Directions: Attached is the completed problem, 10-K SEC,
and info from Mergent database.
Please write it as WSVC analyst's report to investors' community. Your
paper should be structured as a report, not as a set of answers to questions of
problem 811. Nevertheless, it should address these questions. You also should
attach or embed an Excel file supporting your report data. It is a good idea to
put your recommendations in the very first paragraph or executive summary of
the report. Also, feel free to educate your readers you do not know how much
they know about relative valuation and about the industry.
About timing of your analysis and report: Assume that your report is
prepared in early January 2006 and use all information publicly available by
that time. Please keep in mind that while stock prices become available
immediately, financial statements are published with some delay (EDGAR contains
the filing dates).
Acquisition took place in December 2005. You can (and should) use any
relevant information that was publicly available by that time, i.e., textbook's
information is not enough! For example, companies' financial statements are
usually become available 12 months after the end of fiscal period, so the third
quarter statements were publicly available by that time. EDGAR (SEC financial database)
contains these statements and filing their dates. I want to bring your
attention to Mergent database, which contains historical stock price
data for companies, which are not publicly traded anymore.
2005 10-K (ConocoPhillips).pdf
ConocoPhillips Income (2004-2005).pdf