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Company Selection and Stock Watch
Source: Yahoo stocks application for iphone
No.
Date
Stock Name
Stock Symbol
Current Price
Exchange Traded On
1
7/27/2014
Apple
AAPL
$97,67
NASDAQ
2
7/27/2014
Google
GOOG
$589,02
NASDAQ
3
7/27/2014
Yahoo
YHOO
$36,12
NASDAQ
4
7/27/2014
AT&T
T
$35,54
NYSE
5
7/27/2014
GlaxoSmithKline
GSK
$48,60
NYSE
Note:
It was unclear if the assignment wanted purely numerical/financial info for financial facts or if news in the media also co
Media news will likely sway investors, so it can be considred creadible info to be used to make predictions on where the
Next to financial facts, I included another colum labeled, strictly financial facts that includes info like p/e or yield, etc.
Financial Facts
BOSE sues apple subsidiary Beats. This may likely lower investor confidence.
Rumors that apple will come out with an iwatch may raise investor confidence.
Reports surface that ipads are losing sales, may lower investor confidence.
Google attempts to map human body, may increase investor confidence.
Google buys Twitch, may lead to increase in investors.
Google triples first half deal spending, may increase investor confidence.
Yahoo Mobile Search ads grow, may increase investor confidence.
New "Yahoo Ending" is a one-stop afterlife shop. May increase investor support.
Yahoo buys startup Flurry. May increase investor support.
Amazon Fire available at AT&T. May raise investor confidence.
Ranked a top 10 stock by Bloomberg. May raise investor confidence.
Weak Q2 earnings, results are worse than predicted. May lead to investor loss of confidence.
WSJ reports GSK paid bribes in Syria as well. This may lower investor confidence.
FDA approves Flonase Allergy Relief for OTC use in the USA. This may raise investor confidence.
GSK seeks approval for worlds first malaria vaccine. This may increase investor confidence.
cial facts or if news in the media also could work.
used to make predictions on where the stock will go.
hat includes info like p/e or yield, etc.
Purely Financial Fact:
P/E ratio is 16.39
MKT CAP is 588.9B
52W Low: 62.89, High: 97.88
P/E ratio is 30.53
MKT CAP is 398.1 B
52W Low:502.8,High:604.83
P/E ratio is 31.14
MKT CAP: 36.65 B
52W Low: 26.75,High:41.72
P/E ratio is 10.44
MKT CAP: 184.9 B
52W low:31.74,High:36.86
P/E ratio is 14.7
MKT CAP: 116.8 B
52W Low:48.23, High:56.73
Financial Analysis of Apple and Wal-Mart
Liquidity Ratios
Liquidity Ratios
Current Ratio
Apple
Quick Ratios
1.68
1.64
0.88
0.24
WalMart
From the above table we can see that Apple Incorporation is financially very strong and a
much better financial position than the Wal-Mart Stores Inc. and the company is safer for
investment as there are less chances of the company being defaulted or insolvent as the company
has the back up or finances to pay its debts.
Activity Ratios
Activity Ratios
Inventory
Receivables
Days Sales
Fixed Asset
Total Asset
Turnover
Turnover
Outstanding
Turnover
Turnover
62
11.8
2.12
1.3
0.8
194
7.84
1.88
3.65
2.56
As we can see from the above table of calculated ratios, the Apple Incorporation is
performing much better than the Wal-Mart as all the above ratios of the Apple Inc. are much
better than those of Wal-Mart.
Profitability Ratios
Profitability Ratios
Gross Profit
Operating Profit
Net Profit
Return on
Return on
Margin
Margin
Margin
Assets
Equity
Apple
38%
29%
22%
32%
30%
24.8%
5.6%
3.3%
7.8%
20.8%
WalMart
The profitability of the Apple Inc. is also much better than that of Wal-Mat as we can see
all the respective ratios of the of the Apple Inc. are better than those of Wal-Mart. So this implies
that the Apple Inc. has better profitability. The net profit margin of Apple Inc. is 22% which is
much higher than Wal-Mart which is 3.3%.
Leverage Ratios
Leverage Ratios
Debt Ratio
Apple
102.5
WalMart
75.5
As we can see from the above table the leverage ratios of the Apple Inc. is higher than
that of Wal-Mart Inc. which indicates that the Apple is applying its financial leverage to a good
effect and is doing better than Wal-Mart
Coverage Ratios
Coverage Ratios
Times-InterestEarned
614.58
11.62
Conclusions:
From the above analysis we can conclude that the Apple Inc. has much better position
than that of the Wal-Mart as it is performing much better in all areas and all the financial ratios
of the Apple Inc. are better. So we will recommend that the investment in the stock of the Apple
Inc. is better than Wal-Mart.
References:
1. Wagner, Wieland (May 28, 2010). "iPad Factory in the Firing Line: Worker Suicides
Have Electronics Maker Uneasy in China". Der Spiegel. Retrieved August 27, 2014
2. Buchanan, Matt (March 5, 2010). "Official: iPad Launching Here April 3, Pre-Orders
March 12". Gizmodo. Gawker Media. Retrieved March 4, 2010.
3. "iPad Available in US on April 3" (Press release). Apple. March 5, 2010. Retrieved
August 27, 2014.
4. "iPad Wi-Fi + 3G Models Available in US on April 30" (Press release). Apple. April 20,
2010. Retrieved August 27, 2014
5. Mark Rogowsky (June 2, 2014). "WWDC 2014: Live! News And Much More From
Apple's Keynote". Forbes. Retrieved June 3, 2014.
6. "iPad – Technical specifications and accessories for iPad". Apple Inc. January 27, 2010.
Retrieved August 27, 2014
Financial Analysis of Apple and Wal-Mart
Liquidity Ratios
Liquidity Ratios
Current Ratio
Apple
Quick Ratios
1.68
1.64
0.88
0.24
WalMart
From the above table we can see that Apple Incorporation is financially very strong and a
much better financial position than the Wal-Mart Stores Inc. and the company is safer for
investment as there are less chances of the company being defaulted or insolvent as the company
has the back up or finances to pay its debts.
Activity Ratios
Activity Ratios
Inventory
Receivables
Days Sales
Fixed Asset
Total Asset
Turnover
Turnover
Outstanding
Turnover
Turnover
62
11.8
2.12
1.3
0.8
194
7.84
1.88
3.65
2.56
As we can see from the above table of calculated ratios, the Apple Incorporation is
performing much better than the Wal-Mart as all the above ratios of the Apple Inc. are much
better than those of Wal-Mart.
Profitability Ratios
Profitability Ratios
Gross Profit
Operating Profit
Net Profit
Return on
Return on
Margin
Margin
Margin
Assets
Equity
Apple
38%
29%
22%
32%
30%
24.8%
5.6%
3.3%
7.8%
20.8%
WalMart
The profitability of the Apple Inc. is also much better than that of Wal-Mat as we can see
all the respective ratios of the of the Apple Inc. are better than those of Wal-Mart. So this implies
that the Apple Inc. has better profitability. The net profit margin of Apple Inc. is 22% which is
much higher than Wal-Mart which is 3.3%.
Leverage Ratios
Leverage Ratios
Debt Ratio
Apple
102.5
WalMart
75.5
As we can see from the above table the leverage ratios of the Apple Inc. is higher than
that of Wal-Mart Inc. which indicates that the Apple is applying its financial leverage to a good
effect and is doing better than Wal-Mart
Coverage Ratios
Coverage Ratios
Times-InterestEarned
614.58
11.62
Conclusions:
From the above analysis we can conclude that the Apple Inc. has much better position
than that of the Wal-Mart as it is performing much better in all areas and all the financial ratios
of the Apple Inc. are better. So we will recommend that the investment in the stock of the Apple
Inc. is better than Wal-Mart.
References:
1. Wagner, Wieland (May 28, 2010). "iPad Factory in the Firing Line: Worker Suicides
Have Electronics Maker Uneasy in China". Der Spiegel. Retrieved August 27, 2014
2. Buchanan, Matt (March 5, 2010). "Official: iPad Launching Here April 3, Pre-Orders
March 12". Gizmodo. Gawker Media. Retrieved March 4, 2010.
3. "iPad Available in US on April 3" (Press release). Apple. March 5, 2010. Retrieved
August 27, 2014.
4. "iPad Wi-Fi + 3G Models Available in US on April 30" (Press release). Apple. April 20,
2010. Retrieved August 27, 2014
5. Mark Rogowsky (June 2, 2014). "WWDC 2014: Live! News And Much More From
Apple's Keynote". Forbes. Retrieved June 3, 2014.
6. "iPad – Technical specifications and accessories for iPad". Apple Inc. January 27, 2010.
Retrieved August 27, 2014
Ratio Analysis
Compute the ratios below for Blue Bill Corporation based on the financial statements provided. Ending inventor
After calculating the various ratios, analyze the overall financial health of Blue Bill Corporation.
Values presented on the financial statements are in millions.
Blue Bill Corporation
Balance Sheet
December 31, 2011
Assets
Current Assets
Cash and cash equivalents
Receivables (net of allowance)
Inventories
Other current assets
Total current assets
Property, plan and equipment
Land
Buildings
Equipment
Less accumulated depreciation
Total property, plant and equipment
Other noncurrent assets
Total assets
$
483.2
1,045.1
1,249.4
273.5
3,051.2
77.1
842.4
3,546.0
2,373.7
2,091.8
4,932.6
$ 10,075.6
Ratio analysis
Liquidity ratios:
Current ratio
Quick ratio
Activity ratios:
Inventory turnover
Receivables turnover
Days sales outstanding
Fixed asset turnover
Total asset turnover
Profitability ratios:
Gross profit margin
Operating profit margin
Net profit margin
Return on assets
Return on equity
Leverage ratios:
Debt / Net worth
Debt ratio
Coverage ratios:
Times-interest-earned
Analysis of Blue Bill Corporation's financial health
based on the financial statements provided. Ending inventory was $1,237.6 for year 2010.
erall financial health of Blue Bill Corporation.
n millions.
ue Bill Corporation
Balance Sheet
ecember 31, 2011
Liabilities and Shareholders' Equity
Current liabilities
Short-term debt
Long-term debt due within a year
Accounts payable
Other accrued liabilities
Total current liabilities
Long-term liabilities
Long-term debt
Deferred taxes
Other long-term liabilities
Total long-term liabilities
Shareholders' equity
Total liabilities and shareholders' equity
Blue Bill Corporation
Income Statement
2011
$
43.4
151.6
1,007.7
972.7
2,175.4
4,559.4
665.3
784.2
6,008.9
1,891.3
$ 10,075.6
Sales
Cost of products sold
Gross Profit
Selling and administrative expense
Operating income
Other income
Earnings before interest and taxes
Interest expense
Taxes
Net income
poration
atement
1
$ 10,495.0
6,700.5
3,794.5
2,350.9
1,443.6
(18.3)
1,425.3
295.2
247.8
$
882.3
1
Running head: Watch list performing
Watch list performing
Jazmin Filer
Rasmussen College
Author Note
This research paper is being submitted on August 17, 2014, for Jim Boxma's
B230/FIN1000 Section 02 Principle of Finance Course.
2
Running head: Watch list performing
Watch list performing:
In estimating, you are looking to benefit from the short or midterm variances of business sector
estimation of stocks. This time allotment can extend from short of what a day to a few months.
On a few events you may have the capacity to consider a period compass of one to two years as
speculative. Where as in contributing you are taking a gander at the business in general and
deciding an estimation of that business. Through the theory model, whether a business is
exaggerated is of little concern. Track the Performance of Each Trading Strategy
The main reason you ought to keep your theory cash separate from your contributing record is on
account of you'd need to track the execution of every philosophy. Keeping both sorts of cash in
the same record absolutely on account of exchanging commissions is not a decent choice. You'll
wind up paying more in speculation and hypothesizing misfortunes than you will with
exchanging commissions.
The second reason differentiating theory cash from your contributing cash is a clever choice is
whether you begin exchanging the same stocks in shifting timelines you could forget about what
stocks you are utilizing which method.
The last purpose behind differentiating your contributing cash and your theory cash is if you
have to withdraw cash out of a record, you'll know to force from the hypothesis cash first versus
the contributing
3
Running head: Watch list performing
Stock's performance:
stock that seems to oppose standard way of thinking about how a stock is, or should be,
esteemed. Principal investors, in the same way as yours positively, perceive and respect the
vitality of the earnings and value relationship. This leads a couple of words about business
productivity. Academics supportive of current fund hypothesis contend for an effective business
sector. Investigator offers the accompanying meaning of the Efficient Market Hypothesis
An investment hypothesis that states it is impossible to "beat the business" because stock
business proficiency causes existing share prices to always join and reflect all applicable data. As
per the EMH, stocks always exchange at their reasonable esteem on stock exchanges, making it
impossible for investors to either purchase undervalued stocks or sell stocks at swelled costs. As
such, it should be impossible to beat the general market through master stock selection or
business sector timing, and that the main way an investor can possibly get higher returns is by
purchasing riskier investments.
the productivity of markets is somewhat not the same as the views declared today in so-called
current money hypothesis. Instead of asserting that the business is all-knowing and/or
consolidating and reflecting all important data, I fight instead that it is constantly seeking
productivity, yet not necessarily productively valuing stocks sometime or another
Stock or convertible investments:
Basic stock and favored stock both speak to some level of responsibility for organization.
Holding shares of regular stock provides for you the opportunity to vote in the decision of the top
4
Running head: Watch list performing
managerial staff. This is typically equal to one vote for every impart that you possess. Owning
favored stock normally ensures the installment of profits yet does not accompany voting rights.
Possession in either kind of stock qualifies you for a bit of the organization's benefit. One way
benefit is circulated to the shareholders is through profits, which are regularly paid in real money
from the organization's income. Profits are normally paid on a quarterly premise.
Basic stockholders never know the estimation of their profits ahead of time, while favored
stockholders get profits at an altered rate. While the profits on favored stocks have a tendency to
be higher than those on basic stock, they won't acknowledge with organization development.
Investors can consider favored [stocks] as some place between a stock and a corporate security,
as they exchange on a trade the way stocks do, yet the profits are by and large high, in the same
way as those from long-development securities," says Mitch Schlesinger, overseeing director of
the Bethesda, Md.-based FBB Capital Partners by organization. Acquiring regular shares of an
entrenched organization is less unsafe than attempting your hand with penny stocks. In any case,
when seen over long speculation holding periods, basic stocks have historically offered higher
returns than favored stocks or bonds.
favored stocks are more unpredictable than their security cousins, and in some cases as unstable
as normal stocks in light of the fact that exchanging liquidity in the favored sector can become
scarce in times of compelling business sector stress.
Amid times of monetary inconvenience, an organization won't default in the event that it
suspends favored profits, as is the situation with missed bond installments. In the event that the
5
Running head: Watch list performing
shares are not total, the organization does not have the commitment to pay missed profits.
Favored stock may be callable, which implies the organization has the right to buy the shares
from the shareholder at a certain cost whenever. On the other hand, as specified above, profits on
favored stock have a tendency to be higher than profits on regular stock.
On account of liquidation, favored stock holders rank above regular stock managers yet beneath
ordinary bondholders. This implies that if the organization goes bankrupt, regular stockholders
just get paid if there is something remaining after the creditors, bondholders and favored
stockholders get their shares. How the money adds up is that normal shareholders seldom get
anything in chapter 11 cases, while favored stockholders have a superior shot of getting in any
event some cash back.
Corporations can offer two classes of stock: normal and favored. Favored and normal stocks
contrast in their budgetary terms and voting/influence rights in the organization. An offer
(additionally alluded to as value shares) of stock speaks to an offer of proprietorship in a
corporation. As an unit of possession, basic stock ordinarily conveys voting rights that could be
practiced in corporate choices. Favored stock (likewise called inclination imparts or favored
shares) varies from basic stock in that it normally does not convey voting rights however is
legitimately qualified for get a certain level of profit installments before any profits might be
issued to different shareholders.
6
Running head: Watch list performing
References
Barsky, Robert B. and J. Bradford DeLong. “Bull and Bear Markets in the Twentieth Century,”
Journal of Economic History 50, no. 2 (1990): 265-281.
Bierman, Harold, Jr. The Great Myths of 1929 and the Lessons to be Learned. Westport, CT:
Greenwood Press, 1991.
Bierman, Harold, Jr. The Causes of the 1929 Stock Market Crash. Westport, CT, Greenwood
Press, 1998.
Bierman, Harold, Jr. “The Reasons Stock Crashed in 1929.” Journal of Investing (1999): 11-18.
Bierman, Harold, Jr. “Bad Market Days,” World Economics (2001) 177-191.
Commercial and Financial Chronicle, 1929 issues.
Committee on Banking and Currency. Hearings on Performance of the National and Federal
Reserve Banking System. Washington, 1931.
DeLong, J. Bradford and Andrei Schleifer, “The Stock Market Bubble of 1929: Evidence from
Closed-end Mutual Funds.” Journal of Economic History 51, no. 3 (1991): 675-700.
INVESTMENTS, INTEREST RATES, AND RISK
1
Investments, Interest Rates, and Risk: In Principles of Finance
Jazmin Filer
Rasmussen College
Author Note
This research paper is being submitted on August 17, 2014, for Jim Boxma's
B230/FIN1000 Section 02 Principle of Finance Course.
INVESTMENTS, INTEREST RATES, AND RISK
2
Which of the five investments do you think are most highly affected by the level of interest rates
in the economy? Why?
It is seen that shares values of APPLE Inco has seen as an upward movement during the last few
days, because its shares bargaining in market is higher than other companies and it is attracting
many investors around the globe to invest in its shares. Because of the stable economic
conditions in USA market, the stock price of Apple Inco has been viewed as a reliable
investment and traders are trading mostly in that stock. If we look at the various factors that tend
to increase the level of interest on the stock values, these are said to be the demands of shares in
market which highly appeals to investors to buy more shares of Apple Inco. The reason for
increasing the interest rate on the share is the more stable economic condition and strong reliance
of investors in the market. When the demand for shares in the market is higher, then interest rate
also increase as investors usually want huge and satisfactory return on their investment. Second
reason for increasing the interest rate is the higher monopoly of companies in the market. As
Apple Inco is highly penetrated company in the cellular product, people and consumers strongly
believe that purchasing products of Apple Inco would give them more benefits, so keeping the
views of the consumers, with every passing day, Apple Inco tends to increase the interest rate on
the share which provides higher profit and return on investment to its shareholders and investors.
Third reason is that during the recession period, monopolistic companies prefer to facilitate its
consumers by giving the numerous options which help companies its increase their clienteles and
after gaining huge consumers response. Companies increase the interest rate for giving more
return on their investment on daily basis. This option is undertaken on e condition when
investors believe that their current investment will yield more positive outcome and return.
Order of investment from most risky to least Risky:
INVESTMENTS, INTEREST RATES, AND RISK
•
Nasdaq Apple
•
NYSE-WMT
•
ALL
•
AAMRQ
•
AAMRQ
3
These investment order has been done on the basis of the consumer’s response and the overall
return taken by consumers on the investment. The highest risky investments is in the purchase of
the share of Apple Inco , though people highly believe in Apple Inco but some uncertain events
can reduce the values of shares of Apple Inco down. The least risky is AAMRQ which gives no
adequate profit and loss to investors then investors see very highly investment in AAMRQ as it
gives equal loss and profit to it investors.
What types of risk do you think affects each of the investments?
The risk on each investment can vary but it is the market response to each investment. Thus
overall, the uncertain economic conditions and low income of people can be a huge risk for each
investment which can lower the values of investment in the market. Thus interest rates also vary
depending the marketing condition as well.
INVESTMENTS, INTEREST RATES, AND RISK
1
Investments, Interest Rates, and Risk: In Principles of Finance
Jazmin Filer
Rasmussen College
Author Note
This research paper is being submitted on August 17, 2014, for Jim Boxma's
B230/FIN1000 Section 02 Principle of Finance Course.
INVESTMENTS, INTEREST RATES, AND RISK
2
Which of the five investments do you think are most highly affected by the level of interest rates
in the economy? Why?
It is seen that shares values of APPLE Inco has seen as an upward movement during the last few
days, because its shares bargaining in market is higher than other companies and it is attracting
many investors around the globe to invest in its shares. Because of the stable economic
conditions in USA market, the stock price of Apple Inco has been viewed as a reliable
investment and traders are trading mostly in that stock. If we look at the various factors that tend
to increase the level of interest on the stock values, these are said to be the demands of shares in
market which highly appeals to investors to buy more shares of Apple Inco. The reason for
increasing the interest rate on the share is the more stable economic condition and strong reliance
of investors in the market. When the demand for shares in the market is higher, then interest rate
also increase as investors usually want huge and satisfactory return on their investment. Second
reason for increasing the interest rate is the higher monopoly of companies in the market. As
Apple Inco is highly penetrated company in the cellular product, people and consumers strongly
believe that purchasing products of Apple Inco would give them more benefits, so keeping the
views of the consumers, with every passing day, Apple Inco tends to increase the interest rate on
the share which provides higher profit and return on investment to its shareholders and investors.
Third reason is that during the recession period, monopolistic companies prefer to facilitate its
consumers by giving the numerous options which help companies its increase their clienteles and
after gaining huge consumers response. Companies increase the interest rate for giving more
return on their investment on daily basis. This option is undertaken on e condition when
investors believe that their current investment will yield more positive outcome and return.
Order of investment from most risky to least Risky:
INVESTMENTS, INTEREST RATES, AND RISK
•
Nasdaq Apple
•
NYSE-WMT
•
ALL
•
AAMRQ
•
AAMRQ
3
These investment order has been done on the basis of the consumer’s response and the overall
return taken by consumers on the investment. The highest risky investments is in the purchase of
the share of Apple Inco , though people highly believe in Apple Inco but some uncertain events
can reduce the values of shares of Apple Inco down. The least risky is AAMRQ which gives no
adequate profit and loss to investors then investors see very highly investment in AAMRQ as it
gives equal loss and profit to it investors.
What types of risk do you think affects each of the investments?
The risk on each investment can vary but it is the market response to each investment. Thus
overall, the uncertain economic conditions and low income of people can be a huge risk for each
investment which can lower the values of investment in the market. Thus interest rates also vary
depending the marketing condition as well.