Using the analytical tools you have leaned about in the course, you will prepare an analysis of a public company, evaluating the company from the standpoint of both fixed income securities (e.g. should you buy the bonds?) and equities (should you buy or sell the stock?)
Approaches to the analysis should include:
Current state of financial health of the company
Trends in that financial health over recent years and potentially into the future
Comparison of the subject company with competitors and/or the industry sector
Analysis of the subject company’s industry sector – relative strength or weakness, factors affecting the industry such as product / technical innovation, regulation, economic cycles, etc.
Assessing the company’s position within the industry context – is it a leader; does it have clear advantages vis a vis other industry participants; is it subject to extreme competition or pricing pressure?
The paper MUST contain a conclusion based on your analysis.
Would you recommend investment in the bonds of this company? Do you think that the company will be able to its interest and principal obligations in a timely manner?
Would you recommend investment in the common stock of the company for the medium / longer term? Note, this is not a short-term trading recommendation based on the stock’s price right now.
The company chosen is up to the student, but should not be something so complex or one for which information is not readily available that it makes the analysis more difficult than necessary.
The papers should not exceed 15 pages, double spaced.
The papers will be due Day 1 of Week 7. The paper is to be submitted electronically. Remember you can turn in your paper ANY TIME before the final due date and you are encouraged to do so.
The paper is to be prepared using the APA writing style and guideline for references format. They must contain a bibliography and all direct quotations and data sources must be properly cited. The Department uses the APA style as it lends itself well to both reading the paper and understanding references without being cumbersome as some of the other styles are (such as Chicago or MLA). Students can download the student style guide from the American Psychological Association web site or you can purchase the APA style guide from the book store.