AIG
I.
AIG is a multinational insurance group in the USA.
A. The insurance provides services in more than 130 countries in the world.
II.
III.
IV.
V.
VI.
The management, service and products, data analysis, and financial health
information is key to understanding a stock market price evaluation for the
American International Group.
A. Is it a good time to invest in a AIG stock?
Management.
A. American International Group’s CEO.
i. He makes 7 million annually.
B. More than 62,000 employees all over the world.
Service and Products.
A. AIG provides different types of insurance plans for individuals and
business.
i. Accident and health.
ii. Annuities.
iii. High Net Worth.
iv. Insurance.
v. Marine and Inland Marine.
vi. Travel.
vii. Warranty.
B. Competitors’ comparison.
C. Market cap data changes daily.
Financial health
A. $64B revenue in 2011.
i. %30 of revenue out of the USA and Canada.
B. Recently paid off debt with the US government.
C. Total of benefits, claims and expenses.
D. Balance sheet overview.
Stock price evaluation.
A. Market value.
B. Key ratios (average from industry).
i. EPS, growth rate, P/E.
C. Methods used to obtain information.
i. Financial information is public.
ii. Yahoo Finance, Google Finance, AIG website, and others.
Apple
I.
II.
III.
Introduction
A. Apple has been one of the worst performing stocks recently.
B. Doing you own homework to understand the stock is necessary.
The basic information of Apple: product/service, and management
A. The advantage of Apple’s product/services
B. The background of Apple’s managers.
Analysis for Apple.
A. Fundamental analysis
a. It is used for picking a stock.
b. Looking at profitability ratios.
IV.
c. Comparing intrinsic value and market value.
B. Technical analysis.
a. It is more complicated and professional.
b. People usually use some index, such as MACD, KDJ, etc.
A summary about Apple stock, and some tips for trading stock.
A. Unless apple could launched a new innovative product, it’s stock may
cannot go back to 2012.
B. There is no rule in stock market.
Home Depot
I.
II.
Introduction
A. The Home Depot is an American retailer of home improvement and
construction products and services.
B. The current chairman and CEO of Home Depot is Francis Blake.
C. Stanton was recently put under criticism for his recent business
transactions.
Key Statistics
A. It is important to understand when a company’s fiscal year ends.
a. This is when most shares of stocks are sold and bought.
b. Also, this is when new income statements and balance sheets are
released.
B. Market capitalization, or market cap, is the total value of the issued
shares of a publicly traded company.
a. It is equal to the share price times the number of shares outstanding.
III.
IV.
V.
b. In the home improvement industry, Home Depot is ranked second
out of eleven in the market capitalization statistic.
C. Home Depot ranks fourth when it comes to the price/earnings ratio.
Industry
A. Home Depot is located in the home improvement stores industry on the
stock market.
B. The industry is made up of 11 stocks.
C. The leader of this industry is Kingfisher.
Financial Health
A. Determining a company’s financial health is a key step in deciding
whether or not to invest.
B. This information is readily available to the public on numerous
websites.
Determining Financial Health
A. A good cash flow is essential for a company to grow and be able to
fight through any economic struggles.
a. A bad cash flow could result in the borrowing of money and the selling
of more stock, both which would result in negative outcomes.
b. A company’s cash flow growth rate should be significantly higher
than its earnings growth rate.
B. A company’s debt-to-equity ratio affects its profitability and should be
decreasing from the past 2 to 3 years.
C. The return on equity is calculated by dividing net income after taxes by
the common stockholders’ equity.
D. If a company’s sales are growing, margins are increasing, and the P/E
ratio is increasing, the stock prices greatly increases.
Smith and Wesson
I. Background of Smith and Wesson
A. Horace Smith and Daniel B. Wesson form first partnership in 1852
B. Formed second partnership in 1856
C. Used by virtually every police agency and military force around the world.
II. Analysis of Smith and Wesson (Using the NASDAQ Dozen)
1. Revenue-How much the company is making
2. Earnings Per Share-How much money is flowing down to stock holders
3. Return on Equity-How efficiently the company management is producing a
return for the owners of the company-based on the amount of equity in the
company.
4. Analyst Recommendation-Conduct extensive research, positive=buy,
negative=sell
5. Positive Earning Surprises-Analysts make predictions leading up to the actual
EPS
6. Earnings Forcast-Look to the future to insure future profitablility
7. Earnings Growth-An idea of how much analyst believe earnings are going to
grow per year for the next 5 years.
8. PEG Ratio-Price to Earnings Growth-Calculate by Divinding the stock's P/E
ratio by its expected 12 month growth rate.
9. Industry Price-Earnings-If a company is earning more than the average for the
industry.
10. Days to Cover-Number of days that it would take all short sellers to cover their
short positions.
11. Insider Trading-Glimpse into how confident the managers of the company are
in the prospects for the company.
12. Weighted Alpha-Measure of one year growth with an emphasis on the most
recent price activity.
III. Strength of Company Stock
A. Ratio of 8 Pass 4 Fail
B. Stock falls in Moderate category