Equity Research Reports

Here is a link to the report:  Riverstone Holdings (Published 25 Jan 2020) Have not been updating lately so I decided to look at another company for practice and to learn about more industries. Riverstone is an interesting company that produces mainly nitrile gloves for cleanrooms and healthcare environments. It was trading at SGD0.93 just a week ago, unfortunately the coronavirus situation escalated, which prompted a rally for glovemakers such as Riverstone, Kossan, Topglove etc due to investors pricing in higher demand for gloves in healthcare. Still, at the current price of SGD1.02, I believe this is a potentially attractive stock given its defensive nature (low beta, industrial staple) amidst the high equity valuation environment we have today.

Baidu, Inc. released its Q1 results for FY2019 on May 17th, which sent the stock spiralling downwards by >20% due to a earnings miss. Thus, I thought it would be interesting to investigate the situation further. Link to report:  Baidu, Inc. Research Report (23th May 2019) Or Click Read more to read full report here.

Giving some background context into my first post on this blog (thanks Samuel for setting this up), I have always been interested in looking at stocks and their direction but I never really got around to doing a financial model or performing a more rigorous analysis. I think the lack of due diligence into the stocks speaks a lot into my investment performance to date, which has been lagging market indices thus far. I hope that through this process of doing up a financial model and an equity research report, I can instill more clarity into my thought process and better ready myself for a possible investment career. With regards to the company Tailored Brands, I was introduced to this company by a friend, Hong Yi, who told me he was looking at this stock because it was very undervalued. I decided to look further into this as I felt that this was a company with a business model that was easy to understand since it was focused mainly in apparel retail, unlike conglomerates. Upon lookin...

Unfortunately not an actionable recommendation. But has potential to be a value play if the share price dips further. The company may be in distress right now on multiple fronts, but its businesses are still largely profit-making, albeit with FCF burn due to CAPEX & R&D. However, there is just too much downside risk surrounding its AIS growth prospects, Tesla, and incoming recession fears, which the market has been pricing in.

I started this blog to track my previous equity research calls and see how my analysis turned out. This is a short report I initially put together last December in 2018 for an interview (prepared within 3 days) which eventually went unused since the interviewer did not ask for a stock pitch. Nevertheless, I enjoyed the process and wanted an avenue to store it somewhere for future references and also to share it with others. Micron in that time period had been somewhat of a "meme" stock with general consensus being divided between it being an overly cheap stock vs a falling knife in a memory downcycle. Between the time of writing of the report and today (Apr 6), MU has gained closed to 15% on the back of easing trade tensions between US and China, as well as a marginal Q2FY2019 earnings beat. The cancellation of a sizeable DRAM order from Samsung by Amazon also added fuel to the rally, as possible Samsung chip design flaws might lead the tech giant to consider a switch to Mi...