Investment Portfolio Project-Disney & General Electric - Essay Example

Investment Portfolio Project-Disney & General Electric As I have selected the securities of two front-runner companies, GE and Disney for my investment portfolio, it necessitates an examination of both the organizations’ 10K and investment reports and all relevant additional information to justify my decision on the selection of these companies’ securities for my investment portfolio. As per the GE Annual report for 2011, the Company’s market information related to Common Stock can be availed from the New York Stock Exchange, which is its leading market besides the London Stock Exchange, and Euronext Paris (GE Annual Report, 2011).

Comparing the stock market price of 2011 with that of 2010, one finds the performance on the stock market very convincing. The first, second, and third quarter performance of common stock on the high side in 2011 relatively to 2010 is quite satisfactory, as in the 1st quarter it was $18.94, which touched a high of $21.65 in the year 2011. Dividend for all the quarters of 2011 relatively has been better than it was announced for the year 2010. For example, it was $0.14 in 2010 in the fourth quarter, which reached to $ 0.

17 in 2011 (GE Annual Report, 2011). The Company repurchased its own shares under the repurchase program, which has been successively increasing from the months onward from October 2011 to December 2011. Same positive review seems to be visible regarding share purchase, which has been highest in December 2011 to $957,000 (GE Annual Report, 2011). Considering the Company’s stock market information, it has been into repurchasing of its own shares from its different benefits plans, mainly the GE Savings and Security Program.

The portfolio should ideally consist of shares from GE Stock Direct, the stock purchase plan for the common public (GE Annual Report, 2011). Financial data, as revealed in Item 6 of the 10K Report shows relative earnings in 2011 to past years; net earnings in 2011 are robust relatively to the year 2010 to $14,151million in 2011, which was $11,644. One can see that dividends declared are also relatively higher to the past year, reaching $7,498 million from $5,212 million. Common share earning has also increased from the past year.

Another encouraging input related to stock price is better cash and equivalents from $15,553 million in the year 2007 to successively increasing in each year, reaching to $84,501 million in 2011. This encouraging information is sufficient to include the GE shares in the portfolio (GE Annual Report, 2011). Viewing the Walt Disney Company’s 10K report, the high and low of the Company’s share price per share of common stock is quite convincing. As it is given in the Bloomberg Financial market services, the comparison between the high sale price of common stock for the year 2010 with that of 2009 shows the share price touching a new high of $35.

41, which was $28.68 in the fourth quarter of both the years. Actually, throughout the year 2010 over the past year, sale price of Disney common stock has been appreciating remarkably. The dividend per share has been $0.35 (The Walt Disney Company Annual Report, 2010). A review of Disney’s 10K and investment reports and overall data, positive opinion forms over its financial fitness and future possibilities. So far, the good thing has been that the company has been successful in reaching its target growth earnings approximations.

Current reporting of the 52 weeks shows $29.19-$53.43 per share with the previous closing price of $52.28. The annual 10k filling indicates better account payable which has been as planned with current liabilities and deferred income taxes. Nevertheless, Disney’s shareholder equity seemed to be unmoving with a little down movement relative to the past years at 37,385 versus 37,519 during the year before. Retained incomes although have displayed a worth noticing increase at 38,375 versus 34,327 in the past year which is greater percentage increase relatively to the historical average (The Walt Disney Company Annual Report, 2010).

The stock is presently trading at $52.28 per share and is hopeful of ending the year robustly with another noticeable increase in income. Earlier research had negative reports for the company, which was due to missed incomes. However, all of these approximations have proved unviable as is visible from the company’s stock price. As Disney is a huge business giant constituting theme parks, movies, televisions networks such as ABC & ESPN, the general financial health of the Company depends on the economic environment as well other than the performance of its stock market securities.

This review of both the companies refocuses belief in the right selection of these companies for the investment portfolio. References GE Annual Report. (2011). Form 10K. Retrieved from http://www.ge.com/ar2011/pdf/GE-20120224-10K-20111231.pdf The Walt Disney Company Annual Report. (2010). United States Securities and Exchange Commission: Form 10K. Retrieved from http://thewaltdisneycompany.com/sites/default/files/reports/fy10-form-10k.pdf