As sell-side analysts, besides finding out the primary impact of news on the company, we should also find out the secondary effect of any news. In our example, we will find out the suppliers, customers, and competitors of any news on the stocks.
We can do this using three approaches:
- By means of direct disclosure, such as annual reports
- By means of secondary sources (media reporting)
- By means of industry inferences (for example, raw materials industries, such as oil industries, provide the output for transportation industries)
In this book, we use direct disclosure from the company to illustrate the point.
We are playing the role of equity researchers for the company stock, and one of our key roles is to understand the relevant parties' connections to the company. We seek to find out the related parties of the company—Duke Energy—by reading the company...
