Assignment: INVESTMENT ANALYSIS
Secrets to Investment Report Writing: What Successful Analysts Know
Your career depends on your ability to communicate effectively. If you can write investment research reports that your clients find both useful and thought-provoking, you have a powerful career advantage.
Here are four top tips for you on how to advise your clients on that critical decision: buy or sell?
• Research widely and deeply.
What industry is the company in? Who are the key competitors? How are globalization, technology, demographic trends and competition affecting the industry's future? Is the company well-run? Does it have a smart strategy? Do its products and services meet the needs of today's customers? Is it an ethical company? Does it have a reputation for integrity and social responsibility? What do its employees say about it? Does its culture foster innovative risk-taking-or is it a culture of fear? Do not fall for the company's self-promoting rhetoric.
• Get to the point.
In today's business environment remember, B.L.O.T., i.e., bottom line on top. Today's clients do not have time to read page after page, waiting for you to sum it up. Begin with your conclusions. Tell readers right away what you are recommending and why. Give them a preview: provide 3-5 key points. Then, in the remainder of your report, expand on those points.
• Provide killer details.
Clients want more than the big picture. They also want specifics. Give them details that will stay on their minds. For example, does the company tout its devotion to customer service and not hire customer service reps? Does the company claim that it is innovative and have nothing new in its development pipeline? Does the company spotlight its charismatic CEO and not have a succession plan?
• Keep it clear and concise.
Plain language trumps meaningless acronyms and corporate rhetoric. Clarity is power. You want to make sure everyone who reads your report understands your position. As a writer, your responsibility is to inform, not confuse; to clarify, not mystify.
-Susan Mach, PhD, is a communication trainer and coach. In addition to teaching investment report writing for NYSSA, she teaches leadership communication to MBAs from all over the world.
INDUSTRY ANALYSIS
1. Identify the industry by finding first the company's SIC/NAICS code from Mergent (one of the databases we have available under "libraries") or Bloomberg.
2. Get information on the industry's sales over the past 5 years-if possible- (look in Bloomberg- the command is "BI"- Value Line Investment Survey or any other source) and its future outlook (from the same sources)
3. Identify the stage of the life cycle for the industry and the company
4. State the economic structure of the industry (i.e. monopoly, oligopoly, perfect competition)
5. Discuss the competitive structure of the industry (Porter's competitive forces)
- Bargaining Power of Suppliers
- Bargaining Power of Customers
- Threat of New Entrants
- Threat of Substitute Products
- Rivalry within the industry
- Complements
INSTRUCTIONS
The written report should be typed (times new roman 12; double-spaced) and should include the following:
• A cover page with the Title, Names of the Group Members, Course number and Date.
• An executive summary
• A brief history of each company (no more than a page for each company), the reasons for selecting them, and daily performance data.
• Use a fundamental approach in analyzing each company.
o Brief overall economic outlook
o Industry analysis
o Company analysis
- Ratio Analysis
- Valuation Model
- Earnings Valuation Model(s)
- Dividend Valuation Models
- Free Cash Flow
• Use technical analysis to determine the overall market conditions and the direction of the stock price of each company.
• Estimate the returns and risk of each individual security, and the correlation coefficient of the returns of the securities considered.
• Estimate the portfolio's risk (beta and standard deviation) and required rate of return using CAPM.
• Estimate the portfolio's actual annual rate of return for the holding period considered.
• Conclusion
• References
• Copies of the data used (when appropriate)
Also note:
• Upload the term project on Blackboard.
• Term projects will not be accepted unless they follow the instructions listed above.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also include a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also Include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.
Attachment:- Finance-Project-Goals.rar