Initiating Coverage
Create institutional-quality equity research initiation reports through a structured 5-task workflow. Each task must be executed separately with verified inputs.
Overview
This skill produces comprehensive first-time coverage reports following institutional standards (JPMorgan, Goldman Sachs, Morgan Stanley format). Tasks are executed individually, each verifying prerequisites before proceeding.
Default Font: Times New Roman throughout all documents (unless user specifies otherwise).
⚠️ CRITICAL: One Task at a Time
THIS SKILL OPERATES IN SINGLE-TASK MODE ONLY.
If User Requests Full Pipeline
When user requests:
- "Create a coverage initiation report for [Company]"
- "Write an initiation report for [Company]"
- "Do the entire equity research process for [Company]"
- "Complete all 5 tasks for [Company]"
- Any request that implies running multiple tasks or the entire workflow
REQUIRED RESPONSE:
-
Ask which specific task to perform:
I can help you create an equity research initiation report for [Company].
This involves 5 separate tasks that need to be completed individually:
1. Company Research - Research business, management, industry
2. Financial Modeling - Build projection model
3. Valuation Analysis - DCF and comparable companies
4. Chart Generation - Create 25-35 charts
5. Report Assembly - Compile final report
Which task would you like to start with?
-
When user explicitly requests all tasks together:
I understand you'd like to complete the entire initiation report pipeline.
Currently, this skill supports executing one task at a time, which allows
for better quality control and review at each stage.
We're working on a seamless end-to-end workflow that will make this process
more automated, but for now, we'll need to complete each task separately.
Would you like to start with Task 1 (Company Research)?
-
Never automatically assume which task to start - always ask user to confirm.
-
Never execute multiple tasks in sequence - complete one task, deliver outputs, then wait for next user request.
Task Execution Rules
- ✅ Execute exactly ONE task per user request
- ✅ Always verify prerequisites before starting a task
- ✅ Deliver task outputs and confirm completion
- ✅ Wait for user to explicitly request the next task
- ❌ Never chain multiple tasks together automatically
- ❌ Never assume user wants to proceed to next task
- ❌ Never execute Tasks 3-5 without verifying required inputs exist
⚠️ Deliverables Policy: NO SHORTCUTS
DELIVER ONLY THE SPECIFIED OUTPUTS. DO NOT CREATE EXTRA DOCUMENTS.
Each task specifies exact deliverables. Do NOT create:
- ❌ "Completion summaries"
- ❌ "Executive summaries"
- ❌ "Quick reference guides"
- ❌ "Next steps documents"
- ❌ "Task completion reports"
- ❌ Any other "helpful" documentation not explicitly specified
Why: These extras waste context and are not part of the professional workflow.
What TO deliver:
- ✅ Task 1: Research document (.md) — NOTHING ELSE
- ✅ Task 2: Financial model (.xlsx) — NOTHING ELSE
- ✅ Task 3: Valuation analysis (.md) + Excel tabs added to Task 2 file — NOTHING ELSE
- ✅ Task 4: Charts zip file (.zip) — NOTHING ELSE
- ✅ Task 5: Final report (.docx) — NOTHING ELSE
If a deliverable is not listed above, DO NOT CREATE IT.
Task Selection
Select which task to execute:
| Task |
Name |
Prerequisites |
Output |
| 1 |
Company Research |
Company name/ticker |
6-8K word document |
| 2 |
Financial Modeling |
10-K or financials access |
Excel model (6 tabs) |
| 3 |
Valuation Analysis |
Financial model (Task 2) |
Valuation + price target |
| 4 |
Chart Generation |
Tasks 1, 2, 3 + external data |
25-35 PNG/JPG charts |
| 5 |
Report Assembly |
ALL previous tasks (1-4) |
30-50 page DOCX report |
How to Use This Skill
User Request Patterns and Responses
Pattern 1: User specifies a specific task
User: "Use initiating-coverage, Task 1 for Tesla"
Response: ✅ Execute Task 1 immediately
Pattern 2: User asks for "initiation report" or "full pipeline"
User: "Create a coverage initiation report for Tesla"
Response: ❌ DO NOT start any task automatically
✅ Ask which task to start with (see template above)
Pattern 3: User wants to do "all tasks" or "entire workflow"
User: "I want to complete all 5 tasks for Tesla"
Response: ❌ DO NOT chain tasks together
✅ Explain one-at-a-time limitation (see template above)
✅ Ask if they want to start with Task 1
Correct Usage Examples
Executing a single task:
"Use initiating-coverage skill, Task 1 for Tesla"
"Do Task 2 of initiating-coverage for Tesla"
"Run Task 3 for Tesla using the initiating-coverage skill"
Completing full report (requires 5 separate requests):
Request 1: "Do Task 1 for Tesla" → Complete → Deliver outputs
Request 2: "Do Task 2 for Tesla" → Complete → Deliver outputs
Request 3: "Do Task 3 for Tesla" → Complete → Deliver outputs
Request 4: "Do Task 4 for Tesla" → Complete → Deliver outputs
Request 5: "Do Task 5 for Tesla" → Complete → Deliver outputs
Task Execution Order
For a complete initiation report, tasks must be executed in separate user requests following this order:
Request 1: Task 1 - Company Research (independent)
↓ [User reviews outputs and requests next task]
Request 2: Task 2 - Financial Modeling (independent)
↓ [User reviews outputs and requests next task]
Request 3: Task 3 - Valuation Analysis (requires Task 2 output)
↓ [User reviews outputs and requests next task]
Request 4: Task 4 - Chart Generation (requires Tasks 2 & 3 outputs)
↓ [User reviews outputs and requests next task]
Request 5: Task 5 - Report Assembly (requires ALL previous task outputs)
Note: Tasks 1 and 2 can be run in any order. Tasks 3-5 have strict dependencies and must verify inputs before proceeding.
Task 1: Company Research
Purpose: Research company's business, management, competitive position, industry, and risks.
Prerequisites: ✅ None (fully independent)
- Company name or ticker symbol
Process:
- Verify company name/ticker provided
- Load detailed instructions from references/task1-company-research.md
- Execute qualitative research workflow
- Deliver research document
Output: Company Research Document (6,000-8,000 words)
- Company overview & history
- Management bios (300-400 words × 3-4 execs)
- Products & services analysis
- Industry overview
- Competitive analysis (5-10 competitors)
- TAM sizing
- Risk assessment (8-12 risks)
File name: [Company]_Research_Document_[Date].md
⚠️ DELIVER ONLY THIS 1 FILE. NO completion summaries, no extra documents.
⚠️ DO NOT TAKE SHORTCUTS:
- ✅ Write full 6,000-8,000 words (not summaries)
- ✅ Complete 300-400 word bios for ALL 3-4 executives
- ✅ Analyze ALL 5-10 competitors thoroughly
- ✅ Cover all 8-12 risks across 4 categories
- ❌ Do not abbreviate sections to save time
- ❌ Do not skip any required sections
Verification before proceeding: None required for this task.
Task 2: Financial Modeling
Purpose: Extract historical financials and build comprehensive Excel financial model with projections and scenarios.
Prerequisites: ⚠️ Verify before starting
- Required: Access to company financial data
- For public companies: Latest 10-K from SEC EDGAR
- For private companies: Financial statements or available estimates
- OR: Pre-extracted historical financials provided by user
- Optional: Company research (Task 1) for business context
Input Verification:
BEFORE STARTING - Select approach:
Option A: Extract financials (most common)
- [ ] Have access to 10-K or financial statements?
- [ ] Ready to extract 3-5 years of data?
Option B: User provided pre-extracted financials
- [ ] Historical financials file received?
- [ ] Contains income statement, cash flow, balance sheet (3-5 years)?
Optional:
- [ ] Company research (Task 1) complete for context?
Process:
- Verify access to financial data
- Load detailed instructions from references/task2-financial-modeling.md
- Step 1: Extract historical financials (if needed)
- Step 2+: Build projection model with 6 essential tabs
- Deliver Excel model
Output: Excel Financial Model (.xlsx)
- 6 essential tabs:
- Revenue Model - Product breakdown (20-30 rows) + Geography breakdown (15-20 rows)
- Income Statement - Full P&L with 40-50 line items, historical (3-5 years) + projected (5 years)
- Cash Flow Statement - Operating/Investing/Financing activities, historical + projected
- Balance Sheet - Assets/Liabilities/Equity, historical + projected
- Scenarios - Bull/Base/Bear comparison table
- DCF Inputs - Prepared for Task 3 valuation
File name: [Company]_Financial_Model_[Date].xlsx
⚠️ DELIVER ONLY THIS 1 FILE. NO completion summaries, no extra documents.
⚠️ DO NOT TAKE SHORTCUTS:
- ✅ If extracting financials: Extract ALL line items from 3 financial statements (3-5 years)
- ✅ Build ALL 6 projection tabs completely with full detail
- ✅ Create detailed revenue model with 20-30 product rows AND 15-20 geography rows
- ✅ Build complete income statement with 40-50 line items (not abbreviated)
- ✅ Include full cash flow statement and balance sheet with all line items
- ✅ Complete ALL three scenarios (Bull/Base/Bear) with different parameters
- ❌ Do not create simplified/abbreviated versions
- ❌ Do not skip any of the 6 essential tabs
- ❌ Do not skip historical financials extraction if needed
Verification before proceeding to Task 3:
Task 3: Valuation Analysis
Purpose: Perform comprehensive valuation using DCF, comparables, and precedent transactions.
Prerequisites: ⚠️ Verify before starting
- Required: Financial model from Task 2
- Projected income statements
- Projected cash flows
- Revenue and EBITDA forecasts
- DCF inputs (unlevered FCF)
⚠️ CRITICAL: DO NOT START THIS TASK UNLESS TASK 2 IS COMPLETE
This task requires the financial model from Task 2. Starting without it will result in incomplete work.
IF TASK 2 IS NOT COMPLETE: Stop immediately and inform the user that Task 2 (Financial Modeling) must be completed first. Do not attempt to proceed or create placeholder valuations.
Input Verification:
BEFORE STARTING:
- [ ] Task 2 complete? (Financial model exists)
- [ ] Model file path/location known?
- [ ] Can access projected financials from model?
Required from model:
- [ ] Projected FCF (5 years)
- [ ] Revenue projections
- [ ] EBITDA projections
- [ ] Terminal year metrics
Process:
- Verify financial model is accessible
- Load detailed instructions from references/task3-valuation.md
- Execute valuation workflow
- Deliver valuation analysis
Output: Valuation Analysis (4-6 pages + Excel tabs)
- DCF analysis with sensitivity tables
- Comparable companies (5-10 peers with statistical summary)
- Precedent transactions (if applicable)
- Valuation football field
- Price target: $XX.XX
- Recommendation: BUY/HOLD/SELL
- Upside: XX%
- Key catalysts (3-5)
Files:
[Company]_Valuation_Analysis_[Date].md (written analysis document)- Excel tabs added to
[Company]_Financial_Model_[Date].xlsx (from Task 2)
- DCF tab with calculations
- Sensitivity analysis tab
- Comparable companies tab
- Valuation summary tab
⚠️ DELIVER ONLY: 1 markdown file + 4 tabs added to existing Excel. NO completion summaries, no extra documents.
⚠️ DO NOT TAKE SHORTCUTS:
- ✅ Complete full DCF analysis with sensitivity matrix (not simplified)
- ✅ Analyze ALL 5-10 comparable companies with full data
- ✅ Include statistical summary in comps table (max/75th/median/25th/min)
- ✅ Create complete sensitivity analysis tab with multiple WACC and terminal growth scenarios
- ✅ Write full 4-6 pages of valuation analysis (not abbreviated)
- ✅ Research and justify price target with specific methodology
- ❌ Do not skip comparable company analysis
- ❌ Do not create simplified DCF without sensitivity
Verification before proceeding to Task 4:
Task 4: Chart Generation
Purpose: Generate 25-35 professional financial charts for the report.
Prerequisites: ⚠️ Verify before starting
- Required: Company research from Task 1
- Company history and milestones (for timeline charts)
- Management team and org structure (for org charts)
- Product portfolio (for product charts)
- Customer segmentation (for customer charts)
- Competitive landscape (for competitive charts)
- TAM analysis (for market size charts)
- Required: Financial model from Task 2 (with Task 3 valuation tabs added)
- Revenue by product/geography data (Task 2 tabs)
- Margin trends (Task 2 tabs)
- Scenario comparison data (Task 2 tabs)
- DCF sensitivity table (Task 3 tab in same Excel file)
- Comparable companies data (Task 3 tab in same Excel file)
- Valuation ranges (Task 3 tab in same Excel file)
- Required: External market data
- Historical stock price data (Yahoo Finance, Bloomberg, etc.)
- Historical valuation multiples (for historical trend charts)
⚠️ CRITICAL: DO NOT START THIS TASK UNLESS TASKS 1, 2, AND 3 ARE COMPLETE
This task requires outputs from all three previous tasks. Starting without them will result in incomplete charts.
IF ANY OF TASKS 1, 2, OR 3 ARE NOT COMPLETE: Stop immediately and inform the user which tasks need to be completed first. The specific requirements are:
- Task 1: Company research document (for 9 charts)
- Task 2: Financial model with all 6 tabs (for 8 charts)
- Task 3: Valuation tabs added to the model (for 6 charts)
- External data access (for 2 charts)
Do not attempt to create placeholder charts or skip charts due to missing data.
Input Verification:
BEFORE STARTING:
- [ ] Task 1 complete? (Company research exists)
- [ ] Task 2 complete? (Financial model exists)
- [ ] Task 3 complete? (Valuation analysis exists)
- [ ] Can access external market data sources?
Required from Task 1:
- [ ] Company history and milestones (for charts 05, 06)
- [ ] Management team structure (for chart 07)
- [ ] Product portfolio details (for chart 08)
- [ ] Customer segmentation data (for chart 09)
- [ ] Competitive landscape analysis (for charts 16, 17, 18)
- [ ] TAM sizing and market data (for chart 15)
Required from Task 2:
- [ ] Revenue by product (historical + projected) - for chart 03 ⭐
- [ ] Revenue by geography (historical + projected) - for chart 04 ⭐
- [ ] Income statement with margins (for charts 02, 10, 11)
- [ ] Cash flow statement (for chart 12)
- [ ] Scenario comparison data (for chart 14)
Required from Task 3:
- [ ] DCF sensitivity matrix - for chart 28 ⭐
- [ ] DCF components (for chart 29)
- [ ] Comparable companies data (for charts 30, 31)
- [ ] Valuation ranges - for chart 32 ⭐
Required from External Sources:
- [ ] Historical stock price data (for chart 01)
- [ ] Historical valuation multiples (for chart 34)
Process:
- Verify model and valuation outputs are accessible
- Load detailed instructions from references/task4-chart-generation.md
- Execute chart generation workflow
- Package all charts into a zip file
- Deliver zip file
Output: 25-35 Professional Chart Files (PNG/JPG, 300 DPI) packaged in zip
4 MANDATORY Charts (must be present) ⭐:
- chart_03: Revenue by product (stacked area)
- chart_04: Revenue by geography (stacked bar)
- chart_28: DCF sensitivity (2-way heatmap)
- chart_32: Valuation football field (horizontal bars)
25 REQUIRED Charts (specific list):
- Investment Summary: chart_01
- Financial Performance: charts 02, 03⭐, 04⭐, 10, 11, 12, 14
- Company 101: charts 05, 06, 07, 08, 09, 15, 16
- Competitive/Market: charts 17
