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part 1 is week 1
part 2 is week 2
part 3 is week 5
attached are all the completed parts you will have to do part 4
This is the fourth part of your course project. For this assignment, you will need to refer back to the five stocks that you selected in Week 02. This includes your two stocks that you are using for your course project.
How are the stocks in your watch list doing? Speculate on reasons for its performance. Justify your comments with research about the companies and the stock market.
also you need to reply and make a 1 paragraph comments to the choices that these 3 below students made
Here is student number 1
The 5 companies that I have been watching on the stock market are:JP Morgan Chase & Co(JPM) current stock price is at $51.35, it was previously closed at $50.23 an increase of 1.12. JPM is trading slightly below book value.Chevron Corporation(CVX) current stock price is $123.52, it was previously closed at $124.00 a decrease of .48. I think it is due to the rising gas/oil prices.Microsoft(MSFT) current stock price is $33.68, it was previously closed at $33.53 an increase of .15.McDonald’s Corp(MCD) current stock price is $101.99, it was previously closed at $101.20 an increase of .79.Burger King Worldwide, INC current stock price is $19.04, it was previously closed at $19.07 a decrease of .03.I speculate that reasons for how the company is performing is due to the economy. If the economy is doing good more than likely the stock market will show the same results and vice versa.
here is student number 2
Hello class! My stock watch is for the five stocks are as followed, In 2012 McDonalds was working with a cash flow of $ 7 billion and they only needed $3.2billion to use for investing activities.They free cash left over of $8 billion to either invest or keep. Their current market cap for 2013 May 15, is $102.21 billion. This is because they average a $1000 dollars a minute in sales.
Kroger for the last three months market rate 6.67 opening and closing at 6.74 with an increase. There current market cap is $610.11million.
PPL has proven itself to be very reliable when they meet their expected growth rate. This company is one of the largest owned companys’ who services energy and utilities in the western and northern U.S including the UK. this is due to their performance in serving customers. They strive for excellence. Their strategy to produce shows in their market cap which as of May 15,2013 is $18.96 billion. They expect more earnings in 2013 beause of a rate increase which will be $0.03 pe share.
SCG earnings for the first three quaters of 2013 bring them $151.million at $1.13 compare to that of $121 million at 93 cents for the first quater in 2012 show an increase because of the many areas they offer services to. There market cap 2013,$7.06 billion
Ford Motor Company the largest auto manufacturer closed at 14.67 their market cap is at a high $57.63billion because of increase of sales to build a small SUV in Russia.
Ford Motor Company
here is student number 3
For my course project I chose Apple Inc., Google Inc., Samsung Electronics Ltd., Amazon.com Inc., and Barnes and Noble Inc.
Apple has seen quite a roller coaster this last month. With news of the company cutting back on orders for hardware, the stocks started to decrease just to see an upward trend on news of the company doing a repurchasing of $100 billion in stocks over the next three years (Rooney, 2013). This week Apple stock has once again dropped off amid the sell off of large quantities of stock from two hedge funds (Shell, 2013).
Google stock has made a large rally since April 15, from around $780 to $915 on May 15. Google has introduced a 1 gigabyte internet service along with its new developer project, Google Glass. These are just two of the factors that are helping Google’s stock prices. The price really went up after Google’s I/O day, an event where the company talks about future products and services (Farber, 2013).
Samsung, also with ups and downs has remained fairly unchanged even with the release of their new Galaxy S4. The thought is that the GS4 is relatively the same as the GS3 (Pierce, 2013). It seems to be that the phone, since similar to the predecessor, is not selling in the volumes needed to spike the stock price.
Amazon.com has remained relatively unchanged over the last four weeks but has seen ups and downs as information is released about investments.
Barnes and Noble has increased 22% in the past month, this could be in part to Microsoft’s interest in purchasing the ebook Nook for $1 billion (“Microsoft Offers Barnes,” 2013).
Stock
Watch
|
Date |
Stock |
Stock Symbol |
Current Price |
Board T raded On |
Financial Facts |
||||||
|
04/15/13 |
Microsoft Corporation |
MSFT |
28.69 |
Nasdaq |
MSFT pays a 0.92 Dividend; current assets have risen each year over past three years; income statements show positive growth over past three years |
||||||
|
AT&T |
T |
37.95 |
NYSE |
T pays a 1.80 Dividend; Balance sheet reflects current assets dropped from 2011 to 2012; Income statements reflect fluctuating amount of profit over past three years, no losses |
|||||||
|
Apple, Inc |
AAPL |
419.85 |
AAPL pays a 10.62 Dividend; Balance sheet reflects current assets have risen over the past three years; Income statement shows positive growth over past three years. |
||||||||
|
American Eagle Outfitters |
AEO |
19.16 |
AEO pays a 0.44 Dividend; Balance sheet reflects current assets have dropped in the past year; profits have increased on the income statement over the last three years. |
||||||||
|
Starbucks Corporation |
SBUX |
57.71 |
SBUX pays a 0.84 Dividend; Balance sheet reflects current assets have risen over the past three years; Income statement reflects that the company has had increased profits over the last three years and has not operated at a loss. |
The three stocks that I would like to choose are:
Microsoft Corporation (MSFT)
Apple, Inc (AAPL)
Starbucks Corporation (SBUX)
The other two investments that I choose are:
Wells Fargo Special CD 58 month term at .60% APY
Wells Fargo Money Market Savings at .03 APY
The Money Market Savings will be the most affected by the interest rates as they change. This is because the rate is adjustable as the interest rates within the economy change.
Most Risky to Least Risky
5. Starbucks
4. Apple
3. Microsoft
2. Money Market Savings
1. Special CD
Starbucks is the most risky because their product is the most likely to be affected by recession economic issues. This can cause their stock price to vary greatly. Apple is number four because they have all of their eggs in one basket per say, if the iPhone or iPad does not continue to do well, the company would be in serious trouble. Microsoft is less risky because they are better diversified than Apple. The Money Market is more secure than any of the stocks but the rate can change which makes it more risky than the guaranteed percentage on the special CD which is the most secure, and best deal.
The three stocks that I would like to choose are:
Microsoft Corporation (MSFT)
Apple, Inc (AAPL)
Starbucks Corporation (SBUX)
The other two investments that I choose are:
Wells Fargo Special CD 58 month term at .60% APY
Wells Fargo Money Market Savings at .03 APY
The Money Market Savings will be the most affected by the interest rates as they change. This is because the rate is adjustable as the interest rates within the economy change.
Most Risky to Least Risky
5. Starbucks
4. Apple
3. Microsoft
2. Money Market Savings
1. Special CD
Starbucks is the most risky because their product is the most likely to be affected by recession economic issues. This can cause their stock price to vary greatly. Apple is number four because they have all of their eggs in one basket per say, if the iPhone or iPad does not continue to do well, the company would be in serious trouble. Microsoft is less risky because they are better diversified than Apple. The Money Market is more secure than any of the stocks but the rate can change which makes it more risky than the guaranteed percentage on the special CD which is the most secure, and best deal.
1. Liquidity Ratios:
Current ratio=current assets/current liabilities
Apple= 57,653,000/ 38,542,000 =1.5
Microsoft= 85,084,000/32,688,000=2.6
-The ratio of current assets to current liabilities is better in Microsoft than in apple.
Quick Ratio=current assets-inventory/current liabilities
Apple= 57,653,000- 791,000 /38,542,000=1.48
Microsoft=85,084,000- 1,137,000 /32,688,000=2.57
-Microsoft has a better quick ratio than apple, i.e its current assets excluding inventory are more in ration than apple.
2. Activity or Asset Utilization Ratios
Receivables turnover=annual credit sales/accounts receivables
Apple= 156,508,000/32,589,000 =4.8
Microsoft=73,723,000/9,653,000=7.6
· Microsoft has a more credit sales than apple
Average collection period=accounts receivables/annual credit sales/365
Apple= 21,275,000/156,508,000/365=0.00037
Microsoft=17,815,000/73,723,000/375=0.00064
-Microsoft collects its receivables for a shorter period than apple.
3. Profitability Ratios
Gross profit margin=sales-cost of sales/sales
Apple= 156,508,000-87,846,000/156,508.000=43.87%
Microsoft=73,723,000-17,530,000 /73,723,000=76.22%
-Apple has a lower cost of sales ratio to sales than Microsoft.
Return on assets=Net income/total assets
Apple= 41,733,000/176,064,000 =0.237
Microsoft=16,978,000 /121,271,000=0.14
Apple’s returns on assets is higher than Microsoft.
Return on equity=Net income/shareholders equity
Apple= 41,733,000/118,210,000 =0.353
Microsoft=16,978,000 /66,363,000=0.02558
The equity return represent the ratio of available funds to the shareholders, Apple shareholders get more funds to assets than Microsoft.
4. Leverage Ratios also called Debt Utilization Ratios
debt-to-equity ratio=total Dedt/Total Equity
Apple= 0
Microsoft= 10,713,000+ 1,231,000 / 66,363,000=18%
Debt Ratio=Total Dedt/total Assets
Apple= 0
Microsoft=10,713,000+ 1,231,000/121,271,000=9.8%
-Apple does not have any debt, hence cannot be compared with Microsoft.
5. Coverage Ratios
Debt coverage ratio=Net operating income/total debt
Apple= 0
Microsoft=16,978,000 /10,713,000+ 1,231,000=1.42
-Apple does not have any debt, hence cannot be compared with Microsoft.
