Components:
Project contains activities like:
1. Conduct secondary research (like library, internet, etc)
2. Write research paper calculating the financial ratios yourself.
The Project to be addressed by the Paper:
You have recently graduated from Keiser University’s MBA program and have secured a position as the fund manager for a renowned investment banking house. You have been provided $300 million to manage/invest. Fund is a pension/retirement fund so its perspective is long term with moderate risk of loss of capital and a needed return of 9% per annum. In order to reduce investment risk you are instructed to make 12 investments of $25 million dollars each. Your first assignment is to find out whether the fund you are managing must invest $25 million dollars in the stock of the company you have selected for your first analysis/investment decision.
Your analysis, based on concepts covered in this course, would address each of the following:
1. Business Strategy Analysis: Develop the understanding of the business and competitive strategies of acompany. Which of the three generic competitive strategies does it use (low cost provider, differentiation, or focus)? This must be covered in not more than three paragraphs. Don’t spend time writing a history of the company.
2. Accounting Analysis: Perform the accounting practices accepted by the company usually reflect an correct picture of the economic performance of the company? Did your research find any public announcements of restatement of earnings or other financial statements that will point out that financial statements might be of dubious value? This could be done by reviewing the company's 8K filings with the SEC. These filings could usually be found on the company's website under Investor Relations - SEC filings.
3. Financial Analysis: Analyze financial ratios and cash flow measures of the company relative to its historical performance.
4. Prospective Analysis: Develop forecasted performance measures and list the assumptions associated with your forecast. List your assumptions and reasons for your forecast. You might also quote the works of other analysts who have published forecasted earnings for the time frame you are addressing. (Hint: take a look at Yahoo/finance - analysts opinion
5. Conclusion: Will you or will you not invest $25 million in this particular Company? Support the conclusion? Remember a negative conclusion is just as valid and valuable as a positive conclusion.
Conducting Library Research:
1. Participate in a research orientation offered by the graduate librarian.
2. Conduct a search for sources which offer correct information on your company. A minimum of six legitimate and valid related resources are needed.
3. Avoid general Internet key word searches. Wikipedia and other illegal sources are not suitable for graduate work. Articles noting up to date information is such sources as The Wall Street Journal, Barron’s or Business Week might be useful in addressing the suitability of present strategies, resource pricing, etc. given market conditions or status of competitors.
Writing the Paper:
Following are general guidelines for format and organization.
1. Format:
a. Minimum of ten pages (including self prepared exhibits), with numbered pages. No binders please.
b. Typed, double spaced.
c. New Times Roman (i.e. business) font, 12 point.
d. Margins – 1.25 inches.
e. Include boldface headings and subheadings.
f. Note source citations as suitable under APA guideline.
2. Organization:
a. Cover page
b. Introduction – A brief statement of the purpose of the paper and explanation of its organization. You are welcome to use pseudonyms for the name of the company or individuals addressed in the paper.
c. Analysis -Address four concepts noted in “The Paper etc” on the preceding page.
d. Summary – A brief statement combining the finding arising from the analysis.
e. Conclusion/Recommendations – should you invest or not invest the $25 million and why or why not.