PART 1 SHAREMARKET ASSIGNMENT SHEET-
Select a share portfolio consisting of one company from each group listed above. The total value of your portfolio should add up to $10,000 worth of shares based on the closing share prices posted on the ASX website on Friday 10 August 2012. Check after 6pm to ensure that the latest price has been updated.
During the tracking period, 10 August to 7 September 2012, your team is to monitor the performance of the shares and the overall performance of the Australian share-market. Can you maximize the value of your share portfolio???
PART 2 COMPANY RESEARCH / GRAPHS / INVESTOR INFORMATION
A brief description of each company in your team's portfolio. It should be presented as a comparative table and should include:-
- Products And Services Provided By The Company
- Name Of Chief Executive Officer [or Managing Director]
- Salary of Chief Executive Officer [or Managing Director]
- Profit / Loss after Tax from 2011 Annual Report for the full financial year - consolidated figures
- Latest Dividend Paid - Dividend Per Share and Date Paid
- Size Of The Business By Total Assets - from 2011 Annual Report - consolidated figures
- Number Of Employees
- Share Price - 52 week High And Low - from the newspaper share-market table on 7 September 2012
For the tracking period only, using an Excel spreadsheet, prepare your own graph of the daily share price movements for each of your shares. Information should be shown in a table with separate columns for Date and Closing Price [dollars].
For the tracking period only, using an Excel spreadsheet prepare your own graph of the daily movement of the ASX200. Information should be shown in a table with separate columns for Date and Closing Value. Copy and Paste Excel Tables and Graphs into a Word Document to include in your report.
[C] For each company, provide an overview of the share price performance and describe the overall trend of the Australian share-market over the tracking period. Describe how each of your shares performed against the ASX200. Explain major movements in your share prices and the share-market with evidence from newspapers, business magazines, internet information or other relevant sources. Evidence should be included and news articles should be scanned (see p.21 to 24 of your Subject Guide) and neatly presented in an appendix to your report. Harvard Referencing is required to acknowledge all sources of information used. Please be aware of penalties for Plagiarism. See "Harvard Referencing" & "Plagiarism" in Supplementary Resources and Links on BAO1101 website
[D] Calculate the Gain or Loss made on your portfolio during the tracking period.
[E] Provide a recommendation [ buy / sell / hold ] for each of your shares.
Support each recommendation with relevant information you have found in Part [C].
PART 3 IDENTIFICATION OF KEY FINANCIAL DATA AND RATIO ANALYSIS
[A] IDENTIFICATION OF KEY FINANCIAL DATA
For each company you have selected, complete the following table of Key Financial Data.
Find the figures from the 2011 Annual Report with results for the full financial year for 1 July 2010 to 30 June 2011
The "consolidated" figures are required.
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Company 1
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Company 2
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Revenue / Sales
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Interest Expense
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EBIT
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Net Profit Before Tax
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Net Profit After Tax
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Current Assets
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Total Assets
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Current Liabilities
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Total Liabilities
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Total Equity
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References are required to identify the sources of all figures in your table.
RATIO ANALYSIS
From the Key Financial Data, calculate relevant ratios provide an overview of each company's:-
*Profitability *Stability *Liquidity
At least 6 ratios for each company should be used for this overview. The ratios may vary depending on the availability of information provided in each company's Financial Statements.
For each of the headings listed above, your overview should identify the name of the ratio used and interpret your results. Provide an explanation of why these ratios may differ between your companies. Which do you consider to be the better investment? Explain your reasoning.