BUS 1101
– Widdel
Stock Mkt Project Part 1-CR.docx
Deadline: Start of class, Friday, Feb 7
Value: 56 points (point distribution is given at the end of the document)
Upload to : The relevant drop box in D2L
Save with this file name: Your Last Name First Name BBY Data Table e.g. Widdel Mark BBY Data Table
Overview
Your goal for the end of this course-long project is to make as a positive return on investment for the money invested in stocks chosen at a later point in this semester . This week, you’ll learn about the stock market and be exposed to the important numbers and ratios that should be considered when choosing a stock for investment.
For this week’s assignment you’ll be identifying some important numbers that will help you understand whether or not purchasing shares of Best Buy stock would constitute a good potential investment.
Over time, you’ll learn what these numbers represent, but this week you’ll simply begin the process by sifting through a wealth of financial information about Best Buy stock at Yahoo
Finance .
Then you’ll use the information to complete a blank stock data table and decide whether or not
Best Buy would be a good company in which to invest.
This is the document you’ll download from the class website. You’ll be filling in the missing information about Best Buy by following the step-by-step directions in this handout.
This is a Microsoft Word document created with the table function. If your word processing program cannot open this blank document , create your own document by listing the necessary categories of information with the same headings as those given in my document. You do not have to recreate it in tablewith-cells format.
You must save your document in a Microsoft Word compatible format so that I can open it and read it on my P.C.
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BUS 1101
– Widdel
Directions
Stock Mkt Project Part 1-CR.docx
Step 1 : From the class website, download a copy of the blank Stock Data Table .
 Right click on the link.
 Save the file to your computer’s hard drive (or a location of your choosing.)
 Open the file in word processing. You’ll be filling in the details later .
Step 2: Go to http://finance.yahoo.com
on the Internet.
(The following screen capture shows the home page for Yahoo Finance.)
Step 3 : In the Quote Lookup box , key in Best Buy . Notice that a drop-down box appears, showing all world stock exchanges that list Best Buy stock.
 If the window doesn’t advance automatically, press the enter key.
Here’s the Quote
Lookup box.
Type in Best
Buy and press
Enter.
Note that the abbreviation for
Best Buy is BBY. This is called a ticker symbol. You can use the abbreviation instead of typing in the full company name.
You need to select the stock that is listed on the New York
Stock Exchange (NYSE). The other listings for Best Buy are for foreign stock exchanges.
Step 4: The Summary page for Best Buy is displayed. It contains valuable information pertinent to this assignment. On the screen capture shown below, I’ve arrowed some of the important data.
Please take the time to explore the links on this and other pages.
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BUS 1101
– Widdel
Stock Mkt Project Part 1-CR.docx
You’ll be going to these sections to find more data table info.
You’re here, on the Summary page.
Current price of the stock. This screen was captured on Saturday, a day the stock exchange is closed. The stated price is then the price of a single share of stock at the closing time of the stock exchange. When the exchange is open for business, this price will change constantly.
The ending price on
Friday was
$1.05 per share lower than at the end of the previous day. Price of the stock at the end of the previous day.
Company Name, Ticker Symbol & Stock Exchange offering this stock for sale.
52 week range of the stock price
Price/Earnings Ratio
N/A indicates that it is currently a negative number.
Chart that tracks the price of the stock by hour, day, month or year(s).
Dividend paid per share and its yield – the past quarter (68 cents per share representing a 2.6% yield .
Step 5: Use the information from this Summary page, as well as information from the following
Yahoo Finance Best Buy pages to complete the stock data table.

(Company) Profile

Key Statistics

Analyst Estimates

Industry
Do you want to know which of these pages contains the specific information you need to find? Jump ahead to page 5 of this document for a helpful guide.
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BUS 1101
– Widdel
Profile page
Analyst Estimates page
Key Statistics page
Industry page
Stock Mkt Project Part 1-CR.docx
Click on this link for the
Industry Center page.
 The Industry Center for Electronics stores will be displayed. It should be similar to this…
The Industry Statistics are on the right side of the screen.
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BUS 1101
– Widdel
Note:
Stock Mkt Project Part 1-CR.docx
In Step 1 you were instructed to download a blank copy of the stock data table from the class web site and open it in word processing. If you have done so, key the information you find during your search of information into the appropriate cells.
To help you locate the relevant information more efficiently, I ’ve indicated on the following data table example, the web page locations for the given data categories.
Item
Current stock price per share:
Date of the stated price:
52-Week range:
52-Week change:
Section
In Yahoo Finance
Summary
Summary
Summary
Key Statistics
Item
Market Capitalization:
% held by Institutions:
Dividend & Yield:
Industry Dividend Yield:
Section in Yahoo Finance
Summary
Key Statistics
Summary
Industry, Center –
Summary
(P/E) Price/Earnings Ratio:
Industry P/E:
(P/B) Price to Book ratio:
Industry P/B:
Summary
Industry, Center –
Summary
Key Statistics
Industry, Center –
Summary
(PEG) Price/Earnings to
Growth:
(P/S) Price/Sales:
Book Value:
Revenue: Key Statistics Profit Margin:
Estimated Revenue (Next Year): Analyst Estimates Industry Profit Margin:
(ROE) Return on Equity:
Industry Return on Equity:
Quarterly Revenue Growth:
Quarterly Earnings Growth:
Est. Growth-Co. (This year)
Est. Growth-Co. (Next year)
Key Statistics
Key Statistics
Key Statistics
Key Statistics
Industry, Center –
Summary
Debt/Equity:
Industry Debt/Equity:
Key Statistics
Industry, Center –
Summary
Key Statistics
Industry, Center –
Summary
Key Statistics
Key Statistics
Analyst Estimates Est. Growth-Industry (This year) Analyst Estimates
Analyst Estimates Est. Growth-Industry (Next year) Analyst Estimates
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BUS 1101
– Widdel
Stock Mkt Project Part 1-CR.docx
Do you need help understanding some of the financial terms used on this Yahoo site?
There is a link in Yahoo Finance for financial definitions on the Key Statistics page . (Scroll to bottom of Key Statistics page. Click on Key Statistics Help .)
 I’ve created a much more complete resource of financial terms. Posted on the class website is a special stock market webpage containing a stock market data sheet form, with hyperlinks to definitions for each of the terms (and even some videos). Check it out!
 Just click on the link to the Stock Market Resources page on your class website page …
… and you’ll get to this page.
Then click on the link for the
Stock Project Data Table
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BUS 1101
– Widdel
Stock Mkt Project Part 1-CR.docx
You’ll be on the web page shown below, containing hyperlinks for almost every term listed on the data table.
Step 6: Using the information from the financial data reported in your stock data table, draw two major conclusions about whether or not investing in Best Buy stock at this time, would be a good idea.
And if you believe it is a good idea to invest, you should indicate whether the investment should be for a short term period (weeks/months up to two years) or a long-term period (several years or more).
Key your conclusions and rationale in the cells following the table.
This following set of conclusions and rationale is a copy taken from the handout,
“ Analysis of the Facebook Data Table Information ” handout (its back page). You can use it as a model for structuring your conclusions about Best Buy.
Recommendation
Facebook is not a good investment for individuals seeking a high short-term return-oninvestment this quarter, but it would be a good investment, even at its current price, for those seeking a significant long-term return-on-investment.
Rationale
1. Current price per share is overvalued. This is based on:

Current ROE of 4.34 very low compared to industry’s average of 15. (Significantly higher is desired)

P/B ratio of 8.53
is too high when compared to industry’s 5.1
. (It’s very high knowing that a ratio near 3 is desired by investors.)

Current PEG of 2.05
is double the desired PEG of 1 or less.

The P/E of 201.04
i s extremely high, compared to industry’s 25.4 and reflects that today’s price is greatly overvalued.
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BUS 1101
– Widdel
Stock Mkt Project Part 1-CR.docx

The P/S ratio is 17.36
and is significantly higher than the 4.61
industry average. This is a major red flag for the stock’s value this quarter. A significantly lower P/S is desired.
2.
Estimates and projections for next year are bullish on the stock’s future value based on:

Large increases projected in earnings and growth, 30-40% – these are significantly above everyone else in the industry.

These increases, if achieved, will increase the ROE and lower the PB ratio, PEG ratio
(projected to be 1) and PE ratio (projected to be 44) into very attractive numbers.
3. This company is positioned for long-term success. Its stock should increase significantly in value.
 Facebook is the world’s largest online social network with over a billion users. It can still generate large numbers of new users, globally.
 Management’s focus on finding ways to monetize its service via advertising is making significant forward strides, reflected in the large growth in both revenue and earnings.
No other existing company has the potential to reach this type of customer base with targeted advertisements.

The company is committed to the development of groundbreaking ways to provide advertisers a vehicle to reach a very desirable and hard-to-find audience. No other company in its industry offers as great of a potential. (Bankers Conclude Facebook is a Good Investment: http://www.huffingtonpost.com/2013/08/09/facebookinvestment_n_3729706.html)

Analysts offer a target stock price of $60 for 2014.
Step 7: Save your document as Your Last Name First Name BBY Data Table.
(e.g. Widdel Mark BBY Data Table).
Make sure you save your document in MS Word format. (If you’re using MS Works or a different program, use the Save As command to save it in Word format.)
Grading Criteria/Point Value Breakdown
 Upload a copy to the D2L drop box named BBY Data Table by the assigned deadline.
 This document must be keyed. Handwritten documents will be turned back to the submitter.
 This document must be submitted in a Microsoft Word compatible format . Documents that are not will be turned back to the submitter.

35 points for a completed data table with correct information given for each category.

10 points for rationale: At least two major and logical conclusions are provided, each supported with at least 2-3 bullet points of supporting data.

5 points for naming the document as specified.

6 points for uploading it to the D2L drop box by the given deadline.

-
5 if the submitter’s first and last name is not given as required, on the first page of the document.
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