18-Point Equity Research Checklist: How to Seduce Your Readers to Invest

At last, you've finished your next equity research report.

Another hectic week.

You quickly look for a financial snapshot on Bloomberg or your financial database. You format your report in Word.

You wait with converting the report in PDF, so you can proofread one more time. You’ll do that tomorrow. With fresh eyes.

Equity report writing is hard work.

And sometimes you wonder … does all this writing pay off?

Do you need to keep going to win more clients? Are you fooling yourself? Are you wasting your energy?

You wonder sometimes whether you’re missing an important trick - that you can use to seduce more readers to read your report and buy the stock?

Follow today’s checklist to turn more readers into investors.

Sounds interesting?

Use this checklist to sneak into your reader's head and entice him to read your report.

How to Make Your Report Irresistible

This checklist gives some tips and tricks which you could use while writing an equity research report.

Please remember these points as they are extremely useful and will guide you in writing a very effective and high-quality equity research report.

Now that we have understood the structure of an equity research report and learnt how to go about writing all the different segments of the report, here are some tips that will help you throughout the report.

1. The KISS principle

First thing that you have to follow is the KISS (Keep It Short and Simple) principle.

Remember that though it may seem obvious, the readers who read your report do not want to read something that they do not comprehend.

Keeping the message simple and easy to understand is an important aspect of writing a good and effective equity research report.

If your analysis has identified a trend or an opportunity, put across the message clearly without patronizing it.

2. Timing is the key

Another most important thing about equity research reports is that you should always publish it at the right time.

Remember, that no one is interested in delayed investment advice, and such ill-timed reports do not stand any value. So make sure you time your report correctly.

3. Cover page should be very specific

Next, the reader should be able to easily identify what he will obtain from the report. Hence, the report cover must contain the basics of the report, and the investment conclusion should be very clearly highlighted.

You can have a distinguished segment which provides the client a reason to read your analysis. Your report stands value only when you are able to distinguish it from the several other reports available freely on the internet.

4. Length of report

Following the KISS principle, your report should never extend to more than 15 – 20 pages.

No one is interested in reading an essay. Be precise and clear about what your opinion is.

5. Formatting is essential

Your report should always be well formatted. Example - you can make use of paragraph headings to bucket your paragraphs, so that the reader can quickly read through.

Make reading easy for your readers, so that they keep on coming back for more.

6. Use graphs and charts

Remember that graphs and charts will speak louder than a thousand words; hence their relevant use makes the report more interesting. They will also help the monotony of the text and make the report interesting to the reader.

7. Use simple but effective language

The language and jargons that you use should be simple and effective. It should clearly drive across the point you are trying to make, rather than compelling the reader to sit with a dictionary all along.

8. Focus on key areas

Like we had mentioned in the previous chapter, you will need to focus on five key aspects while writing an equity research report.

Firstly the company on which the equity report is being written, secondly the industry to which the company belongs, thirdly the government interest, next the market interest, and lastly the investment conclusion for the client.

9. Try to be different

Differentiating your work from several others is very important; hence the more you know about the company, the better you can present it.

Most equity reports do not come across as good communication documents, for the simple reason that they do what everyone else is doing.

10. Don’t beat round the bush

You might come across loads of information while you are doing your research.

The most common mistake that analysts do is to try and include everything they know in the report. And with this you will definitely miss the boat.

Your equity research report must not look like an encyclopedic report. You need to filter data, and stick to being crisp while writing. Remember that the conclusion is usually the focus. Keep the discussion specific and to the point, and defend it effectively.

Suggested: Read more about Equity Research Report

What Should Form a Part of an Equity Research Report

You know the feeling when you talk to your best friend?

He listens to you, smiles and  asks questions.

He gives his full attention and that makes you believe that he cares for you.

What about creating that same feeling with your report readers?

Follow these 8 points checklist to make your readers comfortable about the investment opportunity, get them to email you their queries and inquire you about your services.

Here is a checklist for things to follow when you write an equity research report.

Make sure you check all the below points while writing the report and we promise you that you will be able to write a very effective equity research report.

11. Company highlights

Does the report clearly state why the report should be read?

12. Investment summary

  • Does the investment summary expand upon your recommendation?
  • Does the investment summary make clear assertions as to why the recommendation is being made?

13. Valuation

  • Does the valuation section clearly justify your price target?
  • Did you include a sensitivity analysis that identifies the possible effects of risks to your price target?

14. Business description

  • Did you describe the business model?
  • Did you describe the financial position of the company?
  • Did you describe what the business strategy is?
  • Did you highlight the important assets and liabilities present?
  • Have you addressed how the company is positioned to navigate through a downturn?

15. Have you provided an Industry Overview?

16. Have you provided an assessment of the company’s competitive position within its industry?

17.  Historical Financial Analysis

  • Have you provided a ratio-based analysis? 

18. Risks

  • Have you mentioned all the probable risks that the investor might face?

I promise you that if you remember all these tricks and tips that I have given above and follow my training manual properly, you will be able to structure and write a very effective and high quality equity research report.

I request you to go through all the topics in great detail before you start writing an equity research report. Understand the importance of each segment, plan your research properly and only then start writing the report.

I wish you all the best in your quest to write the perfect equity research report and hope that this post has been useful to you.

Do feel free to touch base with me if you need any further guidance or help in writing your equity research report.

18-Point Equity Research Checklist: How to Seduce Your Readers to Invest 1
18-Point Equity Research Checklist: How to Seduce Your Readers to Invest 2
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