Report Requirements

Report Requirements

I.  Submit a hard copy to the instructor and a *.pdf version of the report to the instructor by the due date. If you will not be able to attend the final class, make arrangements to get the hard copy to the instructor by the due date.

II.  The report should be a maximum of 20 pages in length. This should include all appendices (e.g. models, DCF).

III.  The report should be free of spelling and grammar errors.

IV.  Cite all sources

V.  Summary of Recommendation-The report should have a professional looking cover sheet. The cover sheet should include the following:

·  Fisher College of Business logo

·  Only Buckeye color schemes (e.g. no blue reports)

·  Your name/email/phone

·  Stock being followed

·  Date of report

·  Current Stock price, Target price, and total projected return (includes div yield)

·  BUY, SELL or HOLD recommendation. These ratings may differ from your group presentation recommendation. This rating should reflect your individual opinion.

·  Brief company description

·  Investment Thesis: The investment merits of the company or why do you want to sell the stock.

·  Risks to your recommendation.

·  12-month graph of the stock price.

·  52 week price range

·  Market capitalization

·  Diluted shares outstanding

·  Dividend Yield.

·  Anything else you think is pertinent.

VI.  Company Overview/Description

·  Discussion of business segments.

·  Identify the firm’s sustained competitive advantages.

·  Market share, addressable market, growth drivers.

·  Any issues that have been influencing the stock price (e.g why has the stock become attractive, or what has been hurting the stock price).

·  Recent important events/news/etc.

VII.  Investment Thesis: Why do we want to buy/own/sell the stock?

·  Fundamental drivers

·  Economic/macro/sector

·  Briefly mention economic (or macro) conditions that could help/hurt your stock’s performance (e.g. business spending, government spending, consumer spending, secular trends, demographics, etc). ONLY USE DATA PERTINENT TO YOUR STOCK THAT ARGUES FOR YOUR INVESTMENT THESIS. For example, if you are following Energy, oil/natural gas/etc prices are important…not CPI.

·  Financials

·  Discuss your Income Statement Projections (assign #2) and how your projections differ from consensus. Include your income statement forecast in the paper.

·  Compare pertinent financial ratios, margins, growth, etc. to peers and to past history of the company.

·  Valuation and Price target

·  Analysis and discussion using valuation multiples. Include Assignment #4 data in the paper. You may want to compare to peers/competitors.

·  Analysis and discussion using DCF (Include DCF from assignment #3 in the paper). You may also want to talk about what the current stock price is implying.

·  DCF sensitivity analysis using different growth and discount rates.

·  Sum-of parts analysis if pertinent (assignment #4b).

·  Use any other valuation technique you think is appropriate.

·  Technical Analysis (if appropriate)

VIII.  Risks/Concerns to recommendation

IX.  Conclusion

·  BUY, SELL, or HOLD

·  Target price Total return vs. current price.

·  Summarize the investment thesis.

Helpful Tip:

Review the prior quarter reports on the web site for help with format and ideas.

8/24/10