the consistency between Greenblatt model and Piotroski screen method in picking excellent value stocks. Data We chose 30 stocks from magicformulainvesting.com which get the highest score in value stocks the website gives us. We download the fundamental data of each company from Bloomberg. Methodology First we use Greenblatt’s method to pick the best value stock. We calculate Return On Capital(ROC) using these formulas: ROC = EBIT/(Net Working Capital + Net Fixed Assets) In which, Net
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Contents Page 1.0 Executive summary 1 2.0 Introduction 2 3.0 Business context 3 3.1 Company profile 3 3.2 Company history 4 3.3 Key management 4 3.4 Ownership structure 6 3.5 Recent financial performance 8 4.0 Characteristics of industrial market 10 4.1 Major players 10 4.2 Market share 10 4.3 Turnover 12 4.4 Industry life cycle 13 5.0 Current issues and their impact on Sino Techfibre 14 5.1 SWOT analysis 14 5.1.1 Strengths
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Statement of Investment Objectives We at Griffin Capital Management aim to provide excellent returns to our investors by minimizing volatility risk and exceeding the performance of the S&P 500 plus five percentage points. The two main objectives of our portfolio managers are to provide consistent returns and protect our investors from the loss of capital. Due to asset allocation restrictions, this portfolio will not hold any ETFs, bonds, mutual funds, and derivatives. Although these restrictions
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reformulate an asset-pricing model (RAPM) to demonstrate why firm characteristics help to explain stock returns. Design/methodology/approach – The RAPM is grounded in an economic setting where two groups of agents hold different beliefs about firm fundamental values, and the more sophisticated ¨ group (rationals) adopts contrarian strategies against the naıve group (quasis). The model is derived in a static equilibrium within the consumption-investment framework with heterogeneous agents. Findings –
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Tyler Reames October 14, 2013 American Greetings Executive Summary – FIN 3717 Executive Summary American Greetings is the second largest greeting card publisher in the U.S., behind Hallmark. The company is involved in retail and online sales. Hallmark is the main competition for American Greetings. In recent years, social media has caused a decline in the greeting card industry. Both American Greetings and Hallmark have begun creating electronic cards to take advantage of the digital
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Homework 2 1. ABC earned a net profit margin of 6.7% last year and had an equity multiplier of 3.5. If its total assets are $97 million and its sales are 171 million, what is the firm's return on equity? Enter your answer in percentages rounded off to two decimal points. Answer: Net profit margin = Net profit / sales Sales = 171 million Net profit margin = 6.7% Net profit = 171 * 6.7% = 11.46 million Equity multiplier = Total assets/ shareholders equity 3.5 = 97 / shareholders’ equity
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11/2/2011 Corporate Finance Efficient Market Hypothesis Reading: Chapter13, BMAM IIMB / PCN / PGP I / Corp Fin L01 CH 13 BMAM 1 Relationship among Three Different Information Sets All information relevant to a stock Information set of publicly available information Information set of past prices 13-2 IIMB / PCN / PGP I / Corp Fin L01 CH 13 BMAM 1 11/2/2011 The Different Types of Market Efficiency • Weak Form – Security prices reflect all information found in past
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outstanding investment returns (Klarman 2001). The investment strategy was described by Benjamin Graham and David Dodd in their book, Security Analysis (1940, p. 724). Over subsequent decades the investment approach has evolved utilizing varying fundamental methodologies but always maintaining the principle of investing when a discount to intrinsic value exists. Graham and Dodd (1940, p. 368) referred to this principle as the 'margin of safety'. This essay will explore the various methodologies, expand
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Case Study Summary (SAUDI STOCK MARKET) The purpose of this article is to illustrate a simple and easy method to identify undervalued stocks in Saudi Stock Market to enable the investors for making well informed and conscious investment decisions. Actually, Investing is the act of committing money or capital to an endeavour with the expectation of obtaining an additional income or profit. True investing doesn't happen without some action on our part. A "real" investor does not simply throw his
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Debt and Value: Beyond MillerModigliani Aswath Damodaran Stern School of Business Aswath Damodaran 1 The fundamental question: Does the mix of debt and equity affect the value of a business? Assets Existing Investments Generate cashflows today Includes long lived (fixed) and short-lived(working capital) assets Expected Value that will be created by future investments Assets in Place Debt Liabilities Fixed Claim on cash flows Little or No role in management Fixed Maturity Tax
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