Idea Generation
Workflow
Step 1: Define Search Criteria
Ask the user for parameters:
- Direction: Long ideas, short ideas, or both
- Market cap: Large, mid, small, micro
- Sector: Specific sector or cross-sector
- Style: Value, growth, quality, special situation, event-driven
- Geography: US, international, global
- Theme: Any specific thematic angle (AI, reshoring, aging demographics, etc.)
Step 2: Quantitative Screens
Run screens based on the style:
Value Screen
- P/E below sector median
- EV/EBITDA below historical average
- Free cash flow yield >5%
- Price/book below 1.5x
- Insider buying in last 90 days
- Dividend yield above market average
Growth Screen
- Revenue growth >15% YoY
- Earnings growth >20% YoY
- Revenue acceleration (growth rate increasing)
- Expanding margins
- High return on invested capital (>15%)
- Strong net retention (>110% for SaaS)
Quality Screen
- Consistent revenue growth (5+ years)
- Stable or expanding margins
- ROE >15%
- Low debt/equity
- High free cash flow conversion
- Insider ownership >5%
Short Screen
- Declining revenue or decelerating growth
- Margin compression
- Rising receivables …
