnings, Buyback, splits, dividends, outlook -Acquisition, Restructuring and Deals -Legal & Regulatory issues -Analyst upgrade / downgrade -Credit upgrade / downgrade -Short squeeze -Conference & Events -Products launches |