Methodology
S.T.E.P. Approach
Story Line
Every stock has a story. The Story Line is the primary driver of stock price and future expectations. Avalon's use of a Story Line to frame the business highlights company strengths and engages institutional investors. Each analysis highlights the important elements of the story so the company's true message will reach investors.
Time Line
The Time Line is the first derivative of the Story Line. The Time Line is the timeframe in which the Story Line is expected to occur. Avalon uses the Time Line to map a company's past, current and future business.
Earnings Line
The Earnings Line is the natural byproduct of the Story Line and Time Line. Misunderstood or unknown Story Lines and/or Time Lines will result in positive or negative earnings surprises. The Earnings Line is used to set and manage investor expectations.
Price Line
The Price Line reflects the value the market will pay for the total of the previous components. Lack of investor knowledge or misinformation often leads to under-priced stocks. Avalon identifies specific triggers and metrics affecting valuations and stock price multiples. By providing investors with an institutional quality company analysis, investors will reach a favorable Price Line conclusion.