PROJECT DESCRIPTION: Investments
There is a team project. Each team will be given $ 20,000,000 to invest. The funds must be invested in U.S. dollar securities.
PERMITTED INVESTMENTS:
Cash Equivalents.
2 to 5 year bonds or notes with a rating of C to BB or Ba by either Moody's Investor Services or Standard & Poor's Corporation.
Common stock that trades on the NYSE or NASDAQ with a share price of $ 5 or under.
Each team is only allowed to buy and sell twice during the semester and all positions must be liquidated in the final report. This means that each position can be bought and sold and replaced and sold during the semester.
WRITTEN OBLIGATIONS:
All purchase and sale decisions MUST be documented in a memo addressed to me.
All transactions must occur on the day of class at the closing price of the security.
The memo is due by the end of day AFTER class. This means it must be submitted electronically to my email account.
The memo must state the face amount of the security purchased or sold, price per security and, therefore, total dollars invested or realized on a sale transaction.
AND the reason for making the investment or the sale.
This is, obviously, the most important part of the memo.
Finally, a summary document that describes the team's investment strategy from beginning to end, including internal and external influences, is due the last day of class. It will be presented orally in a very short presentation (LESS than 9 PowerPoint slides). This document and its oral presentation are the most important parts of this assignment.
This info was just sent to me by the group for the memo:
Also, we never specified the type of bond that was purchased. Looking back there is a Treasury bond with a coupon maturity date of 3/31 that was paying a interest rate of 2.875% available on the date of our purchase.
We should be sure to specify the details of the bond purchase in the final memo, the bid on the purchase date was $100.18.
Some research on Cenveo (CVO) which is our biggest loser and feel like there is enough to talk about as to why this could have been a good opportunity. They are in the process of going through a Chapter 11 bankruptcy but have secured debtor in possession financing of $290 million to secure and grow its business, as well as landed a contract with the United States for the Census 2020 for $61 million. They brought back the previous CFO who served from 2007-2012 to help restructure the finances of the company.
Attachment:- Assignment Files.rar