Step 1: Identify 5-10 public companies from the lists using any of the links below:
The purpose of this step is to form a list of candidate companies you may want to invest in. You are
encouraged to conduct a quick search on each company from the list using Google search engine or
Google/Yahoo Finance. This step helps you get familiar with the companies background and past
performance that facilitate your portfolio formation. (Information to look for: recent news about the
companies business strategies or operations, historical stock returns, any relevant industrial/economic
impacts, or financial analysts recommendations, etc.)
Step 2: Finalize your 3-company portfolio and conduct an in-depth financial analysis on each company
based on information from its 10Qs (Quarterly Reports). Public companies quarterly reports are available
on the SEC database EDGAR:
Demonstrating your effort to think and learn is more important than showing correct numbers!
You can input a company name/symbol on the search bar to get access to the companys financial
statements.
Use the four most recent quarterly reports of each company in your portfolio to extract financial information
for ratio analysis.
In this step, you may input each firms financial information on an excel spreadsheet. Only take the
information you determine useful in your ratio analysis. Once essential information has been summarized,
you can do calculations and comparisons on the spreadsheet. The ratios you analyze do not need to be the
ones we cover in class. However, you need to correctly interpret the ratios you calculate and use them to
support your decisions.
Step 3: Allocate the $100,000 fund among the three companies based on your analysis in Step 2. In this
step, you are expected to do a ratio analysis that compares a companys financial performance throughout
time and compares its performance with the other portfolio firms (or its competitors).
Step 4: Provide a clear and concise overview of your investment choices for the client.
You are required to include the following in your final deliverable:
1. List 3 company names and expected dates of their April earnings announcements. Briefly describe
your selection process and introduce your portfolio companies (must be 3 companies): e.g., size,
industry, or any other useful information. Explain why you select the companies in your portfolio.
(25 pts)
Demonstrating your effort to think and learn is more important than showing correct numbers!
2. Analyze each portfolio companys financial information.
a. You are expected to incorporate your interpretations and opinions based on the ratio
analysis you have done. Your ratio analysis must include at least 3 profitability ratios. (25
pts)
b. Append any data (or visualized data) to support your decisions. (15 pts)
3. Explain your fund allocation. You need to include the number of shares and purchase price of each
stock investment. Explain your fund allocation rationales. (15 pts)
