susan miller’s econ class: how to find financial information about corporations presented by mrs....
TRANSCRIPT
Susan Miller’s Econ Class:
How to Find Financial Information about Corporations
Presented by Mrs. Berman
Who is in Charge of Your Money?
Collect comics, baseball cards, coins
Safe returnsSavings accountsCD’s paying .76%$1000 invested for 1 year at .76% = $1007.76
Stocks/BondsWhat are they and why would we invest in them
What are Stocks and Bonds?Why invest in them?
Bond Holder:
You are like a Bank Lending $$ to a corporation and they are paying you
interest. The name of your contract with them is a bond
Stock holder:
You are pay a company to purchase a stock certificate which is like owning a small share in the company. The price can go up or down. You do not have a contract with the company.
Stock Selection
How do I find a list of top businesses/companies in US?
Can you give definition of a “Fortune 500” company?
Fortune.com/fortune500
What should you know about a company?*History of the Company*Products/services*Financial stability: income/debt*Future potential for grown*Performance of stock *Comparative performance against others in the industry*Newsworthy items
SummaryOrder BookOptionsHistorical PricesChartsInteractiveBasic ChartBasic Tech. AnalysisNews & InfoHeadlinesFinancial BlogsCompany EventsMessage BoardsMarket PulseCompanyProfileKey StatisticsSEC FilingsCompetitorsIndustryComponents
Analyst CoverageAnalyst OpinionAnalyst EstimatesResearch ReportsStar AnalystsOwnershipMajor HoldersInsider TransactionsInsider RosterFinancialsIncome StatementBalance SheetCash Flow
What is the P/E Ratio?
Price of the stock/earnings per share
Look at industry norms
20 for tech stocks8 for textiles
P/E could reflect undervaluation; overvalued; high earnings; bubble
Research In Motion
Limited (RIMM)
$16.52
Apple Inc. (AAPL)
$472.72
What to consider…
Chipotle Mexican
Grill, Inc. Co (CMG)
-NYSE
371.71
McDonald's
Corporation Common
S (MCD)
-NYSE
100.07
What to consider….
INDUSTRIES
If I clicked on Airlines I would get a list
Check out your company on it’s website for up-to-date news, investor information and contact information. Write and ask for informationhttp://www.exxonmobil.com/Corporate/
Sources of Information:
Message Boards, Free Newsletters: If you are not paying for this information, what is it worth?
Let’s practice what we’ve learned:1. Select a company from the Fortune 500 list and get symbol
2. Go to Yahoo Finance, put in the symbol and look up a description of the company under “Profile”http://finance.yahoo.com/
What are credible sources?
How to Access NEWSBANK via the Orange County Public Library
OCPL.orgResearch DatabasesNewsbankLogin : 25070 70991
Next lessons:
1. How to build a killer portfolio and track its progress in real time:
2. Deciding when to buy and when to sell