Explain contents of stock position of report.
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Answer:
There is no one standard format, but you should look for a report to have several key sections. I would group them generally into macro (economy/sector) and micro (subject company) analysis. Some recommended sections include, but not limited to: Basic subject company's information; investment summary; business description; management and governance; industry analysis; valuation; financial analysis; risks.
Basic subject company's information - Name, address, industry, market cap, ticker symbol, stock price, target price, recommendation, etc.
Investment summary - Thesis/rationale for the recommendation including recent development, etc.
Business description - Summary of company, products, markets, company economics including cost and revenue drivers, etc.
Management and governance - ID key management and personnel including BOD and any observations as to independence
Industry analysis - Describes the competitive landscape (think Porter's five forces) and how each competitor product line is position within the market vis-à-vis the subject company's product line. Describe the company's "secret sauce" as well as constraints/health of their operations, etc.
Valuation - Fundamental (i.e. DCF) analysis which ideally should deconstruct by product line sales the forecasted target stock price (i.e. a water fall that shows, in Apple's case, what portion of the stock price is justified by cash flow provided by each of iPhone, table, mac, MacBook, etc. ). Additionally, comparative (ratio) analysis where you forecast your target stock price based on comparable company ratios (PE, P/Sales, PEG, EBDITA, etc.). Some do a simple average of these ratios, others weight them based on comparability, finally some simply present a matrix showing different implied prices based on a range of different ratios/assumptions.
Financial analysis - Detailed analysis of Financial Statements including description of adjustments/one time items/off-balance sheet stuff and other things that could distort results.
Risks - Operational/Financial/Legal/Regulatory that could affect things.
This is just a rough outline and by no means comprehensive. Some say that writing a report is part art, part science, however numbers are king.