Question :
As the delegate from your accounting firm or practice, you are in charge of stock market analysis that will be shown to clients as part of professional consultation process. One of your high-profile clients is trying to evaluate the possible investment potential between two companies. Thus, before you will recommend investments to clients, you need to familiarize yourself with the background of the companies, analyze stock trends, research current events, and examine financial statements. Select one pair of these companies and conduct your analysis.
Pepsi versus Coca Cola, or
Amazon versus eBay
Prepare a page paper in which you:
1. Analyze each company's history, services/ product, major customers, major suppliers, and leadership and provide a synopsis of each company.
2. Based on the stock price for the timeline listed below, shown a graph that illustrates the stock price of each company. Show conclusions that can be drawn based on the trend:
a. The day of its initial public offering
b. January 1, 2012
c. January 1, 2011
d. January 1, 2010
3. Research and summarize at least two news events (this may include acquisitions, mergers, or political issues) that occurred from 2010 to the current day and the potential impact on the stock price of each company. Show how this influences your investment decision related to the company.
4. Provide an overall financial analysis for every company that highlights the key characteristics for investment and how this can impact an investor's decision.
5. Based on your review of the financial data for each company, shown the accuracy and reliability of the data for making investment decision. Provide support for your conclusion.
6. Recommend which company you consider as the better investment for your client and how you can present your recommendation. Support your recommendation with data from your analysis.