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:
-
When user explicitly requests all tasks together:
-
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
Pattern 2: User asks for "initiation report" or "full pipeline"
Pattern 3: User wants to do "all tasks" or "entire workflow"
Correct Usage Examples
Executing a single task:
Completing full report (requires 5 separate requests):
Task Execution Order
For a complete initiation report, tasks must be executed in separate user requests following this order:
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:
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:
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:
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, 18
- Scenario Analysis: chart 13
- Valuation: charts 28⭐, 29, 30, 31, 32⭐, 33, 34
10 OPTIONAL Charts (for 26-35 range):
- charts 19-27, 35 (customer acquisition, unit economics, product roadmap, etc.)
IMPORTANT: Task 5 embeds ALL charts created (25-35) for visual density (1 chart per 200-300 words).
File naming: chart_01_description.png, chart_02_description.png, etc.
Deliverable: [Company]_Charts_[Date].zip containing all 25-35 chart files + chart_index.txt
⚠️ DELIVER ONLY THIS 1 ZIP FILE. NO completion summaries, no separate chart lists, no extra documents.
⚠️ DO NOT TAKE SHORTCUTS:
- ✅ Create ALL 25 required charts minimum (specific list provided in task4-chart-generation.md)
- ✅ Include ALL 4 mandatory charts:
- chart_03: Revenue by product (stacked area) ⭐
- chart_04: Revenue by geography (stacked bar) ⭐
- chart_28: DCF sensitivity (heatmap) ⭐
- chart_32: Valuation football field ⭐
- ✅ Optional: Add 1-10 more charts to reach 26-35 total for greater visual density
- ✅ Generate professional-quality charts at 300 DPI (not low-res placeholders)
- ✅ Create unique, well-formatted charts for each visualization
- ✅ Package all charts in zip file with chart index
- ❌ Do not create only 10-15 charts (minimum is 25)
- ❌ Do not skip any of the 4 mandatory charts
- ❌ Do not use low-quality/placeholder images
Verification before proceeding to Task 5:
Task 5: Report Assembly
Purpose: Write and assemble the comprehensive final DOCX report.
Prerequisites: ⚠️ Verify before starting
- Required: Company research from Task 1
- All 6-8K words of content
- Management bios
- Competitive analysis
- Risk assessment
- Required: Financial model from Task 2
- Excel workbook
- All projections and scenarios
- Required: Valuation analysis from Task 3
- Price target and recommendation
- DCF, comps, precedent transactions
- All valuation data
- Required: Chart files from Task 4
- Zip file containing all 25-35 PNG/JPG files
- Chart index included in zip
⚠️ CRITICAL: DO NOT START THIS TASK UNLESS ALL TASKS 1-4 ARE COMPLETE
This is the final assembly task. It cannot be completed without all previous work products.
IF ANY OF TASKS 1, 2, 3, OR 4 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 (6-8K words)
- Task 2: Financial model with all 6 tabs
- Task 3: Valuation analysis with price target and recommendation
- Task 4: Charts zip file with 25-35 charts
Do not attempt to create placeholder content, substitute missing sections, or assemble an incomplete report. The report requires ALL inputs to be publication-ready.
Input Verification:
Process:
- CRITICAL: Verify ALL prerequisites before starting
- Load detailed instructions from references/task5-report-assembly.md
- Execute report assembly workflow using Claude's built-in skills:
- Use DOCX skill to create and manipulate the Word document
- Use XLSX skill to read Excel data from Task 2/3
- Use Read tool to read Task 1 and Task 3 markdown files
- Read Task 1 .md file → Convert to Word formatting → Insert charts inline
- Read Task 2 .xlsx file → Extract tables → Write quantitative analysis
- Read Task 3 .md file + Excel tabs → Copy/adapt valuation analysis
- Insert Task 4 .png chart files throughout using DOCX skill
- Create text-dense report with charts interspersed every 200-300 words
- Save and deliver final DOCX report
Key Principles:
- Use Claude's DOCX and XLSX skills (NOT Python libraries)
- Use actual file operations (read .md/.xlsx/.png files, write .docx file)
- Good equity research reports are text-dense with lots of illustrating images (60-80% page coverage, 1+ chart per page)
🔥 CRITICAL: GO ALL OUT ON THIS TASK
THIS IS THE FINAL DELIVERABLE. DO NOT TAKE SHORTCUTS.
- ✅ Use full token budget - This is the culmination of all previous work
- ✅ Write every section completely - Do not summarize or abbreviate
- ✅ Hit ALL minimum requirements - 30+ pages, 10,000+ words, 25+ charts, 12+ tables
- ✅ Be thorough on projection assumptions - 2,000-3,000 words with product-by-product detail
- ✅ Be comprehensive on scenarios - 1,500-2,000 words with specific Bull/Base/Bear parameters
- ✅ Insert ALL charts from Task 4 - Not just a few, ALL 25-35 charts throughout
- ✅ Create ALL tables from Task 2/3 - Extract every financial table, don't skip any
- ✅ Use Task 1 content verbatim - Copy/paste full Company 101 sections (6-8K words)
- ✅ Professional quality only - This must be indistinguishable from JPMorgan/Goldman Sachs research
NEVER:
- ❌ "This section would include..." - WRITE THE ACTUAL SECTION
- ❌ "Charts would be inserted here..." - INSERT THE ACTUAL CHARTS
- ❌ "See financial model for details..." - EXTRACT AND INCLUDE THE DETAILS
- ❌ Skip sections due to length - Every section MUST be complete
- ❌ Abbreviate for token conservation - Use whatever tokens are needed
This is publication-ready institutional research. Spare no effort, tokens, or detail.
Output: Comprehensive Equity Research Report (.docx)
Specifications:
- Length: 30-50 pages (MINIMUM 30)
- Word count: 10,000-15,000 words (MINIMUM 10,000)
- Charts: 25-35 embedded images
- Tables: 12-20 comprehensive tables
- Format: Professional DOCX with clickable hyperlinks
Structure:
- Page 1: Investment Summary (INITIATING COVERAGE format)
- Pages 2-5: Investment thesis & risks
- Pages 6-17: Company 101
- Pages 18-30: Financial analysis & projections
- Pages 31-40: Valuation analysis
- Pages 41-50: Appendices
File name: [Company]_Initiation_Report_[Date].docx
⚠️ DELIVER ONLY THIS 1 DOCX FILE. NO executive summaries, no "highlights" documents, no extra files.
Final Verification:
Input Verification Protocol
Why Input Verification Matters
Each task has strict prerequisites. Running a task without required inputs will:
- Waste time with incomplete work
- Produce low-quality outputs
- Require rework
Always verify inputs before starting a task.
Verification Checklist by Task
Task 1: ✅ No verification needed (independent)
Task 2: Check historical financials available
Task 3: Check financial model exists and is accessible
Task 4: Check both model (Task 2) AND valuation (Task 3) exist
Task 5: Check ALL previous tasks complete (1, 2, 3, 4)
What to Do if Verification Fails
Example Verification Dialogue
Task Reference Files
Detailed instructions for each task are in separate reference files to keep this skill lean:
- references/task1-company-research.md - Company research workflow
- references/task2-financial-modeling.md - Financial modeling workflow
- references/task3-valuation.md - Valuation methodology
- Also see: references/valuation-methodologies.md for DCF/comps deep dive
- references/task4-chart-generation.md - Chart generation workflow
- references/task5-report-assembly.md - Report writing workflow
- Also see: assets/report-template.md for report structure
- Also see: assets/quality-checklist.md for quality checks
When to load reference files: Load ONLY the reference file associated with the specific task being performed. These files are very large - do not load multiple reference files at once. Read the appropriate task reference file at the start of the task for detailed step-by-step instructions.
Quality Standards
All outputs meet institutional standards from leading investment banks (JPMorgan, Goldman Sachs, Morgan Stanley):
- Comprehensive: Meet all minimum requirements
- Detailed: Specific data and examples, not generic statements
- Quantified: Lead with numbers and metrics
- Cited: Proper sources with clickable hyperlinks
- Professional: Institutional-quality formatting
- Accurate: All numbers verified and cross-checked
Important Notes
Task Independence
- Task 1 can run anytime (no dependencies)
- Task 2 can run anytime (just needs historical data)
- Tasks 1 & 2 can run in parallel
- Task 3 requires Task 2
- Task 4 requires Tasks 2 & 3
- Task 5 requires Tasks 1, 2, 3, & 4
Session Management
Same session: Outputs automatically available to subsequent tasks
Different sessions: Reference previous task outputs explicitly
File Organization
Recommended structure during workflow:
No End-to-End Execution
This skill does NOT support running all tasks automatically in sequence. Each task must be explicitly requested and verified.
Why: This ensures:
- Quality control at each stage
- Ability to review outputs before proceeding
- Flexibility to pause/resume workflow
- Clear verification of prerequisites
Success Criteria
A successful initiation report workflow should:
- Complete all 5 tasks in order
- Pass all input verifications
- Meet all quality standards
- Produce all required deliverables
- Numbers cross-check between outputs
- Final report is publication-ready
Output quality: Institutional (JPMorgan/Goldman/Morgan Stanley level)
Use case: First-time comprehensive coverage of a company