====== Burkenroad Reports ======
Burkenroad Reports are a unique and highly regarded source of [[equity research]] focused on small, publicly traded companies that are often overlooked by Wall Street. Produced by teams of senior finance students at [[Tulane University]]'s A.B. Freeman School of Business under the guidance of professor [[Peter Ricchiuti]], these reports provide deep-dive analysis on what they affectionately call "stocks under rocks." The program zeroes in on companies primarily located in the southern United States, a region rich with businesses that are too small to attract coverage from major investment banks. This lack of attention from mainstream analysts creates an information vacuum, which Burkenroad Reports brilliantly fill. For the savvy investor, this can be a goldmine, offering detailed, institutional-quality insights on potentially undervalued businesses long before they appear on the broader market's radar. It's a fantastic example of academic rigor meeting real-world [[value investing]].
===== The 'Stocks Under Rocks' Philosophy =====
Why would a perfectly good company be ignored by the market? The answer often comes down to size and liquidity. Large investment firms typically focus on large-cap stocks where they can invest significant capital without moving the price. A [[small-cap]] company, no matter how well-run, simply doesn't have enough trading volume to be worthwhile for a massive fund. This creates a class of "orphan stocks"—companies with solid fundamentals but little to no analyst coverage.
This is where the value investing magic happens. The market's neglect can lead to mispricing, where a company's stock trades for far less than its intrinsic value. Burkenroad Reports are built on the premise that diligent, on-the-ground research can uncover these hidden gems. By providing credible, in-depth analysis where none existed before, the reports help bridge the information gap, allowing investors to make informed decisions about businesses the rest of Wall Street has left behind.
===== How the Reports are Made =====
The creation of a Burkenroad Report is a masterclass in hands-on investment analysis, blending academic theory with practical, shoe-leather investigation.
==== Student Analysts at the Helm ====
The program is not a simulation. Each year, teams of the university's top finance students are assigned a company to cover. They function as genuine sell-side analysts for the academic year. This model is a brilliant "win-win": students gain invaluable real-world experience that looks spectacular on a resume, and investors get access to meticulously researched reports on underfollowed companies, free of the conflicts of interest that can sometimes plague traditional Wall Street research.
==== On-the-Ground Research ====
This is not just about crunching numbers in a library. The core of the Burkenroad process is primary research. Students travel to meet the companies they are covering. This involves:
  * //Intensive Interviews:// Grilling C-suite executives—the CEO, CFO, and other key leaders—about strategy, operations, and future outlook.
  * //Facility Tours:// Walking the factory floor or observing the company's operations firsthand to understand the business from the ground up.
  * //Scuttlebutt Investigation:// In the spirit of legendary investor [[Philip Fisher]], students talk to customers, suppliers, and competitors to build a 360-degree view of the company's competitive position. This [[scuttlebutt]] approach often reveals insights that financial statements alone could never provide.
===== What to Expect from a Burkenroad Report =====
A finished Burkenroad Report is a comprehensive document, typically 20-30 pages long, that provides a thorough business and financial overview. While the exact structure can vary, you can generally expect to find:
  * **Business Overview:** A clear explanation of what the company does, its history, and its primary products or services.
  * **Industry & Competition:** An analysis of the market the company operates in, its size, growth prospects, and key competitors.
  * **Management Assessment:** An evaluation of the leadership team's experience, track record, and alignment with shareholders.
  * **Financial Analysis:** A detailed review of the company's financial health, including its income statement, balance sheet, and cash flow statements. This section often includes valuation work, potentially using methods like a [[Discounted Cash Flow (DCF)]] model.
  * **Investment Thesis & Risks:** A summary of the key reasons to consider investing in the stock (the "thesis"), alongside a clear-eyed look at the potential risks and challenges the company faces.
===== Value for the Individual Investor =====
For individual investors practicing value investing, Burkenroad Reports are an exceptional resource. They are, first and foremost, a powerful idea-generation tool. They point you toward companies you would likely never find on your own.
Furthermore, the reports serve as a fantastic starting point for your own [[due diligence]]. While the student analysts are sharp, they are still students. Their work should never be taken as direct investment advice or a substitute for your own judgment. Instead, use their detailed analysis to get up to speed on a business quickly, and then use it as a foundation to ask your own questions and come to your own conclusions. Think of it as having a team of bright, unpaid interns doing the initial legwork for you.