SHELLY LOMBARD AND STEPHEN WEISS WALL STREET MOOCWEEK 5 ASSESSMENT

WALL STREET MOOC: Understanding Financial Markets

Week 5 Assignment Overview

March 13, 2014

SHELLY LOMBARD AND STEPHEN WEISS WALL STREET MOOCASSESSMENT

• Because you’ve made it this far• Because you want your efforts recognized by an attestation

of success• Because you will learn even more by doing so and gain

valuable feedback from your peers• Because it’s actually fun, can be done at your home and

either in written or video format• Because you can win an iPad!

Why complete the assessment?

SHELLY LOMBARD AND STEPHEN WEISS WALL STREET MOOCASSESSMENT

• Pick the stock of one the following companies: Adidas, Apple, Google, Krispy Kreme Doughnuts, L’Oreal, Lululemon, Microsoft, Nike, Orange, Starbucks, Under Armour

• Write a 2-3 page investment recommendation• Follow clear guidelines introduced during the week 3 Spreecast

1st OPTION: written investment pitch

• Pick the stock of one the following companies: Adidas, Apple, Google, Krispy Kreme Doughnuts, L’Oreal, Lulelemon, Microsoft, Nike, Orange, Starbucks, Under Armour

• Prepare a 2-3 minute video-based stock pitch• Follow clear guidelines introduced during the week 3 Spreecast• The student with the best video (as determined by the FIRST FINANCE Institute panel of

judges) will win an iPad mini.

2nd OPTION: video investment pitch

SHELLY LOMBARD AND STEPHEN WEISS WALL STREET MOOCASSESSMENT

• a. what macroeconomic factors could impact the industry or the company's sales/earnings growth• b. does management's growth strategy make sense? will it work?• c. competitive analysis: how does their product/price compare with competitors?• d. market share: do you expect them to gain or lose market share? why?• e. what catalysts can be identified

(1) Future sales and earnings growth (0-40 points)

• a. what multiple is the stock trading at• b. what are the comparable companies• c. what multiples are the comparable companies trading at• d. is the stock we're opining on trading at the right multiple? should it trade at a higher or lower

multiple and why?• e. 12 month price target

(2) Stock valuation (0-40 points)

Your written stock recommendation or video pitch will cover the following points:

SHELLY LOMBARD AND STEPHEN WEISS WALL STREET MOOCASSESSMENT

• a. how liquid is the stock? what exchange does it trade on? is it included in the S&P 500 or the DJIA?

• b. what is the 52 week high? 52 week low? i.e. how volatile is the stock price?

• c. are there options? would you buy puts or calls on this stock? why?

• d. does the company have bonds? what are they rated? what is the yield/spread to treasuries on the largest bond issue?

• e. what are the risk factors to your thesis?• f. other

(3) Other considerations (0-20 points)

SHELLY LOMBARD AND STEPHEN WEISS WALL STREET MOOCASSESSMENT

• Yahoo Finance• Seeking Alpha• Motley Fool• Bloomberg.com

Online Resources to use:

• note explaining:• what a ticker symbol is • how to use Yahoo finance to find comparable companies• how to use Yahoo finance to find out what multiple a stock trades out• how to use Seeking Alpha to find research from other investors • where to find earnings estimates• Sample equity research report

Documents provided to participants

SHELLY LOMBARD AND STEPHEN WEISS WALL STREET MOOCWEEK 5 ASSESSMENT

Questions?