ROLAND GEORGE INVESTMENTS PROGRAM
STOCK REPORT

Things to include in your written report for presentation
(no more than 4-page text)

Market Analysis (less than ½ page text)

Make justified forecasts of market direction, magnitude and volatility levels for the next 12 months. More importantly, this forecast should be closely tied to the following industry and company analysis.

Industry Analysis (less than ½ page text)

Make justified sales and growth forecasts of the selected industry. Show the historical patterns and relationship with the industry stock index and with the market index. Make sure that the industry forecast is tied to the market analysis.

Company Analysis

A. Fundamental Analysis

• In Introduce the company products, history, strength and weaknesses and current events briefly
• Estimate sales growth mainly based on the industry analysis and other firm-specific current events, relate the forecast to the industry/market analysis
• Present and estimate the last few quarters and next quarter income statements, Make justified estimates each line item of the predicted income statements, therefore, estimate a range of the next-quarter earnings per share
• Estimate the fair PE ratio of the stock (use at least two approaches)
• Use last few fund flow statements to predict next quarter fund flow;
• If needed, estimate the pro-forma balance sheet for the estimated book value per share;

B. Technical Analysis

Compare the stock price with industry index, market index or other benchmark to decide if this is the right time to execute the recommended trade. Use any technical approach to derive such conclusion.

C. Risk Analysis

Identify several sources of risk for your recommendations and the downside risk.

Valuation Analysis

Use estimates of growth rate, EPS, sales forecast, book value per share, cash flow per share to estimate the fair value of the stock; Use at least three different methods to come up a range of the valuation.

Recommendation

Buy/sell decision with shares and target price (exit) recommendations

Word format can be downloaded here.