This week, you will complete a full security analysis as well as your weekly portfolio analysis. The combined length of the assignment should be no more than two- to three-pages (including any graphics).
For the full security analysis, select at least one company from your initial portfolio and complete the following activities:
Obtain financial statements for the company. Calculate the ratios and compare these ratios to those of the industry in which your company operates.
Calculate the P/E ratio, the price-to-book ratio, the stock's beta, the profit margin, the dividend yield, and the earnings growth rate. Provide an interpretation of each and how these are related to your portfolio objectives.
Comment on what conclusions you draw from these results.
Include the following elements in your ongoing weekly portfolio analysis:
A weekly performance record of your portfolio, in comparison with a selected benchmark.
Background information on macroeconomic, industrial, financial market, political, or other news events that might affect the risk and return of the portfolio. You are encouraged to keep a weekly journal of these events. Note: You will be required to provide a summary of these events in an appendix of your final project paper.
A reassessment of asset investments, accompanied by detailed analysis and rationale.
A review of the changes in the risk of the portfolio and recalculation of the portfolio's beta, based on your buying and selling of securities.
Comments on trading activity (or turnover), including any contemporary factors (fiscal, economic, industry- or sector-specific, and political issues).
Title your analysis, including your weekly portfolio analysis, as "Full Security Analysis." Submit your assignment to your instructor in the assignment area. See the Full Security Analysis Scoring Guide for the grading criteria on this assignment. Review the Portfolio Construction and Analysis course project description for details on your project.
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The PE ratio of the stock is much lower than that of the industry which means that it is a value investment and is available cheaply in the market compared to the industry. Its price to book ratio is also lower than the industry which further confirm that the stock is a value investment. The beta of the stock is less than the industry which means that the risk associated with the stock is less. A beta of 0.33 means that the returns are less cyclical and volatile than that of the market and the stock delivers similar returns...
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