Assume you are a stock analyst at an investment firm,
And are in charge of providing a recommendation to buy, sell or hold of a stock.
Please provide this recommendation and provide the supportive arguments
in the form of a paper presentation of at least three pages long.
You need to access and compile the stock’s market and financial date, maybe through Morning Star, Bloomberg terminal, Yahoo finance, or a investment brokers’ portal. Many of these sources are offered to you through our University, some of them on line as well.
Your paper can parallel and summarize/ spot light the information presented in those sources.
You should offer your recommendation based on examining this analysis.
You should follow and highlight the company’s fundamentals analysis approach,
But you should also follow and highlight the stock’s trending and technical approach to its valuation.
Here are some ideas on what you may want to include :
Information about the stock and its stock price.
The stock symbol
The stock’s current price.
The stock’s price history.
The stock’s target price in 90 days, 180 days, 360 days from now.
You are trying to determine the value of the firm, and through that the value of the stock.
You place the company in its industry and the dynamics of the industry and competition.
You identify the company’s strategies and revenue sources.
You find the company’s financial data and assess their quality.
You analyze the company’s profitability and risk based on these statements,
As well as general industry or other sources.
You forecast and project cash flows (future earnings and costs )
How big is your company ? How does it fit into its markets ?
What are its key financial figures and ratios ?
What do they mean? What story are they suggesting about your company?
Find press releases or other information that substantiate your arguments.
Please review and use the framework provided in your textbook,
As well as the financial information and ratios, on Assets & Liabilities and Cash Flows of your company.
On The identifying and valuing the risk. Determining the profitability and its sustainability.
Describe and analyze your company’s operating, finance, and investment activities, and their impact on the stock price.
Consider following a Market based as well as a discounted cash flow approach in the valuation of your company.
including Horizontal competition / Rivalry among Existing Firms / Threat of New Entrants / Threat of Substitutes / Vertical competition / Buyer Power / Supplier Power
Another framework for Strategy Analysis
• Nature of product or service
• Integration within value chain
• Geographical diversification
• Industry diversification