This blog is an effort to share our opinions and research process on different stocks, industries and businesses. Most names are picked based on our proprietary model – a mix of fundamental research and quantitative discipline. Every week, the model generates 20 Longs and 20 Shorts, which are shared with the readers via post on this blog as well as twitter.
We have created a proprietary database of earnings model on more than 1200 companies listed on US stock exchanges. For each company, we have created a detailed model, which includes individual revenue drivers, profit & loss statement, cash flow drivers and future cash flow drivers. The number of stocks under coverage is growing every week.
For a while now, we have been sharing the weekly list of top Long and Short stocks that show up on our quant screens via twitter (@PurnhaInvest). This blog is just another effort to drill deeper into those names. The model is structured such that net exposure (Longs minus Shorts) is always maintained at 0%. The stocks generated by the model are shared at the start of the week and there is no change in portfolio during the week.
What you should expect.
Detailed notes on individual stocks: We intend to share detailed thoughts on individual names that show up high on our Long or Short lists, primarily looking at how fundamental drivers are expected to shape future earnings and cash flows, and how it may reflect in share price movements.
Quantitative drivers driving the stocks: We kept getting messages on our twitter account asking for more light on drivers on top names on the showing up on screens. We will share reasons for why some stocks show up high on our screens.
Impact of news flow on numbers: We will look for revenue, earnings and cash flow impact of major news related to stocks under coverage and share it with out readers. Looking for its impact on valuation and future stock prices.
Industry trends: we will study industries as they impact various investors, especially public investors, trying to find mismatches between fundamentals and stock market expectations. This will be extremely relevant to ETF investors and traders.
As part of our research, we will be scanning through SEC filings, industry updates, company news, management commentary, earnings conference calls and taking to various stakeholders of the stock.
For every article, we study the news to understand what happened and analyze how it impacts the business of the company, both near and long-term, your stock and stock market in general.