Microsoft Word - FIN 424-Project-DRAFT.docx



ZAYED UNIVERSITY FIN 424 INVESTMENTS SPRING 2020 SEMESTER PROJECT Project's Objective: Conducting security analysis of a publicly listed company using data retrieved from the Bloomberg terminals and writing a brief report summarizing your analysis. Step 1. Choose a company whose stocks are publicly available on either Abu Dhabi (ADX) or Dubai Stock Exchange Market (DFM). (THE COMPANY IS ARKAN)Step 2. Start working on your report. The report should include the following: OUTLINETitle Page (including the member names& IDs & the company of choice) Company Overview (general business description and mention if there is any key recent news affecting the company’s stock for e.g. change in management, introduction of new product line, merger and acquisition etc). All that information should be available at Bloomberg. Find the following using the Bloomberg terminal: -Daily price (for the past three years) and, -S&P 500 (for the past three years) Plot the daily price return and S&P 500 return in a graph and comment how the company is doing relative to the market. Industry Overview (list the major competitors in the industry and a comparison with the major competitor-compare ROA, ROE, P/E ratios) 5- Fundamental Analysis (for the past 3 years) : a- Liquidity analysis (Working capital and current ratio) b- Solvency analysis (debt to equity and times interest earned ratio) c- Activity ratios (Accounts receivable turnover, inventory turnover, total assets turnover) Profitability ratios (Net profit margin, ROA, ROE) Valuation ratios (Price Earnings ratio , Market to Book ratio, dividend payout) Graphs/charts for each ratio Conclusion (how well is the company doing, what to expect for the future, would you recommend investing in such company). References (if any) Appendix (Any other charts/tables/graphs you find relevant & the screenshots of the data retrieval process and your group photo in front of the Bloomberg terminal you work) Step 3. Submit your project on blackboard on or before March 5th (before 6 p.m.). The submissions will be closed after 6 p.m. on March 5th. Please submit either an excel, word or pdf document, not a pages document. RULES You can work in groups of maximum 3 students. No more than 3 students can form a group! Please make sure to allocate the work evenly across all group members, you are one team, and will get one grade; if you have any “free riders” in the group, you need to inform me as soon as possible- not the last week! Each team needs to provide me with evidence that they retrieved the data from the Bloomberg terminals, so you need to provide me with screen shots of the data retrieved and a photo of your all group members in front of Bloomberg screens in the appendix of the report. Needless to say, no report should be in any ways similar (INCLUDING THE FORMATTING) to another student’s/group’s report. Any similarities will be considered as academic dishonesty and a violation of ZU Honor Code. The assignments will be scanned by “SafeAssign” and any indications of plagiarism will be taken seriously. Students must be prepared to accept the appropriate sanctions for any dishonest academic behavior. At the very minimum, your assignment will get a zero score. You will be following the equations used in Chapter 7 of your textbook. You will not only include the numerical results but also explanation of the trends. Therefore, it is better if you use graphs or charts in your report. What I expect is a brief interpretation of the important results (i.e. Does the company have good liquidity, is it increasing, what do you think is the reason behind increase in profitability etc.) You will use 3 years of annual data to compute the ratios (the most recent years (i.e., 2019, 2018, 2017). Include any relevant graphs and charts to make your report interesting! Bloomberg lab assistant is available to help you in data collection during these following dates: The due date for this assignment is March 5th, no later than 6 p.m. There will be an assignment folder on BB where all group members should upload their work. Note that, I value the way information is presented; which means that I would like to see neat, well-organized, nice looking projects. Papers will be graded on application of course content and organization of research information. Please note: ‘Late papers will not be accepted’. GRADING RUBRIC Grading criteria Marks allocated Entering the company of choice in the excel spreadsheet (non-financial inst.) 2 Company overview 10 Company stock price return and S&P 500 return comparison 5 Industry Overview Major competitors 2 Comparison with the major competitor 3 Graphs and charts 5 Fundamental Analysis (for all 3 years, if a year is missing, 2/3rd of the mark) Liquidity analysis (Working capital and current ratio) 6 Solvency analysis (debt to equity and times interest earned ratio) 6 Activity ratios (Accounts receivable turnover, inventory turnover, total assets turnover) 9 Profitability ratios (Net profit margin, ROA, ROE) 9 Valuation ratios (Price earning ratio, market to book ratio, dividend payout) 9 Graphs and charts 9 Conclusion 10 Including the screenshots and your group photo from the Bloomberg terminal 10 Grammar and organization 5 TOTAL 100 ................
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