Basic View of Fundamental of Stock Market— Financial analytical skills training

Real World Applied Learning Project, A Basic View of Fundamental of Stock Market—
Financial analytical skills training
Final version(File name example: Final_First name_last name, for instant, Final_Michael_Chiao)
due in the class (both a hard copy as well as an electronic version(e-mail me by using Words
file), missing one of them will receive zero in the project grade)
Example available via O drive: O:\Business\Chiao\FIN310 , or Canvas/General course
information / formal student_example
Fundamental Analysis: Choose one industries and then choose four firms in the same industryfor comparison(25%).
1. Life Cycles Analysis (10%): Discuss the performance of the industry (using the Industry Life
Cycles—which stage?— analysis in chapter 6), By using these 4 firms to discuss the whole
industry overall.
a) A list or table of 4 companies with tickers and capitalization, And why did you choose this
industry?
b) Comments for 3 different data, like P/E ratio, growth rate and dividends for each 4
companies.
c) Overall comment for each company (belong to which stage?)
d) Overall comment for this industry (belong to which stage?)
e) Put all 4 companies on the rank stage picture, so we can see their rank (comment why?,
because of high growth rate? or because different stage?)
Reference: second section in Chapter 6 of Appendix 6-9 or “Formal student_example” in the
O drive: O:\Business\Chiao\FIN310
Internet sources:
http://www.morningstar.com/
http://finance.yahoo.com/
2. Classification System (10%): Provide & 4 groups ratios (Profitability Ratios, Liquidity Ratios,
Debt-utilization Ratios and Asset-utilization ratios) analysis in chapter 8:
a) Provide the Du Pont system analysis in chapter 8
b) Provide a summary table with glide line for all four ratios, not just direct copy from
internet
c) Provide the Peer and Trend analysis by providing Ranking (Profitability Ratios, Liquidity
Ratios, Debt-utilization Ratios and Asset-utilization ratios) tables.
d) Put ranking of PE with Overall Final Rank together, and explain why these two Ranking
are different?
e) Trace the stock price (using stock simulation account and calculate your holding period
stock returns of this semester) of your best and worst stocks in your Classification
System analysis. Does the best company have the best stock returns?
Reference: Chapter 8 handouts(By using Excel file: All_chap8g for all tables and graphs), or
“Formal student_example” in the O drive: O:\Business\Chiao\FIN310
3. Technical analysis (5%)
a) Provide Dow Theory analysis for your four companies in your industry
b) Provide Wave Movement (The Elliott Wave Principle) analysis
c) Combine the analysis of a) and b) , Get a ranking of your four companies.
d) Trace the stock price (using stock simulation account, and calculate your holding period
stock returns of this semester) of your best and worst stocks in your Technical analysis.
Does the best company have the best stock returns?Reference: Chapter 10 handouts or “Formal student_example” in the O drive:
Internet sources:
A good web site where you can learn more about chart patterns is http://www.chartpatterns.com/.
http://www.morningstar.com/. http://www.advfn.com/
Notes: How to copy the graphs on the websites to paste into your paper for your project?
1. Hit “Print Screen” icon from the keyboard
2. Open “paint” from the “start/All Programs/Accessories”
3. Paste it to the “paint”
4. Select the picture you want and copy it
5. Paste to the Word file.
How to do the graphs on the Excel
block the area from excel/Insert/Insert Line or Area Chart/Line/will appear Chart-right click the chart,
and select the change the chart type/select right-hand side one/ok/change the title of chart