Developing a Research Thesis Developing a Research Thesis A research thesis has most of the same thesis characteristics as a thesis for a non-research essay. The difference lies in the fact that you gather information and evidence from appropriate, valid sources to support your perspective on a topic or stand on an issue.
If so, what are the catalysts that will cause the Company to beat earnings e. Paint the picture of how, when, and why there will be a catalyst that supports your view.
Providing an opinion without fully understanding and explaining the relevant value drivers will be a recipe for failure. What can go wrong? Multiple Does your pitch rely on multiple expansion? Where is the company trading relative to its historical multiple?
Should the multiple trade at a premium or discount given how the company has changed over the years, and where we are now in the business cycle?
Where is the company trading relative to its peer group? If the entire market has seen multiple expansion, then is it fair that this company should too?
What catalyst is going to cause this multiple to start expanding? Again, paint the picture of how, when, and why there will be a catalyst that supports your view. What is your confidence in multiple expansion? Your target price is the product of a forecasted earnings metric multiplied by the expected multiple.
Some metrics are industry-specific and more valuable for those industries than the aforementioned general ones. Regardless, if you provide a target price, you need to explain how you arrived at this target, and the stages of your thought process to get there.
Macro Although not ideal, stocks in industries with bleak macroeconomic outlooks can still be good investments. It is important to understand what is taking place at the company level, sub-sector level, industry level, and national level. This is analysis described above at the micro level.
What is going on with the immediate competitors? Are they growing or taking share? Who are the winners? Who are the losers? Is the overall pie growing? Are there imminent substitute products or competitive products? What are current trends in the industry?
What is going on nationally? For example, how are rising interest rates going to affect banks and real estate investments?
How has the stock performed heading into the catalyst, i. How crowded is the trade? Are a lot of hedge funds already invested in the name? One easy way to determine this is to speak to a sell-side research analyst and ask whether they are getting a lot of calls from other funds regarding the company.
Is the general public bullish or bearish? If you are researching a short pitch, it is key to check for existing short interest SI function on Bloomberg. If it is a long, you should review the list of major holders of the stock HDS function on Bloomberg.
If the top holders are several hedge funds, then the stock pitch is likely overcrowded and may not be actionable. One of the biggest mistakes in a hedge fund interview is to pitch a stock that every hedge fund has already heard of and evaluated.
Crowded names can still work, but investors must tread lightly. When the market sells off or there is a change in sentiment, crowded names typically perform the worst.
Other technical tools that can help evaluate the setup for a stock include RSI relative strength index and moving averages.Developing a Research Thesis. A research thesis has most of the same thesis characteristics as a thesis for a non-research essay. The difference lies in the fact that you gather information and evidence from appropriate, valid sources to support your perspective on a topic or stand on an issue.
If your assignment asks you to take a position or develop a claim about a subject, you may need to convey that position or claim in a thesis statement near the beginning of your draft. The assignment may not explicitly state that you need a thesis statement because your instructor may assume you .
To develop a thesis statement for a literary analysis, review your notes and decide _____. A. which character is the most interesting B. which critical point you want to make about the piece of literature.
A thesis statement is simply a summary of your thesis or the main argument of your paper. Before you can construct a thesis "statement," you need to develop a thesis.
To do so, you need to do. Example persuasive thesis: Gun laws are the cause of much violent crime in America, and should be changed to require all gun purchasers to undergo a psychological exam, an FBI background check, and an extensive training course prior to obtaining a permit.
develop and elaborate your thesis statement, which you will do over several paragraphs in the body of your essay. Each paragraph needs to be well developed with a topic sentence and an organisational.