...Global Social Finance Research 02 May 2012 Volume Growth and Valuation Contraction Global Microfinance Equity Valuation Survey 2012 J.P. Morgan Global Research J.P. Morgan Social Finance Yasemin Saltuk Yasemin Saltuk AC (44-20) 7742-6426 (44-20) 7742-6426 yasemin.x.saltuk@jpmorgan.com yasemin.x.saltuk@jpmorgan.com J.P. Morgan Securities Ltd. J.P. Morgan Equity Research Frederic de Mariz (55-11) 4950-3398 frederic.de.mariz@jpmorgan.com Banco J.P. Morgan S.A. CGAP Jasmina Glisovic Henry González This report is the result of a collaborative effort between CGAP and J.P. Morgan. J.P. Morgan analysts are solely responsible for the investment opinions and recommendations, if any, in this report. See page 21 for analyst certification and important disclosures. J.P. Morgan does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that See page 21 for important disclosures. the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. www.morganmarkets.com Global Microfinance Equity Valuation Survey 2012 Global Social Finance Research 02 May 2012 Background & Acknowledgements Equity capital flows into microfinance have been increasing for many years, with both retail and institutional investors showing interest in this sector of financial services. Despite this growth...
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...inventory * High net income * High equity ratio Retail industry * Lots of inventory (especially Finished goods) * Low gross profit percentage * Low debt due to risky business High technology * High Research and Development * High gross profit * High liability Service industry * Little inventory * High shareholder equity * High receivables * High gross profit * High net income * No r & d Capital intensive * Liquor industry may have high inventories * Airline industry may be more capital intensive * Low liability * Low equity * Low net income Categorizing the Companies Company 1 - Retail Industry (Grocery) (right answer) This company appears to be associated with the retail industry. Compared to the other companies, Company 1 has (1) the lowest gross profit and gross margin; (2) fairly high inventory; (3) no R&D; (4) moderate property, plant & equipment costs; and (5) high finished goods. Historically, grocery stores are a low margin industry and since they do not “create” a product to sell they do not invest money into R&D and rely on selling finished products produced by others. Company 2 - Commercial Banking (right answer) This company appears to be associated with the financial industry. Compared to the other companies, Company 2 has (1) low inventory; (2) the highest receivables, payables, & gross profit; (3) no R&D; (4) no raw materials, work in progress or finished goods...
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...Ratios and Formulas in Customer Financial Analysis Financial statement analysis is a judgmental process. One of the primary objectives is identification of major changes in trends, and relationships and the investigation of the reasons underlying those changes. The judgment process can be improved by experience and the use of analytical tools. Probably the most widely used financial analysis technique is ratio analysis, the analysis of relationships between two or more line items on the financial statement. Financial ratios are usually expressed in percentage or times. Generally, financial ratios are calculated for the purpose of evaluating aspects of a company's operations and fall into the following categories: * liquidity ratios measure a firm's ability to meet its current obligations. * profitability ratios measure management's ability to control expenses and to earn a return on the resources committed to the business. * leverage ratios measure the degree of protection of suppliers of long-term funds and can also aid in judging a firm's ability to raise additional debt and its capacity to pay its liabilities on time. * efficiency, activity or turnover ratios provide information about management's ability to control expenses and to earn a return on the resources committed to the business. A ratio can be computed from any pair of numbers. Given the large quantity of variables included in financial statements, a very long list of meaningful ratios can be derived...
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...useful for making and evaluating decisions about the allocation of scarce resources 5. Measurement of comprehensive income Income Less: Expenses = Profit or loss for the period +/- Items of other comprehensive income =Total comprehensive income for the period 6. Other comprehensive income Changes in asset revaluation surplus, actuarial gains and losses on defined benefit superannuation plans, gains and losses arising from translating the financial statements of a foreign operation, gains and losses on remeasuring available-for-sale financial assets, effective portion of gains and losses on hedging instruments in a cash flow hedge 7. The face of the statement of comprehensive income must include amounts for: -Revenue -Finance costs -Equity accounted share of profit or loss of associates [covered in ACCT6010] -Tax expense -Profit or loss on discontinued operations -Profit or loss for the period -Each component of other comprehensive income, classified by nature -Total comprehensive income 8. Recognition of asset: “Assets" are future economic benefits controlled by the entity as a result of past transactions or other past events. An asset should be recognised in the statement of financial position when and only when: 1)...
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...ECFS895 Private Equity Investment AFC Term 1 CBD 2015 Dept of Applied Finance and Actuarial Studies Contents General Information Learning Outcomes General Assessment Information Assessment Tasks Delivery and Resources Unit Schedule Learning and Teaching Activities Policies and Procedures Graduate Capabilities Changes from Previous Offering Important Notice Standards Required to Complete the Unit Satisfactorily 2 2 3 3 7 8 10 10 12 15 15 15 Disclaimer Macquarie University has taken all reasonable measures to ensure the information in this publication is accurate and up-to-date. However, the information may change or become out-dated as a result of change in University policies, procedures or rules. The University reserves the right to make changes to any information in this publication without notice. Users of this publication are advised to check the website version of this publication [or the relevant faculty or department] before acting on any information in this publication. http://unitguides.mq.edu.au/unit_offerings/52041/unit_guide/print 1 Unit guide ECFS895 Private Equity Investment General Information Unit convenor and teaching staff Lecturer (Sydney/Melbourne) Stephane Chatonsky stephane.chatonsky@mq.edu.au Contact via Email Unit Convenor / Lecturer Roger Casey roger.casey@mq.edu.au Contact via Email Credit points 2 Prerequisites (Admission to MAppFin or PGCertAppFin or GradDipAppFin) and ECFS866 Corequisites Co-badged status Unit description This...
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...Asia Pacific Equity Research 08 October 2007 Company visit note Vinamilk: Leading consumer play VNM is the leading dairy producer in Vietnam with major market shares in all categories. 1H07 net profit grew 36% Y/Y, driven partially by financial investment (26% of net profit). Net profit margin was 18.3%, a significant improvement over 1H06 due to financial income and larger shares of higher-margin products. Key takeaways from the meeting • VNM leads the local dairy market with dominant market shares in all dairy products, a well-known brand name, factories in major regions, and a nationwide distribution network. • VNM plans a US$100m expansion program for 3 new dairy factories, a milk cow farm and diversification into beer and coffee, which could enhance its leading market position. But risks have emerged as VNM is diversifying into property and financial investments. • The stock trades at a premium to the general HSTC market on a historical FY06 P/E of 44.7x. FY07/FY08 forecasts by PXP AM put the company on prospective P/Es of 31.4X and 24.2X, respectively. In absolute terms, VNM’s share price has increased 17.6% in the past month and 139.7% over the year. But on a relative basis, the stock has underperformed VNINDEX in the past 1 month and 3 months by 0.6% and 3.2%, respectively. NOTE: THIS DOCUMENT IS INTENDED AS INFORMATION ONLY AND NOT AS A RECOMMENDATION FOR ANY STOCK. IT CONTAINS FACTUAL INFORMATION, OBTAINED BY THE ANALYST DURING MEETINGS WITH MANAGEMENT. JPMORGAN...
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...measurement of firm performance Prior research predicts that net earnings will be substantially impacted by expense recognition. it was predicted that recognition of SBC costs could lower the reported earnings by as much as 50% and would adversely affect stock prices (Berton, 1993).A study by R.G. Associates Inc. found that in the year 2000, stock options overstated the earnings of the S&P companies by 9% (Geewax, 2002). For 2001, the average earnings of S&P companies would have been 23% lower if options were expensed (Weil & Segal, 2002). Botosan and Plumlee (2001) examined the effect of stock option expense on diluted EPS and Return on Assets (ROA) of 100 high growth US companies Based on an assessment of the SFAS 123 disclosures, these authors report that stock option expense has a material impact on diluted EPS and ROA for a majority of their sample companies. They also note that expensing of stock-based compensation is void if the financial impact of doing so is immaterial. Financial press reports suggest that Australian firms’ reported profits could be “collectively stripped of hundreds of millions in reported net profit” if accounting standards require the expensing of employee options ((2002) (August), p. 15.Oldfield, 2002). Merrill Lynch (Revell, 2004) reports that the average reduction in S&P 500 firms’ 2001 (2002) reported earnings would be 21% (23%) if stock options were expensed. More recent research also finds similar results. Using stock option...
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...Asia Pacific Equity Research 25 February 2005 Australian Mortgage Industry Volume 1 A Lot of Fat ! JPMorgan Australian Banks Team Brian Johnson (61-2) 9220-1605 brian.d.johnson@jpmorgan.com Richard Wiles (612) 9220 1525 richard.e.wiles@jpmorgan.com Ed Henning (61-2) 9220-1933 ed.a.henning@jpmorgan.com Fujitsu Australia Team Martin North (61-2) 9293-0617 martin.north@au.fujitsu.com Tom Dissing (61-2) 9293-0423 tom.dissing@au.fujitsu.com This report is the result of a joint effort between Fujitsu Australia and JPMorgan, focusing on developments in the Australian mortgage industry. We use the Fujitsu Mortgage Market and Yield Improvement Modelling. See page 30 for analyst certification and important disclosures, including investment banking relationships. JPMorgan does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. Brian Johnson (61-2) 9220-1605 brian.d.johnson@jpmorgan.com Asia Pacific Equity Research 25 February 2005 Table of Contents Executive Summary .................................................................3 Industry Overview ....................................................................5 Mortgage Brokers................................................................
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...MORGAN NORTH STANLEY RESEARCH AMERICA Morgan Stanley & Co. LLC Adam S. Parker, Ph.D Adam.Parker@morganstanley.com +1 212 761 1755 Brian T. Hayes, Ph.D Brian.T.Hayes@morganstanley.com Antonio Ortega Antonio.Ortega@morganstanley.com November 26, 2012 Adam J. Gould, CFA Adam.Gould@morganstanley.com US Equity Strategy The 2013 Playbook We are launching our 2013 US equity outlook today. We have been cautious on US equities for much of the last two years. Our concerns around US deficit / debt and the obvious borrowing from the future that occurs from unconventional policy, the European sovereign crisis, and slower growth in emerging markets generally remain, but the acuteness of these issues appears for now to be less sharp. Our 2013 year-end target calls for low-to-mid single digit upside (Exhibit 1) predicated on our view that 2014 corporate earnings are likely to modestly recover from our 2013 forecasted level, perhaps with profits troughing during the April 2013 earnings season. Our year-end 2013 S&P500 price target is 1434, and our bull and bear targets are 1733 and 1135 (Exhibit 1). Our EPS outlook for 2014 is $110.21, up from our 2013 forecast of $98.71, both well below consensus. Improving Michigan Confidence and tightening corporate spreads drive the relative improvement in our earnings outlook. Please see our Interactive Model: S&P500: 2013 Year-End Forecast, also published today, to play with key assumptions and change assumptions for EPS...
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...Lecture No.2 Chapter 2 Contemporary Engineering Economics Copyright ©2010 Contemporary Engineering Economics, 5th edition. ©2010 Chapter Opening Story – Research in Motion Ltd. How would you H ld evaluate the financial performance of performance of the company? Contemporary Engineering Economics, 5th edition. ©2010 Objective of the Company Increase the market value of the company Market value – stock price reflected in the financial market Market values of some of well known U.S. firms Company Google Dell Coca Cola Wal‐Mart Ford Motor Stock Price k $445.47 $14.30 $48.78 $51.49 $7.68 Contemporary Engineering Economics, 5th edition. ©2010 Number of b f Shares Market Value k l (mil) $141.13B $27.96B $113.02B $200.68B $24.74B Factors that Affect Market Value How is the company doing at a particular time? What is happening to other stock prices, that is, how are the competitors doing? How do investors expect the company to perform in the future – Decisions to invest in various projects and the future – Decisions to invest in various projects and the actual performance of these projects Contemporary Engineering Economics, 5th edition. ©2010 A. Why Engineers need to understand the financial statements? Contemporary Engineering Economics, 5th edition. ©2010 Understanding Financial Understanding Financial Statements Accounting: The Basis of Decision Making of Decision‐Making Financial Statements: Financial Status for Businesses...
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...Operations Research Course topic: Quantitative Asset Management Transcript title: Special Topics in Statistics and Operations/Quantitative Asset Management Instructor: Frank J. Fabozzi, Ph.D., CFA, Visiting Professor, ORFE Office: 207 in ORFE Building (office shared with Professor Mulvey) Office hours: 4-6pm (this time slot will also be used for presentations on special topics) Classroom: Friend 006 Course description: This course covers asset management focusing on quantitative models applied to equities and bonds (with emphasis on mortgage-backed securities). The quantitative models discussed are asset allocation models and portfolio construction models that include optimization models (mean-variance framework and extensions such as robust portfolio optimization), multi-factor risk models, risk control models, and transaction cost forecasting models. Return attribution models for performance evaluation will be covered. Model risk and model/strategy backtesting will be highlighted. Guest speakers from quantitative asset management firms are scheduled. Determination of final grade: Final exam ………………………………. 40% Design project …………………………… 25% Term paper ………………………………. 25% Problem sets ……………………………… 10% Course material and reading assignments: No textbook is required for the book. Instead, the sources for the reading assignments will be (1) articles available from journals that Princeton subscribes, (2) free downloads from the Internet, and (3) material I have...
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...THE IMPACT OF ACCOUNTING INFORMATION ON MANAGEMENT’S DECISION MAKING – VINAMILK CASE STUDY TRUONG THUY CHUNG BACHELOR OF BUSINESS (ACCOUNTING) HONS HELP UNIVERSITY COLLEGE October 2011 i THE IMPACT OF ACCOUNTING INFORMATION ON MANAGEMENT’S DECISION MAKING – VINAMILK CASE STUDY By TRUONG THUY CHUNG Graduation Project Submitted to the Department of Business Studies, HELP University College, in Partial Fulfilment of the Requirements for the Degree of Bachelor of Business (accounting) Hons OCTOBER 2011 ii DECLARATION I hereby declare that the graduation project is based on my original work except for quotations and citations which have been duly acknowledged. I also declare that it has not been previously or concurrently submitted for any other course/degree at HELP University College or other institutions. The word count is 10,036 words. _____________________ TRUONG THUY CHUNG Date: 17 October 2011 iii ACKNOWLEDGEMENT First and foremost, my sincere gratitude is dedicated to my supervisor – Ms Nguyen Van Anh. Thanks for your strong support, guidance, intuitive comments and also motivation through the process of completing this thesis. In addition, I would like to send my gratitude to the International School and HELP for giving me an opportunity to conduct my study in my favorite area. Thanks to all my family and friends for your supports, helps and motivation and made it possible for me to complete this study iv THE IMPACT OF ACCOUNTING...
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...Filomena Petrilli 416-736-5063 S344K Seymour Schulich Building fpetrill@schulich.yorku.ca Brief Description This is an extension of SB/ACTG 3110.03, but with a primary focus on the valuation and presentation of liabilities and owners' equity. Major topics include current, long-term and contingent liabilities; leases; pensions; corporate income tax allocation; capital transactions, earnings per share and analysis of financial statements under differing accounting policies. The criteria by which both preparers and users make decisions are emphasized. Prerequisite[s] / Co-requisite[s] Note: Not available to exchange students visiting Schulich. Prerequisite: SB/ACTG 3110 3.00 Course objectives and detailed description The objective of this course is to provide students with an indepth understanding of the accounting for the liabilities and equities side of the balance sheet. This includes both international accounting standards (Part I of CICA Handbook) and the accounting standards for private enterprises (Part II of CICA Handbook). This course is the continuation of a two-course sequence (ACTG 3110/3120) that deals with what has traditionally been called “intermediate financial accounting”. The emphasis of ACTG 3120 is on the liabilities and equities side of the balance sheet while ACTG 3110 focused on the asset side of the balance sheet. ACTG 3110 stresses the underlying conceptual foundation upon which all private enterprise rests. ACTG...
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...31% by sales, and only 9% by marketing. Yet CRM is, ultimately, a tool for gauging customer needs and behaviors—the new customer department’s central role. It makes little sense for the very data required to execute a customer-cultivation strategy to be collected and analyzed outside the customer department. Of course, bringing CRM into the customer department means bringing IT and analytic skills in as well. Market research. The emphasis of market research changes in a customer-centric company. First, the internal users of market research extend beyond the marketing department to all areas of the organization that touch customers—including fi nance (the source of customer payment options) and distribution (the source of delivery timing and service). Second, the scope of analysis shifts from an aggregate view to an individual view of customer activities and value. Third, market research shifts its attention to acquiring the customer input that will drive improvements in customer-focused metrics such as CLV and customer equity. Research and development. When a product is more about clever engineering than customer needs, sales can suff er. For example, engineers like to pack lots of features into products, but we know that customers can suff er from feature fatigue, which hurts future sales. To make sure that product decisions refl ect realworld needs, the customer must be brought into the design process. Integrating R&D and marketing is a good...
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...Equity Research Industrials | U.S. Autos & Auto Parts 12 February 2015 Tesla Motors Inc. Another reminder of challenges ahead EQUAL WEIGHT Stock Rating Unchanged NEUTRAL Industry View 4Q print validated concern that crossing the chasm is tougher than it looks: Last week we caught the ire of Tesla bulls by lowering our estimates based on concerns about production delays and rising opex and capex (see “Crossing the chasm is tougher than it looks”). The 4Q print validated many of those concerns. Behind an EPS loss of 13c vs. consensus +30c were several soft spots – Tesla missed 4Q deliveries and guided softly for 1Q’15, ZEV credits artificially boosted results, opex grew faster than expected, and capex was guided well ahead of our conservative model. The result reinforces that Tesla’s push to become a mass market OEM is much harder than it looks. We reiterate our EW rating and remain cautious on the stock near-term. Unchanged USD 190.00 Price Target lowered -5% from USD 200.00 Price (11-Feb-2015) USD 212.80 Potential Upside/Downside -11% Tickers TSLA 26681 Shares Outstanding (mn) Don’t get caught up with ambitious mid/long-term targets…: Despite the weak quarter, there was enough to keep the die-hard bulls interested. Our take - don’t get caught up in it. On the demand side, Musk noted Tesla could reach its ‘15 S/X delivery guide of 55k even ex. China, and has a “secret weapon” which could be deployed later ...
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