Methodology
We are stock analysts not company analysts.
• Unlike traditional equity research analysts at investment banks, we focus on stocks, not just on companies. Companies and stocks are distinctly different. A good company does not necessarily mean a good stock.
• Our expertise is to identify and concentrate on information critical to a stock’s performance within a specific time horizon.
We believe in exhaustive and meticulous due diligence.
• We develop views on an industries, a company, and ultimately on its stock price, by conducting exhaustive and meticulous due diligence which is labor intensive while dependent upon industry expertise and business acumen.
• Our research focuses on distinctions from consensus opinion and concentrates on stocks for which our research aims for variant views.
Independent research means unbiased views on stocks.
• Despite the theoretical presence of a Chinese Wall, sell side research continues to be used principally for the benefit of banks’ underwriting and advisory businesses. The desire to preserve existing relationships and develop new ones in the investment banking area creates an inevitable bias. Therefore, banks’ analysts are either restricted or constrained from candidly expressing their views.
• We have no such conflict of interest in the entity being analyzed, allowing us the freedom and flexibility to express our investment conclusion solely for the benefit of our clients.
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