James is planning to diversify his portfolio and has collected the following data on three corporations. What implications should James gain from this information based on ratio analysis? Once again, discuss these three opportunities with respect to the Ratio Analysis of Ch 16. Provide your estimates of strong and weak points for each. Make recommendation(s) - that is, “if X, pick A, but if Y, run away from A likes crazy because . . .” or whatever your analysis indicates.
All numbers are in millions
Alpha Gamma Omega
Revenue $200 $600 $300
Operating Income $12 $30 $80
Net Income $2 $9 $30
Current Assets $60 $200 $100
Long term Assets $120 $400 $175
Current Liabilities $28 $75 $100
Long Term Liabilities $120 $300 $300
Stock price $60 $150 $100
Outstanding shares 0.9 0.3 0.2