Product details

Todd Thompson, an equity researcher at Strategic Investment (SI), is using his Friday train ride home to work on his earnings model for a FirstCall note. He checks in with his client, Charles Buron, to run his estimate and get some feedback. He has developed a good working relationship with Buron, an investor-relations manager at NoTel. Buron cuts the call short and warns Thompson that one of his firm's institutional salespeople has leaked the model numbers to his clients. Even more disturbing is that SI is going to put out an earnings model at a much lower figure than the company expects. Thompson needs guidance from Buron. If he comes out with a note that contradicts NoTel's model, it could create a stir in the investment community. Thompson's contact at NoTel has always provided guidance, but that relationship has been compromised by the information Thompson's institutional colleague has leaked to Vanguard and TRI-CREF. Moreover, Thompson has been invited to present his model to the client's brass on Wednesday. He needs the feedback from Buron. Thompson has to decide what his next step should be. This case offers an opportunity to discuss problems and issues surrounding managing communications and client relationships. See also the A case, 'NoTel: Speak to Me (A)' (UVA-BC-0150).