portfolio management investment criteria

MCOM 2A PORTFOLIO MANAGEMENT

INVESTMENT ANALYSIS & MARKET INDICATORS 1

Project of Portfolio Management

Presented to Prof. Muzammil



Group Members

Serial # Name Reg. #

01 Umair Mohsin 05

02 Umair Saeed 10

03 Sadaqat Ali 11

04 Mohsin Sohail 09



Acknowledgement

First of all we would like to thank the Almighty Allah for giving us the

strength and the aptitude to complete this Project within due time. We

are deeply indebted to our course teacher Prof. Muzammil for assigning

us such an interesting topic named “Trading after carrying out

Fundamental and Technical Analysis of U.S Stock”. We also express

the depth of our appreciation to our honorable course teacher for his

suggestions and guidelines, which helped us in completing this project.



Executive Summary To understand the working of Stock Exchange is a very difficult job but

this project helped us a lot to analyze and understand the conditions

prevailing in Stock Exchange. Trading in U.S. securities by making

dummy account was very informational and interesting activity which

provide us a sound ground and platform as well to deal in stock.

As a student of commerce it is very important for us to understand the

stock market indicators and this project helped us a lot in this regard.

Overall this activity was related to our subject “Portfolio Management”.

We deal in the stocks of renowned U.S. companies such as Microsoft for

our project so, it will also help us in the scenario related to Pakistan.



TABLE OF CONTENTS

12-Month Price Target Range .............................................................. 15

Consensus Recommendation ............................................................. 16

Momentum ............................................................................................ 16

Detailed Estimates ................................................................................ 17

PEG Ratio ............................................................................................. 17

Price/Earnings(2015) .......................................................................... 18

Earnings per Share Summary ........................................................... 18

Price / Earnings Ratio ........................................................................ 19


Consensus Recommendation ................................................................ 20

Momentum ............................................................................................ 20

Earnings Growth (2015) ....................................................................... 21

Earnings per Share Summary ............................................................... 21

Price / Earnings Ratio ........................................................................... 22



Momentum ............................................................................................ 24

Earnings Growth (2015) ....................................................................... 24

Price/Earnings(2015) .......................................................................... 25


Earnings Per Share Summary ............................................................... 26


Consensus Recommendation ................................................................ 27

Momentum ............................................................................................ 28



Earnings per Share Summary ........................................................... 28

Earnings Growth (2015) ....................................................................... 29




Momentum ............................................................................................ 31

Earnings per Share Summary ............................................................... 31


Political ................................................................................................. 40

Economic .............................................................................................. 40

Social .................................................................................................... 40

Technological ....................................................................................... 41

Strengths .............................................................................................. 43

Weaknesses .......................................................................................... 43

Opportunities ...................................................................................... 44

Threats ................................................................................................. 44



We bought 2000 shares of Intel Corporation

We buy those shares for the following reasons:

Intel Corporation has strong buy history after reading the facts

Intel has also won the backing of successful small Filipino

smartphone vendors e.g. Cherry mobile, Star mobile

Both things are enough reasons to buy the shares of Intel Corporation.

We sold the shares of Intel Corporation for the following reasons:

Samsung is a big threat to Intel

http://app.quotemedia.com/quotetools/newsStoryPopup.go?storyId=736

97128&topic=INTC&symbology=null&cp=null&webmasterId=102117

Intel’s Cherry Trail disappoints with the performance it has a bad

effect on stock holders.


65073&topic=INTC&symbology=null&cp=null&webmasterId=102117

http://app.quotemedia.com/quotetools/newsStoryPopup.go?storyId=73697128&topic=INTC&symbology=null&cp=null&webmasterId=102117

http://app.quotemedia.com/quotetools/newsStoryPopup.go?storyId=73697128&topic=INTC&symbology=null&cp=null&webmasterId=102117



We bought 2000 shares of Microsoft for virtual trading.

There are following reasons to buy those shares:

Microsoft has strong buy and shares hold history during the last 3

months which is very good sign for buyers.

The main reason is that Microsoft stock price is currently down at

-0.47 and its peer Micro strategy’s stock price is currently going

downward at -0.65.

Its dividend rate is 1.24 and yield is 2.8278 which is good as

compared to others.

We sold 500 shares of MSFT for the following reasons:

Google is winning the war to power smart connected devices and

the battle is not even close. In 2014, Google's Android OS ran 49%

of the world's connected devices and that ratio is expected to grow

to 59% this year and 63% in 2016. Once dominant Windows is

holding onto a 14-15% share based on its enormous strength in

enterprise, and iOS is holding ground at 11-12%.



http://app.quotemedia.com/quotetools/newsStoryPopup.go?storyId

=73799703&topic=MSFT&symbology=null&cp=null&webmaster

Id=102117

We bought 2000 shares of Yahoo Corporation for virtual trading

activity.


Yahoo launches new mobile applications and analytics tool which

give a good edge to company and its stockholders.

Yahoo announces new mobile developer suite at first yahoo mobile

developer conference which is a new and good news for the

company stockholders.



Its earning per share ratio is 7.45

Company has strong stock hold position after reading its history

analysis.

We also sold 1000 shares because of the following reasons:

Yahoo’s free cash flow and revenue has actually decreased 28%

and 23% on a trailing 12-month comparison, respectively, during

that span.


34954&topic=YHOO&symbology=null&cp=null&webmasterId=10211

7

We bought 1000 shares of American Airlines.


There is strong buy trend in the history of the above mentioned

company.



The most important news we read about American airlines is that

American Airlines just managed to scrap its fuel hedging scheme

just in time to take advantage of the collapse in crude oil prices and

has thus benefited from lower jet fuel prices its shareholders for

the following:

An attractive valuation

Strong price momentum

Profitability and growth



65337&topic=AAL&symbology=null&cp=null&webmasterId=102117

We bought 100 shares of Toronto Dominion Bank.


In the news there was information that TD bank meets expectations

of its shareholders this was the news on which we decided to invest

in Toronto Dominion Bank.



It was also boosting its dividend so this is also a strong reason for

us to buy its shares.

Currently in the graph there was a decreasing trend but after

sometime there were strong chances for its increase.


Its yield is 3.7172 which is good signs for stockholders.

Revenue of C$7.61B (+0.7% Y/Y) beats by C$480M.


51172&topic=TD&symbology=null&cp=null&webmasterId=102117

We bought 250 shares of Coca Cola Corporation.

There are following reasons to buy those shares.

We want to invest in beverages industry and in this industry coke

is a big fish.



Coca cola increases its dividend it is like “Clock Work”.

After reading the more closely information quarterly dividend was

boosted to 0.33$/share from 0.305$/share or an 8.2% year over

year increase.

After reading history coca cola has strong stock hold historical

trend over the last 3 months.

We bought 500 shares of Bank of America.

There are following reasons for buying:

The bank's shares have traded with high sensitivity to the rate

outlook, and the Fed continues to work toward increasing rates.

The 5-day chart shown above here reflects that, with BAC shares

climbing approximately 1.4%, just after Tuesday's release of

Chairwoman Yellen's prepared statements. BAC closed up 1.1%

on the day. It's my view that as we approach the first Fed rate hike,

BAC shares will creep toward $18, where they made their home

before last quarter earnings

http://www.federalreserve.gov/newsevents/testimony/yellen20150224a.htm



http://app.quotemedia.com/quotetools/newsStoryPopup.go?storyId

=73767266&topic=BAC&symbology=null&cp=null&webmasterI

d=102117

We also sold 250 shares of Bank of America for the following reason:

Nervousness grows ahead of the stress test and CCAR results, with

UBS downgrading Bank of America (BAC -2%) to Neutral from

Buy, saying disclosures in the just-released 10-K increase the risk

of a qualified failure in the CCAR http://app.quotemedia.com/quotetools/newsStoryPopup.go?storyId

=73795881&topic=BAC&symbology=null&cp=null&webmasterI

d=102117

http://app.quotemedia.com/quotetools/newsStoryPopup.go?storyId=73767266&topic=BAC&symbology=null&cp=null&webmasterId=102117



http://www.thestreet.com/story/13061352/1/bank-of-america-bac-stock-lower-today-after-analyst-downgrade.html?utm_source=twitterfeed&utm_medium=twitter

http://seekingalpha.com/symbol/bac?source=quotemedia

http://www.sec.gov/Archives/edgar/data/70858/000007085815000008/0000070858-15-000008-index.htm






Microsoft (MSFT):

12-Month Price Target Range

Consensus

50

38

43.85

Previous Close

55

Price targets are calculated by estimating future earnings per share and then

applying a price-to-earnings multiple, known as the P/E ratio.

Read more: http://www.nasdaq.com/symbol/msft/analyst-research#ixzz3T6gMfA2D

http://www.nasdaq.com/symbol/msft/analyst-research#ixzz3T6gMfA2D



Consensus Recommendation

Momentum

(4 Weeks)

06/2015 3 of 15 estimates changed

Up:

1

Down:

2

Estimate momentum measures changes in analyst sentiment over time & may be

an indicator of future price movements.

Read more: http://www.nasdaq.com/symbol/msft/analyst-research#ixzz3T6gseNRN

http://www.nasdaq.com/symbol/msft/analyst-research#ixzz3T6gseNRN



Detailed Estimates

PEG Ratio

PEG ratio is the Price Earnings ratio divided by the growth rate. In this case we use

the forecasted earnings over the next 12 months & the long term forecasted growth

rate (based on the consensus of professional analysts).

Read more: http://www.nasdaq.com/symbol/msft/analyst-research#ixzz3T6i0KQPE

http://www.nasdaq.com/symbol/msft/analyst-research#ixzz3T6i0KQPE



Price/Earnings(2015)

Price/Earnings ratio is a widely used stock evaluation measure.

http://www.nasdaq.com/symbol/msft/analyst-research#ixzz3T6iM27JR

Earnings per Share Summary

http://www.nasdaq.com/symbol/msft/analyst-research#ixzz3T6iM27JR



Price / Earnings Ratio

Coca Cola (KO):


Graph Key

Consensus

45

41

43.3

Previous Close

48


applying a price-to-earnings multiple, known as the P/E ratio. http://www.nasdaq.com/symbol/ko/analyst-research#ixzz3T6jykUzr

http://www.nasdaq.com/symbol/ko/analyst-research#ixzz3T6jykUzr




Momentum

(4 Weeks)


Up:

1

Down:

9


an indicator of future price movements. http://www.nasdaq.com/symbol/ko/analyst-

research#ixzz3T6kcqoM4

http://www.nasdaq.com/symbol/ko/analyst-research#ixzz3T6kcqoM4

http://www.nasdaq.com/symbol/ko/analyst-research#ixzz3T6kcqoM4



Earnings Growth (2015)

Earnings Growth is the measure of year on year earnings per share (EPS) growth

from the prior fiscal year, expressed as a percentage.

http://www.nasdaq.com/symbol/ko/analyst-research#ixzz3T6ktTBGu


http://www.nasdaq.com/symbol/ko/analyst-research#ixzz3T6ktTBGu




Price/Earnings Ratio is a widely used stock evaluation measure. For a security, the

Price/Earnings Ratio is given by dividing the Last Sale Price by the Average EPS

(Earnings Per Share) Estimate for the specified fiscal time period.

: http://www.nasdaq.com/symbol/ko/pe-ratio#ixzz3T6lg7CGf

http://www.nasdaq.com/symbol/ko/pe-ratio#ixzz3T6lg7CGf



American Airlines (AAL):


56

Consensus

66.5

84.5

47.9

Previous Close


applying a price-to-earnings multiple, known as the P/E ratio.

http://www.nasdaq.com/symbol/aal/analyst-research#ixzz3T6mQOVUb


http://www.nasdaq.com/symbol/aal/analyst-research#ixzz3T6mQOVUb



Momentum

(4 Weeks)


Up:

2

Down:

3


an indicator of future price movements. : http://www.nasdaq.com/symbol/aal/analyst-

research#ixzz3T6moJ1Lv


Earnings Growth is the measure of year on year earnings per share (EPS) growth

from the prior fiscal year, expressed as a percentage.

http://www.nasdaq.com/symbol/aal/analyst-research#ixzz3T6nD3yRf

http://www.nasdaq.com/symbol/aal/analyst-research#ixzz3T6moJ1Lv

http://www.nasdaq.com/symbol/aal/analyst-research#ixzz3T6moJ1Lv

http://www.nasdaq.com/symbol/aal/analyst-research#ixzz3T6nD3yRf



Price/Earnings(2015)

Price/Earnings ratio is a widely used stock evaluation measure.

http://www.nasdaq.com/symbol/aal/analyst-research#ixzz3T6o5bgji



Price/Earnings Ratio is given by dividing the Last Sale Price by the Average EPS

(Earnings Per Share) Estimate for the specified fiscal time period.

http://www.nasdaq.com/symbol/aal/pe-ratio#ixzz3T6oLVOZG

http://www.nasdaq.com/symbol/aal/analyst-research#ixzz3T6o5bgji

http://www.nasdaq.com/symbol/aal/pe-ratio#ixzz3T6oLVOZG



Earnings Per Share Summary

Earnings Per Share represents the portion of a company's profit allocated to each

outstanding share of common stock. The net income (reported or estimated) for a

period divided by the total number of shares outstanding (TSO) during that period.

: http://www.nasdaq.com/symbol/aal/eps-forecast#ixzz3T6ofiKuW

http://www.nasdaq.com/symbol/aal/eps-forecast#ixzz3T6ofiKuW



Intel Corporation (INTC):


Consensus

38

30

33.25

Previous Close

50

Price targets are calculated by estimating future earnings per share and then applying a price-to-

earnings multiple, known as the P/E ratio.

http://www.nasdaq.com/symbol/intc/analyst-research#ixzz3T6qGTxp6


http://www.nasdaq.com/symbol/intc/analyst-research#ixzz3T6qGTxp6



Momentum


Up:

1

Down: 0

Estimate momentum measures changes in analyst sentiment over time & may be an indicator of

future price movements.

http://www.nasdaq.com/symbol/intc/analyst-research#ixzz3T6qyZktP


http://www.nasdaq.com/symbol/intc/analyst-research#ixzz3T6qyZktP




Earnings Growth is the measure of year on year earnings per share (EPS) growth from the prior

fiscal year, expressed as a percentage.

: http://www.nasdaq.com/symbol/intc/analyst-research#ixzz3T6rP0BKb


http://www.nasdaq.com/symbol/intc/analyst-research#ixzz3T6rP0BKb



Yahoo (YHOO):


Consensus

58

15

44.28

Previous Close

66

Price targets are calculated by estimating future earnings per share and then applying a price-to-

earnings multiple, known as the P/E ratio.

http://www.nasdaq.com/symbol/yhoo/analyst-research#ixzz3T6t1SUb7


http://www.nasdaq.com/symbol/yhoo/analyst-research#ixzz3T6t1SUb7



Momentum


Up:

1

Down:

6

Estimate momentum measures changes in analyst sentiment over time & may be an indicator of

future price movements.

http://www.nasdaq.com/symbol/yhoo/analyst-research#ixzz3T6tSrAc7


http://www.nasdaq.com/symbol/yhoo/analyst-research#ixzz3T6tSrAc7



Earnings Per Share represents the portion of a company's profit allocated to each outstanding

share of common stock. The net income (reported or estimated) for a period divided by the total

number of shares outstanding (TSO) during that period.

http://www.nasdaq.com/symbol/yhoo/eps-forecast#ixzz3T6tnpU91



Price/Earnings Ratio is given by dividing the Last Sale Price by the Average EPS (Earnings Per

Share) Estimate for the specified fiscal time period.

http://www.nasdaq.com/symbol/yhoo/pe-ratio#ixzz3T6u3Ltmr

.

http://www.nasdaq.com/symbol/yhoo/eps-forecast#ixzz3T6tnpU91

http://www.nasdaq.com/symbol/yhoo/pe-ratio#ixzz3T6u3Ltmr



Financial Analysis:

Microsoft (MSFT):

We are computing some ratios e.g. Current ratio and net profit ratio which tell us

the financial information and position of that company in which we are going to

invest. Some ratios are as follows:

Comparisons of year 2013 & 2014:

Ratios Year 2014 Year 2013

Current Ratio 2.50 2.71

Debt to equity ratio 0.23 0.16

Net profit margin 0.25 0.28

Return on equity 0.245 0.276

From this comparison we can analyze that the MSFT has better indicators and

performance in year 2013 as compared to year 2014.

Net profit margin is higher in 2013

Return on equity is better in 2013.



Coca Cola (KO):





Current ratio 1.01 1.12




From this comparison we can analyze that the KO has better indicators and




Intel Corporation (INTC):









From this comparison we can analyze that the INTC has better indicators and






Yahoo (YHOO):



















Debt to equity ratio 8.01 (5.62)

Net profit margin 0.067 (0.068)








Micro and Macro Analysis:

Coca cola (KO):

MACRO FACTORS

POLITICAL

Changes in regulations i.e. nutritional info on packaging – fluctuating exchange

rates could result in a loss when trading overseas and sourcing materials.

SOCIAL

Increased interest from consumers in a healthy lifestyle + knowledge of nutritional

info – particularly sugar/fat content (Coca-Cola Company, 2009).

ECONOMIC

Recession, UK 2010 – positive influence on Coca-Cola’s retail sales. Sales reached

£1 billion for ‘My Coke’ (Coca-Cola, Diet Coke and Coca-Cola Zero). This was

the “first ever time that the combined sales of the three Coke brands have broken

through the £1 billion barrier” (Coca-Cola Company, 2010).

LEGAL

Changes in income or corporation tax – increase in such taxes could negatively

effect the financial position of Coca-Cola. Coca-Cola earns income in many

foreign countries, not just the US. A reform to the US tax system

changing corporation tax on foreign earnings, could adversely impact Coca-Cola’s

financial results (Coca-Cola Company, 2012).

ENVIRONMENTAL

Challenged to use more sustainable and environmental friendly products for

their packaging

Cans/bottles always state if they are recyclable and how to dispose of

correctly

Bottles/cans which are recycled has a positive effect on environment



TECHNOLOGICAL

Do as much as they can on technological front – produced various

applications for smartphones.

Recent app – Share a Coke – allowed users to create a digital can and send it

to someone. This is a fun way to communicate with friends through the

brand and is something that isn’t offered by counter brand Pepsi.

MICRO FACTORS

THE COMPANY

Strong work ethic – “…treat our people well, help them develop and give them a

rewarding life.” Coca-Cola also excel in performance, develop skills and move

towards their career goals. They were ranked No.26 in the Great Place to Work

Institute (Coca-Cola, 2010).

CUSTOMERS

Coca Cola focus on “brand love”. Coca Cola believe that in the long-term that

customer loyalty will strengthen their position.

“We know that we would only have sustainable growth if we are able to build

relationships with our consumers, these relationships convert into sales” Muenster,

Director of knowledge and insights (Warc, 2010).

SUPPLIERS

A ‘sound, stable and ethical supply’ are vital to continued success (Coca-Cola

Company, 2013)

COMPETITION

Pepsi – 14% growth in net revenue in 2011 and has their brand distributed in over

200 countries. (PepsiCo, 2011). Coca Cola and Pepsi are both competitive with

their pricing.



References

Coca-Cola Company (2009) Coca-Cola China Sustainability Review. Available from:

http://assets.coca-

colacompany.com/16/60/e69bd11e47f4978bc2ef3753f178/EN_final_draft_for_web.pdf

[Accessed 11 October 2013].

Coca-Cola Company (2010) Coke Winning In a Recession. Available from: http://www.coca-

cola.co.uk/press-centre/2010/march/coke-winning-in-a-recession.html

Coca-Cola Company (2012) Annual Report pursuant to section 13 or 15(d) of the securities

exchange act of 1934. Available from: http://www.coca-colacompany.com/annual-

review/2012/pdf/form_10K_2012.pdf

Coca-Cola Company (2013) About Our Suppliers. Available from: http://www.coca-

colacompany.com/our-company/suppliers/suppliers


In 2012, American Airlines (AA) impacted the U.S. economy by stimulating $117

billion in economic activity, adding nearly $51 billion to U.S. Gross Domestic

Product (GDP), and effecting the creation of more than 965 thousand jobs. AA

employed nearly 75 thousand people and had direct operating expenditures of $22

billion, nearly 37% of which was from salary and benefits expense for active and

retired employees.

AA is the world's third-largest airline in passenger miles transported, passenger

fleet size, and operating revenues. AA operates a domestic network from five

“cornerstone” markets: New York, Chicago, Dallas/Fort Worth, Los Angeles and

Miami. These markets represent the top four U.S. population centers, and a

geographically unique gateway to Latin American in Miami.

Domestically in 2012, AA served nearly 200 airports in 44 states, and flew more

than one million flights carrying nearly 83 million passengers. Worldwide, AA

serves more than 50 countries and territories with, on average, 3,500 daily flights.

AA is also a founding member of the oneworld® alliance, which brings together

some of the best and biggest names in the airline business. Together, oneworld®

members and members-elect serve more than 840 destinations with more than

9,000 daily flights to 160 countries and territories.

http://assets.coca-colacompany.com/16/60/e69bd11e47f4978bc2ef3753f178/EN_final_draft_for_web.pdf

http://assets.coca-colacompany.com/16/60/e69bd11e47f4978bc2ef3753f178/EN_final_draft_for_web.pdf

http://www.coca-cola.co.uk/press-centre/2010/march/coke-winning-in-a-recession.html

http://www.coca-cola.co.uk/press-centre/2010/march/coke-winning-in-a-recession.html

http://www.coca-colacompany.com/annual-review/2012/pdf/form_10K_2012.pdf

http://www.coca-colacompany.com/annual-review/2012/pdf/form_10K_2012.pdf

http://www.coca-colacompany.com/our-company/suppliers/suppliers

http://www.coca-colacompany.com/our-company/suppliers/suppliers




Micro Factors (SWOT):

Strengths

Enrollment of over 50 million

Perennially recognized as one of the best customer loyalty programs

Highest proportion of redeemable seating capacity among legacy

carriers

One of the oldest, most established, carriers in the industry

Only legacy carrier which hasn’t filed for bankruptcy

Hub positions in Dallas, Miami, Chicago

Strong presence in major business hubs

AA generates strong operating cash flow

Highly-rated

Weaknesses

Inability to compete on international flights

Foreign carriers dominate market and offer higher quality service

West coast weakness inhibits ability to reach Asian markets

Financial position

Analysts forecasts losses through 2011

Credit rating inhibits ability to enter fuel hedging contracts

Dependence on resurgence in demand

Labor and Union Issues

Opportunities

Flight plan 2020

Management has laid out a plan of action for the next ten years

Emphasis on investing wisely in fleet, earning loyalty,

strengthening the global network, building workplace community

and flying profitably

Address labor costs

Flight attendant union negotiations

Maintenance outsourcing

Enhance international offerings

Potential for growth in Asian markets

Upgrade business class on long-haul flights



Threats

Competitors have reduced costs through bankruptcy and consolidation

Fuel market volatility

Escalating militancy of labor unions

Growth in videoconferencing and travel substitutes economics-files.pomona.edu/jlikens/SeniorSeminars/.../pdf/amr.pdf

Macro Analysis (PEST):

Political

The airline industry operates in a highly regulated political environment where

passengers are favored over the airlines. This is due to the fact that passenger

safety is paramount and the political establishment have been made weary of the

airlines and resorted towards strict regulations for their operations, due to their

earlier inclinations towards monopolistic behavior. Furthermore, with there being

more competition in the industry and regulations in demand, passengers are in a

position where they can push for lower prices and amenities.

Economic

The 9/11 attacks left a major impact that the airline industry is yet to recover from.

The prolonged recession, fluctuations in oil prices and an imminent global

slowdown are other debilitating factors that are affecting the growth of the airline

industry. Airlines have to cope with declining passengers, high fuel prices,

competition from low-cost airliners, labor demands and soaring operating and

maintenance costs. In addition, events such as the recent Malaysian airline

disappearance, is also adversely affecting the global airline industry.

Social

Over the years, the millennial generation’s emergence into the consumer class has

resulted in major social changes, more importantly in terms of service, where

consumers have become much more demanding. Therefore, to meet the increasing

demands of this segment, airlines have to stabilize their costs. Additionally, the

passenger profile has changed as well with there being more economically minded

passengers. When it comes to business class passengers, improved communication

facilities have reduced the need to fly down for meetings.



Technological

With intense competition in the airline industry, latest technology must be adapted

by airliners in order to survive in the already tough environment. Additionally, the

use of latest technology in aircrafts would not only lower fuel consumption, but

also the cost of airline operations and improve efficiency.

Toronto Dominion Bank (TD):

Micro Analysis (SWOT):

Strenghts

Innovative Culture

An innovative culture helps TD BANK to produce unique products and

services that meet their customer’s needs.

Financial Leverage

Financial leverage allows TD BANK to use their balance sheet to expand

their business and increase their profits.

Unique Products

Unique products help distinguish TD BANK from competitors. TD BANK

can charge higher prices for their products because consumes can’t get

these products elsewhere.

Customer Loyalty

When given a choice, customers are loyal to TD BANK. Instead of

targeting all customers, TD BANK only needs to target new customers in

order to grow their business.

Brand Name

A strong brand name is a major strength of TD Bank.

http://www.wikiwealth.com/swot-strength:td-bank:innovative-culture

http://www.wikiwealth.com/swot-strength:td-bank:financial-leverage

http://www.wikiwealth.com/swot-strength:td-bank:unique-products

http://www.wikiwealth.com/swot-strength:td-bank:customer-loyalty

http://www.wikiwealth.com/swot-strength:td-bank:brand-name



Weaknesses:

High debt Burden

A high debt burden increases the risk that TD BANK goes bankrupt if they make a

poor business decision. Increasing risks can increase TD BANK’s debt interest

payments… … "High Debt Burden (TD BANK)" has a significant impact, so an

analyst should put more weight into it. "High Debt Burden (TD BANK)" will have

a long-term negative impact on this entity, which subtracts from the entity's value.

This qualitative factor will lead to an increase in costs. This statement will lead to a

decrease in profits. "High Debt Burden (TD BANK)" is a difficult qualitative

factor to overcome, so the investment will have to spend a lot of time trying to

overcome this issue.

Weak Management

Weak management increases business risks and reduces profits for TD BANK,

because they are responsible for the health of the business.

Opportunities:

Online market

The online market offers TD BANK the ability to greatly expand their business.

TD BANK can market to a much wider audience for relatively little expense… …

"Online Market (TD BANK)" has a significant impact, so an analyst should put

more weight into it. "Online Market (TD BANK)" will have a long-term positive

impact on this entity, which adds to its value. This statements will have a short-

term positive impact on this entity, which adds to its value. This qualitative factor

will lead to a decrease in costs.

Emerging Markets

Emerging markets are fast growing regions of the world that enable TD BANK to

quickly expand… … "Emerging Markets (TD BANK)" has a significant impact, so

an analyst should put more weight into it. "Emerging Markets (TD BANK)" will

have a long-term positive impact on the this entity, which adds to its value. This

statements will have a short-term positive impact on this entity, which adds to its

value. This qualitative factor will lead to a decrease in costs. This statement will

lead to an increase in profits for this entity. "Emerging Markets (TD BANK)" is a

difficult qualitative factor to defend, so competing institutions will have an easy



time overcoming it.

Threats:

Bad Economy:

A bad economy can hurt TD BANK’s business by decreasing the number of

potential customers… … "Bad Economy (TD BANK)" will have a long-term

negative impact on this entity, which subtracts from the entity's value. This

statements will have a short-term negative impact on this entity, which subtracts

from its value. This qualitative factor will lead to an increase in costs. "Bad

Economy (TD BANK)" is a difficult qualitative factor to overcome, so the

investment will have to spend a lot of time trying to overcome this issue.

Intense Competition

Intense completion can lower TD BANK’s profits, because competitors can entice

consumers away with superior products… … "Intense Competition (TD BANK)"

will have a long-term negative impact on this entity, which subtracts from the

entity's value.

Yahoo (YHOO):

Micro analysis (SWOT)

Strengths

Yahoo!’s Overture is a tremendously profitable Internet advertising

business. It focuses on affiliate advertising for large advertising accounts, in

the same way as Google’s Adsense programme. This is an important income

stream for Yahoo!.

Yahoo! has over 350 million users of its services and solutions. This makes

it a very powerful marketing company, with a very well known brand. Some

reports indicate that is it is the most popular website in the World.

Weaknesses

Differentiation is difficult for Yahoo!. Almost all of its packaged services

are available from other sources.

1. (i) Search facilities are available on MSN and Google.

2. (ii) Free E-mail accounts are available from Hotmail (MSN) or G-



Mail (Google), and many, many others.

3. (iii) New is available from CNN or the BBC.

4. (iv) Shopping is available everywhere on the Internet. Google has

Froogle.

Online advertising is a new income stream for organizations such as MSN,

Yahoo! and Goggle. Yes, today they are very, very profitable. However, as

technology develops and new unforeseen advertising media emerge, the

future is uncertain for these income streams. This is a weakness for Yahoo!

and its competitors.

Another income stream that has been key to Yahoo! is derived from its

partnerships with telecommunication providers. For example, you buy an

Internet connection package from your local telephone company, and it

includes a fee-based Yahoo! package including e-mail accounts, user

support and other added value services. If ever this channel is changed or

removed, the income stream would be affected.

Opportunities

The international market is a huge opportunity for Yahoo!. Yahoo!,

Microsoft and Google are busy carving niches and taking over businesses in

are around the Greater China Region. China has over 1,200,000,000 citizens.

Other economies, such as India, also offer tremendous growth potential.

The Development of the Yahoo! Directory has potential for new business

and income streams. Two thirds of organizations in Ohmae’s Triad (Europe,

Japan and the USA) are Small Medium Enterprises (SME’). SME’s are

potential directory advertisers.

Mobile technologies offer another opportunity for Yahoo!. Today we access

the Internet using personal computers. Tomorrow phones, televisions,

personal organisers, music players and computers will merge and morph.

The mobile devices of the future will need services and solutions. Yahoo!

would be well placed to provide many of them.

Threats

The biggest threat for all web-based organization is competition. Huge

profits attract investors, innovators and entrepreneurs. Dotcom fever has not

gone away, it is now more focused on profit delivery. All of Yahoo!’s key

services have competitors such as AOL, Google and many others.

International, culture specific competitors could affect Yahoo! in the future,



unless strategic alliances are forged. China has developed its own search

engines, as has India. Why should the World use USA based companies

such as Yahoo!? There needs to be a series of substantial competitive

advantages to see the business remain as an international brand. Look at

what has been learned from the global car industry, or electronics industry.

http://www.marketingteacher.com/yahoo-swot/

Microsoft (MSFT)

Macro Analysis

http://www.marketingteacher.com/yahoo-swot/



Current Watchlist of Companies Invested:

symbols

AAL

companies

American Airlines Group

price

47.90

change

-1.45

% chg

-2.94%

rating

Unrated

INTC Intel 33.25 -0.40 -1.19% Neutral

KO Coca-Cola 43.30 +0.84 +1.98% Neutral

MSFT Microsoft 43.85 -0.20 -0.47% Neutral

YHOO Yahoo! 44.28 -0.17 -0.38% Neutral

http://ycharts.com/companies/AAL

http://ycharts.com/companies/INTC

http://ycharts.com/companies/KO

http://ycharts.com/companies/MSFT

http://ycharts.com/companies/YHOO



Recommendations and conclusions:

At the end we can say that before investing in any company and

making any diversification in portfolio of stocks we must read

and have fully knowledge of all market indicators and we also

must analyze financial position of that company in which we are

going to invest. The most important thing is that we also

understand the micro and macro environment of that company

which can give us important information. After considering all

this if we make investment then we can get good results, profits

and the end healthy dividends.

portfolio management investment criteria

Investor Relations