Question
Please read the descriptions of two fictional companies below (ABC, XYZ) and provide a pitch for which business youd prefer to invest in and why
- Please read the descriptions of two fictional companies below (ABC, XYZ) and provide a pitch for which business youd prefer to invest in and why (valuation and stock price is not a consideration). If your investment is a failure, what will be the main reason why?
- Please keep your answer to 500 words or less. This project must be sourced exclusively to publicly available information only and is intended to be passive; please do not reach out to any individuals or companies while conducting your work on this project.
Company ABC
Description: A domestic dollar store retailer focused on low-middle income suburban areas
Some Key Points:
ABC currently has 1000 stores and thinks it can grow to 2000 stores over the next 10 years
Sales at stores currently opened have stalled and havent grown in a year
ABC has been struggling to maintain margins given the quick surge in inflation
Company XYZ
Description: A manufacturer of batteries for electric vehicles
Some Key Points:
XYZ has secured contracts with two major car manufacturers for production beginning in 2023, but currently has no revenue
XYZ has ten competitors which have similar technology, but only three have currently secured contracts and are priced at a premium to XYZs product
XYZ has price escalators that allow it to capture any increases in their costs
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