Come Into My Trading Room by Elder Alexander - A Complete Guide To Trading

Guide to getting a quant job

WetFeet Insider Guide – Beat The Streets II – I-Banking Interview Practice Guide

Financial knowledge

Wiley – Valuation Measuring and Managing the Value of Companies

Intermediate Financial Theory

Introductory Econometrics for Finance

Principles of Corporate Finance

1) Working at a main investment bank will get you better exposure to better clients. Your team head will decide when you are ready to start speaking to clients, but once you do, you get to interact and debate with PM’s and analysts from the likes of Blackrock, Fidelity, Alliance… as well as top hedge funds. This not only offers you the points of view of the top houses in the industry but also greatly expands your network if you are looking into making a jump into the buyside.

2) The size and quality of the sales and trading department at a bulge bracket will help you to get your name out there. If the sales people like you they will ask you loads of questions and try to grab you over to their desk when you visit the floor. This translates into more client exposure as they’ll want to bring you along with them. Sales don’t really care about hierarchy and will respect you if you know your stuff even though you might be a junior. Also interacting with traders allows you to be in the flow. When a client calls asking “why they hell is this stock up 3% if there’s been no news” you will be able to answer “oh, let me call my trader”.

3) Resources. Big banks have the capital to actually invest in department resources. I can’t tell you how awesome it is to not having to update company models every earnings because we have a guy in India who does it. You might have to proofread through it but that is so much easier then actually manually updating each model for the 15 companies you may have under coverage.

4) Management exposure. More often than not you will get more exposure to management teams outside the traditional analyst day, since they usually schedule their roadshows in liason with an investment bank. It’s pretty nice when you are 23 and you are on a first name basis with a CEO who who runs a company that is $8bn in mkt cap. If you want to jump into industry you know who to call.

5) IPO experience. If your sector is hot or you work for a top ranked analyst you will get a lot of IPO’s in your space simply because the company wants the top analyst to market them. This translates into you (aka the junior analyst) to be the guy who has to build the vetting model and write a substantial part of the initiation and marketing report. This is great experience to draw from when you are interviewing.

So all things considered, if you are in a position to choose between a junior role at a main investment bank or a smaller independent shop, take the bulge bracket offer and never look back.

Sales

You get to the office around 6am in order to spend most of your day on the phone trying to sell your clients products that they probably don’t need. If you’re not on the phone then you’re shouting across the floor to get prices from traders, and if you’re not doing that then you’re staring at technical analysis charts on Bloomberg – maybe you believe in them, maybe you don’t, but perhaps you can take one of them and spin a story around it so you can sell some shit to a client. Clients bitch at you, traders and researchers think you are an idiot, but at least you get to go home around 5.30pm.

Trading

You still get in early. On the bright side, you don’t have to deal with any clients in this role, but the downside is that you have to deal with salespeople, which is possibly even worse. If you’re lucky you can get to do proprietary trading, which is definitely more interesting than filling orders for clients (flow). The problem with prop is that you’re crapping bricks whenever it looks like a position isn’t going your way. Still better than being a salesman, but only marginally.

Structuring

At least there’s some variety in this role – as long as you like spending your day inventing a bewildering array of mind-bending financial structures designed to temporarily blind anyone who tries to comprehend them, at least for long enough so the salesperson can convince a client to part with enough cash now that it doesn’t matter when the whole thing turns out to be a bundle of lies. Well, that was what a structurer did before 2008. Now that everyone’s runs away from exotics like if they were the plague and vanilla is the new flavour of the day, they probably don’t have much to do anyway.

Research

This is one of the most soul-destroying positions in the bank. You get in as early as the traders, but there is no way you are going to be out before 7pm.  Fundamentally, the function of the research department in a bank is not to produce good research, but to produce something glossy that the salespeople can wave in the face of clients so that they can convince them to buy something. The research department can sit there with their huge models and their fancy analysis tools, but at the end of the day they’re employed to produce sales brochures. Oh, and don’t forget to suck a lot of client dick if you want get those Extel votes.

Quants

You are the traders’ bitch. Whenever a model isn’t working properly (or even when it is working properly, but the trader doesn’t like the results) the trader will shout at you over the phone, or even standing over your desk, demanding that you fix it now because NOTHING COULD POSSIBLY BE MORE IMPORTANT. And time after time, you’ll swallow your pride and do it, because quants are treated like second class citizens in an investment bank. You’ll try to convince yourself that the research you’re doing (whenever you get to do research rather than spending your time trying to fix a 100 MB Excel spreadsheet) is just as interesting as what you were doing before you joined the bank, but deep down you know that you’re only lying to yourself. What makes things worse is that the useless idiot who shouts at you makes 3 times more money that you do.

IBD
For some reason, some people think the job is glamorous. It’s obviously not. Walk around the offices of any major investment bank around 1-2am, and you will see this tired, haggard investment bankers crawling out of the office in the small hours of the morning and falling limply into taxis, just so they can do exactly the same thing again tomorrow, and the day after, and at the weekend. Most of them don’t even have a clue about finance, but have truly mastered the secrets of PowerPoint. You have to pity these poor souls.

NYC
_______________________________________________
Advent Financial
Afin Securities International Ltd., Research Division
Agile Equity, LLC, Research Division
Albert Fried & Company, LLC, Research Division
Alembic Global Advisors
Alpha Finance US Corp., Research Division
AMI Research
Ardour Capital Investments, LLC, Research Division
Arete Research Services LLP
Auerbach Grayson & Company Incorporated, Research Division
Auriga USA LLC, Research Division
B. Riley & Co., Inc.
B. Riley & Co., LLC, Research Division
Balis, Lewittes & Coleman Inc., Research Division
Barclays Capital, Research Division
BB&T Capital Markets Inc.
BB&T Capital Markets, Research Division
BBVA Securities Inc., Research Division
BDR Research Group, LLC
Bishop, Rosen & Co., Inc.
Bishop, Rosen & Co., Inc., Research Division
BofA Merrill Lynch, Research Division
Boyar Financial Publishing, LLC
Boyar’s Intrinsic Value Research LLC
Brean Murray, Carret & Co., LLC, Research Division
Brigantine Advisors LLC
Bristol Investment Group, Inc., Research Division
BTG Pactual S.A., Research Division
BTIG, LLC, Research Division
Buckingham Research Group, Inc.
Canaccord Genuity, Research Division
Cantor Fitzgerald & Co., Research Division
Cantor Fitzgerald, LP
Capstone Investments, Research Division
Caris & Company, Inc.
Caris & Company, Research Division
Casimir Capital L.P., Research Division
CentreInvest Inc.
Chardan Capital Markets, LLC, Research Division
Christensen
CIBC World Markets Corp., American Research Division
CJI Capital Markets Inc., Research Division
CL King & Associates, Inc
Coleman & Company Securities, Inc., Research Division
Collins Stewart LLC, Research Division
Corinthian Partners, L.L.C.
Cowen & Co., LLC
Cowen and Company, LLC, Research Division
Creative Global Investments LLC, Research Division
Credit Agricole Securities (USA) Inc., Research Division
Crystal Equity Research, LLC
Crystal Partners & Co., LLP
Crystal Research Associates LLC
Custom Equity Research, Inc., Advisory Arm
Cuttone & Company, Inc.
Cyrano Equity Research Inc.
Dahlman Rose & Company, LLC, Research Division
Daiwa Capital Markets America Inc., Research Division
DBS Vickers Research
Divine Capital Markets LLC
Dudack Research Group
Duncan-Williams, Inc., Research Division
Emissary Capital Group, LLC, Research Division
Englander Research
ESN North America, Inc.
Evercore Partners Inc., Research Division
Favus Institutional Research, LLC
FBN Securities, Inc., Research Division
Fourteen Research Corp.
Fox-Pitt Kelton Cochran Caronia Waller Limited, Research Division
FTN Equity Capital Markets Corp.
GC Research Ltd.
GKN Securities Corp., Research Division
Gleacher & Company, Inc., Research Division
Global Hunter Securities, LLC, Research Division
Gluckstein & Silverspoon
Goldman Sachs Group Inc., Research Division
Great Eastern Securities, Inc., Research Division
Griffen-Rose, LLC
Hapoalim Securities U.S.A., Inc.
Hapoalim Securities USA, Inc., Research Division
Harbinger Research, LLC
Harris Nesbitt Corp.
HCFP Brenner Securities LLC, Research Division
HealthpointCapital, LLC, Research Division
Hornblower & Weeks, Research Division
Hudson Square Research, Inc.
ING Groep N.V., Research Division
InSync Analytics LLC, Research Division
Investrend Research
Irevna Limited
ITG Investment Research Inc.
Jefferies & Company, Inc.
Jefferies & Company, Inc., Research Division
Jesup & Lamont Securities Corporation, Research Division
JMP Securities LLC, Research Division
Joseph Gunnar & Co., LLC, Research Division
JP Morgan Chase & Co, Research Division
Kaufman Bros., L.P.
Kaufman Bros., L.P., Research Division
KBC Securities NV
Keefe, Bruyette, & Woods, Inc., Research Division
Kevin Dann & Partners, Research Division
KeyBanc Capital Markets Inc.
Kim & Company LLC
Kim Eng Research Pte. Ltd.
KTA Research, LLC
Ladenburg Thalmann & Co. Inc., Research Division
Lazard Capital Markets LLC, Research Division
Ledgemont Capital Markets LLC
Leerink Swann LLC, Research Division
Lombard Street Research Limited
Longbow Research LLC
M. R. Beal & Company
M. R. Beal & Company, Research Division
Macquarie Research
Maxim Group LLC, Research Division
McNicoll, Lewis & Vlak LLC, Research Division
MDB Capital Group LLC, Research Division
Mehta Partners, LLC, Research Division
Meridian Equity Partners, Inc., Research Division
Merlin Securities, LLC, Research Division
Merriman Curhan Ford & Co., Research Division
Merriman Holdings, Inc. (NasdaqCM:MERR)
Miller Tabak & Co., LLC, Research Division
Miller Tabak Roberts Securities, LLC, Research Division
Mitsubishi UFJ Securities (USA), Inc., Research Division
Mizuho Securities Co., Ltd., Research Division
MKM Partners LLC, Research Division
MKM Partners, LLC
Monarch Capital Group, LLC
Monness, Crespi, Hardt & Co., Inc., Research Division
Morgan Joseph TriArtisan LLC, Research Division
Morgan Stanley, Research Division
Muriel Siebert & Co., Research Division
Murphy & Durieu, L.P., Research Division
National Securities Corporation, Research Division
Natixis Bleichroeder LLC, Research Division
Natixis Securities North America Inc., Research Division
Needham & Company, LLC, Research Division
New York Global Securities, Inc., Research Division
Noble Financial Group, Inc., Research Division
Numis Securities Ltd., Research Division
o3 Capital Advisors Pvt. Ltd.
Olympia Asset Management, Ltd.
Olympia Capital Markets Group, Research Division
Oppenheimer & Co. Inc., Research Division
Oppenheimer Holdings Inc. (NYSE:OPY)
Opus Group Financial
Oscar Gruss and Son Inc.
Oscar Gruss and Son Inc., Research Division
PAA Research LLC
Pali Capital Inc., Research Division
Pali Capital, Inc.
Palladian Research LLC
Phoenix Partners Group, LP, Research Division
Pivotal Research Group
Portales Partners, LLC
Prime Equity Research
Pritchard Capital Partners, LLC, Research Division
Putnam Lovell
Rapid Ratings Pty Ltd., Research Division
RB Milestone Group, LLC
RBC Capital Markets LLC
RL Renck & Co., Inc.
RL Renck & Co., Inc., Research Division
Robert Fleming Inc.
Robotti & Company Incorporated, Research Division
Rodman & Renshaw Capital Group, Inc. (NasdaqGM:RODM)
Rosetta Group Research L.L.C.
Rothschild Inc., Research Division
S&P Equity Research
Samuel A. Ramirez & Co., Inc., Research Division
Sandler O’Neill + Partners, L.P., Research Division
Sandler O’Neill & Partners, L.P.
Santander, Equity Research
SEB Enskilda, Research Division
SG Corporate & Investment Banking
Sidoti & Company, LLC
Simon Securities Inc., Research Division
Soleil Securities Group, Inc.
Southridge Research Group LLC
Spelman Research Associates, Ltd.
Standard & Poor’s Corporation
Stephens Inc., Research Division
Sterne Agee & Leach Inc., Research Division
Strategic International Securities Research Inc.
Sturza’s Medical Investment Letter
Summer Street Research Partners
SunTrust Robinson Humphrey Capital Markets
Susquehanna Financial Group, LLLP, Research Division
Technology Insights Research LLC
Telsey Advisory Group LLC
The Argus Research Group, Inc.
The National Research Exchange Inc.
The Williams Capital Group, L.P., Research Division
The Zephirin Group, Inc.
ThinkEquity LLC, Research Division
Thomas Weisel Partners Equity Research
Thomas Weisel Partners Group, Inc.
TIAA-CREF, Research Division
Ticonderoga Securities LLC
Tocqueville Asset Management LP, Research Division
Tradition Asiel Securities, Inc., Research Division
TriPoint Global Equities, LLC, Research Division
Tuohy Brothers Investment Research Inc.
UniCredit Research
UOB Kay Hian Research Pte Ltd
US Securities & Futures Corporation, Research Division
Utendahl Capital Partners LP, Research Division
Vector Securities, L.L.C.
Viriathus Research LLC
W. Quillen Securities, Research Division
Wall Street Strategies Corp. (OTCPK:WSSS.Q)
WestLB Panmure
WestPark Capital, Inc.
Wm Smith & Co.
WR Hambrecht + Co., LLC
WR Hambrecht + Co., LLC, Research Division
Wunderlich Securities Inc., Research Division

Greater LA
____________________________________
B. Riley & Co., Inc.
B. Riley & Co., LLC, Research Division
Barclays Capital, Research Division
BB&T Capital Markets Inc.
Black Box Investing, Inc.
Boston Group LP, Research Division
Brimmal Research, LLC
C. K. Cooper & Company
C. K. Cooper & Company, Inc., Research Division
Cantor Fitzgerald, LP
Core Pacific -Yamaichi International (H.K.) Limited, Research Division
Crowell, Weedon & Co., Research Division
Dabney/Resnick/Imperial LLC, Research Division
Emerging Growth Stocks, LLC
EquityNet Research
GHS Dutton, LLC
Global Hunter Securities, LLC, Research Division
GP Group, LLC, Research Division
Harris Nesbitt Corp.
Haugen Custom Financial Systems, Inc.
InterFirst Capital Corp., Research Division
Jefferies & Company, Inc.
Loop Capital Markets, LLC
ManageSource Financial Group, Inc., Research Division
MDB Capital Group LLC, Research Division
Merriman Curhan Ford & Co., Research Division
Merriman Holdings, Inc. (NasdaqCM:MERR)
National Capital Securities, Inc., Research Division
New Earth Capital Group
Putnam Lovell
Roth Capital Partners, LLC, Research Division
Singular Research
Stockcross Financial Services, Inc., Research Division
The Capital Group Companies, Inc., Research Division
The Seidler Companies Inc.
Vista Partners LLC
W.A.B. Capital, LLC
Wedbush Securities Inc., Research Division
Wells Fargo Advisors, LLC
WestPark Capital, Inc.
Wilshire Mutual Funds, Inc – Wilshire 5000 Index Portfolio (MutualFund:WFIV.X)
Wilshire Mutual Funds, Inc. – Small Company Growth Portfolio (MutualFund:DTSG.X)
Wilshire Mutual Funds, Inc.-Wilshire Large Company Growth Portfolio (MutualFund:DTLG.X)

SF Bay Area & Silicon Valley
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Americal Securities Inc., Research Division
Avondale Partners, LLC
B. Riley & Co., Inc.
B. Riley & Co., LLC, Research Division
Blaylock Robert Van, LLC
BofA Merrill Lynch, Research Division
Brean Murray, Carret & Co., LLC, Research Division
Brigantine Advisors LLC
Canaccord Genuity, Research Division
Cantor Fitzgerald, LP
Caris & Company, Inc.
Caris & Company, Research Division
Charles Schwab & Co. Inc.
Charter Equity Research
Cowen and Company, LLC, Research Division
Custom Equity Research, Inc., Advisory Arm
Duncan-Williams, Inc., Research Division
Farmhouse Equity Research, LLC
GC Research Ltd.
Gleacher & Company, Inc., Research Division
Global Hunter Securities, LLC, Research Division
Goldman Sachs Group Inc., Research Division
Harris Nesbitt Corp.
Howe Barnes Hoefer & Arnett, Inc., Research Division
Infinium Securities, Inc., Research Division
Jefferies & Company, Inc.
Jefferies & Company, Inc., Research Division
JMP Group Inc. (NYSE:JMP)
JMP Securities LLC, Research Division
JP Morgan Chase & Co, Research Division
Kaufman Bros., L.P.
Keefe, Bruyette, & Woods, Inc., Research Division
Longbow Research LLC
Loop Capital Markets, LLC
Merriman Curhan Ford & Co., Research Division
Merriman Holdings, Inc. (NasdaqCM:MERR)
Mitsubishi UFJ Securities (USA), Inc., Research Division
Morgan Stanley, Research Division
Needham & Company, LLC, Research Division
Nollenberger Capital Partners, Inc., Research Division
Pacific Crest Securities, Inc.
Polestar Investment Research LLC
Portsmouth Financial Services, Research Division
Putnam Lovell
RBC Capital Markets LLC
RBC Capital Markets, LLC, Research Division
Redwood Securities Group Incorporated, Research Division
Robert W. Baird & Co. Incorporated, Research Division
Rutberg & Company, LLC
Rutberg & Company, LLC, Research Division
Sandler O’Neill & Partners, L.P.
Semi Equity Partners
Soleil Securities Group, Inc.
Sterne Agee & Leach Inc., Research Division
Stone & Youngberg LLC, Research Division
Susquehanna Financial Group, LLLP, Research Division
ThinkEquity LLC, Research Division
Thomas Weisel Partners Equity Research
Thomas Weisel Partners Group, Inc.
Tiburon Research Group, Inc.
Vista Partners LLC
Wedbush Securities Inc., Research Division
William Blair & Company, L.L.C.
WR Hambrecht + Co., LLC
WR Hambrecht + Co., LLC, Research Division

Dallas
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Baldwin Anthony Securities, Inc., Research Division
Cantor Fitzgerald, LP
Dallas Research & Trading
First Dallas Securities, Research Division
Global Hunter Securities, LLC, Research Division
JP Morgan Chase & Co, Research Division
M. R. Beal & Company
Southwest Securities, Inc.
Stephens Inc., Research Division
Sterne Agee & Leach Inc., Research Division
Stifel, Nicolaus & Co., Inc., Research Division
Stonegate Securities Inc., Research Division
William K. Woodruff & Company, LLC, Research Division
San Diego
___________________________
Avondale Partners, LLC
California Equity Research, LLC
Capstone Investments, Research Division
Caris & Company, Inc.
Caris & Company, Research Division
Ford Equity Research, Inc.
WBB Securities, LLC, Research Division

Greater Houston
____________________________
BofA Merrill Lynch, Research Division
Canaccord Genuity, Research Division
Cantor Fitzgerald, LP
D.E. Wine Investment Inc., Research Division
Dahlman Rose & Company, LLC, Research Division
Duncan-Williams, Inc., Research Division
Global Hunter Securities, LLC, Research Division
Goldman Sachs Group Inc., Research Division
Howard Weil Incorporated
Howard Weil Incorporated, Research Division
Jefferies & Company, Inc.
Jefferies & Company, Inc., Research Division
JP Morgan Chase & Co, Research Division
Loop Capital Markets, LLC
Midkiff & Stone Capital Group, Inc.
Pin Money Investments, LLC, Research Division
Pritchard Capital Partners, LLC, Research Division
RBC Capital Markets LLC
Royalist Independent Equity Research, Ltd.
SunTrust Robinson Humphrey, Inc., Research Division
The Carson Medlin Company
Tudor, Pickering, Holt & Co. Securities, Inc.
Tudor, Pickering, Holt & Co. Securities, Inc., Research Division
Tudor, Pickering, Holt & Co., LLC
U.S. Capital Advisors LLC, Research Division
Wunderlich Securities Inc., Research Division

Chicago
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Advanced Equities Inc., Research Division
Ativo Research, LLC
Barrington Research Associates, Inc., Research Division
Brookshire Advisory and Research, Inc.
Cantor Fitzgerald, LP
Credit Suisse Securities LLC – Holt
First Analysis Securities Corporation, Research Division
Fox-Pitt Kelton Cochran Caronia Waller Limited, Research Division
FTN Financial Group
Gar Wood Securities, LLC, Research Division
Harris Nesbitt Corp.
Howe Barnes Hoefer & Arnett, Inc., Research Division
Jackson Securities, LLC, Research Division
JMP Securities LLC, Research Division
KeyBanc Capital Markets Inc.
Loop Capital Markets, LLC
M. R. Beal & Company
Next Generation Equity Research, LLC
Next Generation Holding, L.L.C.
Robert W. Baird & Co. Incorporated, Research Division
Sandler O’Neill & Partners, L.P.
SG Corporate & Investment Banking
Spin-Off Advisors, LLC
Sturdivant & Co., Inc., Research Division
TJM Institutional Services, LLC, Research Division
Wayne Hummer Wealth Management, Research Division
William Blair & Company L.L.C., Research Division
William Blair & Company, L.L.C.
Zacks Investment Research Inc.

Boston
___________________________
America’s Growth Capital, Research Division
Arete Research Services LLP
Avondale Partners, LLC
BB&T Capital Markets Inc.
Brigantine Advisors LLC
Canaccord Genuity, Research Division
Cantor Fitzgerald, LP
Caris & Company, Inc.
Caris & Company, Research Division
CL King & Associates, Inc
Collins Stewart LLC, Research Division
Cowen & Co., LLC
Cowen and Company, LLC, Research Division
Custom Equity Research, Inc., Advisory Arm
Eaton Vance Mutual Funds Trust – Eaton Vance Large-Cap Core Research Fund (MutualFund:EAER.X)
FAC Equities
GC Research Ltd.
Goldman Sachs Group Inc., Research Division
Harris Nesbitt Corp.
ITG Investment Research Inc.
Jefferies & Company, Inc.
Jefferies & Company, Inc., Research Division
JMP Securities LLC, Research Division
Leerink Swann LLC, Research Division
Merriman Curhan Ford & Co., Research Division
Merriman Holdings, Inc. (NasdaqCM:MERR)
Morgan Stanley, Research Division
Needham & Company, LLC, Research Division
Neponset Equity Research, Inc.
Off Wall Street Consulting Group, Inc.
Pacific Crest Securities, Inc.
Pioneer Investment Management, Inc, Research Division
Pulse Trading, Inc.
RBC Capital Markets LLC
Robert W. Baird & Co. Incorporated, Research Division
Sandler O’Neill & Partners, L.P.
Soleil Securities Group, Inc.
Summer Street Research Partners
SunTrust Robinson Humphrey Capital Markets
Susquehanna Financial Group, LLLP, Research Division
Thomas Weisel Partners Group, Inc.
Wellington Management Company LLP, Research Division
William Blair & Company L.L.C., Research Division
WR Hambrecht + Co., LLC, Research Division

Seattle
_____________________________
Cantor Fitzgerald, LP
E.K.Riley Investments, LLC, Research Division
First Washington Corporation, Research Division
KeyBanc Capital Markets Inc.
McAdams Wright Ragen, Inc.
McAdams Wright Ragen, Inc., Research Division
PitchBook Data, Inc.
Stifel, Nicolaus & Co., Inc., Research Division

Denver Area
________________________________
Denver Investment Advisors LLC, Research Division
Gleacher & Company, Inc., Research Division
GVC Capital LLC, Research Division
KeyBanc Capital Markets Inc.
Mejia Capital Consulting
Morgan Keegan & Company, Inc., Research Division
RBC Capital Markets LLC
Robert W. Baird & Co. Incorporated, Research Division
Thomas Weisel Partners Equity Research
Tudor, Pickering, Holt & Co., LLC
Wm Smith & Co.
Wm Smith Securities, Inc.
Wunderlich Securities Inc., Research Division

Greater London
________________________________
Absolute Strategy Research Limited
Actinvest Group Ltd.
Allenby Capital Limited, Research Division
Almeida Capital Ltd.
Ambrian Partners Ltd.
Arbuthnot Securities Limited, Research Division
Arete Research Services LLP
Atlantic Equities LLP
Barclays Capital, Research Division
Beaufort International Associates Limited, Research Division
Charles Stanley Securities, Research Division
City Capital Corporation Limited, Research Division
Collins Stewart plc, Research Division
Consumer Equity Research
Coutts & Co, Research Division
Echelon Research & Advisory LLP
European Securities Network LLP
Exane BNP Paribas
Frost Consulting & Advisory, Research Division
GMP Securities L.P., Research Division
Granville Baird
Hammer Partners SA
HB Markets Plc, Research Division
ING Groep N.V., Research Division
Irevna Limited
Jefferies & Company, Inc.
KBC Securities- CEE Research
Keefe, Bruyette & Woods Limited, Research Division
Libertas Partners LLP, Research Division
MainFirst Bank AG, Research Division
Marble Arch Research
Mirabaud Securities Limited, Research Division
Morgan Grenfell & Co Ltd., Research Division
New Street Research LLP
Ocean Equities Limited, Research Division
Old Park Lane Capital Plc., Research Division
Oraca Ltd.
Pali International Limited, Research Division
Putnam Lovell
RBC Capital Markets LLC
Robert W. Baird & Co. Incorporated, Research Division
Robertson Stephens International, Ltd.
S&P Equity Research
Standard & Poor’s Corporation
Stifel, Nicolaus & Co., Inc., Research Division
SVS Securities Plc, Research Division
Teathers, Research Division
Thomas Weisel Partners Group, Inc.
UOB Kay Hian Research Pte Ltd
Vicarage Capital Limited, Research Division
WestLB AG, Research Division
WestLB Panmure

Hong Kong
____________________________________–
3V Capital Limited, Research Division
ABCI Securities Company Limited, Research Division
Amsteel Securities (HK) Ltd., Research Division
Barclays Capital, Research Division
BofA Merrill Lynch, Research Division
Cantor Fitzgerald, LP
CCB International Securities Limited, Research Division
Christensen
CN Intelligence Group Limited
Core Pacific -Yamaichi International (H.K.) Limited, Research Division
Credit Agricole Securities (USA) Inc., Research Division
CSC Securities (HK) Ltd., Research Division
DBS Vickers Research
East Asia Securities Company Limited, Research Division
Emperor Securities Limited, Research Division
Everbright Securities Co. LTD., Research Division
First Shanghai Securities Limited, Research Division
Fox-Pitt Kelton Cochran Caronia Waller Limited, Research Division
Goldman Sachs Group Inc., Research Division
Guotai Junan Securities (Hong Kong) Limited, Research Division
Haitong International Research Limited
Hani Securities (H.K.) Limited, Research Division
ING Groep N.V., Research Division
Japan Asia Securities Limited, Research Division
Jefferies & Company, Inc.
Jefferies & Company, Inc., Research Division
JP Morgan Chase & Co, Research Division
Keefe, Bruyette & Woods Asia Limited, Research Division
KGI Securities Co. Ltd., Research Division
Kim Eng Research Pte. Ltd.
Kingston Securities Limited, Research Division
Kingsway Financial Services Group Limited, Research Division
Lehman Brothers Asia Ltd.
Lombard Street Research Limited
Macquarie Research
MainFirst Bank AG, Research Division
Mega Securities (Hong Kong) Company Limited, Research Division
Mirae Asset Securities Co., Ltd., Research Division
Morgan Stanley, Research Division
Nava Standard Chartered Securities Investment Ltd., Research Division
Nomura Asian Equity Research
Oriental Patron Financial Group
Oriental Patron Securities Limited, Research Division
OSK Securities Hong Kong Limited, Research Division
Pacific Challenge Securities Limited, Research Division
Piper Jaffray Asia Securities Limited, Research Division
Platinum Broking Company Limited
Platinum Broking Company Limited, Research Division
Polaris Securities (Hong Kong) Limited, Research Division
Primasia Securities Company Limited, Research Division
Quam Research
RBC Capital Markets LLC
RBS Research
Religare Capital Markets, Research Division
REXCAPITAL Securities Limited
Robotti & Company Incorporated, Research Division
S&P Equity Research
SBI E2 Capital Securities Ltd, Research Division
SinoPac Securities Investment Service, Research Division
South China Research Limited
Standard & Poor’s Corporation
Sun Hung Kai Research Limited
Taishin Securities (Hong Kong) Company Limited, Research Division
Tung Tai Securities Company Limited, Research Division
UBS Securities Asia Limited, Research Division
UOB Kay Hian Research Pte Ltd
Wellington Management Company LLP, Research Division
WestPark Capital, Inc.

Singapore
__________________________
AmFraser Securities Pte. Ltd.
AmFraser Securities Pte. Ltd., Research Division
BofA Merrill Lynch, Research Division
Cantor Fitzgerald, LP
Credit Agricole Securities (USA) Inc., Research Division
DBS Vickers Research
Exane BNP Paribas, Research Division
Goldman Sachs Group Inc., Research Division
IIFL Research
ING Groep N.V., Research Division
Jefferies & Company, Inc., Research Division
JP Morgan Chase & Co, Research Division
Kim Eng Research Pte. Ltd.
Lincoln Crowne & Company, Research Division
Macquarie Research
Morgan Stanley, Research Division
Nomura Asian Equity Research
NRA Capital Pte. Ltd.
Pali International Limited, Research Division
Pareto Securities, Research Division
RBS Research
S&P Equity Research
SEB Enskilda, Research Division
SG Securities (Singapore) Pte Ltd., Research Division
SIAS Research Pte Ltd
UOB Kay Hian Research Pte Ltd
Wellington Management Company LLP, Research Division

Zurich
_______________________-
Bank am Bellevue, Research Division
Bank Sarasin, Research Division
Helvea SA, Research Division
Limmat Research
MainFirst Bank AG, Research Division
Mont Blanc Capital Management AG, Research Division
Morgan Stanley, Research Division

Atlanta
_____________
Avondale Partners, LLC
Cantor Fitzgerald, LP
FIG Partners, LLC, Research Division
FinancialDNA, L.L.C., Research Division
Harris Nesbitt Corp.
Jefferies & Company, Inc.
Keefe, Bruyette, & Woods, Inc., Research Division
KeyBanc Capital Markets Inc.
Lenox Equity Research, LLC
Pritchard Capital Partners, LLC, Research Division
RBC Capital Markets LLC
Robert W. Baird & Co. Incorporated, Research Division
Sandler O’Neill & Partners, L.P.
SunTrust Robinson Humphrey Capital Markets
SunTrust Robinson Humphrey, Inc., Research Division
The Carson Medlin Company
Value & Growth Research Associates, Inc.
Wells Fargo Advisors, LLC

Charlotte
____________________________
BB&T Capital Markets Inc.
Cantor Fitzgerald, LP
RBC Capital Markets LLC
Robert W. Baird & Co. Incorporated, Research Division
SunTrust Robinson Humphrey Capital Markets

Sacramento
________________
Dutton Associates, LLC
GHS Dutton, LLC
M. R. Beal & Company

Toronto
______________________
Accountability Research Corporation
Barclays Capital, Research Division
Bloom Burton & Co., Research Division
BMO Nesbitt Burns, Inc.
BofA Merrill Lynch Canada, Inc.
BofA Merrill Lynch, Research Division
C.P.M.S. Computerized Portfolio Management Services, Inc.
Canaccord Genuity, Research Division
Capital Ideas Research
Catalyst Equity Research, Inc.
Clarus Securities Inc.
Clarus Securities Inc., Research Division
Cormark Securities Inc., Research Division
Desjardins Securities Inc., Research Division
Dominick and Dominick Securities Inc., Research Division
Dundee Securities Corporation
Dundee Securities Corporation, Research Division
First Delta Securities Inc.
Fraser Mackenzie Limited
Fraser Mackenzie Limited, Research Division
Genuity Capital Markets
GMP Capital Inc. (TSX:GMP)
GMP Securities L.P., Research Division
Greenius Inc.
Haywood Securities Inc.
Haywood Securities Inc., Research Division
Independent Equity Research Corp.
Independent Insight Inc.
Industrial Alliance Securities Inc., Research Division
Jacob Securities Inc., Research Division
Jennings Capital Inc.
Laurentian Bank Securities, Inc., Research Division
Loewen Ondaatje McCutcheon Limited, Research Division
M Partners Inc., Research Division
Mackie Research Capital Corporation
Macquarie Capital Markets Canada Ltd., Research Division
Macquarie Research
Maison Placements Canada Inc., Research Division
MGI Securities Inc., Research Division
National Bank Financial, Inc., Research Division
NCP Northland Capital Partners Inc., Research Division
NextGen India Investments
Northern Securities Inc.
Northern Securities, Inc., Research Division
Octagon Capital Corporation, Research Division
Oppenheimer Holdings Inc. (NYSE:OPY)
Paradigm Capital, Inc.
Paradigm Capital, Inc., Research Division
Raymond James & Associates, Inc., Research Division
Raymond James Ltd.
RBC Capital Markets LLC
RBC Capital Markets, LLC, Research Division
S&P Equity Research
Salman Partners Inc.
Salman Partners Inc., Research Division
Standard & Poor’s Corporation
Stifel, Nicolaus & Co., Inc., Research Division
Stonecap Securities Inc., Research Division
TD Newcrest Capital Inc., Research Division
Thomas Weisel Partners Canada Inc., Research Division
Thomas Weisel Partners Equity Research
Thomas Weisel Partners Group, Inc.
TMB Research
Toll Cross Securities Inc., Research Division
Toll Cross Securities, Inc.
UOB Kay Hian Research Pte Ltd
Veritas Investment Research Corporation
Versant Partners Inc., Research Division
Wellington West Capital Markets Inc.
Wellington West Capital Markets Inc., Research Division
Wolverton Securities Ltd, Research Division

Hartford & Stamford Areas
__________________________
Bhirud Associates, Inc., Research Division
Cantor Fitzgerald, LP
Chatsworth Securities LLC
Consumer Edge Research, LLC
CRT Capital Group LLC
CRT Capital Group LLC, Research Division
Delco Advisors, Research Division
Dowling & Partners Securities, LLC
Euro Pacific Capital, Inc., Research Division
Excalibur Research Group
GE Asset Management Incorporated, Research Division
Gleacher & Company, Inc., Research Division
Jefferies & Company, Inc.
Keefe, Bruyette, & Woods, Inc., Research Division
Langen McAlenney
Mercury Partners LLC, Research Division
MKM Partners LLC, Research Division
MKM Partners, LLC
Nutmeg Securities Ltd., Research Division
RBC Capital Markets LLC
Robert W. Baird & Co. Incorporated, Research Division
Southridge Research Group LLC
Susquehanna Financial Group, LLLP
Susquehanna Financial Group, LLLP, Research Division
Tokeneke Research LLC
Westport Capital Markets, LLC, Research Division
William Blair & Company, L.L.C.

Germany
______________________
Ardour Capital Investments, LLC, Research Division
B. Metzler seel. Sohn & Co. Holding AG
Bank M-biw Bank für Investments und Wertpapiere AG, Research Division
Bankhaus Lampe KG, Research Division
Berenberg Bank, Research Division
BofA Merrill Lynch, Research Division
CA Cheuvreux, Research Division
Concord Equity Research
Concord Investmentbank AG (DB:CEF)
Danske Markets Equities, Research Division
Dr. Kalliwoda Research GmbH
Equity Analyst Ltd.
European Securities Network LLP
Eurosharelab
Fairesearch GmbH & Co KG
First Berlin Equity Research GmbH
GBC AG
Going Public Media AG, Research Division
GSC Research Gmbh
Hauck & Aufhauser Institutional Research GmbH
Jefferies & Company, Inc.
Jefferies & Company, Inc., Research Division
Kepler Capital Markets
Kepler Capital Markets, Research Division
Landesbank Berlin Holding AG, Research Division
Macquarie Research
MainFirst Bank AG, Research Division
Marble Arch Research
Merck Finck & Co., Research Division
Metzler Equities, Research Division
Midas Research GmbH
Robert W. Baird & Co. Incorporated, Research Division
Robertson Stephens International, Ltd.
S&P Equity Research
SEB Enskilda, Research Division
SES Research GmbH
SG Corporate & Investment Banking
Silvia Quandt Research GmbH
SRC Research GmbH
SRH AlsterResearch AG
Standard & Poor’s Corporation
Transformanz GmbH
UniCredit Research
VCH Investment Group AG
VEM Aktienbank AG, Research Division
VISCARDI Equity Research
WestLB AG, Research Division
WestLB Panmure
Worldwide Equity Research AG

Pittsburgh
________________________________-
Parker/Hunter Inc, Research Division
Parker/Hunter Inc.
PNC Wealth Management, Research Division

Poland
___________________________
Bank DnB Nord Polska S.A., Research Division
Bank Handlowy W Warszawie SA, Research Division
BRE Bank Securities S.A., Research Division
DB Securities S.A.
DM Penetrator SA, Research Division
Dom Maklerski AmerBrokers, Research Division
Dom Maklerski Banku BPS S.A., Research Division
Dom Maklerski BZ WBK S.A., Research Division
Dom Maklerski IDMSA, Research Division
Erste Group Bank AG, Research Division
ING Groep N.V., Research Division
Ipopema Securities S.A., Research Division
KBC Securities NV
KBC Securities- CEE Research
Millennium Dom Maklerski Spolka Akcyjna, Research Division
PKO BP Securities, Research Division
UniCredit Research
Wood & Company, Research Division

Belgium
_____________________________
7c Consult, Research Division
Banque Degroof, Research Division
Corluy & Co Research
Dewaay, Servais & Cie, Research Division
European Securities Network LLP
Exane BNP Paribas, Research Division
ING Groep N.V., Research Division
KBC Bank NV, Research Division
KBC Securities NV
KBC Securities NV, Research Division
Vermeulen-Raemdonck SA, Research Division

Australia
______________________
BBY Limited, Research Division
BGF Capital Group, Research Division
BofA Merrill Lynch, Research Division
Burrell Stockbroking Pty Ltd., Research Division
CCZ Statton Equities Pty Ltd.
CCZ Statton Equities Pty Ltd., Research Division
CIBC World Markets Australia Corporate Pty Limited, Research Division
Citigroup Pty. Limited
Commonwealth Bank of Australia, Research Division
Credit Agricole Securities (USA) Inc., Research Division
D J Carmichael Pty Ltd., Research Division
Diogenes Research Pty Ltd.
E.L. & C. Baillieu Stockbroking Ltd., Research Division
F. W. Holst and Co. Pty Ltd., Research Division
F.W. Holst & Co Pty Ltd.
Far East Capital Ltd., Research Division
Goldman Sachs & Partners Australia Pty Ltd, Research Division
Goldman Sachs Group Inc., Research Division
Hadley Green Investment Group, Research Division
JP Morgan Chase & Co, Research Division
LINWAR Securities Pty Limited, Research Division
Macquarie Research
Martin Place Securities Pty Ltd., Research Division
MC Capital & Co. Pty Limited, Research Division
Microequities Pty Ltd.
Moelis Australia Securities Pty Ltd, Research Division
Moelis Australia Securities Pty Ltd.
Morgan Stanley, Research Division
Nomura Asian Equity Research
Ord Minnett Management Limited, Research Division
Patersons Securities Limited, Research Division
Pershing Securities Australia Limited
Precept Investment Actuaries Pty Limited
RBC Capital Markets, LLC, Research Division
RBS Morgans Limited, Research Division
RBS Research
Resource Capital Research Pty Limited
S&P Equity Research
Shaw Stockbroking Ltd.
Shaw Stockbroking Ltd., Research Division
Sino Strategic International Ltd., Research Division
Standard & Poor’s Corporation
State One Stockbroking Ltd., Research Division
Taylor Collison Limited, Research Division
Veritas Securities Ltd., Research Division
Wilson HTM Ltd., Research Division
wise-owl.com Pty Ltd

St. Louis
___________________
Conning & Company
Flagstone Securities, LLC, Research Division
Kenny Securities Corp.
Murphy Analytics, LLC
Noble Financial Group, Inc., Research Division
Robert W. Baird & Co. Incorporated, Research Division
Stifel Financial Corp. (NYSE:SF)
Wachovia Securities, LLC, Research Division
Wells Fargo Advisors, LLC
Wunderlich Securities Inc., Research Division

Minneapolis/St. Paul
_________________-
Cantor Fitzgerald, LP
Craig-Hallum Capital Group LLC, Research Division
D.A. Davidson & Co., Research Division
Feltl and Company, Inc.
Feltl and Company, Inc., Research Division
John G Kinnard & Co., Research Division
Marquette Avenue Securities, Inc.
Marquette Financial Group
Northland Securities Inc., Research Division
RBC Capital Markets LLC
Soleil Securities Group, Inc.
Stifel, Nicolaus & Co., Inc., Research Division

Philadelphia
_____________________
B. Riley & Co., LLC, Research Division
BOE Securities, Inc.
Boenning & Scattergood, Inc.
Cantor Fitzgerald, LP
Commerce Capital Markets, Inc.
Loop Capital Markets, LLC
Philadelphia Brokerage Corporation, Research Division
Securities Industry Analytics LLC
Stifel, Nicolaus & Co., Inc., Research Division
Susquehanna Financial Group, LLLP
Susquehanna Financial Group, LLLP, Research Division

Mexico/Central America/South America/Spain/Portugal
___________________________________________________________________________
Abaco Casa de Bolsa, SA de CV, Research Division
Actinver S.A. de C.V., Research Division
Argentaria Bolsa S.V.B., S.A., Research Division
Banco de Sabadell. S.A., Research Division
Banco Português de Investimento, S.A., Research Division
Banco Safra SA, Research Division
Banco Schahin Cury S.A., Research Division
Banesto Bolsa, S.V., S.A., Research Division
Banif Primus Corretora de Valores e Câmbio S.A., Research Division
Barclays Capital, Research Division
BBVA Provincial Casa de Bolsa, Research Division
BCP Investimento, Research Division
Bisa Agente de Bolsa, Research Division
BofA Merrill Lynch, Research Division
BTG Pactual S.A., Research Division
Buenos Aires Trust Company S.A
CA Cheuvreux, Research Division
Caixa-Banco de Investimento SA, Research Division
Capital Markets Argentina, Research Division
Casa De Bolsa Arka, S.A. De C.V., Research Division
Casa de Bolsa Banorte, S.A. de C.V., Research Division
Celfin Capital, Research Division
City Corretora de Câmbio e Valores Mobiliários Ltda, Research Division
Compania Suramericana de Valores S.A. Suvalor Comisionista de Bolsa, Research Division
Dexia Equities Espana, S.A., A.V., Research Division
Espírito Santo Research
European Securities Network LLP
Exane BNP Paribas, Research Division
Exotix Limited, Research Division
Fator Corretora, Research Division
GBM Grupo Bursátil Mexicano, S.A. de C.V. Casa de Bolsa, Research Division
Geração Futuro Corretora de Valores S/A
Geração Futuro Corretora de Valores S/A, Research Division
Gescapital Gestion S.G.I.I.C. S.A., Research Division
Goldman Sachs Group Inc., Research Division
GVC Gaesco Valores S.V. S.A., Research Division
Iberian Equities S.A. A.V, Research Division
Indosuez Mexico Casa de Bolsa, S.A. de C.V., Research Division
ING Groep N.V., Research Division
Inteligo SAB, Research Division
Interacciones Casa De Bolsa De Cv, Research Division
Interdin Bolsa, SVB, Research Division
Interlima, Research Division
InterMoney Valores, S.V., Research Division
Intervalores Casa De Bolsa, CA, Research Division
Inverseguros S.A.
Ixe Casa de Bolsa, S.A. de C.V., Research Division
JP Morgan Chase & Co, Research Division
Kepler Capital Markets, Research Division
Lisbon Brokers Sociedade Corretora, S.A., Research Division
Mello Valores, Sociedade Financeira de Corretagem, S.A., Research Division
Mildesa Servicios Bursatiles S.A., Research Division
Misasi Corretora De Valores S/A, Research Division
Morgan Stanley, Research Division
Multivalores Casa De Bolsa Sa De Cv, Research Division
N+1 Equities
NCO Dealer SFA SA, Research Division
Peruval Corp. S.A., Research Division
Piano & Parga Sociedad de Bolsa S.A, Research Division
Piano Administradora de Inversiones S.A., Research Division
Planner Corretora De Valores S.A., Research Division
Prisma S.A.B. S.A., Research Division
Prosper S.A. Corretora de Valores e Cambio, Research Division
Rabello Y Cia S.A., Research Division
Raimundo Serano McAuliffe
Raymond James & Associates, Inc., Research Division
Raymond James Argentina Sociedad de Bolsa, S.A., Research Division
RBS Research
SADIF-Investment Analytics S.A.
Santander, Equity Research
Socopa Sociedade Corretora Paulista SA
Spinelli SA CVMC, Research Division
Tanner Corredores de Bolsa S.A., Research Division
Tavelli & company, Research Division
Tendência Corretora de Câmbio, Títulos e Valores Mobiliários Ltda., Research Division
Valores Casa de Bolsa S.A., Research Division
Valores Mexicanos Casa de Bolsa, SA de CV, Research Division

The answer lies in the question itself, since what you actually want to value are the 30 million ounces in resource/reserves. However, you cannot just multiply those with the market price for gold to get the market value, as the 30 million ounces of gold are still in the ground and they cannot be sold tomorrow.

In terms of absolute valuation you should focus on the net asset value (NAV) method. The more common discounted cash flows (DCF) method cannot be used to value a natural resource company because the basic assumption behind DCF valuation is that the underlying asset or firm would generate income indefinitely and there will be a terminal value associated with the same. However, this is not the case with GOLDY, as an investor/buyer would only pay the monetary equivalent of the current assets (NAV) and will not assume the firm to be a “going concern” given that the underlying asset (gold in this case) is a finite resource.

The valuation of GOLDY would grossly depend upon 4 main factors:

Stage of Production: We need to look at the stage GOLDY is in, which can be exploration, mining or production. Resource/ reserve estimates of GOLDY can be measured with higher certainty if GOLDY is in production stage than if it is in mining or in exploration stage. And, as the famous Wall Street quote goes, “the market doesn’t value uncertainty”, so GOLDY is worth more per ounce if it is in production than if it is in mining stage.

Actual time to production: The closer GOLDY is to production, the higher the company is valued per ounce by the investors. Even if two companies are in the same mining stage, the one that is closer to production will be worth more per ounce, as the market will use a lower discount rate. For example, if GOLDY is supposed to get into production in 2013 and another firm called “Lazy Gold” in 2015, one can easily say that cash flow for firm GOLDY will start one year earlier so the discount rate used would be lower.

Resource estimates: The value of a firm is not only dependent upon amount of resource and reserve estimates but also the type of estimates. There are 3 types of estimates:
a) Inferred resources
b) Measured and Indicated resources:
c) Proven & probable reserves

As a firm moves from closer to production, the amount of proven & probable reserves increases at the expense of indicated and inferred resources. The market puts a higher per ounce valuation on proven & probable reserves than on inferred and indicated resources. A mining company would have higher proportion of proven & probable estimates than an exploration firm, for example.

Price of resource (gold in this case): Although GOLDY is not currently selling gold, its value would be directly proportional to the price of gold as market expects them to sell gold at a higher price in the future –even if it is 10 years from now-. In fact, if you were to place the price chart of GOLDY and the one for gold side by side, you would find a very strong correlation.

This is why many people see big mining companies as a “macro call”. And this is why in many buy-side firms it is the senior portfolio manager who makes the calls on the Rio Tintos and BHP Billitons of this world, just as they do with banks, for example.