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.
⚠️ 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
:
Historical financials extracted (if needed) or provided
Excel file created and can be opened
Model has all 6 essential tabs (Revenue Model, Income Statement, Cash Flow, Balance Sheet, Scenarios, DCF Inputs)
Historical data (3-5 years) incorporated
Projections complete (5 years forward)
Scenarios complete (Bull/Base/Bear)
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
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
:
BEFORE STARTING - ALL TASKS MUST BE COMPLETE:
Task 1 Verification:
- [ ] Company research document exists? (6-8K words)
⚠️ DELIVER ONLY THIS 1 DOCX FILE. NO executive summaries, no "highlights" documents, no extra files.
Final Verification
:
Report is 30-50 pages
Word count is 10,000-15,000
25-35 charts embedded
12-20 tables included
All citations are clickable hyperlinks
Numbers match financial model exactly
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
IF prerequisites are missing:
1. Stop the current task
2. Identify which prerequisite task(s) need to be completed
3. Execute the missing task(s) first
4. Return to current task once prerequisites are met
Example Verification Dialogue
User: "Use initiating-coverage, Task 5 for Tesla"
Claude: "Starting Task 5: Report Assembly for Tesla
VERIFICATION - Checking prerequisites:
- Task 1 (Company research)... ❌ NOT FOUND
- Task 2 (Financial model)... ❌ NOT FOUND
- Task 3 (Valuation)... ❌ NOT FOUND
- Task 4 (Charts)... ❌ NOT FOUND
⚠️ VERIFICATION FAILED
Task 5 requires ALL previous tasks to be complete.
To proceed:
1. Complete Task 1: Company Research
2. Complete Task 2: Financial Modeling
3. Complete Task 3: Valuation Analysis
4. Complete Task 4: Chart Generation
5. Then return to Task 5
Would you like to start with Task 1 first?"
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
"Use Task 3 with the model from yesterday at [path]"
"Use Task 5 with the research document at [path]"
File Organization
Recommended structure during workflow:
ProjectFolder/
├── Task1_Research/
│ └── [Company]_Research_Document.md
├── Task2_Model/
│ └── [Company]_Financial_Model.xlsx
├── Task3_Valuation/
│ └── [Company]_Valuation_Analysis.pdf
├── Task4_Charts/
│ ├── chart_01.png
│ └── ... (25-35 files)
└── Task5_Report/
└── [Company]_Initiation_Report.docx
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)