WJS

Once each individual selects their own feature topic, then each person should prepare their own 2 page text report that explains and presents the essence of the particular WSJ feature they are reviewing, plus some appendices as noted below. The objective of each member’s individual 2 page report is to efficiently & effectively communicate a GENERAL message regarding what the WSJ feature section is about, as well as key and interesting insights presented in the section and gained through your work.   An example is provided at the end of this document.

TOPIC: Section B: Marketplace: Media & Marketing Section – Finance Related (~B6f)

Purpose:

This project is intended to be a relatively fun and simple activity to introduce you to the key features and sections of the Wall Street Journal (WSJ), a major daily publication in the business and finance world. The project will provide the opportunity for you to monitor some current financial news and to gain an awareness and understanding of several of the different financial and business news items provided in the WSJ. This project will also build confidence for MBA students regarding the WSJ.

As a side note: The WSJ activity is intended to be a reasonable fun/easy opportunity to review & report on various feature sections of the WSJ.  Please don’t make this activity harder than it is intended to be.  You do not have to answer every detail about the section you select, but provide a decent overall review — do work you are proud of & appropriate for graduate students, but don’t make this overly burdensome.

Project (Essentially 3 steps/tasks):

TASK #1 of 3 = Each individual should SELECT their own WSJ REGULAR FEATURE / SECTION / TOPIC AREA from the WSJ.
Examples of regular WSJ features are provided in the list near the end of this document. If you find a regular WSJ feature item that is not included in the list, you may select it, though it should be a regular feature (not a one-time article).

Each individual should have their own individual topic.

You may simply select a topic, but BE CREATIVE & ADVENTURESOME to add variety to the class.

TASK #2 of 3 = Chapters and Appendices = YOUR INDIVIDUAL REPORT on that FEATURE = 2 page report + appendix:
Once each individual selects their own feature topic, then each person should prepare their own
2 page text report that explains and presents the essence of the particular WSJ feature they are reviewing, plus some appendices as noted below
. The objective of each member’s individual 2 page report is to efficiently & effectively communicate a GENERAL message regarding what the WSJ feature section is about, as well as key and interesting insights presented in the section and gained through your work. An example is provided at the end of this document.

As noted above, this WSJ activity is NOT an “article review”, but rather is a review in general terms of the specific WSJ feature/topic section that you have picked, along with a brief summary of some specific observations (that you select) from the feature (See “Appendix A” below.).

Note that this is NOT a “research” paper per se, but rather your review/report should explain the essence of the particular topic. In most all instances, the essence of a topic can be ascertained by your observation (reading & thinking through it). For some items 2 pages will be more than adequate, while for others it will be a challenge to organize the material in only 2 pages. You must be selective in what you choose to include.

Information you should include, as appropriate and as it applies for the topic being reviewed:

*
what the WSJ Feature, section, item and/or topic is, what it is generally about, and what information is GENERALLY being presented.
For topics that are not directly finance material, such as headlines or other general WSJ sections, you should focus on finance implications of the news & information being presented. These finance implications may not be obvious to someone not aware of finance principles/topics, but you will generally be able to see some financial implications and/or relationships with most of the material.

* what is its purpose of the information,

* what is the presentation scheme (i.e. quotation scheme, in the case of say “stock quotes) used in the WSJ and what does it mean, (i.e. what tables, column headings, graphs etc. are used in the quotations & presentation of the information),

* approximately how often, when and where in the Journal is it reported,

* what major news was reported during the semester and

* its significance (i.e. is it important for general knowledgeable or is it a specialized topic),

* how “specific” it is (i.e. is it firm specific or more of an economic/market wide summary).

* The above is not an exhaustive list and you should include
any other characteristic deemed note worthy
.

Thoughts:

That said, some general thoughts regarding formatting & presentation are:….

—  you should INDENT your paragraphs, 1 inch is conventional.  If you don’t, it is frequently NOT clear where one paragraph ends & another starts.

— please used double spaced format, except as appropriate within tables or table captions.

— you should use SECTION HEADINGS & SUB-HEADINGS as appropriate; along with a table of contents.

— you should use PAGE NUMBERS (upper right is my general preference, along with a 2-3 word heading of the paper content.

— you should use a SEPARATE page for cover page, table of contents, and for beginning new major sections of a paper.

— all tables, graphs or figures should have CAPTIONS and should be referred to (discussed) within the text of your main body report.

— you should use appendices for interesting, supporting information, tables, graphs, figures etc. that would disrupt the “nice” flow of the main body & are not critical to the flow of the main body.

— you should have a bibliography at the end that alphabetically (authors/sources last name, then source info) lists all sources and contacts used to create your report.

— you should cite sources (author date) within the main body for all quotation or key facts/observations from other sources.

— you should evaluate your use of PARAGRAPHS and transitions of thought, from paragraph to paragraph, as well as from section to section (within a feature’s report, i.e. within a chapter).  Try to make the main body FLOW well & “make sense”.  Avoid LONG PARAGRAPHS.  Remember, a paragraph should have 1 (and only 1) main idea & main sentence.  Sometimes I get paragraphs that are 2+ pages long — bad idea == poor writing.

— there does NOT have to be a connection between “chapters” that are reviewing separate features (topics/sections) of the WSJ, since each topic essentially “stands alone”.

—
consistency
: Margins & fonts should generally be consistent throughout the entire report (unless have to have smaller for some tables).

 These are some of the key things to have a generally professionally prepared paper.

EXAMPLE of an Individual Review (Chapter):

The following is an example of how an individual “chapter” can be prepared. This example may be a bit too literal in the presentation at times, but overall is a relatively good example of the basic structure and nature of the individual chapters on the specific WSJ feature sections.

Although “Getting Going” is an excellent section to monitor and review, since this was provided as an example, you should not select the “Getting Going” feature for your report section.

Chapter X: Getting Going – Student’s First & Last Name

The Getting Going section was introduced as part of the Personal Journal on April 9, 2002 and is published on Tuesdays in the Wall Street Journal (WSJ). The column has been in existence since October 1994. It is part of a larger column known as the Personal Journal section of the Wall Street Journal. The Personal Journal section is provided to readers on Tuesday through Thursday and provides its readers with information regarding personal investments, careers, breaking news coverage, and cultural pursuits. The Personal Journal section is known as the “D” portion of the WSJ. The Getting Going column is located on the front page of the Wall Street Journal Personal Journal section. September 2004 the WSJ decided to expand because of the popularity of the Personal Journal and the Weekend Journal appeared as an addition to the Wall Street Journal.
The Personal Journal section of the Wall Street Journal features one area that is the focus of section D1. The in-depth areas that are usually the focus include Style & Home, Personal Finance, Health & Travel, and Home & Family. While continuing to focus on breaking-news coverage, Personal Journal will also have weekly columns including:
· “Health Tuesday”; a column which deals all manners of health.
· “Personal Finance Wednesday”; a column which offers advice for high-net-worth individuals as well as track new products and services from brokerage companies.
· “Home and Family Thursday”; a column featuring a weekly entertainment column and more coverage of home technology in areas such as entertainment systems and appliances.
News coverage was also expanded for Personal Journal’s other core areas including cars, gadgets and travel. Articles in Section D of the Wall Street Journal offers a full spectrum from “Why It’s Hard to Give Away a Kidney”, to “Finding Daycare for Your Parents”, and even, “Automatic 401(k) Plans Might Not Save Enough”.
Getting Going is published every Tuesday and provides readers with advice regarding getting finances on track and keeping them that way. Need advice on diversifying your portfolio? Want to find a good financial advisor? Have I got enough to retire? This is the column for you. The column is authored by personal finance columnist Jonathan F. Clements, a senior writer for the Wall Street Journal. The column is known for providing readers that are investing $4000 to 4 million dollars the basic principles of investing in a concise manner.
With a possible recession looming, the most important story of the semester is titled “What’s a Small Investor to Do: Five Good Reasons Stocks Are Attractive Despite Downdraft.” It addresses the fears of small investors regarding maintaining one’s sanity and how to bounce back from the volatility of the current market. This article states those with a balance portfolio with 60% stocks and 40% bonds will have losses, however it is minor and should not be cause for panic. Mr. Clements also discusses losing streaks in our history where the S & P 500 was down 16%. Bonds and money-market funds are also offering the low yields of 3.5%, while money market funds have been paying around 4%. Stocks are the best choice for the income hungry investor. The article states the further stocks fall, the riskier they seem to investors; however the decline in value makes stocks less risky, because they are a better value. If stocks keep falling, keep buying to maintain a full stock-market weighting.
This portion of the WSJ was selected for review because the Personal Journal sections covered a variety of different topics that assist in decision making for everyday practical use by families or investors.
NOTE: The appendix should begin on a NEW page, but I deleted the page break here.

Chapter Three Appendix

Getting Going Observation 1: Clements, Jonathan, December 12, 2007. How to Stop Your Emotions from Wrecking Your Returns. Wall Street Journal, Page D1

This article reports on how the ever-changing market takes an emotional toll on investors and what they can do to make smart decisions regarding investments instead of emotional decisions. Key pointers include waiting a week before making major portfolio decisions, place investing on auto pilot by signing up for 401(k) payroll deductions, and favoring diversified investments such as target date funds. This particular article for me touched on market efficiency specifically informational efficiency and the efficient markets hypothesis (EMH). I believe that with all the ups and downs of the market in recent months, it is very possible that investors could make rash decisions based on information received.

Getting Going Observation 2: Smart Money Stock Screen: Price Sales Ratio. Wall Street Journal, Page D3

Focuses on a company called Kendle International, a drug development company that oversees trials from the start of human testing through surveillance after launch. The market for clinical trials is expected to surge and research spending is expected to increase, thereby increasing price/sales ratio. An increased sales growth leads to “handsome” stock returns. I have included eight companies that show strong sales momentum and low prices/sales ratio. Price/sales (P/S) ratio is directly related to P/E ratio and used to measure the performance of a company or to accomplish a company comparison.

Industry

Price

Market Capitalization

YTD Price Change

Price/Sales Ratio

Computer Peripherals

$ 19.34

15,076

43%

1.2

Industrial Electrical Equip

$ 37.27

1710

12

1.1

Aerospace/Defense

$ 51.60

1332

28

1

Insurance Brokers

$ 27.34

1163

1.3

0.7

Drug Trials

$ 47.71

697

52

1.3

CATV Systems

$ 14.06

314

17

0.3

Heavy Construction

$ 53.57

1446

74

0.3

Grocery Stores

$ 40.36

8591

13

0.2

Getting Going Observation 3: Hechinger, John. January 17, 2008. College Endowments Post 16.9% Return. Wall Street Journal, Page D4

College endowments posted an average investment return of 16.9%, the strongest return since at least 2000. In recent years colleges have chosen alternative strategies such as hedge funds and venture-capital funds, colleges have poured their funds into hedge funds and venture –capital funds, instead of the traditional mixes of investment portfolios included stocks, bond, and cash. The alternative investments are generally available only to wealthy individuals and institutions such as Yale and Harvard. Colleges also benefited from placing 1/5th of their assets into international stocks. This article addresses returns on a diversified portfolio that includes stocks, bonds, hedge funds etc. produced modest returns for college endowments. It also provides a mix of risky investments with less risky assets.

Getting Going Observation 4: McCartney, Scott. January 15, 2008. The Middle Seat: Mergers Benefit Airlines, Shame About the Fliers. Wall Street Journal, Page D1

This article discusses the effects of mergers of airline companies on airlines and customers. Delta Airlines is considering a merger between United Airlines or Northwest Airlines. Benefits of a merger for companies include increased stronger networks and increased revenues. Customers are left with increased airline ticket prices, flight delays, possible increased baggage lost, as well as changes in frequent flier programs. “Airline mergers help stockholders and the company, but not consumers,” said Paul Hudson, executive director of the Aviation Consumer Action Project, a nonprofit group. I realize this is an unlikely topic, however, the effects of merger and acquisitions on shareholder wealth is important, however its effects on the consumer I believe are just as important. It affects the companies’ brand name as well as customer loyalty.