Got a tricky question? Receive an answer from students like you! Try us!

Equity - Essay Example

Only on StudentShare
High school
Author : bernadettegreen
Essay
Finance & Accounting
Pages 4 (1004 words)

Summary

Subject July 06, 2011 Equity Research Report This paper is an equity research report, intended to provide information to investing clients about future potential for stocks of a company to determine whether one should purchase or sell a stock…

Extract of sample
Equity

Executive Summary: Owens & Minor Inc. Ticker: OMI Recommendation: Hold Price: $29.78 on 31.03.2010 Price target one year: $34.95 Highlights: A fortune 500 company headquartered in Richmond, Virginia. Wide distribution network throughout the United States. The provider of the broadest selection of branded products. Unique, superior products are offered through non competitive partnerships with leading manufacturers of health care products through cost effective product line labeled Medichoice, OM direct etc. Supplier assortment, community participation and sustainability are the guiding principles of the firm. Hospitals and Ambulatory surgery centers are the principal customers of the firm. Financial Summary: Market capitalization of $ 2.04 billion in 31.3.2010. The first quarter of 2010 saw an increase in the net income of the firm by 98% as compared to the previous year. Operating earnings in the firm increased by 23.3% as compared to the first quarter in the previous year 2009. Cash and cash equivalents as on 31.03.2010 was $ 146.4 million. A review of the firm’s earning growth rate indicates an average earning growth of 5.4% over the past ten years. Dividend yield of the stock of the firm as on 31.03.2010 was 2.1%. Qualitative analysis: Company profile and industry overview: Owens & Minor makes sure hospitals are organized for main surgeries. ...
Download paper

Related Essays

Equity Premium Puzzle
Equity premium is meant to cushion stock investors against the risk of losing their investment portfolios (Siegel and Thaler, 1997, p. 195). However, variations in gain between government bonds and stocks are quite vast and yet government bonds also bear some risk especially the risk associated with inflation (Ben-Haim, 2006). People invest their money to benefit from the gain in the value of their assets. However, many people continue to invest in government bonds where there is such small gain than in stock. This has resulted to a dilemma to the economists who have been unable to understand…
11 pages (2761 words)
Conclusion on Private Equity
After the buyouts, the private equity firms are able to manage the companies in to making profits, after which they are sold to other investors. The private equity firms do a financial refurbishment of the companies facing a crisis. The Private equity firms also rebuilt the financial structures so that the companies get the ability of becoming productive financially. The major aim of the private equity firms is to make substantial returns to investors and to make their profits from the capsizing companies (Cendrowski, 2011 p89). The Blackstone Group is firm that deals with private equity it is…
4 pages (1004 words)
Equity premium puzzle
Financial markets analysis shows those equity premiums puzzle still remain a reality with modifications to the assumed preferences and imperfections in the model of risk aversion. There have been some difficulties in the calibration used in the analysis and existence of a substantial equity premium (Lucas 1429). Equity premium and risk free rate puzzles The value premium states that for possible qualities of the danger repugnance coefficient, the contrast of the needed rate of profit for money markets and the riskless rate of premium is too huge, given the watched minor fluctuation of the…
5 pages (1255 words)
Hedging an Equity Portfolio
Cross hedging capabilities may depend on various factors. First is the degree in which the spot and futures currencies are negatively or positively correlated. Secondly, this also depends on the level of accuracy of the estimated risk-minimizing cross-hedge factors. In addition, time is an important factor in this process and therefore the capability of cross hedging depends on the stability of the optimal cross hedge proportions over a given duration or period of time. Moreover, this also depends on the potential risk reduction from portfolio cross-hedging. A hedger is any individual or…
7 pages (1757 words)
Hedging An Equity Portfolio
7 Reference: 9 1.0 Introduction A US equity fund manager holds €100m in a portfolio comprising the largest US stocks which perfectly replicates and benchmarks the S&P 500 index. The US Federal Reserve indicated that the programmed quantitative easing of purchasing $85 billion is not going to be carried out. The quantitative easing is used to stimulate the price when the corresponding interest rate decreases to 0%. The non execution of the quantitative easing is set to correct the equity market. The fund manager predicts that the reluctance of the US Federal Reserve to perform a quantitative…
8 pages (2008 words)
Amazon Acquisition and Equity Investment
2- SET OF COMPANIES ACQUIRED BY AMAZON IN 2011 In 2011, set of companies were acquired with price of US $771 million by Amazon (Amazon, 2011). None of the companies are defined specifically but all are aimed at market development for Amazon for increasing customer base as well as sales channel increase in portfolio. Two of the companies included Marshall Cavendish US Children’s Books Titles and LoveFilm International Limited Etc (Amazon, 2013). The change in sales and net income from acquisition was as follows: Set Of Companies in 2011 2011 2010 Sales 48,077 34,204 Change In Sales 40.56%  …
4 pages (1004 words)
Private Equity Funds
These types of funds have huge difference from the other investment funds from the perspective of the business strategy used for seeking control over the businesses where they have invested (Cumming, 2009). These types of funds are also different in their structure because they are generally close-ended and have finite life time. The private equity funds have fixed number of shares. Private Equity Firms Nowadays, the leveraged buyout investment companies are referred to as the private equity organizations (Stowell, 2010; 2012). These types of firms are different from the venture capital firms…
6 pages (1506 words)