Investment project Senior Research in Finance

The Economic Outlook & Analysis

A. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Summary of Economic Trends Business cycle Monetary policy Fiscal policy Economic indicators World events Foreign trade Public attitudes Inflation GDP growth Unemployment Productivity / Capacity utilization Money supply

A. Track of Economic Indicator for 10 years B. Growth Chart of Economic Indicator C. Prediction of Economic Indicator D. Conclusion

Industry Outlook & Analysis

A. Industry Prospectus 1. Life cycles 2. Industry structure 3. Government regulation 4. Supply demand relationships 5. Product quality 6. Cost elements 7. Research & development expenditures 8. Financial norms and standards

B. 10 years collection of industry production (if possible) C. Growth computation and chart D. Relationship between industry and economy E. Estimate industry sales F. Sustainable growth G. Conclusion

Company Outlook & Analysis

A. Fundamental analysis
1. Dividend growth model or PE model to arrive at intrinsic value 2. PE comparison 3. Beta estimation and examination of the relationship of your stock to DJIA and S&P 4. Forecast EPS over 5 years 5. Growth company, growth stock? 6. Financial Statement Analysis summary of 5 years a. Gross profit margin b. Operating profit margin c. Net margin d. ROA e. ROE f. ACP g. Inventory turnover h. FAT i. TAT j. Current ratio k. Quick ratio l. Net working capital to total assets m. LT debt to equity n. Total debt to equity o. Time interest earned p. Sustainable growth q. PE r. PB s. Div yield t. Div payment 7. Estimate using three different models: Intrinsic Value of the companys stock 8. Estimate of next year sales

9. Conclusion

B. Competitive analysis
1. Chart comparing your company to its two primary competitors a. Over 10 years: i. Growth in dividends ii. Net profit margin iii. Net profit in dollars iv. ROE v. LTD to equity vi. PE vii. Div yield viii. Div payout ix. Market share b. Over 10 week period: ROR/week Generally discuss beta differences 2. Conclusion 3. Security market line with company and competitors plotted and analysis

C. Technical analysis
1. Bar Chart daily for 10 weeks 2. Point and Figure Chart 3. Candlestick chart 4. Summary of patterns in each 5. Smart money rule 6. Overall market rule 7. Contrary opinion rule Whats the market doing? Your stock?

Project Summary