Welcome to the John Molson Investment Society

First Bi-Weekly Meeting of 2010

Meet Our Executives:
2009-2010 Performance:
JMIS Events: FISA Events:
• Bi-weekly Meetings • Designation Fair
• New Analysts • Recruitment Events
• Portfolio Management • Monthly Newsletter
• Trading Competition • VSE
• Forum • Sustainable Finance
• Guest Speakers Conference
• Networking Events • Speaker Series
• Social Events • JMFRG
• JMSE

Next meeting October 5th

 Junior Analysts
Role of Junior Analyst:
• Follow developments in
assigned sector
• Follow JMIS positions in the
sector.
• Give recommendations
within the sector.
What is expected:
• JMIS meeting attendance is
obligatory
• Report development in sector at
start of each meeting
• Recommend course of action for
positions in the sector.
• Minimum of 3 pitches is
expected.
How to Pitch a Stock
 Sources
• The most valuable thing one can posses in
finance is Information.
Library
Go to http://library.concordia.ca/
Two ways from here:
o Find Books & articles -> Databases -> Finance
o Research Guides by subject -> Business -> Finance

From here you have access to more information than you will need to
process.
 Formula Growth Investment Lab
• Located at MB 12.254
• You can register a Bloomberg account and use the
Bloomberg terminals to get data and do research.
(McGill doesn’t have this)
 Internet
• Several good stock screeners exist, and there
are thousands of websites to get data from.
– http://ca.finance.yahoo.com/
– http://finviz.com/
– http://www.sec.gov/
– http://www.sedar.com/
– http://www.sec.gov/edgar.shtml
 News
Create virtual portfolio and set up email alerts
– http://investorshub.advfn.com/
– http://www.gluskinsheff.com/
– http://www.marketwatch.com/
– http://www.economist.com/
– http://www.finviz.com/
Balance sheet
Income Statement
Cash Flow Statement
• Income Statement
– A financial statement that shows the revenues,
expenses and net income of a firm over a period of
time
• Balance Sheet
– A financial statement that shows the value of the
firm's assets and liabilities at a particular time
• Statement of Cash Flows
– A financial statement that tracks cash coming into
and flowing out of a firm over a period of time
Financial Ratios Analysis
 What is a financial ratio ?
“ A financial ratio is a relative magnitude of two
selected numerical values taken from a
company’s financial statements” (wikipedia.com)

Basic arithmetical operation,

but more complex interpretation.

 Key Ratios
Earnings per share (EPS) :
– Evaluates the operating performance/ profitability
of a company.
– Relates income to the average number of shares
outstanding.
The higher, the better
Price to earnings (P/E) :
– Comparison of a stock earnings with its share
price.
– Measures how investors expects earnings to grow
in the future

High ratio : Investors are optimistic

Price to Book (P/B) :
– Compares the market valuation of a company to
the value that the company shows on its financial
statements.
– People also value of intangible assets.

The higher, the better

Return on Assets (ROA) :
– Shows how efficiently management uses the
company’s resources.

Return on Equity (ROE) :

– How much profit management generates from
resources provided by its shareholders.

Given as percentages; The higher, the better.

 Very Important !
To be meaningful , a given financial ratio of a
company must be compared to :
 Prior years to examine the trend
 Industry norms
 Competing companies