Again, The Full Project has 2 Oral Parts (Part A. and Part B.) and 2 Written Parts (Part A. and Part B.)
In the latter part of the semester, make a
formal 20 minute presentation to the class reviewing your portfolio, and then assessing a particular stock in your portfolio.
You will pick a firm. Your recommendation could be “buy”, “sell”, or “hold”. Your report should include (but is not limited to):
PART A.
An oral presentation and written report that expands on and reviews your portfolio, its characteristics, performance and outlook. The portfolio portion should build upon and expand on your first presentation.
PART B.
An oral presentation and written stock investment analysis report focused on your 1 selected company.
Group Investment Project Assignment
(continued)
PART A. of the Project is The Portfolio Review Oral Presentation and The Portfolio Review Written Report
Portfolio Review Written Report Guidelines
The Part A. written Portfolio review will be a minimum double spaced 3 page summary and analysis of the group portfolio.
For the portfolio review, assume that you are preparing a relatively short report for your investment committee. Do not simply answer the following questions – this should be a financial report! The questions are intended to provide guidance.
- Introduction - State the portfolio objective, investment strategy, policy statement and investment process. The investment process should include the investment universe (U.S. only, global, large cap, small cap), asset allocation, portfolio construction (sector weights), security selection process (research approach, financial analysis approach), risk control, and sell discipline (i.e. due to intrinsic value price target attainment, management changes, change in fundamental outlook, overvalued, etc).
- Comment on the individual and portfolio returns and on any information/events (market-wide or firm-specific) that may have contributed to the performance of your stocks. The suggested length is a short, concise paragraph for the biggest winners and losers - i.e. for the stock highlights and for the stocks that most represent your investment approach and process.
- From your calculations, if you held the S&P 500 instead of your stocks, how much money would you have ended up with? Would you have been better or worse off to hold the index? Analyze the reasons for any differences.
- Based on your calculations for standard deviation and beta, how risky was your portfolio compared to the index? Again analyze the causes of the differences.
- Finally, what are your plans going forward? That is, if this class continued and you had the chance to alter your portfolio holdings now, would you choose to sell any of your stocks or would you want to keep holding them? Explain why.
- Submit your portfolio report and slides in hard copy and electronically.
Group Investment Project Assignment
(continued)
PART B of the Project is The Stock Investment Analysis Oral Presentation and The Stock Investment Analysis Written Report
Stock Investment Analysis Written Report Guidelines
Instructions and Requirements
You will pick a firm/stock and perform an Investment Analysis. You will make a recommendation (could be “buy”, “sell”, or “hold”). Your analysis should include (but is not limited to):
1.
An Executive Summary of your research conclusions and your clear recommendation.
2.
A brief introduction to the company you are analyzing.
COMPANY BACKGROUND
Useful Resources: Bloomberg, CNBC.COM CEO INTERVIEWS, INDUSTRY ANALYST INTERVIEWS, and Company searches. There are links to these.
Company websites (Investor Relations link), LexisNexis transcripts, and Wall Street research reports.
3.
An analysis of the industry in which the company resides and the total addressable
market, market shares, key facts, etc.
INDUSTRY BACKGROUND
Useful Resources: Bloomberg, S&P, Value Line, CNBC analyst video interviews
An analysis of the industry in which the company resides and the total industry addressable
market, market shares, etc.
MARKET SHARES of YOUR COMPANY AND ITS KEY COMPETITORS
SWOT Analysis
Important industry issues
4.
A valuation analysis of your selected firm versus its peer companies/competitors
This should include historical ratios and forward ratios for the peer companies and the industry.
5.
A detailed financial analysis of the firm that includes:
a. Analysis of annual financial statements for the past 4-5 years, and of quarterly statements for the most recent 4 quarters. Also, develop detailed complete financial statement forecasts for the next 5 years and analyze the projections with financial ratios.
b. Comparison of your forecasts and analysts' consensus forecasts for the next 5 fiscal years. Include expected growth rates.
c. A valuation of the company's stock including assumptions used and projections from your forward year earnings models. Use 3 valuation methods.
Useful Resources for Analysts' consensus forecasts for the next 5 fiscal years: Bloomberg, Yahoo, Value Line, S&P, LexisNexis and Wall Street research reports.
State clearly your assumptions used for projections in YOUR forward year earnings models for the next 5 years, and, for the long term growth rate.
6.
Your Beta calculations and regression (as exhibits).
7.
A summary and analysis of the firm’s sector, the sector performance, and the performance of the firm relative to the sector since the semester began.
8.
An overall wrap up of your recommendation.
9.
The Part B. analysis will be a minimum
3-5 page, double spaced, written
narrative explaining your analysis, plus exhibits. Be sure to include additional issues (strategic, management, risks, etc.) that were not explicitly addressed in your financial analysis. You should also cite all sources of input.
10.
You must hand in 1 complete, printed report. In addition, you must submit your files electronically. Include a fully formatted, electronically scanned complete report as one of your files (.pdf or scanned). Also submit the excel spreadsheet and word document.