Stacy Rasgon has been on Twitter since 2011, but recently realized that her tweets were a little boring.
“These are photos of children and airplanes,” he thought, noting that his employer, the global wealth management company Bernstein, does not allow him to tweet about semiconductor companies or most of the things related to covering industry as chief executive officer and senior analyst there.
So one of his followers asked him what a typical earnings night looks like. He replied with a thread explaining the process that Wall Street sell-side analysts go through on a typical earnings afternoon, which usually stretches into the night or early morning, sometimes late – or early – at 4
“I thought maybe there is a way to be a little more interesting without colliding with the [Bernstein] social media policy, “he said.
That first Twitter thread received a positive reaction from customers and input within his company, where he recently conducted a junior analyst session on “How to be successful on the sales side”, which was based on one of his thread. He will also conduct a session at the Bernstein “summer school”.
Since last month, when he answered this initial question, Rasgon has written discussions on other topics of interest to investors – and financial journalists – discussing everything from earnings conference calls, to how to interact with customers (purchasing side / managers of funds), how to deal with the media, the art of writing headlines for research reports, how he got his job on Wall Street.
Rasgon’s route to Wall Street was not a standard route. He said that most analysts start in a company, eventually become a junior or associate analyst and move on to work as a senior analyst. Rasgon, however, joined McKinsey & Co.’s Bernstein Research, where he had been a consultant focused on semiconductor companies, his first job after earning a PhD. from the Massachusetts Institute of Technology in chemical engineering.
During two summers of graduate school, Rasgon had worked at IBM Corp.’s IBM,
Watson Research Center, where he was a cooperative engineer working on advanced lithography and the processes used in semiconductor manufacturing. Rasgon joined Bernstein in April 2008, during the financial crisis and immediately after Bear Stearns went bankrupt.
“When I started, I had no experience on Wall Street, I didn’t know the difference between the buying and the selling side,” he said. “I knew on an operational level what made a good semiconductor company, but I didn’t know how to talk to customers or the sales force. Nobody understood anything I was talking about. ”
There would be mistakes along the way. A funny thread that journalists like yours really found fascinating presented a story about the so-called callbacks that companies make to individual analysts on the sales side after their calls to public profits. The callback offers companies the opportunity to underline certain points for analysts, as well as to “engage in damage control” if they “put their foot in the mouth of the call”, which, note in brackets Rasgon, “happens”.
In this particular case, Rasgon said that some companies try to get analysts to provide them with information about their financial models or their estimates, so that they can guide them correctly in the right direction.
“Suffice it to say that in my first earnings season I wasn’t familiar with the concept of” callback, “Rasgon wrote.” I knew I had some sort of IR phone call scheduled later on, but I didn’t really understand what it was for. ”
Rasgon said that the investor relations manager called from a company and, after examining a lot of data, asked him bluntly: “What is your number?” Rasgon’s financial models are quite complex, and when he said he hasn’t started working on his model yet, the IR person remained silent, then thanked and hung up – Rasgon later recognized that the company was trying to drive. his model.
“This particular company has been on the aggressive side,” added Rasgon in his Twitter discussion. “That level of” help “isn’t typical of my experience.” He added that some companies will not say anything other than their public conference call or revenue script. “There must be a happy medium,” he said.
Part of what Rasgon does is similar to financial journalism: trying to write an eye-catching headline, and then telling a story that investors – who don’t understand all the details of the semiconductor industry – can understand. He said he spends a lot of time trying to think of a title for his company’s relationships and, of course, the content within them.
“About one in five of my titles [gets] rejected, “he said. He also noted that any title with a reference to gambling is immediately rejected by the Bernstein compliance department.
Some catchy Rasgon titles that have been released include “Evel Knievel Lives?” who described a forecast for 2019 by Advanced Micro Devices Inc. AMD,
that required a “rear half ramp [in revenue] this would make Evel Knievel nervous. “AMD continued to experience a huge quarter, but data center sales were below expectations.
Funny during Qualcomm Inc.’s QCOM,
legal saga with Apple Inc. AAPL,
he compared the murky situation of his communication chips to the famous shaggy cousin of renowned Addams cousin Itt, in a note called “Qualcomm FQ1 2020 Summary – Cousin Itt?”
“There is enough hair to keep us aside,” he wrote.
After Nvidia Corp. NVDA,
CEO Jensen Huang, in a launch of a 19th century COVID product via video, opened the oven in his home kitchen to reveal a series of new products, Rasgon’s title was simply “Cooking with Jensen”.
Rasgon’s enthusiasm for his work and his enthusiasm for the shaky world of semiconductors is contagious, even in our short conversation. And now he has found a way to blend that passion with a writing structure to attract customers – and the press – in his complex Twitter TWTR search,
It seems to work.
“It’s a fun job,” he said. “I can write about what interests me.” But the most important element of the job is the customers, and he has learned to put them first, he said. “If you don’t like people and you can’t build relationships, you will fail from a sales perspective, no matter how good your stock choices are.”