You will often see P.I.T.A. posts related to individual equity securities in the EquiSense section of the site. While commonly known in a slightly different sense, our version of the acronym resolves as Precedent, Impact, Trial and Action and provide concise insight into specific events and their influence on individual company’s equity valuations.
Precedent: Briefly describes the situation in detail, elaborating how and why it influences the market overall and individual sectors.
Impact: The fallout - brief insight into what was the resulting outcome onto individual company and its equity.
Trial: Analysis - what’s the takeaway? Is this a “game-changing” event that requires re-evaluating the company and its future prospects? What are the risks to this assessment and what alternative scenarios are possible? Is the market reaction fair, or should this be used as a money-making opportunity?
Action: Buy, Sell or Hold – with a bit more specifics as to why we believe this to be true, thesis for recommendation, potential exit and entry points or other events to be on the lookout for.