You are an investment analyst preparing a report for a potential investor – should they buy or not buy shares in a particular listed company? Analyse the listed NZ stock exchange (NZX) company allocated to you in workshops, and write a report, using the template sections to guide you (the PRIMARY company). Some parts will require you to compile and compare information on another listed company in the same industry (the SECONDARY company).
Support your discussion with references to appropriate literature sources. Provide in-text citations and a reference list, using APA 7th edition style (https://aut.ac.nz.libguides.com/APA7th). The library guide will help you with this, along with videos on APA referencing and paraphrasing in the Assessment tab on Blackboard.
Remember this is an INDIVIDUAL assessment, however you can use the research/information you compiled in your group case studies as a starting point.
Write in the 3rd person (using professional, business-appropriate language)
Title Page (be as creative as you like!)
- Include Student Name and ID, also in header or footer
- Name of primary company investigated (allocated NZX company)
- Date of submission
- Word count: from the beginning of Introduction to end of Conclusions and Recommendations
Table of Contents (use Word to create this – new page required)
Introduce the PRIMARY company being investigated with a brief background
Introduce the purpose of the report
Outline ROE: the basic ratio used to assess financial performance, and provide an analysis of your PRIMARY company’s performance
Refer to the appendix where you have obtained the ratio, and your graph (The graph can also be shown in the main body of your report)
Provide a comparison with the SECONDARY company allocated
Briefly comment on the trends shown by the ratio, and in the graph
Make a conclusion about the companies’ financial performance
Outline the CURRENT listed price of BOTH companies (mention the date you obtained the price) – are their current prices high or low, compared to past price performance? (High or low required only, you will elaborate on trends & news in the next section)
Compare the market value (capitalisation) of BOTH companies to their book value of total equity (also called net assets) using the Market-to-Book ratio
Refer to the appendix where you have obtained the ratio
Conclude whether the PRIMARY company appears to be “good value” based on its Market-to-Book ratio AND comparison to the ratio of the SECONDARY company
Capital Markets and Market Commentary
Discuss the share PRICE performance of BOTH companies (since IPO orthe last 5 years), including a comparison of the PRIMARY and SECONDARY companies’ performance, expanding on your statement of high/low price in the Value section
Refer to the appendix with your share price graph (The graph can also be shown in the main body of your report)
Detail any events that may have had an impact on the performance of the PRIMARY company (either positive or negative)
State how this impacts your investment recommendation
Cite at least2 news media reports to support your discussion, focused on the PRIMARY company (2 minimum to pass (C grade): cite more news media articles to push for higher grades, over the last 5 years or since IPO)
Detail the non-financial information disclosed by the PRIMARY company
State how this information affects your decision.