REMARKS BEFORE STARTING THE PRESENTATION There are 2 objectives: (1) share findings and obtain feedback about the right picture we are getting (2) high-level discussion of strategic options for industry players The scope of the presentation is the Wine industry in Slovakia. Areas such “ Exporting opportunities for Slovak wine producers” and “ Comparison between the US ad Slovak Wine Industry” have been left out for discussion at the final presentation It is a high-level and general perspective. Details in this presentation have been omitted due to : Time constraints Difficulties to gather statistical information about the industry
Buy-side and Sell-side David Lowy September 26, 2002 Jim Ryans (Mod. Oct 2002) The Two Approaches to “Equity Research”
Researchers paid to have opinions on a handful of companies/stocks in one industry
Large investment banks
Boutique research houses
GIVE INDEPENDENT ADVICE Buy! Sell!
“ Recent” Controversy: What are these Scandals All About? Jack Grubman Hyped: WorldCom and Global Crossing Mary Meeker Hyped: Homegrocer and AskJeeves Henry Blodget Hyped: Toys.com and Pets.com Why did these top-rated sell-side analysts put “buy” recommendations on such bad stocks?
“ Recent” Controversy: Most Analysts are NOT Independent Institutional Investors Decision Maker Institutional Sales Investment Bankers Use Analysts to Get More (Profitable) Business: IPOs Mergers Acquisitions