Meeting on 1/24 @ 2:30pm in Reg 523

Hi Everyone,

Thank you for all your great work on the industry reports. These reports I think will be great resources for us in screening stocks this week, and also for reference in the Sector's research throughout the rest of the year. 

The plan for next week's meeting is to pick the stock for our 8th week pitch. To do this, each of you will have a chance to present a 7-10 minute stock pitch. The details of the assignment are attached on the Assignments - Week 3 folder of the dropbox. 

With regards to screening, I want all of you to at least attempt to find your own stock. However, I understand that time constraints may result in the search for your optimal stock pick being less than ideal. So, this is the plan going forward:

1. Everyone must fill out the research spreadsheet with a stock of their own choice.

2. Should you find after filling out the research spreadsheet and conducting other initial research, that the stock is not as promising as you originally expected, you may send an email to me requesting a different stock to research.

3. However, you can only send that email if you send me a half-page written explanation of why you abandoned your initial stock pick, detailing the intuition and financial information that went into your initial interest and ultimate decision.

Be methodical in your screening process. Choose a screening technique and follow it out while taking notes on the successes and failures of the method. Common methods include -

1. Identifying industry themes and proactively choosing stocks you believe should benefit from them. 

2. Quantitative stock screening. Looking for stocks with below industry average multiples, which you should find on our industry reports or online. Or looking for stocks with above average ROIC or margins.

3. Hedge fund ideas. Seek out small-cap focused hedge funds and look at their healthcare holdings. You can actually look these up online as these are public filings.

4. The bottom of the barrel. Look for the worst performing healthcare stocks of the last year or last several years. Has the market overreacted to its issues?

5. Momentum stocks. Look at stocks that have technical 'momentum' and see whether there might be a fundamental reason for that. 

Sector meeting is at room 523, time from 2:30 - 4:30. Schedule will be detailed later in the week.

Best,

Eduardo

Meeting on 1/17 @ 2:30pm in Reg 402

Hi Everyone,

The first assignment for next week is an industry report on the major sub-sectors of healthcare, consisting of Facilities, Life Sciences Tools and Services, Managed Care, Pharmaceuticals, and Products and Supplies. These reports will be completed in groups of 2, consisting of 4 pages single-spaced. The groups are as follows:

Facilities: John and Sammi 

Life Sciences Tools and Services: Ranjani and Scarlett

Managed Care: Kassim and Roland

Pharmaceuticals: Will and Arthur 

Products and Services: Eduardo and David

Although the work can be divided up easily, I hope you still take the opportunity to reach out to your partner and talk to them about the assignment and anything else you want to talk about.

The assignment is attached below, and is also located in the Assignments - Week 2 folder of the dropbox. Furthermore, on the dropbox is located the S&P reports for 2014, and I will upload the 2015 reports later on today as well as other readings later on today.

The assignments are due Saturday the 16th at 6:00 pm in the Week 2 assignments folder of the dropbox. Assignments submitted anytime past 6:00 will be marked as late.

 

Best,

Eduardo

Meeting on 1/10 @ 2:30pm in Reg 402

Hi everyone,

Our first sector meeting is tomorrow at 2:30 - 3:30pm at Reg 402. If you are a new member and will have trouble making this time, please email me to arrange a time to talk about this later in the day.

Tomorrow will serve basically as an introductory meeting for the new members, in which we will talk about expectations in the sector, our schedule for the quarter, and go over some basic industry stuff.

To the older members, you will only have to be there for the first half of the meeting, as I already expect you all to know the intro industry stuff we go over. 

I'm looking forward to seeing you guys tomorrow and expect great things this quarter.

Best,
Eduardo