Question: Your analysis, based on the concepts covered in this course, will address each of the following: Business Strategy Analysis : Develop an understanding of the
Your analysis, based on the concepts covered in this course, will address each of the following:
Business Strategy Analysis: Develop an understanding of the business and competitive strategies of the company. Which of the three generic competitive strategies does the company utilize (low cost provider, differentiation, focus)? This should be covered in not more than three paragraphs. Do not spend time writing a history of the company. This is an analysis, not a history lesson.
Accounting Analysis: Do the accounting practices adopted by the company generally reflect an accurate picture of the economic performance of the company? Did your research find any public announcements of restatement of earnings or other financial statements that would indicate that the financial statements may be of dubious value? This can be done by reviewing the company's 8K filings with the SEC (a mandatory requirement for this paper). These filings can generally be found on the company's website under Investor Relations - SEC filings.
Financial Analysis: Analyze financial ratios and cash flow measures of the company relative to its historical performance. For purposes of this research paper a 2 year look back is sufficient and required. You must use at least 10 of the ratios noted on page 119 of the text including all four of the profitability ratios.
Prospective Analysis: Develop forecasted performance measures and list the assumptions associated with your forecast. List your assumptions and reasons for your forecast. You may also cite the works of other analysts who have published forecasted earnings for the time frame you are addressing. (Hint: take a look at Yahoo/finance - analysts opinion
Conclusion: Will you or will you not invest $25 million in this particular Company? Support your conclusion? Remember a negative conclusion is just as valid and valuable as a positive conclusion.
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