Security Analysis Assignment In Tutorial Library

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TITLE: Security Analysis Assignment

CLASS / COURSE: Financial Analysis

QUESTION DESCRIPTION:

Suppose you are a young securities analyst, working in a small brokerage firm. You have access to publicly available information relevant to valuation of the ASX 300 listed shares in the following sectors.

Energy Industrials Financials

A list of the GICS sectors and corresponding companies can be found at the Aspect FinAnalysis site, http://www.newcastle.edu.au/services/library/database/aspect.html

As a starter in the brokerage firm, you are asked to assist a senior financial analyst by collecting relevant company-specific and market data and conducting analysis to determine whether a share should be bought, sold or excluded from a client’s portfolio.

Required

Select a publicly listed company from each of the above sectors.

Undertake fundamental analyses to recommend whether the share should be bought, sold or excluded from the portfolio. Identify and discuss relevant macro, industry-specific and company-specific factors governing your decision.

Additional Resources:

Single Index Models

Elton, E., Gruber, M., Brown, S. and Goetzmann, W. (2007), Modern Portfolio Theory and Investment Analysis, 7th edition, John Wiley & Sons, Hoboken NJ

Section 9 Yip, H. (2005), Spreadsheet Applications to Securities Valuation and Investment Theories, John Wiley & Sons, Milton

Security Analysis

Chapters 11-14, Brailsford, T., Heaney, R. and Bilson, C. (2006) Investments: Concepts and Applications, 3rd edition, Thomson, South Melbourne :

Chapters 10-16, Damodaran, A. (2002) Investment Valuation, 2nd edition, John Wiley & Sons, New York

 

 

Element

Marks

Comment and Mark

1. Recommendation Show clearly your recommendation to buy/sell/hold and the rationale for your recommendation drawing logically on findings of your research.

 

0.5 mark x 3 companies

(1.5 marks total)

 

 

 

 

2. Company Profile/Overview concise and clearly states main activities/markets/business dimensions. [do not attempt to capture every aspect of the company’s business…confine your overview to factors you find relevant to the overall assessment]

 

1/3 mark x 3 companies

(1.0 marks total)

 

3. Fundamentals

Key numerical data concerning the company is identified and is summarised with relevant comparison to industry averages or industry peers.

 

0.5 x 3 companies

(1.5 marks total)

 

4. Report identifies key macroeconomic factors to which the company’s performance is sensitive and provides clear and concise summary of outlook for these factors in the context of the company’s business.

 

0.5 x 3 companies (1.5 marks total)

 

 

 

 

 

 

5. Report discusses key industry characteristics, and the company’s competitive position, differentiating factors and industry outlook.

 

0.5 x 3 companies (1.5 marks total)

 

 

 

 

6. Report identifies key company-specific factors that will influence stock returns and risk and relates these factors to the firm’s outlook.

 

0.5 x 3 companies

(1.5 marks total)

 

 

 

 

7. Clear overall structure and presentation

0.5 mark total

 

 

 

 

GRAND TOTAL

9 marks

 

 

NOTE: You may choose your own headings in setting out your report. Avoid telling the company’s history or copying details of its business activities. Focus on aspects that are most relevant to your stock assessment. Ensure you include your references.

SOLUTION DESCRIPTION: Completed Solution is attached. Click on Buy button and then download file to get full solution.

SUBJECTS / CATEGORIES:
1. Finance
2. Financial Management
3. Corporate Finance
4. Investment and Portfolio Management

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