At the CFA University Research Challenge on 18 January, the team representing NUS (above) argued that the sell-off on Courts Asia in November 2013 (after it posted a 55% slide in 2QFY2014 net profit) was overdone as its long term growth story remained intact. NTU emerged first runner-up, also with a ‘Buy’ call on the same stock.Photos by Sim Kih
The CFA Institute Research Challenge is an annual global competition that provides university students with hands-on mentoring and intensive training in financial analysis. Students gain real-world experience as they assume the role of research analysts and are tested on their ability to value a stock, write an initiation-of-coverage report, and present their recommendations.
For the 2013/2014 competition, students from Singapore universities worked in teams of about 5 persons to research and analyze a stock. They had to make a call on either Courts Asia or Tiger Airways, which were both chosen by CFA Singapore. After much deliberation, the judges decided that the NUS team was most convincing with their ‘Buy’ call on Courts. It was chosen to represent CFA Singapore to compete against students sent by other CFA societies from the Asia-Paci!c region.
This year, months of effort by top finance students culminated in a presentation before a panel of veterans from the investment industry. The judges' advice doled out at the Singapore finals was published in The CFA Singapore Quarterly produced by NextInsight, and is republished here with permission.
This year, months of effort by top finance students culminated in a presentation before a panel of veterans from the investment industry. The judges' advice doled out at the Singapore finals was published in The CFA Singapore Quarterly produced by NextInsight, and is republished here with permission.
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CFA Singapore extends its deepest condolences to the family of Tan See Wee on his recent demise. |
 Kes Visuvalingam, CFACEO and Vice President T. Rowe Price Singapore I have more than 20 analysts around the region reporting to me. I read a lot of reports and I look at a lot of presentations. The key thing I recommend to the contestants is: Keep it simple so that the audience can follow you. There is a lot of temptation when doing the PowerPoint to show everything you’ve done and know. Really, it is harder to write less than it is to write more. Three points is all you need to make an argument. The second point is: Stock prices rise only for two reasons: an earnings surprise or a higher PE valuation by the market. If the stock is undervalued and there is going to be a catalyst that is going to create more value, that is going to translate into a higher PE, the market is going to pay a higher PE. At the end of the day, explain how the stock price is going to rise: Is the catalyst an earnings surprise, or higher valuation?” |
 Mrs Chin Ean WahCEO Wiser Asset Management In order to convince a client, you have to first convince yourself. In investment, you need conviction and implementation. In order to have conviction, you have to be fully prepared. You have to be so prepared that you are able to rise above the details to see very clearly the reasons why you want to buy something. Secondly, to get through the door to clients, you have to prepare quality information every step of the way. So, quality reports are of the ultimate importance. If that report doesn’t get you through the door to the client, you won’t get the chance to present to him. |
 Mark Tan, CFASenior Director (Greater China Team), UOB Asset Management As a fund manager, I meet many sell-side analysts and other research professionals. I evaluate them not only for what they know, but also for how they differentiate themselves in their presentation of facts with respect to the market consensus. Even when you make a consensus call, think about what you can value-add to make a convincing argument. |
 Ong Seow Beng, CFA Director Credit SuisseDon’t over analyze and dig into every single number until you get lost. Tell a simple story. If you are a good story teller, people will listen. Being convincing is very important. |
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