Opportunity to show your knowledge and passion for the
markets
Slide 6
Content 30% Presentation 30 % Q and A 40 %
Slide 7
StructureContentTime Tell them what you want to tell them Your
recommendation based on 3 bullet points 15 seconds Company
SnapshotBrief description of the company 15 seconds Tell them what
you have to say Explain those 3 bullets in detail, including
valuation 120 seconds Tell them what you told them Provide a
catalyst and repeat your 3 bullet points 30 seconds
Slide 8
Line ItemsAmount in ThousandsMargin Revenue775,443 Cost of
Goods Sold364,687 Gross Income410,75653.0% SG&A374,007
Operating Income36,7494.7% Tax8,355 Net Income28,3843.7%
EarningsMultiplePriceStockX=
Slide 9
Great company with a cheap valuation First two bullet points
convey how great company is Last convey how cheap the valuation
is
Slide 10
Purpose Framework of what to say Build expectation Example Buy
recommend on Avid Technology (AVID), target price of $47.00, which
is a 29% upside from yesterdays close. My recommendation is based
on 3 reasons: (a) strong growth from new products (b) opportunity
for margin expansion from changes in sales mix and (c) attractive
valuation
Slide 11
Purpose Helps place judge mentally with your stock Ex. Avid
Technology develops, market, sells & supports a wide range of
software and hardware for digital media production, management and
distribution. For example, one would use avid software to
superimpose 2 photos. Avid had last fiscal revenue of 775 million,
market cap 1.8 billion, 3 month avg. vol. 650 thousand, and 12
month P/E of 15.6x
Slide 12
Purpose Provide evidence on how revenue would grow Example AVID
will continue to post strong revenue growth drive by Broadcasters
conversion from tape to digital Move to HD format. Only 500-600 of
the top 2,500 broadcasters have transitioned from tape-based
solutions 3 billion market opportunity. 80% of Avids 60,000 video
customers are yet to upgrade to HD capabilities Average price of
$35,000 for a HD system $1.7 billion in potential sales.
Slide 13
Purpose Provide evidence on how margin could improve Example
Current operating margin at 4.7% Sales mix 50/50 between
software/hardware Increasing software in mix for last 2 years Can
increase to as high as 70% Increase margin to 10% Software margins
better than hardware
Slide 14
Purpose Explain why the stock is undervalued Example Company
missed expectations by a penny and stock went down 25% Overreaction
Historical P/E of 23.5x Peer group P/E of 20x 20x 2007 EPS of $2.34
= stock price of $47.00
Slide 15
Purpose Reiterate your investment thesis Provide a catalyst
Example Strong revenue growth prospects from tape -> digital
Opportunity for margin expansion -> sales mix Compelling
valuation for gain of 29% Launch of new product DigitalPro next
month will be catalyst
Slide 16
Most questions will be based on what is actually said Some
questions will be based on what you deliberately did not say
Slide 17
How much time did it take for 500 broadcasters to transition
from tape- based solutions? What would make those 80% HD customers
to upgrade How did you determine the $35,000 price?
Slide 18
What are some risk factors? What is the downside if those risks
happen? Why did the stock move way it did? What is the street
missing?
Slide 19
Neoprobe
Slide 20
Buy recommend on Neoprobe Target price of $6.50, 35% upside
Recommendation based on 3 reasons: Presentation of Phase III
Lymphoseek Data NDA submission 3Q 2011 Attractive valuation
Slide 21
Based out of Dublin, Ohio Market leader in gamma detection
devices (generating revenue) On its way to be a leader in
Oncology
Slide 22
http://ih.advfn.com/p.php?pid=nmona& article=47513888
http://ih.advfn.com/p.php?pid=nmona& article=47513888 The
results from NEO3-09 are important not only in that they
demonstrate that Lymphoseek is safe and well-tolerated but in many
ways that it is a clinically superior lymphatic mapping agent to
vital blue dye
