idea-generation

Systematic stock screening and investment idea sourcing. Combines quantitative screens, thematic research, and pattern recognition to surface new long and short ideas. Use when looking for new ideas, running screens, or conducting thematic sweeps. Triggers on "idea generation", "stock screen", "find ideas", "what looks interesting", "screen for", "new ideas", or "pitch me something".

Idea Generation

Workflow

Step 1: Define Search Criteria

Ask the user for parameters:

Direction: Long ideas, short ideas, or both
Market cap: Large, mid, small, micro
Sector: Specific sector or cross-sector
Style: Value, growth, quality, special situation, event-driven
Geography: US, international, global
Theme: Any specific thematic angle (AI, reshoring, aging demographics, etc.)

Step 2: Quantitative Screens

Run screens based on the style:

Value Screen

P/E below sector median
EV/EBITDA below historical average
Free cash flow yield >5%
Price/book below 1.5x
Insider buying in last 90 days
Dividend yield above market average

Growth Screen

Revenue growth >15% YoY
Earnings growth >20% YoY
Revenue acceleration (growth rate increasing)
Expanding margins
High return on invested capital (>15%)
Strong net retention (>110% for SaaS)

Quality Screen

Consistent revenue growth (5+ years)
Stable or expanding margins
ROE >15%
Low debt/equity
High free cash flow conversion
Insider ownership >5%

Short Screen

Declining revenue or decelerating growth
Margin compression
Rising receivables / inventory vs. sales
Insider selling
Valuation premium to peers without justification
High short interest with deteriorating fundamentals
Accounting red flags (auditor changes, restatements)

Special Situation Screen

Recent IPOs / SPACs with lockup expirations
Spin-offs in last 12 months
Companies emerging from restructuring
Activist involvement
Management changes at underperforming companies

Step 3: Thematic Sweep

For thematic ideas, research the theme and identify beneficiaries:

Define the thesis (e.g., "AI infrastructure spending accelerates through 2026")
Map the value chain — who benefits directly vs. indirectly?
Identify pure-play vs. diversified exposure
Assess which names are already "priced in" vs. under-appreciated
Look for second-order beneficiaries that the market hasn't connected to the theme

Step 4: Idea Presentation

For each idea that passes the screen, present:

[Company Name] — [Long/Short] — [One-Line Thesis]

Metric	Value	vs. Peers
Market cap
EV/EBITDA (NTM)
P/E (NTM)
Revenue growth
EBITDA margin
FCF yield

Thesis (3-5 bullets):

Why this is mispriced
What the market is missing
Catalyst to realize value

Key Risks:

What would make this wrong

Suggested Next Steps:

Build full model? Deep-dive diligence? Expert call?

Step 5: Output

Shortlist of 5-10 ideas with one-page summaries
Screening criteria and methodology documented
Comparison table across all ideas
Prioritized list: which ideas to research first

Important Notes

Screens surface candidates, not conclusions — every screen output needs fundamental work
The best ideas often come from intersections (e.g., quality company at value price due to temporary headwind)
Avoid crowded trades — check ownership data, short interest, and how many analysts cover the name
Contrarian ideas need a catalyst — being early without a catalyst is the same as being wrong
Track idea hit rates over time — which screens and approaches produce the best ideas?
Short ideas need higher conviction — timing is harder and risk is asymmetric