Fall 2018 Recruitment Overview

  • We will be having GBM this Sunday, 9/30, at 3pm in JMHH F70.

  • Applications for Exec Board and Investing Teams have been released. All years are allowed to apply for both.

  • Applications will open on 9/16, and close on 9/30. For freshmen interested in investing teams, we recommend attending Development Team sessions, our New Student Programming event.

  • We have concluded Devt Team for the fall. We will be holding Devt Team again in the spring, look out for information on our website and listserv.

  • Join our Development Team Listserv here.

  • Join our Listserv here

  • Slides from our first GBM — containing details about the club and the application process — here.

  • Email pennwitg@gmail.com if you have any questions

Executive Board Applications:

Apply for Executive Board here: https://goo.gl/forms/SDbid8V9UAzvseVe2. Note that you are allowed to apply for up to two teams, and that you can apply for and be on both Investing Teams and Executive Board at the same time. We do not require prior investing experience, only an interest in the club and investing / finance. For Executive Board, we only require you list your preferences to decide on allocating roles if you’re accepted to the board. Your preference will not affect your chances of getting in. For instance, if everyone selects ‘Jr. Board of Events’, we will consider all candidates equally and allocate you to a different role if you get on the board. It does not mean that you will have a higher chance of getting in if you select a less popular role or a lower chance of getting in if you select a more popular role."

Executive Board Questions (All roles other than Tech):

  1. Tell us about your interest and any relevant experience in investing. (250 words)

  2. Tell us what the WITG Operations Board does, to the best of your understanding, and why you are interested in WITG. (300 words)

  3. Tell us about a time you planned an event and / or worked with external parties. (300 words)

Executive Board Questions (Tech):

  1. Why are you interested in WITG? (200 words)

  2. What experience do you have with building / managing websites? (250 words)

Investment Team Applications:

Investment team application questions here. Note that you are allowed to apply for up to two teams, and that you can apply for and be on both Investing Teams and Executive Board at the same time. JotForm was having issues, so please submit on Google Forms instead here. Note that all teams require you to submit a pitch other than Quant.

Guidelines for Stock Pitch

  • Feel free to pitch any publicly traded asset.

  • If pitching an equity investment, please avoid well-covered stocks such as Google, Apple, Facebook, etc.

  • Be sure to include the following sections: industry overview, business overview, business metrics (relevant ratios, etc.), thesis, qualitative and quantitative discussion.

  • The qualitative analysis can take the form of a presentation or a write up. It should contain sections such as the Company Overview, Industry Overview, Thesis and Supporting Points, and Risks and Mitigants.

  • For the quantitative analysis, be sure to focus on having clear and correct assumptions when driving revenue and costs. Do not focus on the mechanics of the model. We will accept DCFs, comparable companies analysis, liquidation analysis or any other form of model.

  • Remember that we will be judging based on clarity and originality of thought rather than length and verbosity. Feel free to analyze a business without making a definite buy/sell recommendation. For those of you who have been on the development team, please remember to reference those concepts and apply them to your research.

Resources for Pitch

  • Company filings, available at SEC Edgar. Here is a list of filings that you need to know. We recommend reading at least one 10-K and the most recent 10-Q.

  • Earnings call transcripts are frequently available at Seeking Alpha, the company's investor relations website or on Thomson One (available on Wharton computers and through the Lippincott library). These transcripts frequently contain important information not discussed in the filings.

  • Company presentations available on their investor relations website. These frequently highlight management plans.

  • Analyst reports are available through Thomson One. To access Thomson One through a personal computer, please go to the Lippincott Library website, type in Thomson One, select the first link and sign in. Please note that Thomson One only works on Internet Explorer.

Sample Stock Pitch

Whole Foods Sample Application Pitch
January 2017

Whole Foods Market (NASDAQ: WFM) is an upscale supermarket chain that targets health-conscious consumers of middle and high income levels. As of January 20th, it is currently trading at $30.81 and at a 7.4x EV/EBITDA multiple. I believe that the company is undervalued as the market is not taking into account both their dominant position in the growing organic food market and their recent expansion into what they call their ‘365 stores’.

The firm employs a unique managerial structure wherein employees are grouped into store teams and given bonuses scaled to the relative performance of their respective Whole Foods location. This incentive structure helps induce higher customer satisfaction, creating a competitive advantage. A second competitive advantage is derived from Whole Foods’ recognizable brand name and unparalleled guarantee of high-quality products. This has created a near-monopoly within the large-scale organic grocer market, which is expected to grow at a 10% CAGR through 2020. Whole foods has been able to capitalize on this growth - in Q4 of 2016 alone, their bottom line increased by 57% relative to the previous quarter while revenue was up only 2%.

Whole Foods’ ‘365 store’ is smaller than a standard Whole Foods store, averaging 28,000 sq ft. versus 49,000. It is also cheaper for both Whole Foods and the consumer: the products in 365 stores are said to be 23% less expensive and the cost for Whole Foods to build and maintain the stores is over 50% cheaper, thus increasing their economic return. Whole Foods is set to open 22 new 365 stores in the first half of 2017. Analysts and the street have expressed concern that the ‘365 store’ brand could cannibalize a portion of Whole Foods’ existing sales. However, this will not be the case. The new stores are situated in locales where existing sale stores are already extremely low. Furthermore, the stores are focused on tapping into a younger demographics that lack the disposable income to consistently shop in their flagship stores. The absence of the cannibalization factor will vastly increase the future gains of the firm relative to the street’s expectations.

Whole Foods Market is currently being undervalued by the Street as a result of a general misunderstanding of their new venture into ‘365 stores’ and the potential they have to generate growing profits within the highly-demanded organic food space.