What to Expect: Stock Ideas

“I would rather be transparently wrong than opaquely right.” — Aswath Damodaran

#1 Stock Ideas

For all intents and purposes, “stock ideas,” “stock picks,” & “initiation reports” are used interchangeably.

At Pernas Research, our core focus is generating “buy” recommendations in the form of stock ideas. Our initiation reports provide a clear and concise explanation of the underlying thesis behind each recommendation, including a rationale for the mispricing and a thorough valuation that highlights the potential upside. Each recommendation will be accompanied by an industry analysis that will generally be published separately under Investment Essays. The initiation report includes clear guidance on where to find the related industry analysis. Our stock recommendations range from 1000 to 2000 words, requiring approximately 5 to 10 minutes of reading time.

Time of posting: On the 1st of the month. 11:00 am EST.

Frequency: Monthly

Where to find: Stock Ideas page & your email inbox.

Additional info:

Our process for identifying “buy” recommendations begins with an initial screening of thousands of companies listed on various exchanges. This results in a focused list of over 50 companies across diverse industries. The next step involves a comprehensive qualitative analysis of each company, which can be a time-consuming process. Some companies are quickly dismissed, while others require extensive research, including hours or even days, before they are greenlighted for a deeper dive. This process is repeated on a monthly basis to maintain a consistent flow of idea generation. While we aim to publish a high number of actionable recommendations, we understand that thorough research takes time and sometimes a neutral rating is the most appropriate outcome. We believe this approach helps maintain the integrity and high batting average of our recommendations.

Each initiation report will have the date and author listed (either Deiya or Dean) along with the initiation price and upside. See below for an example:

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“Updates” to Stock Ideas

Our confidence in our recommendations may be subject to change as new information becomes available. In such cases, we will promptly communicate updates to our readers through our Stock Updates. These updates may result from a variety of circumstances, including acquisitions, regulatory changes, management surprises, and other relevant factors. Our Stock Updates typically range from 100 to 300 words, requiring approximately 2 minutes of reading time.

Frequency & Time of post: Ad hoc.

Where to find: Stock Ideas page & your email inbox.

Additional info:

Each stock update will clearly list “Update” in the title (See below for an example). If you are using a computer browser, using the filtering feature for each stock symbol of interest will be helpful.

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