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Stone Street Advisors provides flexible, independent customized research & analysis services for small and medium sized asset management firms - allowing them to compete effectively with much larger funds with significantly greater resources.

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Latest posts from the Stone Street Team via our Public Blog

Aswath Damodaran's Spring, 2015 Valuation Class Project Results

the-analyst Jordan S. Terry

Each year, lauded NYU Stern finance professor Aswath Damodaran has his MBA students complete a live valuation project. The results, of 108 submissions, are extremely interesting! In addition to identifying some investment opportunities (long and short) you may have never encountered, the performance of these picks over time suggests they may help form a viable investment strategy.

Town Sports' 'High-Value Low-Price' Strategy Is Doomed To Fail. Horribly.

the-analyst Jordan S. Terry

New York Sports Club parent Town Sports (CLUB) is being squeezed from both the bottom and top of the market, stuck between the proverbial rock and a hard place. Ultimately, trying to compete on price in a competitive industry with little cost flexibility and levered balance sheet, years late to the party, is a recipe for disaster.

P/E Ratios - You're Doing it Wrong

the-analyst Jordan S. Terry

All-too-often traders and investors who should know better throw around comparisons and analysis using P/E ratios, without much (if any) thought being paid to the fundamental determinants thereof. Here, we explain how analyzing these determinants - free cash flow to equity, equity cost of capital, and the long-term growth rate - provides analysts and investors much-needed context to render P/E comparisons and analysis useful and actionable.

Rainbow Connection

dutch_book Dutch_Book

On the Perils of Management Access & Straying From Process: Our Adventure With Jones Soda

the-analyst Jordan S. Terry

We were initially skeptical about Jones Soda, but after meeting with management, we were left with a decidedly different, opposite impression. A few weeks later, we realized we hadn't taken management's comments with the requisite grain of salt they deserve. Here, we discuss how we allowed ourselves to be misled, what we've learned, and what we think about the company today.