stock pitching example

1. By: Brian Kret
WHAT NOT TO DO IN A
POWERPOINT

2. The Basics
 Powerpoint is meant to be an AID, not
something you rely on.
 Looking back at the PowerPoint is very bad
 Avoid massive walls of text, as they can kill a
presentation.

3. The Basics Con’t
 Don’t use text that’s so small to read because the people in the back can’t see it.
Don’t use too
big font either.
 I f t h e y c a n ’t r e a d
y o u r f o n t , t h e n y o u r
p o we r p o i n t s .

4. Pictures
 Pictures are good aids, but don’t put
something on there that doest relate to your
PowerPoint.
 Getting a laugh from pictures can help your
presentation, but keep them to a minimum

5. Animations
 Keep them to a minimum
 Avoid the Credits Animation
 And any other crazy animations you can think
of!

6. By: Stephen Casella and Brian Kret
SAMPLE STOCK PITCH: APPLE
Company Revenue Key Relative Intrinsic
Technicals
Description Breakdown Statistics Value Value

7. Company Description
Apple Inc. is the largest technology company on the planet, and the second most
valuable company in the world on a market-cap basis.
4 Product Segments
 iPhone
 iPad
 Computers/Software
 Music
Company Revenue Key Relative Intrinsic
Technicals
Description Breakdown Statistics Value Value

8. Revenue Breakdown
2009 Sales
2.411
1.475
Macs
0 4.036
13.859 iPod
iPhone
iPad
Other Music
13.033 Other Hardware
Software/Services
8.091
Company Revenue Key Relative Intrinsic
Technicals
Description Breakdown Statistics Value Value

9. Revenue Breakdown
2010 Sales
1.814 2.573
4.948 Macs
17.479 iPod
4.958
iPhone
iPad
Other Music
8.274 Other Hardware
25.179 Software/Services
Company Revenue Key Relative Intrinsic
Technicals
Description Breakdown Statistics Value Value

10. Key Statistics
AAPL DELL MSFT RIMM
P/E 12.09 7.58 8.46 5.76
PEG 0.61 1.1 0.91 1.26
P/B 5.14 3.16 3.82 1.64
ROA 22.25% 7.51% 17.64% 22.82%
Current 1.75 1.47 2.6 2.04
D/E 0 92.9 23.02 0
Beta 1.07 1.44 0.97 1.74
Market Cap 362 B 27.11 B 222 B 15.61 B
Cash Per Share 30.63 8.29 6.13 4.59
Book Value Per Share 74.81 4.55 6.82 18.4
Dividend 0 0 2.50% 0
Company Revenue Key Relative Intrinsic
Technicals
Description Breakdown Statistics Value Value

11. Margins
45
40
35
30
25 Gross
20 Operating
15 Net Profit
10
5
0
2006 2007 2008 2009 2010
Company Revenue Key Relative Intrinsic
Technicals
Description Breakdown Statistics Value Value

12. Relative Valuation
AAPL DELL MSFT RIMM
P/E 12.09 7.58 8.46 5.76
PEG 0.61 1.1 0.91 1.26
ROA 22.25% 7.51% 17.64% 22.82%
D/E 0 92.9 23.02 0
Beta 1.07 1.44 0.97 1.74
Cash Per
Share 30.63 8.29 6.13 4.59
Book Value
Per Share 74.81 4.55 6.82 18.4
Company Revenue Key Relative Intrinsic
Technicals
Description Breakdown Statistics Value Value

13. Intrinsic Value
Average P/E over last 10 years (ex 2002’s P/E of 250) is 33x.
AAPL is now trading with a P/E of 15.
3-Stage DCF
 Stage of high growth for a period of time, a transition stage, lastly stable growth.
Notable inputs
 Discount rate of 10.3%
 Annually Compounded EPS growth of 8% over next 3 years (Street’s consensus is 11.5%) in high
growth phase.
–––––––––––––
1. Current high growth stage ending 3 years from now.
2. Transition stage begins and lasts for 5 years. EPS growth rate contracts, along with beta.
3. The Company enters stable growth and remains there for perpetuity, assuming a growth rate
equal to the economy (2%)
Company Revenue Key Relative Intrinsic
Technicals
Description Breakdown Statistics Value Value

14. Output
Company Revenue Key Relative Intrinsic
Technicals
Description Breakdown Statistics Value Value

15. Technical Analysis
Company Revenue Key Relative Intrinsic
Technicals
Description Breakdown Statistics Value Value