Assignment
Part1: This assignment requires you to gather the necessary resources to complete the term paper. Please pick a stock listed in the S&P 500 index that is profitable (i.e. EPS greater than zero). Write a short paragraph explaining why you chose this stock for your security analysis report. Lastly, please copy various urls that you will utilize in your term paper from the list provided below (specific to your stock):
• Google Finance (web)
• Yahoo Finance (web)
• Barron's Magazine (web)
• Fortune Magazine (web)
• Forbes Magazine (web)
• Bloomberg/Business Week (web)
• Wall Street Journal (web)
Part 2 of the Term Paper is to write a one page executive summary of the business description of the underlying stock complete with a pie chart of its revenue breakdown. The best source for Part 2 of the term paper is the company's Investor Relations Website (i.e. business description page). For the revenue pie chart look at the latest 10-K and depict the breakdown of the company's revenues (i.e. 50% apparel; 40% shoes; 10% accessories).
• .....add much more detail about what they need to do that includes the details in the bulleted list below.
• Part 3 of the Term Paper is to write a two page executive summary of your company's competitive position. You should discuss in detail the company's industry position (i.e. market share by business line) citing its primary competitive advantages (i.e. what is its moat: wide, narrow, none and why). Please articulate the primary competitive positions your company may posses: intangible assets, switching cost, network effect, cost advantage or efficient scale. Note, this is a critical piece of any stock research report and I will grade accordingly. For reference, please review the term paper powerpoint and the sample term paper example to gain a clear understanding of my expectations of this critical piece of your term paper. The best source for Part 3 of the term paper is the Morningstar and IBES world reports.
• Part 4 of the Term Paper is to write a two page executive summary of your company's investment positives. You should discuss in detail the catalysts that will enhance shareholder value (i.e. niche market, growing market share, expanding operating margins). Please articulate each investment positive in a bullet point and provide facts to support each point of your thesis. For reference, please review the term paper powerpoint and the sample term paper example to gain a clear understanding of my expectations of this element of the term paper. The best source for Part 4 of the term paper is the S&P NetAdvantage and Business Source Complete.
• Part 5 of the Term Paper is to write a two page executive summary of your company's investment risks. You should discuss in detail what could derail your investment thesis and detract shareholder value (i.e. excess leverage, highly cyclical industry, managment turnover) and citing facts to back up your point. Please articulate each investment negative a bullet point and provide facts to support your each point of your risk thesis. For reference, please review the term paper powerpoint and the sample term paper example to gain a clear understanding of my expectations of aspect of the term paper. The best source for Part 5 of the term paper is the S&P NetAdvantage and Business Source Complete.
• Part 6 of the Term Paper is to write a two page executive summary of your company's price objective and your valuation methodology. You should discuss our price objective and provide the appropriate tables that articulate your valuation methodology (one of the following):
1) Comparable Model
2) Dividend Discount Model (either constant growth or two stage model)
• For reference, please review the term paper powerpoint and the sample term paper example to gain a clear understanding of my expectations of aspect of the term paper. The best source for Part 6 of the term paper is the S&P NetAdvantage and Morningstar.
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also include a cover page containing the title of the assignment, the student's name, the professor's name, the course title, and the date. The cover page is not included in the required page length.
3. Also Include a reference page. The Citations and references should follow MLA format. The reference page is not included in the required page length.