When took many different courses, listened to many different

When I joined the Mays Business
School, I had a vision of what I wanted to be in the financial world. Over the years, I
took many different courses, listened to many different ideas but none of them
clicked. I came in seeing myself working somewhere in the Equity Research
Business after graduation and later down the years, starting an mutual or hedge
fund.

 Over the last few years I have been actively
trading in the equity market. One thing I always had issues with was the price
target issued for a stock by a number of analysts. Whether it be Zacks,
MarketWatch, The Street or Vetr, the price targets never remained consistent.
An example of this would be SunEdison. When SunEdison (SUNE) was trading at $5
per share, analysts had a price target of $12 set for the stock. Given that
company had $11 billion of debt, deteriorating sales, and a balance sheet which
was a complete mess, a price target of $12 seemed unreasonable. Now that same
stock is trading at $0.37 and now the analysts have a new price target of $3.75
which is still unreasonable since the company is about to file for bankruptcy
which will leave its common stock worthless. There are many other examples
where analysts have done such a thing. The key takeaway here is, for an average
investor who looked at the price targets for this stock and bought it at $5
thinking it was going to $12 lost more than 90% of his investment. A smart
investor who looked at the balance sheet would have avoided the stock but
considering there are more uninformed investors than informed investors, such
disastrous analyzing from the big firms causes the average investor to lose.
Another thing that happens is stock manipulation from the same research firms.
If these firms own a share in a company, they upgrade it its rating, push the
stock up and then they close their positions letting, causing the average harm
again. This is why we see stocks shoot up on an upgrade and then drop back down
to the same range as they were before. The perfect example of this is
Blackberry (BBRY). A stock which was rated a “Strong Buy” when it was
trading at $8, shot up to $9.50 on the upgrade, pulled back to $7 and then the
rating was changed to a “SELL” by the same firm. The point here is
the average investor was played around by the big firm again. So in order to
tackle this problem I’m working on a startup which will serve the purpose of
analyzing stocks that are being manipulated. This will be an Equity Research
Business similar to The Street or Zacks but instead of harming the investor, it
will serve the sole purpose of helping the average investor and protecting them
from being manipulated.

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Soon after I have an
established business and a stable source of income, the second goal will come
into play. The hedge fund community only serves to the super rich investors
because they are the ones who can make the big investments. One idea that is
completely ignored by Hedge Fund managers is that “little drops of water make
the mighty ocean.”  Basing it off the
research of my own investment firm, I plan to start a Hedge fund or Investment
fund to serve the daily investor. If the capital requirement is high which it
will be, our hedge won’t be afraid to take on more than the usual number of
investors. The purpose of the fund will be to give the same rights and chances
the people of the upper class have to the daily working class. Capital will be
collected from people who have no idea of investing in the market and placed
into a dividend paying fund. Using the research of our equity firm, the fund
will make investments in the equity market using hedging techniques to minimize
risk. The risk level will be kept at a minimum at all times since the people we
will be dealing with rely on that capital a lot more than someone who has an
endless amount of capital. If all works out as planned, the idea of investing
in the market will excel and overall benefit the economy as a whole.

As we have seen over the
last 30 years or so, rich people keep getting richer and poor people keep
getting crushed into the ground. This is the idea behind the fund and the
equity research business. In a legal manner, if we are able to inject the syrup
of the people of the upper class into the lower class giving every person an
equal chance of making it to the top, this country will become a lot more
competitive and the talk of equality we hear about all the time will become a
reality.