Recommendation Handling

RECOMMENDATION HANDLING
Feb. 2010 Prasein BHARDWAJ
Part I: Theoretical explanation...................................................................................................................... 2 I. 1. 2. II. 1. 2. Introduction .......................................................................................................................................... 2 Definition ........................................................................................................................................... 2 Recommendation wizard ................................................................................................................... 3 Collection methodology ........................................................................................................................ 5 Methodology Basics........................................................................................................................... 5 Recommendation not found .............................................................................................................. 6
III. Special recommendations................................................................................................................... 11 1. 2. 3. Dropping Coverage .......................................................................................................................... 11 Not Rated......................................................................................................................................... 16 Not Covered ..................................................................................................................................... 20
IV. Specific handling ................................................................................................................................. 21 1. a. b. 2. Broker specific: ................................................................................................................................ 21 CRISIL Equity Research ................................................................................................................ 21 IJG Securities ............................................................................................................................... 23 Commodities.................................................................................................................................... 25
Part II QUESTIONS & ANSWERS ............................................................................................................... 27
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Part I: Theoretical explanation I. Introduction

1. Definition
Recommendation is an opinion given by the analyst for a given equity to advise the potential investor whether to buy, sell or hold shares of the said equity. In the MDE, it is stipulated to update only the recommendation text as stated by the analyst. Then, the tool will automatically convert the brokers recommendation into its FactSets equivalent to enable comparisons between brokers.
Broker or Analyst recommendation to be updated
FactSet equivalent
As seen in F1 of recommendation window:
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2. Recommendation wizard
The recommendation window is a convenient tool which offers useful information such as Brokers recommendation in comparison to Factsets equivalent, the number of occurrences of a given recommendation in PDF along with its page number etc. Also note that the recommendations listed in the window can be browsed with the help of F8 and Ctrl + F8. All these features are detailed in the below screen:
Recommendations found in PDF
FactSets equivalent recommendations can also be seen here along with Brokers recommendation.
IPC diagnostic
X1 indicates the number of Recommendation occurrences found. x stands for the number of times Pages are also displayed with , to indicate & i.e. 1,2,6 = Reco found in pages 1, 2 & 6.
Irrelevant button (ALT+I) can be used to classify the doc as irrelevant i.e., No Data etc. Available both in Analyst and Recommendation dialog box.
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Recommendation is highlighted with red underline in the PDF. When injected through PDF Assistant, i.e., when source is linked, recommendation will not have any frame in the MDE. When injected manually, recommendation field will be surrounded in red frame as shown below:
I.
We have the facility to see FactSets equivalent Reco both in MDE and PDF:
FactSets equivalent Reco
Brokers Reco
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II. Collection methodology
1. Methodology Basics
- RH 1 -
ID=C42990,BKR=390,CTB=1802,DATE=14/10/2010,FACT=10311,YEAR=2010,CUR=6361,WF=FE,GRID=1.0.0,USER=337,GEO=FEv3286163||+000000+0+0+0v0v2086v2098v34v70v598v591v2+,WFID=3286163 ID=C04260,BKR=198,DATE=14/10/2010,FACT=10773,YEAR=2010,CUR=-1,WF=FE,GRID=1.0.0,USER=279,GEO=||+000000+0+0+,
Specify your next action in the given case

A/ Enter B/ CTRL + F8 followed by Enter C/ F8 Explanation: Whenever broker presents two recommendations to signify a transition from one recommendation to another, then we should update the changed recommendation. o Pressing Enter will update old Recommendation (Outperform) which is not correct because broker has downgraded his Recommendation from (i.e. old) Outperform to (i.e. new) Hold. Hence choice A is incorrect. o To move selection to the New recommendation, one should press Ctrl + F8 followed by Enter to update it. CTRL F8 will move selection to the last recommendation occurrence seen in PDF. Therefore choice B is correct. o Using F8 as suggested in choice C is not advisable in the given situation as it will move selection to the next occurrence of recommendation in PDF, while we would like rather to move back in PDF to the last occurrence.
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2. Recommendation not found
Scenario 1: Unrecognized recommendation
- RH 21 -
ID=C01575,BKR=467,DATE=15/10/2010,FACT=10200,YEAR=2011,CUR=-1,WF=FE,GRID=1.0.0,USER=279,GEO=||+000000+0+0+0v0v2554v2557v216v232v599v590v1+, ID=C42060,BKR=512,DATE=15/10/2010,FACT=10203,YEAR=2010,CUR=-1,WF=FE,GRID=1.0.0,USER=392,GEO=||+000000+0+0+,
What are your steps after looking at the warning in IPC window?
A/ Press Alt + N or Enter B/ Send an issue to QA. C/ Press F1 Explanation: Example above shows a typical case wherein the PDF has not recognized the recommendation (Hold 1) and been indirectly warned in IPC as Empty Reco. It is displayed as Empty Reco because there is no identifiable recommendation available within boundaries, and it also indicates that the given recommendation Hold 1 is not identified even though within boundaries. In such case, you should search in the recommendation field by pressing F1. If the recommendation is available, select it and press Ok to update it as shown in the screen below:
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Step 1: Here type the first letter of the unrecognized recommendation and hit Enter
Step 2: Select the appropriate reco and click on Ok button
Observation: Sometimes it may happen that even though a recommendation is not recognized in the PDF, it can be found in the F1 search list as above.
Pressing Alt + N or Enter will skip injection of Recommendation which is not advisable in the given case, since we can see that it is provided in the PDF and has to be updated. Therefore, choice A is incorrect. Sending a request to QA, as proposed in answer B, is not the first action to perform. This could be effectively an option if the recommendation was not found in F1 (will be detailed in scenario 2) but first action to perform is to search in F1. Answer C is hence correct. Please note that after updating from F1, the recommendation will have a red frame as shown below indicating that it was updated without the help of PDF assistant:
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o Scenario 2: New broker recommendation
- RH 22 -
ID=C01575,BKR=467,DATE=15/10/2010,FACT=10200,YEAR=2011,CUR=-1,WF=FE,GRID=1.0.0,USER=279,GEO=||+000000+0+0+0v0v2554v2557v216v232v599v590v1+, I D=C42060,BKR=512,DATE=15/10/2010,FACT=10203,YEAR=2010,CUR=-1,WF=FE,GRID=1.0.0,USER=392,GEO=||+000000+0+0+,
Unrecognized recommendation (H o l d) is not found in F1 search list. What should be your action?
A/ Send an issue to QA B/ Press Enter C/ Press Backspace > Alt + N
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Explanation: If the recommendation is not available in F1, the recommendation will have to be sent to QA (contribution) team to be added to dictionary. To do so, please follow the below steps: 1. In the F1 window, press Add entry to dictionary button. Then, Enter New Recommendation window pops up:
Add entry to dictionary should be clicked to add a new recommendation
2. Copy the exact recommendation text provided in the PDF and paste it in New recommendation
field and map it to what you think to be the equivalent FactSet recommendation in Mapping on input box, then press Ok as shown below:
STEP 2: Select FactSets equivalent reco from the drop down list
STEP 1: Copy the H o l d reco from the PDF and paste it here for mapping
Observation: One must always copy the unrecognized recommendation from the PDF and paste it in New recommendation in order to be identified by the PDF assistant next time. If PDF is copy protected then it is suggested to type the text in the exact style and spacing as provided in PDF. In the current example, recommendation is provided with spaces in between them (H o l d) hence entered in the same style.
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After this addition, the new recommendation will appear in the F1 list as shown below. It does not mean that the recommendation has been permanently added to the dictionary, but this enables you to capture it for your injection. It will then be checked by Contribution team who will confirm this new entry to the dictionary.
Select the newly added recommendation to update it in MDE. After injection, recommendation field will appear in red frame indicating that it was updated without PDF Assistant. o o o As a consequence, choice A consisting of sending a request to QA is correct. Choice B is incorrect because pressing Enter will update previous reco Buy instead of current reco H o l d. Choice C is obviously incorrect since we cannot ignore the recommendation.
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III. Special recommendations
1. Dropping Coverage
o Generalities
- RH 41 -
ID=C05852,BKR=1069,CTB=1680,DATE=23/03/2010,FACT=10773,YEAR=2009,CUR=-1,WF=FE,GRID=0.0.0,USER=279,GEO=FEv2659813||+000000+0+0+0v0v228v232v238v255v580v571v1+,WFID=2659813
How will you deal with the given situation?

A/ Press Alt + N or Enter B/ Press Alt + I > No Data C/ Press F8 > Enter
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Explanation: When a broker no longer covers their research on a given equity, they provide the recommendation as Dropping Coverage and the same has to be updated in the recommendation field in MDE. In that case, there is not need of capturing any data and the research has to be moved to Done folder as soon as the Dropping Coverage recommendation has been set. Synonyms for dropping coverage can be: Ceasing Coverage Suspending Coverage Discontinuing Coverage Terminating Coverage etc. In the current example it is clear that the broker is dropping coverage on this equity and that the recommendation NEUTRAL is just their earlier recommendation. Hence the action suggested in choice A cannot be applied. Moreover the given document cannot be moved to No Data folder since the broker has rated the equity and the suitable act would be to update the recommendation and move it to Done. This explains that choice B is also incorrect. Remember that for dropping coverage financial data must not be injected. Pressing F8 in the recommendation wizard will focus on the correct recommendation Terminating Coverage to be updated, which is exactly as suggested in choice C.
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- RH 42 -
ID=C00237,BKR=1241,CTB=1452,DATE=23/12/2010,FACT=10311,YEAR=2010,CUR=5068,WF=FE,GRID=1.0.0,USER=279,GEO=FEv3635370||+000000+0+0+0v0v39v52v31v82v792v780v2+,WFID=3635370
What will be your next action?

A/ Press F2 B/ Press Ctrl + N > Done C/ Press F8 Explanation: Sometimes brokers provide a consolidated recommendation covering a group of equities, in the given case it is Suspension of coverage rated for all the equities mentioned in the document. Whenever Dropping Coverage recommendation is captured, a caution is displayed in the IPC window to warn the users to be careful and not to move the document to Done until the full list of equities mentioned in the document have been updated as shown below. It is indeed required to update recommendation for all the equities rated as such.
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The step in choice B suggests the contrary to the methodology suggested above; document cannot be moved to DONE unless all the equities have been updated. When equity is rated as dropping coverage there is no point in injecting financial data as broker is no longer covering the equities. This explains why choice C is incorrect. Choice A is correct because this is what the methodology stipulates, all the dropping coverage rated equities in the document must be injected before moving it to Done. But data must not be injected for any equity as the broker is no longer covering the equities.
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o Particular case
- RH 43 -
ID=C16074,BKR=1448,DATE=18/10/2010,FACT=10200,YEAR=2009,CUR=-1,WF=FE,GRID=1.0.0,USER=392,GEO=||+000000+0+0+,
Choose the correct treatment for the given scenario?

A/ Update the recommendation as Dropping Coverage B/ Update the recommendation as Hold C/ Raise an issue with QA. Explanation: Broker Singular Research sometimes provides his Reco as Drop/Hold, Drop/Sell followed by the supporting text on Recommendation in the first paragraph. In such cases Hold (for Drop/Hold) or Sell (for Drop/Sell) should be updated instead of Dropping Coverage. Drop/Hold for instance indicates downgrading recommendation but not Dropping Coverage. Updating the recommendation as Hold as indicated in choice B is correct. Broker is not dropping his coverage, but rather downgrading from their earlier recommendation to Hold. There is no need of raising an issue to QA in the given case as the methodology is already defined (choice C is incorrect). Choice A is incorrect. Here the phrase Dropping to Hold in the first paragraph indicates downgrading, in other words the broker is merely downgrading their rating from his earlier recommendation to Hold for this equity.
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2. Not Rated
o Scenario 1: Brokers History is available
- RH 61 -
ID=C15522,BKR=1421,CTB=1607,DATE=28/10/2010,FACT=10311,YEAR=2009,CUR=-1,WF=FE,GRID=1.0.0,USER=392,GEO=FEv2337473||+000000+0+0+,WFID=2337473
Choose your immediate action in the above scenario?

A/ Enter B/ Delete > Enter C/ Alt + I > No Data
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Explanation: Whenever the brokers provide their reco as Not Rated, then the below two conditions must be met in order to capture the data provided by the broker: 1. Estimates are from broker 2. Brokers history is available in MDE for the given equity; If the above two conditions are not met then it is advised to move the doc to No Data folder without processing. We can see in our example that Not rated has been recognized as being a valid recommendation for this broker since highlighted in red. It should not be ignored. As a consequence, answer B that proposes to escape from recommendation field leaving it blank is not accurate. It is also not advisable to move the document to No Data folder as suggested in choice C because the above two conditions (coverage by broker and estimates provided in PDF) are met as you can see in the screen below. Answer C is hence incorrect.
1. Brokers history is available in MDE 2. Brokers estimates in PDF as indicated in footnote
Therefore, choice A is correct: Not Rated recommendation has to be captured and PDF processed.
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o Scenario 2: Brokers History is NOT available
- RH 62 -
ID=C14616,BKR=181,CTB=1655,DATE=04/03/2010,FACT=10314,YEAR=2010,CUR=1698,WF=FE,GRID=2.0.0,USER=392,WFID=2634742
How do you proceed in the given situation?

A/ Alt + I > No Data B/ Enter > Process the doc > Done C/ Enter > Process the doc > Raise an issue to QA > PDF Waiting for QA Explanation: Sometimes, we may come across cases wherein there is no history for the brokers data in the MDE and the broker has provided estimates with rating recognized by PDF assistant as Not Rated. In such scenario, it is advised to process the document if the estimates are of brokers. However, the accuracy of the coverage might be questioned. For instance, in this example, we do have estimates but no indication of source, we neither have any recommendation, nor TGP nor history in estimates, leading to a doubt in coverage. As a consequence, after processing the PDF, QA must be notified and PDF should be moved to PDF Waiting for QA as illustrated below:
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1. After processing the PDF, inform QA by filling out the details in Question to QA window accessible through the shortcut Alt + H + F in MDE:
2. After raising the above issue, the document should then be moved to PDF Waiting for QA instead of Done:
If the above methodology is applied to the given question, then choice C is appropriate: estimates are provided (choice B is incorrect) but brokers history is not available in MDE, questioning the accuracy of this update. Choice A is incorrect: we cannot consider that this PDF is irrelevant and not to capture without a broker confirmation that will be obtained by contacting QA team.
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3. Not Covered
- RH 63 -
ID=C53659,BKR=390,DATE=26/10/2010,FACT=10308,YEAR=2010,CUR=-1,WF=FE,GRID=1.0.0,USER=392,GEO=||+000000+0+0+,
How will you proceed in the given situation?

A/ Without > Process the document > Move to Done B/ Without > Process the document > Raise an issue to QA > Move to PDF waiting for QA C/ Alt + I > Move the doc to No Data. Explanation: Not covered means broker is not covering the equity. In this case, we should not process the PDF in any case. This means that even though brokers history is available in the MDE, it should not be processed. Move the PDF to No Data folder without processing. Please remember that Not covered is not a recommendation. This explains why answer A and B are incorrect. There is, in addition, no need to raise a point to QA as it is clear that the broker does not cover the equity so no need to contact the broker for a confirmation. In that case, the estimates given might be consensus data, but in any cases, they should not be processed. Hence, in the given case, the PDF should not be captured as without in the recommendation field and must be moved to No Data, so choice C is correct. Empty Reco in the IPC indicates that there is no identifiable recommendation within the boundaries set.
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IV. Specific handling
1. Broker specific:
a. CRISIL Equity Research
- RH 81 -
ID=C51050,BKR=1465,CTB=1851,DATE=30/07/2010,FACT=10306,YEAR=2010,CUR=9277,WF=OutsidebEstimates,GRID=1.0.0,USER=392,GEO=FEv3399212||+000000+0+0+,WFID=3399212
What step/s do you suggest for Recommendation in the given case?

A/ Enter B/ F8 > Enter C/ Delete > Alt + N Explanation: For broker CRISIL Equity Research, attention should be paid for updating Recommendation. Unlike rest of the brokers, CRISILs recommendation is not explicitly given as Rating or Recommendation etc. Instead, this broker has provided two information: Valuation grade & Fundamental Grade with ratings formatted as 1/5, 2/5, 3/5, 4/5 & 5/5. Please note that Fundamentals Grade should never be considered.
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Reco to be updated from Valuation grade given below CFV matrix grid.
Fundamental grade (to be ignored) Rating to be updated from Valuation grade only and Fundamental grades should be ignored. Valuation grade (to be injected) Valuation grade has hence been highlighted in green to help agents
If we apply the above method to the given example then choice A is not correct as it proposes to capture recommendation from Fundamental grade which is rather a recommendation on sector level than on equity level and should not hence be considered. We have hence to press F8 followed by Enter to update the reco 3/5 from Valuation grade as suggested in choice B. Choice C is incorrect since Delete and Alt + N leaves recommendation blank when it is explicitly provided as 3/5.
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b.
IJG Securities
- RH 82 -
ID=C10632,BKR=1314,DATE=23/07/2010,FACT=10206,YEAR=2011,CUR=9272,WF=FE,GRID=1.0.0,USER=392,GEO=||+000000+0+0+,
Specify your immediate step in the above situation

A/ Press Alt + P thrice followed by injecting next equity B/ Enter C/ Alt + I > No Data
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Explanation: For the broker IJG Securities, we have to exercise vigilance while updating recommendation. This broker presents his recommendation in two ways. One way of presentation is that there is no prefix before the Recommendation and the other way is that the letters DS are prefixed to recommendation in which case both recommendation (& Analyst) and data should not be captured for that equity. Recommendation cannot be updated for Anglo Platinum as implied in choice B because it is prefixed with the letters DS. DS means it is provided by Deutsche Securities and not by the current broker IJG Securities Ltd. Answer C would move the PDF to No Data which is not recommended because data has to be captured for the next equity Naspers. Hence this choice is incorrect. The immediate step in the given case would be to update the next equity Naspers for which Recommendation is provided by IJG Securities. Note that there is no DS prefixed to Hold Reco provided for Naspers. Hence choice A is correct.
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2. Commodities
- RH 101 -
What is your course of action in the given case?

A/ Press Enter B/ Press F1 > Select Buy and update C/ Press Alt + I > No Data
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Explanation: The methodology on recommendation for Commodities is that recommendation should not be captured, in other words, it should be left blank. Commodities can be identified with COMM template in MDE as depicted in the screen below: Commodities template in MDE: COMM
The action suggested by choice B is not correct as the recommendation Buy is for one of the equity (Equal Energy Ltd.), it should hence be captured for that equity only. Given document cannot be treated as mentioned in choice C since data is provided in the PDF screen for WTI and AECO (commodities); hence we should not move the PDF to No Data folder as indicated in choice C, but rather collect data. Choice A is inline with the methodology, as we need to ignore recommendation but collect data. Enter will close the recommendation window leaving this field blank and proceed to MDE for data capture.
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Part II QUESTIONS & ANSWERS
- RH 2 -
ID=C64904,BKR=181,CTB=1655,DATE=01/11/2010,FACT=10311,YEAR=2010,CUR=-1,WF=FE,GRID=1.0.0,USER=392,WFID=2999120
Choose your action to update recommendation:
A/ Press Enter B/ Press ESC C/ Press Ctrl + F8 followed by Enter Explanation: Stock Rating pertains to the rating on equity whereas Industry Rating implies rating assigned to the sector to which the equity belongs. Consequently, stock rating should be considered as the recommendation as suggested in choice C. Pressing Enter would update the industry rating, which is incorrect. This explains why choice A is not appropriate. Pressing ESC will close the PDF assistant which is not recommended, hence choice B is incorrect.
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- RH 23 -
ID=C02349,BKR=820,DATE=22/02/2010,FACT=10320,YEAR=2011,CUR=-1,WF=OutsidebEstimates,GRID=1.0.0,USER=392,GEO=||+000000+0+0+,
What is your immediate step in the given situation when the cursor is in Recommendation fiel d?
A/ Press F1 > Update O / H B/ Press F1 and send an issue to QA from F1 C/ Press Enter Explanation: In the above case, the unrecognized recommendation (Outperform) from PDF is not available in F1, which calls for sending an issue to QA Contribution team as suggested in choice B. Choice A is incorrect as this action updates in MDE a recommendation not provided by the broker (hence not found in PDF). Recommendation should not be left blank explaining why answer C is incorrect. Remember that sending an issue to QA is possible only after adding the details in Add entry to dictionary button as seen in above F1 window.
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- RH 24 -
ID=C00602,BKR=402,CTB=1694,DATE=01/12/2010,FACT=10309,YEAR=2011,CUR=-1,WF=FE,GRID=1.0.0,USER=392,GEO=||+000000+0+0+,
What is your immediate step in the given situation when the cursor is in Recommendation field?
A/ Press Enter B/ Send an issue to QA C/ Select the appropriate recommendation from F1 and update Explanation: In our situation, we are in a case where the PDF Assistant has not recognized the recommendation which is available in F1; the next step in this case would be to choose the exact recommendation as given in PDF (Outperform 2) from F1 and update it, hence choice C is correct. Choice B is incorrect because sending an issue directly to QA without checking the recommendation in F1 is not advised. Choice A is incorrect as this action updates the incorrect recommendation.
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- RH 64 -
Specify what is your next step for the equity Halliburton Company?
A/ Update recommendation as Without and proceed with HAL B/ Leaving recommendation blank, proceed with HAL C/ Ignore HAL and proceed with SLB Explanation: The given broker is not covering the equity Halliburton Company which is highlighted with the recommendation Not Covered. In this situation, any updation for Halliburton is prohibited. Hence, choice C is correct which proposes to update the next equity (SLB) for which recommendation is Buy, this is why choices A and B are incorrect.
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- RH 65 -
ID=C06671,BKR=91,CTB=1771,DATE=23/04/2010,FACT=10395,YEAR=2009,CUR=27870,WF=FE,GM=1,USER=376,
When you come across the above scenario, what will be your immediate appropriate step?
A/ Enter B/ Alt + P C/ Alt + I > No Data Explanation: When Not Rated recommendation is provided by the broker, two conditions namely brokers estimates in PDF and brokers history in MDE must be met for processing the Not Rated equity. But these two conditions are not met in the above scenario (no historic data and data provided are from Bloomberg and not from broker), hence the immediate action would be to move the PDF to No Data. Therefore, choice C is correct. Pressing ENTER as stated by answer A, will update a recommendation WITHOUT which is a recommendation, while the broker is not covering the stock, explaining why answer A is incorrect. ALT P stands for Previous and is not the action required here since we should ignore the full report by moving in NO DATA folder.
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- RH 44 -
ID=C25512,BKR=1264,CTB=1334,DATE=29/11/2010,FACT=10734,YEAR=2011,CUR=-1,WF=FE,GRID=1.0.0,USER=392,
What is your next step in the given case?
A/ Alt + I > No Data B/ F8 followed by Enter C/ Enter Explanation: On careful reading of the text, it is clear that the broker is terminating (dropping) his coverage for the given equity, hence terminating coverage must be updated as recommendation (choice B is correct). DC is an important information that needs to be updated explaining why A is incorrect. Pressing Enter will inject the previous recommendation and not the current status of this equity.
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- RH 25 -
ID=C15438,BKR=900,CTB=1540,DATE=01/11/2010,FACT=10200,YEAR=2010,CUR=9277,WF=OutsidebEstimates,GRID=1.0.0,USER=392,GEO=||+000000+0+0+0v0v146v160v452v541v705v690v1+,
Choose the correct screen for mapping the recommendation as shown in the above PDF extract:
Explanation: Choices A and B are incorrect as they are not the correct way of mapping an unrecognized recommendation. The suggested approach is that it should be copied from the PDF; and if the PDF is copy protected, it should be typed in the same style and spacing as in the PDF. Choice C matches this criteria, thus it is the correct option.
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- RH 102 -
Specify the step/s you will take in the given scenario:
A/ Enter B/ F8 followed by Enter C/ Delete followed by Alt + N Explanation:
Since the injection in the MDE is for Commodities (i.e., WTI), recommendation should not be
updated in any case. Hence the options A and B which proposes to update the recommendation are incorrect as they are provided for the sector and equity Arsenal Energy Inc respectively. Choice C is hence correct as it proposes to escape from recommendation field and move to the grid to capture data.
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- RH 26 -
Taking the above extract as a base, choose the correct opt ion:
Explanation: When the message Empty Reco pops-up in IPC, it indicates either of the two scenarios, recommendation is not recognized or it is located out of boundaries. But in the given situation, recommendation is not recognized, hence the immediate step would be to press F1 and confirm whether it is listed or not. Therefore choice C is appropriate because the unrecognized recommendation is listed in F1, hence this will be first action in the given situation. Rest of the choices are not suggested.
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- RH 66 -
ID=C45461,BKR=870,CTB=1741,DATE=24/09/2010,FACT=10203,YEAR=2010,CUR=5068,WF=FE,GRID=1.1.0,USER=392,GEO=FEv3346203||+000000+0+0+,WFID=3346203
As recommendation is not provided, how will you deal with this situation?
A/ Press Enter or Alt + N B/ Press F1 > Update Without C/ Press Alt + I > No Data folder Explanation: When the recommendation is not provided for equity, it is stipulated to leave the recommendation field blank and proceed with updation of the PDF if the forecasted data source is that of brokers. Remember that a Without recommendation is an opinion. Considering this, choice B is incorrect as Without cannot be updated when recommendation is not provided. Choice C is also incorrect as brokers forecasted data are given. Thus, choice A is correct as pressing ENTER will guide focus onto MDE for facts injection leaving recommendation field blank.
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- RH 83 -
ID=C63931,BKR=1465,CTB=1851,DATE=10/08/2010,FACT=10315,YEAR=2009,CUR=9277,WF=FE,GRID=1.0.0,USER=392,
Trace the error in recommendation injection from the above screen
A/ Recommendation should have been updated as Without B/ Recommendation is correctly updated as per methodology for the broker C/ Recommendation 2/5 should have been updated from Valuation grade Explanation: Recommendation field cannot be updated as Without since it is expressly provided by the broker (choice A is incorrect). However, the recommendation to capture for broker Crisil is the valuation grade rather than the fundamental grade. As a consequence, the recommendation currently captured has been wrongly updated (choice B incorrect). Recommendation for CRISIL broker should be updated from Valuation grade as suggested in choice C.
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- RH 84 -
ID=C62269,BKR=1314,DATE=19/11/2010,FACT=10309,YEAR=2010,CUR=27898,WF=FE,GRID=1.0.0,USER=392,GEO=||+000000+0+0+,
Choose the correct MDE screen which is inline with methodology
Explanation: Choices A and B are incorrect because for broker IJG Securities when the recommendation is prefixed with the letters DS, those equities should not be processed. Hence, choice C is correct as the recommendation is not prefixed with the letters DS. DS indicates that such recommendation is provided by Deutsche Securities.
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- RH 45 -
ID=C57378,BKR=1448,CTB=1827,DATE=11/03/2010,FACT=10306,YEAR=2010,CUR=-1,WF=FE,GRID=1.0.0,USER=392,GEO=||+000000+0+0+,
Choose the step/s to capture recommendation in the given case?
A/ F8 followed by Enter B/ Enter C/ F1 followed by selecting Dropping Coverage from the F1 list Explanation: Since the broker is indicating its coverage as dropped, there is no point in updating SELL as suggested in choice B. The right steps are to press F8 followed by Enter which captures Dropping Coverage as recommendation as suggested in choice A. As the recommendation is recognized by the PDF Assistant, it is not required to update it from F1 (choice C is incorrect).
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- RH 3 -
Trace out the mistake in recommendation field
A/ There is no mistake in the reco field of MDE screen B/ Recommendation BUY should have been updated instead of HOLD C/ Recommendation was not updated with the help of PDF Assistant Explanation: One critical mistake is that recommendation was not updated with the help of PDF Assistant even though it was identified therefore choice A is incorrect and choice C is appropriate. Moreover, BUY is the previous rating and not the current one, this explains why B is not an appropriate option.
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- RH 103 Choose the correct screen which is being updated as per methodology:
ID=C55941,BKR=512,CTB=1773,DATE=04/11/2010,FACT=10557,YEAR=2011,CUR=-1,WF=OutsidebEstimates,GRID=1.0.0,USER=392,
Explanation: PDF Assistant should be used to update the recommendation (answer B is incorrect) and only if it is not recognized, reco should be manually updated. However, here the data is being updated for WTI/Commodity for which recommendation should not be updated at all, hence only choice C correct. Rest of the choices is inappropriate for the given question.
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- RH 46 -
ID=C57374,BKR=851,DATE=17/06/2010,FACT=10202,YEAR=2010,CUR=-1,WF=FE,GRID=1.0.0,USER=392,WFID=3599889
Choose your immediate action in the given case
A/ Enter B/ Alt + I > No Data C/ F1 > Dropping Coverage Explanation: When Not Rated recommendation is given, attention should also be paid to the text which could sometimes mention Ceasing/Dropping coverage. Here broker has dropped his coverage which is evident in the first paragraph which says WHTM Research ceases coverage thus choice C is correct and the rest are inappropriate.
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- RH 4 -
ID=C65776,BKR=917,DATE=18/01/2011,FACT=10735,YEAR=2011,CUR=-1,WF=FE,GRID=1.0.0,USER=279,WFID=3681959
What step do you take in the given scenario?
A/ Enter B/ Alt + P C/ Ctrl + F8 > Enter Explanation: It is always advised to update the exact recommendation provided by the broker located at the top of the PDF. Hence, the above situation calls for injection of the correct recommendation Outperform (1) instead of Outperform which is exactly as suggested in choice C (correct choice). Action suggested in choice A updates incorrect recommendation Outperform and choice Bs action directs focus to Analyst window hence both these options are incorrect.
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- RH 47 -
3635369
Taking the above extract as a base, choose the cor rect MDE screen:
Explanation: Since the recommendation Suspension of coverage is provided for all the equities stated in the PDF extract, it is appropriate to inject this information for all the respective equities, as stated by the analyst. Choice C proposes to move the document to done only after all the equities in the PDF are updated which is correct. This also explains why choices A (DC information is not considered) and B (DC is updated for a single equity only) are incorrect.
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- RH 85 -
ID=C52810,BKR=1465,CTB=1851,DATE=07/06/2010,FACT=10811,YEAR=2010,CUR=9277,WF=FE,GRID=1.0.0,USER=279,
What step do you take to update the correct recommendation in the given scenario?
A/ Press Enter or Alt + N B/ Press Alt + I > No Data C/ Ctrl + F8 > Enter Explanation: The given example belongs to Crisil Equity Research broker for which the correct recommendation to update as per methodology is from Valuation grade (choice A is correct), in other words reco from Fundamental grade should be ignored (choice C is incorrect). The step mentioned in choice B cannot be initiated which proposes to move the document to No Data.
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- RH 5 -
ID=C27808,BKR=820,CTB=716,DATE=13/07/2010,FACT=10741,YEAR=2010,CUR=-1,WF=FE,GRID=1.1.0,USER=279,
Choose the procedure of updation in the given case:
A/ Press Ctrl+ F8 > Enter B/ Press Enter or Alt + N C/ Press F1 > Update the correct recommendation from the list Explanation: Here analyst is upgrading from his earlier recommendation N/H to O/H (the heading New Rating clearly explains the same) so the updated recommendation must be injected. The headings in tables must be read carefully so that no error is committed in injecting recommendation. Pressing Ctrl + F8 followed by Enter will update the correct recommendation as suggested in choice A. Choices B and C are incorrect as these steps are not inline with methodology which suits the current example.
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- RH 48 -
ID=C19786,BKR=637,CTB=1716,DATE=17/01/2011,FACT=11603,YEAR=2010,CUR=9269,WF=QA,GRID=2.1.0,USER=375,GEO=FEv3691781||+000000+0+0+,WFID=3691781
By looking at the above PDF extract, choose the correct MDE which is inline with recommendation methodology:
Explanation: Here on a closer observation of information in text, you can notice that the broker is actually terminating his coverage for the given equity and the recommendation Reduce is infact an earlier one. Therefore it follows that only the MDE in choice C is correctly updated as per the recommendation methodology even though injected manually.
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Recommendation Handling

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Recommendation Handling

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RECOMMENDATION HANDLING

Feb. 2010 Prasein BHARDWAJ

Part II QUESTIONS & ANSWERS ............................................................................................................... 27

Feb. 2010 Prasein BHARDWAJ

Part I: Theoretical explanation I. Introduction

Broker or Analyst recommendation to be updated

Feb. 2010 Prasein BHARDWAJ

Recommendations found in PDF

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Specify your next action in the given case

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Scenario 1: Unrecognized recommendation

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Step 2: Select the appropriate reco and click on Ok button

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Add entry to dictionary should be clicked to add a new recommendation

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How will you deal with the given situation?

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What will be your next action?

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Choose the correct treatment for the given scenario?

Feb. 2010 Prasein BHARDWAJ

Choose your immediate action in the above scenario?

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How do you proceed in the given situation?

Feb. 2010 Prasein BHARDWAJ

Feb. 2010 Prasein BHARDWAJ

How will you proceed in the given situation?

Feb. 2010 Prasein BHARDWAJ

What step/s do you suggest for Recommendation in the given case?

Feb. 2010 Prasein BHARDWAJ

Feb. 2010 Prasein BHARDWAJ

Specify your immediate step in the above situation

Feb. 2010 Prasein BHARDWAJ

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What is your course of action in the given case?

Feb. 2010 Prasein BHARDWAJ

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Choose your action to update recommendation:

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What is your next step in the given case?

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Specify the step/s you will take in the given scenario:

A/ Enter B/ F8 followed by Enter C/ Delete followed by Alt + N Explanation:

Feb. 2010 Prasein BHARDWAJ

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Trace the error in recommendation injection from the above screen

Feb. 2010 Prasein BHARDWAJ

Choose the correct MDE screen which is inline with methodology

Feb. 2010 Prasein BHARDWAJ

Choose the step/s to capture recommendation in the given case?