Susan Miller’s Econ Class: How to Find Financial Information about Corporations Presented by Mrs. Berman

Who is in Charge of Your Money?

Collect comics, baseball cards, coins Safe returns Savings accounts CD’s paying.76% $1000 invested for 1 year at.76% = $

Stocks/Bonds What are they and why would we invest in them What are Stocks and Bonds? Why invest in them?

Bond Holder: You are like a Bank Lending $$ to a corporation and they are paying you interest. The name of your contract with them is a bond Stock holder: You are pay a company to purchase a stock certificate which is like owning a small share in the company. The price can go up or down. You do not have a contract with the company.

Stock Selection

How do I find a list of top businesses/companies in US? Can you give definition of a “Fortune 500” company? Fortune.com/fortune500

Think Global

What you want to know about a company? *History of the Company *Products/services *Financial stability: income/debt *Future potential for grown *Performance of stock *Comparative performance against others in the industry *Newsworthy items

Summary Order Book Options Historical Prices CHARTS Interactive Basic Chart Basic Tech. Analysis NEWS & INFO Headlines Financial Blogs Company Events Message Boards Market Pulse COMPANY Profile Key Statistics SEC Filings Competitors Industry Components ANALYST COVERAGE Analyst Opinion Analyst Estimates Research Reports Star Analysts OWNERSHIP Major Holders Insider Transactions Insider Roster FINANCIALS Income Statement Balance Sheet Cash Flow

What is EPS? Net income divided by number of shares What is the P/E Ratio? Price of the stock/earnings per share Look at industry norms 20 for tech stocks 8 for textiles 15 for broad market P/E could reflect undervaluation; overvalued; high earnings; bubble

BBRY $ 7.29 Apple Inc. (AAPL) $ (7/1 split in Jan 2016) What to consider…

Chipotle Mexican Grill, Inc. Co (CMG) -NYSE McDonald's Corporation Common S (MCD) -NYSE What to consider….

INDUSTRIES

Regional Banks There are 8 companies in Regional Banks Capital One Financial CorpCompany ranking 144 SunTrust Banks IncCompany ranking 224 BB&T CorporationCompany ranking 217 Fifth Third BancorpCompany ranking 248 The PNC Financial Services GroupCompany ranking 123 State Street CorporationCompany ranking 249 KeyCorpCompany ranking 356 Regions Financial Corp.Company ranking 254

SELECT YOUR INDUSTRY: Ask yourself: Is this a good business? Airlines Are more people travelling or likely to be travelling? Car Companies Do I want to look at more fuel efficient cars or driverless cars? Clothing Companies Do I want brands that appeal to a certain segment of the population?

If I clicked on Airlines I would get a list

Check out your company on it’s website for up-to-date news, investor information and contact information. Write and ask for information

Sources of Information: Message Boards, Free Newsletters: If you are not paying for this information, what is it worth?

Let’s practice what we’ve learned: 1. Select a company from the Fortune 500 list and get symbol 2. Go to Yahoo Finance, put in the symbol and look up a description of the company under “Profile”

What are credible sources?

How to Access HOOVERS via the Newport Beach Public Library eBranch Databases Business HOOVERS

Find answers to these questions: What does the company do? What are their products and services? Are they the best? Who are their competition? What is their long-term potential? What is their earnings track record – earnings per share over time? How much income do they generate and is it rising each year? Are their profits rising? Then ask…. How can I add value to the company?

Sales Pitch: How is my innovation is additive to your business How it aligns with your core business How it will improve your brand image Airline seat improvement Cost - $100 per seat Can charge $10 more per ticket Projected revenue increase over 1-5 years

Next lessons: 1. How to build a killer portfolio and track its progress in real time: 2. Deciding when to buy and when to sell