Posts by Andrew Stotz
Are financial analysts’ earnings forecasts accurate?
This A. Stotz Academic-Style Research is revealing findings from Andrew’s dissertation and focuses on answering the question: Are financial analysts’ earnings forecasts accurate?
Read the full article to learn the answer…
Read MoreBusiness DNA: Face to Face with Armed Guards
Business DNA: Masthawin Charnvirakul joined one of his family’s companies, STP & I, and was quickly appointed to pilot it through its darkest time. Masthawin’s leadership emphasized changes that have brought the company to the financial success it is experiencing today.
Read More18 Questions for Pre-Revenue Valuation of a Startup
Oftentimes, I’m asked about the concept of pre-revenue valuation for a startup. Well, that’s a very difficult thing because you’ve got no revenue and certainly no profit. How do you value this? In my opinion, the first step in the valuation of a company is to ask these 18 questions. These 18 questions cover five areas. First is trust; second is the idea; third is execution; fourth is the exit; and the fifth is enthusiasm.
Read MoreBusiness DNA: Everyone Makes Mistakes – You Live and Learn by Them
Business DNA: Born as the seconded eldest of eight children, for Dennis, competition and the drive for success was an important factor in his upbringing. Early on Dennis learned “to start with a goal and put together a prepared plan to accomplish that goal” and “that a lot can be accomplished just by working hard.”
Read MoreNoodles in Exchange for Investing Advice
During my recent trip to China, I explored the topic of the Chinese stock market, which appears cheap at a 13x price-to-earnings (PE) ratio. However, this is distorted by a very low PE financial sector that is a third of overall stock market value. While visiting Hefei, Anhui province a friend took me to a noodle shop in. The owner of the shop had asked my friend if he knew anything about investing because he had lost a lot of money in the stock market.
Read MoreI Lost for 14 Years in a Row
I can remember within the first few months sitting down with my boss and telling him I want to be the number one analyst in Thailand. Year after year there were rankings of analysts by fund managers. My name never appeared for many years. But over time, my name started to appear, unfortunately at the bottom of the list.
Read MoreWhy Are Korean Stocks So Cheap?
My recent time in Korea refreshed my mind about the beauty of Asia—the contrasts. Being a financial analyst at heart, I was searching for answers to questions, such as: Why has the Korean stock market been so cheap, for so long? Is this going to reverse (Providing a great buying opportunity)? My short answer: Small changes are coming, but don’t expect the structure of society to change; and, like the Thai smile, expect the “Korea Discount” to remain for the near future.
Read MoreThe Trade-off between Simplicity and Precision
In the trade-off between simplicity and precision, I choose simplicity. I have more than 20 years of experience in the financial industry. First as an analyst, then as Head of Research. Over those decades, my thoughts on the trade-off between simplicity and precision have, to put it mildly, evolved. These days I love to keep it simple!
Read MoreBusiness DNA: Your Word is Your Bond
Business DNA: Khalid M. Hashim was raised in Calcutta and Bombay in India by a middle-class family with a long tradition in shipping and trading, but he represents the first generation to actually own such a business. Khalid wanted early on to go into shipping, but his father insisted that he gain a university degree and explore all areas of the industry through internships and jobs before he committed to sea transport. Khalid describes the business of Precious Shipping PCL: “In a very simple way, we connect cargoes between exporting countries and importing nations – as simple as that. That’s what we do – carry it safely, correctly, and without any problems.”
Read MoreDNA of a World Class Company Challenges Conventional Wisdom
The World Class Company Awards in Asia announced on October 10 revealed that two of the best companies in Asia are also the best in their sector globally. STP&I is one of them. From interviews with the company’s managing director, I’ve learned that the DNA of a World Class Company challenges conventional wisdom.
Read More