Analyzing Company Strategy and Identifying Catalysts
This chapter covers the analysis of a firm's competitive and strategic positioning within its industry and the identification of catalysts with the potential to move the stock price. We will begin with an overview of key concepts, and then consider two specific analytical frameworks: a Porter's Five Forces model and a strengths-weaknesses-opportunities-threats analysis, usually abbreviated SWOT. The learning objectives for this chapter are:
This topic represents a significant shift in our focus, which has been mainly quantitative up to this point. Now that we have a clear understanding of background economic forces (Chapter 2) and how to model stocks' financial health and valuation ...