All of the services provided by PCS cater to an audience that consists primarily of institutional buy-side managers and the services are priced accordingly.
THE HORIZON RESEARCH GROUP
CONTRARIAN
RESEARCH REPORT
The Contrarian Research Report, authored by Murray Stahl, employs
a value-oriented, event-driven investment strategy that seeks
to capitalize on the most inefficient and attractive investment
areas. Murray uses a time-intensive, investigative style of
research to uncover behind the scenes, proprietary information
about each company. Investment recommendations focus on companies
with significant barriers to entry that have the ability to
generate a high and sustainable return on invested capital.
While the vast majority of such companies trade at or near fair
value, opportunities present themselves when transitory events
temporarily depress share prices. These situations are the primary
focus of the research process.
GLOBAL
CONTRARIAN REPORT
The Global Contrarian Research Report builds on the success
of the domestic focused Contrarian Research Report by identifying
companies primarily in Western Europe and Asia that have diversified
themselves away from a reliance on the US. These companies meet
the proven investment criteria of high and sustainable returns
on invested capital that enable them to act as compounding investment
vehicles. The service focuses on companies with under-developed
or undiscovered natural resources;
Monopoly, oligopoly or consolidating industry structures; and
the long term impact of emerging economies.
THE
SPIN-OFF REPORT/BITS & PIECES
The Spin-Off Report, authored by Murray Stahl and Jairam Nathan,
monitors the progress of all U.S. spin-offs from announcement
date through when-issued trading, and continues coverage through
the first quarter of trading. The service provides fundamental
research reports on the subsidiary prior to divestiture, and
highlights arbitrage opportunities and trading techniques both
before and after the record date. The Spin-Offs of Tomorrow
report provides a detailed overview and analysis of companies
believed to be potential spin-off candidates with a unique viewpoint
and rationale. In addition, clients receive the Bits & Pieces
report; a monthly supplement to the service that identifies
mispriced stub securities, tracking stocks and other arbitrage
opportunities. The Spin-Off Report Compendium provides an effective
forum to discuss restructurings outside the realm of spin-offs,
as well as intriguing divestitures in foreign markets.
THE
SCRATCH REPORT
The Scratch Report, authored by Murray Stahl, focuses on domestic
companies with market caps above $10 billion and derives investment
decisions based upon a philosophy consistent with value investing.
Accordingly, recommendations will typically have low valuations
based on earnings, sales, book value, cash flow or some other
appropriate valuation measure. The service focuses on companies
with sustainable business models with the ability to generate
high and sustainable returns on capital.
Recommendations will often maintain a leading or improving market
position, undervalued asset or product portfolio, credible management
or are in a position to capitalize on some impending event that
will create a high level of future earnings growth. The Scratch
Report specializes in identifying companies in which the consensus
believes the business is permanently impaired by irreversible
circumstances, while our analysis indicates that the company’s
problems to be transitory in nature with
a high likelihood of financial improvement.
THE
DEVIL’S ADVOCATE REPORT
Authored by Murray Stahl, The Devil’s Advocate Report produces
short-sale recommendations on highly visible, large cap, widely
held stocks. Various screens are employed to test the logical
implications of consensus earnings estimates for reasonability
and probability of achievement. Companies that are flagged by
these screens are subsequently subjected to time intensive analysis
to confirm the egregiousness of the consensus view. Short recommendations
are supplemented with a
variety of option techniques for synthetically shorting these
stocks while limiting risk.
THE
DISTRESSED SECURITIES REPORT
The Distressed Securities Report identifies opportunities within
companies that are about to enter or exit bankruptcy or financial
distress. Given the uncertain timing in bankruptcy reorganizations,
largeorder time discounts routinely appear. This phenomenon
makes very satisfactory returns available to investors willing
to undertake time value risk in place of the investment value
risk that was removed when the securities left the investment
realm for the legal realm. This endows many securities in bankruptcy
with very favorable asymmetrical risk/reward attributes. In
addition, clients receive The Bankruptcy Calendar which monitors
the progress of all Chapter 7 liquidations and Chapter 11 reorganizations.
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VOYANT ADVISORS
VOYANT
ADVISORS (U.S.)
Voyant Advisors is led by several seasoned
investment research professionals including Matthew R. Kliber,
former Executive VP of research at Gradient Analytics, and Derek
A. Laake, a former senior analyst at Gradient Analytics. The
team performs in-depth accounting policy and working capital
analysis to assess the validity and reliability of the earnings,
cash flow and financial position reported by public companies
listed in the U.S. The research provides rigorous analysis of
companies that exhibit signs of potential fundamental business
deterioration, competitive landscape challenges, and/or operational
inefficiencies that may be precursors of future earnings disappointments.
Voyant Advisors employs a unique systematic three stage research
process to identify companies exhibiting a high risk of underperformance.
On a monthly basis, clients receive 2-3 comprehensive reports
focused on companies in which Voyant Advisors believes to have
a high probability of underperforming over the next 1-3 quarters.
Voyant Advisors also provides a monthly “Balance Sheet
Watch List” highlighting 4 to 8 companies exhibiting an
elevated risk of near term underperformance.
VOYANT
GLOBAL
Academic evidence has established that opportunistic earnings
manipulation is more pervasive and financial statement quality
is generally poorer outside the United States. Through an analysis
of internal control weaknesses and accounting policy changes,
Voyant Global seeks to identify foreign companies that are poised
for significant share price underperformance. The combination
of an accruals-based quantitative process followed by in-depth
accounting policy and working capital analysis, routinely highlights
deteriorating situations long before they become apparent to
the rest of The Street. The service’s universe includes
over 4,500 global companies with market capitalizations in excess
of $1 billion. The primary markets of focus are the United Kingdom,
Germany, France, Sweden, Japan, Hong Kong, China, and India.
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OTHER
EQUITY RESEARCH
ASSET
ANALYSIS FOCUS
Asset Analysis Focus is authored by Mark Boyar. Originally published
in January 1975, Asset Analysis Focus is the longest continuously
running independent research service on Wall Street. This monthly
research report uses a Graham & Dodd value approach to identify
corporations that are selling well below intrinsic or break-up
value. Asset Analysis Focus does not subscribe to the often
accepted theory that the market price of a stock is its true
net worth, but believes that taking advantage of favorable discrepancies
between market value and intrinsic value defines investment
opportunity.
THE
EUROPEAN SPIN-OFF REPORT
The European Spin-Off Report, authored by Robert Sassoon, identifies
and analyzes all publicly announced spin-offs in Western Europe.
Coverage begins upon announcement of the spin-off with an initial
email detailing the new transaction followed by an in-depth
fundamental analysis of the parent and spin-off entity. A monthly
European Spin-Off Calendar monitors the status of each transaction,
and updates any relevant information such as critical future
dates, share ratios, and investor relation contact information.
Updates are continually published to highlight trading ideas
in situations where pricing and value anomalies exist.
THE
GLOBAL SPIN-OFF REPORT
The Global Spin-Off Report, also authored by Robert Sassoon,
identifies and analyzes all publicly announced spin-offs excluding
the United States and Western Europe. Similar in structure to
The European Spin-Off Report, coverage of each spin-off begins
upon announcement, and continues through the first quarter of
trading. A monthly Spin-Off Calendar monitors the status of
each transaction, and updates any relevant information such
as critical future dates, share ratios, and investor relation
contact information. Updates are continually published to highlight
trading ideas in situations where pricing and value anomalies
exist.
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ARBITRAGE
SERVICES
EUROPEAN
MERGER ARBITRAGE REPORT
The European Merger Report provides analysis of all announced
mergers with a European target company of €500m or greater
in market capitalization. David Roden, who has extensive knowledge
of the European risk arbitrage and derivative markets, leads
the London based research team. Detailed analysis of each bid
incorporates the differences between the takeover regulation
and practices in the different European markets, and strategy
execution. The service also provides regular updates,
event calendars, and contact with the analyst team.
EUROPEAN
CAPITAL STRUCTURE ARBITRAGE REPORT
The European Capital Structure Arbitrage Report is also authored
by David Roden and identifies relative mispricing and trading
opportunities in liquid, quoted securities issued by European
companies. The focus is on the valuations of listed debt, convertible
bonds and equity. The strategies employed may be event driven
or based on relative pricing anomalies. The companies
covered normally have an equity market cap in excess of €500
million. Publications include initial coverage reports, updates
covering open strategies and trading recommendations.
GLOBAL
MERGERS AND ACQUISITIONS RESEARCH
The Global Merger Report, is an independent research service
covering all global mergers and acquisitions outside of the
US and Western Europe over 1 billion US dollars in value. The
service is written by a team of analysts, headed by David Roden
who has over 20 years of experience in risk arbitrage. Fundamental
research and trading analysis is provided on each acquisition.
Daily and weekly updates keep clients current on all transactions
followed, with ongoing news and deal analysis covering legal
issues, sector strategies, counter-bidders, valuations and timing.
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