Actionable stock research for professional investors and RIAs

Atypical insights in a stereotypical world

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Industry Expertise

Deiya Pernas, our co-founder, brings extensive experience as a former Deputy Chief Investment Officer of a 3.5 Billion-dollar investment firm.

Group5

Consistent Outperformance

Our portfolio’s performance has consistently exceeded market averages since our inception in 2018.

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Investing Alongside You

We’ve put our own money into the very same stocks we share, tangibly aligning our interests with yours.

Actionable Stock Research to your inbox.

  • Stock Ideas sent once a month and research highlights sent once a week

We identify stocks that fit into one of three categories:

  1. Good companies on their way to becoming great
  2. Not-so-good companies with a clear path to improvement
  3. Tactical trades with attractive risk & reward profiles
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Frequently Asked Questions

Why should I trust Pernas Research?

Our track record is comprehensive and reflects all calls we got right and wrong. There will never be any cherry-picking of time windows, stock ideas, or any other charlatan tactics.

Pernas Research is founded on common sense, accountability, and transparency. And as a result, every single brick our business is built upon reflects a genuine desire to tangibly align our interest with our subscribers.

This is why we only communicate ideas that we would own ourselves. We’ve put our own money into the very same stocks we share and retain an unaffiliated third party to calculate and verify our performance on a quarterly basis.

What is your research philosophy?

We seek to identify attractively priced companies that fit into one of two categories:

  1. Strong companies becoming silently stronger – those with the potential to sustain and expand their future cash flows.
  2. Companies currently perceived as weak but getting stronger – those with cash flows that require improvement but have a clear path to recovery.

We believe that a portfolio structured with seven to twelve of these investments will compound at rates substantially greater than the market. These are the Core Ideas we publish research on to our subscribers.

What type of stocks do you research?

Either value or growth stocks and ones weighted towards mid-cap and small-cap although we do not exclude large caps. Regionally speaking, we exclusively focus on developed countries and are heavily weighted towards the U.S. (~80% weight).

Who is your typical subscriber?

Our typical subscriber to our research has sufficient knowledge and experience to be able to evaluate risks when making their own investment decisions. Our reader base tilts heavily towards those that identify as experienced investors as opposed to traders or speculators.

What is your research process like?

In a complex and technologically dynamic world, the future of most firms can look very different from their past. We stay away from companies where we cannot reliably anticipate their forward-looking profit picture. For those companies where we can anticipate this, we use our investigative and analytical skill to unearth every possible source of high-signal information.

This involves understanding both the quantitative and the qualitative:

Quantitative (not limited to):

  • unit economics
  • historical financials
  • industry and macro data
  • web traffic
  • social media traffic & app downloads
  • survey data

Qualitative (not limited to):

  • Talking to competitors
  • Talking to vendors
  • Talking to ex-employees
  • Talking to industry experts
  • Talking to current management
  • Sifting through customer reviews
  • Conducting proprietary surveys.
  • When possible, becoming users of the product or service ourselves.

Once we have enough of an understanding of the company’s future, we begin to construct “forward-looking” financials that we then use to calculate a company’s intrinsic value. The best analysts ask all the right questions and have a resistance to well-sounding answers.

How do you generate your ideas?

From a process we call “Iterative Pruning.” We are biased towards screens that have a high degree of turnover but here are a few of the screens we run: 52-week lows, decreasing debt levels, special dividends, declining revenue, increasing revenue, a high D&A-to-Capex ratio, and low EV/EBITDA. In addition, depending on the current flow of fear-based narratives, we often find ourselves taking a fresh look at subsectors that experience rapid selloffs.

After each screen, we are left with roughly 50 names which we spend 20-30 minutes researching and do our best to justifiably eliminate as many as we can. After the first round of elimination, this leaves us with roughly 25 names and we go through the list again but now increase our time spent on each name to roughly an hour and again prune the list further. We keep doing this until we are left with one or two names that we greenlight for a much deeper dive. (It is not uncommon for us to pass on the entire list of names).

As a subscriber, what can I expect regarding frequency of communication?

We value idea-quality over idea-quantity and have intentionally structured our communications to be light on subscribers’ inbox. Subscribers to our research can expect to receive roughly 70 pieces of communication via email annually, which averages to a little over 1 email a week.

Here is what to expect:

  • On the first of every month, we send a ~2000-word stock write-up along with an attached summary.
  • Once a quarter, we send our Quarterly Performance Letter.
  • Every Wednesday, we send our ‘Stock Sonar’ which has brief and sometimes actionable takeaways from the top three companies we researched. (In addition to containing the latest snapshot of our entire portfolio).
  • Ad hoc: A few times a year we send updates on any material adjustments in our portfolio.

How much is this going to cost me?

We are still a new company and fine-tuning our research communication and product-market fit. Currently, our research is available at no cost.

Is your research independent?

Yes, 100% independent. On more than one occasion, a company has reached out to us to inquire if we would be open to accepting payment to publish favorable research on their company. Even if this were a company that we liked enough to own, our answer is of course, “no, thank you,” because it would create a conflict of interest with our subscribers.

Do you manage assets for investors?

Currently, we do not manage outside capital. Pernas Research LLC manages assets in the Pernas Portfolio which is not open to outside investment.

What is the goal of Pernas Research?

To be the gold standard for a trusted research provider in the financial industry and to be respected as an organization that is unbelievably good at what they do.