As I understand it, sell side equity analysts are providing...

As I understand it, sell side equity analysts are providing research to support funds managers and hopefully attract trades - - - as well as making sure their bank is ready and able to for-see/act on potential revenues available from debt capital markets, equity capital markets, and M&A activity.

Unfortunately HLI is thinly held by institutions, has very few local peers, and the insurance of mortgages is a unique business that threads between insurance analysts and bank analysts.

Add to this there is no need for HLI to raise debt and has ample capital (in fact way too much).

M&A is questionable, as being the biggest player in LMI makes industry consolidation hard; and expansion into adjacent spaces seems to be more of a hobby than a strategy for HLI (no complaints, they make good profits from vanilla LMI).

So as a young sell side analyst with umpteen fintechs and diversified financials to cover, one consideration is likely to be a major factor in resource allocation: where are priority people asking for my insight/analysis (ie where is my bonus likely to be funded).

Choice, do I pick: a) the stock that offers minimal trading, no debt/capital markets fees and no corporate activity; or do I select ii) the private equity backed tech play that could deliver 10x, is thirsty as for balance sheet strengthening, and has a strong probability of an IPO (and all those juicy fees)?

As mentioned in previous post, current analysis is underwhelming (and can understand why).

A decade of missing the same target, while collecting bonuses and raising board fees paid, respect your right to have an opinion - - - but to this humble Scotsman that is a bit harder to laud.