stock trading 102 seminar arlen novelli, sesame chen, stefan filipovic and abby holtan
TRANSCRIPT
![Page 1: Stock Trading 102 Seminar Arlen Novelli, Sesame Chen, Stefan Filipovic and Abby Holtan](https://reader035.vdocuments.net/reader035/viewer/2022062803/56649f355503460f94c534ac/html5/thumbnails/1.jpg)
Stock Trading 102
Seminar
Arlen Novelli, Sesame Chen, Stefan
Filipovic and Abby Holtan
![Page 2: Stock Trading 102 Seminar Arlen Novelli, Sesame Chen, Stefan Filipovic and Abby Holtan](https://reader035.vdocuments.net/reader035/viewer/2022062803/56649f355503460f94c534ac/html5/thumbnails/2.jpg)
Stock Market Success
Understand goal
Generate idea
Avoid gambling mentally
Follow economic indicators
![Page 3: Stock Trading 102 Seminar Arlen Novelli, Sesame Chen, Stefan Filipovic and Abby Holtan](https://reader035.vdocuments.net/reader035/viewer/2022062803/56649f355503460f94c534ac/html5/thumbnails/3.jpg)
Company Analysis
Management
Service/Products
Financial Health
Stock Price Evaluation
LOOK AT YOUR LIST OF TERMS!!!
![Page 4: Stock Trading 102 Seminar Arlen Novelli, Sesame Chen, Stefan Filipovic and Abby Holtan](https://reader035.vdocuments.net/reader035/viewer/2022062803/56649f355503460f94c534ac/html5/thumbnails/4.jpg)
AIG – American
International Group
![Page 5: Stock Trading 102 Seminar Arlen Novelli, Sesame Chen, Stefan Filipovic and Abby Holtan](https://reader035.vdocuments.net/reader035/viewer/2022062803/56649f355503460f94c534ac/html5/thumbnails/5.jpg)
Company Overview
• Multinational, operates in more than 130 countries.
• 88 million customers. 62,000 employees.
• “Together, we’re working to help see, build, and secure a better future for everyone.”
![Page 6: Stock Trading 102 Seminar Arlen Novelli, Sesame Chen, Stefan Filipovic and Abby Holtan](https://reader035.vdocuments.net/reader035/viewer/2022062803/56649f355503460f94c534ac/html5/thumbnails/6.jpg)
Management
Robert H. Benmosche -President and Chief Executive Officer.
7M Annually
2009
Alfred University
New York
![Page 7: Stock Trading 102 Seminar Arlen Novelli, Sesame Chen, Stefan Filipovic and Abby Holtan](https://reader035.vdocuments.net/reader035/viewer/2022062803/56649f355503460f94c534ac/html5/thumbnails/7.jpg)
Services and Products
Accident and health.
Annuities.
High Net Worth.
Insurance.
Marine and Inland Marine.
Travel.
Warranty.
![Page 8: Stock Trading 102 Seminar Arlen Novelli, Sesame Chen, Stefan Filipovic and Abby Holtan](https://reader035.vdocuments.net/reader035/viewer/2022062803/56649f355503460f94c534ac/html5/thumbnails/8.jpg)
Competition
Met Life, Inc. $36.43
Traveling Companies, Inc. $81.46
Manulife Financial Corp. $14.95
Aflac, Inc. $51.01
![Page 9: Stock Trading 102 Seminar Arlen Novelli, Sesame Chen, Stefan Filipovic and Abby Holtan](https://reader035.vdocuments.net/reader035/viewer/2022062803/56649f355503460f94c534ac/html5/thumbnails/9.jpg)
Financial Health
$64B revenue in 2011.30% of revenue out of the USA and Canada.
Recently paid off debt with the US government.
Total of benefits, claims and expenses.$65,302 (2011) $59,590 (2010)
![Page 10: Stock Trading 102 Seminar Arlen Novelli, Sesame Chen, Stefan Filipovic and Abby Holtan](https://reader035.vdocuments.net/reader035/viewer/2022062803/56649f355503460f94c534ac/html5/thumbnails/10.jpg)
Financial Health cont.
Year-end balance sheet data:
Total assets 555,773
Total investments 410,438
Total liabilities 441,444
Total AIG shareholders’ equity 104,951
Total equity 105,806
![Page 11: Stock Trading 102 Seminar Arlen Novelli, Sesame Chen, Stefan Filipovic and Abby Holtan](https://reader035.vdocuments.net/reader035/viewer/2022062803/56649f355503460f94c534ac/html5/thumbnails/11.jpg)
Stock Price Evaluation
Previous close 38.07
Today’s open 38.28
Day’s range 38.21 - 38.90
![Page 12: Stock Trading 102 Seminar Arlen Novelli, Sesame Chen, Stefan Filipovic and Abby Holtan](https://reader035.vdocuments.net/reader035/viewer/2022062803/56649f355503460f94c534ac/html5/thumbnails/12.jpg)
Stock Price Evaluation cont.
Earnings growth (last year) -18.48%
Earnings growth (this year) +271.81%
Earnings growth (next 5 years) +10.00%
P/E ratio 2.5
EPS $1.64
![Page 13: Stock Trading 102 Seminar Arlen Novelli, Sesame Chen, Stefan Filipovic and Abby Holtan](https://reader035.vdocuments.net/reader035/viewer/2022062803/56649f355503460f94c534ac/html5/thumbnails/13.jpg)
Methods
Public information – Financial
Stocks, Finances, Market, Investments.
![Page 14: Stock Trading 102 Seminar Arlen Novelli, Sesame Chen, Stefan Filipovic and Abby Holtan](https://reader035.vdocuments.net/reader035/viewer/2022062803/56649f355503460f94c534ac/html5/thumbnails/14.jpg)
Apple
![Page 15: Stock Trading 102 Seminar Arlen Novelli, Sesame Chen, Stefan Filipovic and Abby Holtan](https://reader035.vdocuments.net/reader035/viewer/2022062803/56649f355503460f94c534ac/html5/thumbnails/15.jpg)
Apple, in the past 6 Months
![Page 16: Stock Trading 102 Seminar Arlen Novelli, Sesame Chen, Stefan Filipovic and Abby Holtan](https://reader035.vdocuments.net/reader035/viewer/2022062803/56649f355503460f94c534ac/html5/thumbnails/16.jpg)
“you should never invest in any idea that you cannot illustrate with a crayon.”
“ The only value of stock forecasters is to make fortune tellers look good. “
--Warren Buffett
![Page 17: Stock Trading 102 Seminar Arlen Novelli, Sesame Chen, Stefan Filipovic and Abby Holtan](https://reader035.vdocuments.net/reader035/viewer/2022062803/56649f355503460f94c534ac/html5/thumbnails/17.jpg)
Apple: product, service
More innovative
Sleek design
Novel software
Good quality
Product integration
Perfect service
![Page 18: Stock Trading 102 Seminar Arlen Novelli, Sesame Chen, Stefan Filipovic and Abby Holtan](https://reader035.vdocuments.net/reader035/viewer/2022062803/56649f355503460f94c534ac/html5/thumbnails/18.jpg)
Apple: Management
![Page 19: Stock Trading 102 Seminar Arlen Novelli, Sesame Chen, Stefan Filipovic and Abby Holtan](https://reader035.vdocuments.net/reader035/viewer/2022062803/56649f355503460f94c534ac/html5/thumbnails/19.jpg)
Analyses for Apple
Fundamental analysis—used for test if you pick the right stock
Technical analysis—appropriate the right time and price to buy it
![Page 20: Stock Trading 102 Seminar Arlen Novelli, Sesame Chen, Stefan Filipovic and Abby Holtan](https://reader035.vdocuments.net/reader035/viewer/2022062803/56649f355503460f94c534ac/html5/thumbnails/20.jpg)
Analysis for apple
Fundamental analysis
Profitability ratios
ROA may not used for personal computer industry
Valuation Rank
Compares earning, cash flows and sales to market value (intrinsic value & market value)
![Page 21: Stock Trading 102 Seminar Arlen Novelli, Sesame Chen, Stefan Filipovic and Abby Holtan](https://reader035.vdocuments.net/reader035/viewer/2022062803/56649f355503460f94c534ac/html5/thumbnails/21.jpg)
Apple vs. Google
![Page 22: Stock Trading 102 Seminar Arlen Novelli, Sesame Chen, Stefan Filipovic and Abby Holtan](https://reader035.vdocuments.net/reader035/viewer/2022062803/56649f355503460f94c534ac/html5/thumbnails/22.jpg)
Apple vs. Industry leader
![Page 23: Stock Trading 102 Seminar Arlen Novelli, Sesame Chen, Stefan Filipovic and Abby Holtan](https://reader035.vdocuments.net/reader035/viewer/2022062803/56649f355503460f94c534ac/html5/thumbnails/23.jpg)
Technical analysis
Technical analysis
Extremely complicated
MACD, KDJ, BOLL, etc
Affected by psychology of shareholders
Data only, no industry background needed
![Page 24: Stock Trading 102 Seminar Arlen Novelli, Sesame Chen, Stefan Filipovic and Abby Holtan](https://reader035.vdocuments.net/reader035/viewer/2022062803/56649f355503460f94c534ac/html5/thumbnails/24.jpg)
MACD
![Page 25: Stock Trading 102 Seminar Arlen Novelli, Sesame Chen, Stefan Filipovic and Abby Holtan](https://reader035.vdocuments.net/reader035/viewer/2022062803/56649f355503460f94c534ac/html5/thumbnails/25.jpg)
Home Depot
![Page 26: Stock Trading 102 Seminar Arlen Novelli, Sesame Chen, Stefan Filipovic and Abby Holtan](https://reader035.vdocuments.net/reader035/viewer/2022062803/56649f355503460f94c534ac/html5/thumbnails/26.jpg)
Background
What is Home Depot?
Current chairman and CEO
HD Supply
Competitors
Major shareholders
Recent Activity
![Page 27: Stock Trading 102 Seminar Arlen Novelli, Sesame Chen, Stefan Filipovic and Abby Holtan](https://reader035.vdocuments.net/reader035/viewer/2022062803/56649f355503460f94c534ac/html5/thumbnails/27.jpg)
Key Statistics
Fiscal year ends: Feb. 2nd
Total market capitalization for all publically traded companies: $15,640,707,100,000
Total market capitalization for Home Depot, Inc.: $103.80B
Price/Earnings Ratio: 23.39
Number of shares of common stock outstanding: $1,523,263,533
![Page 28: Stock Trading 102 Seminar Arlen Novelli, Sesame Chen, Stefan Filipovic and Abby Holtan](https://reader035.vdocuments.net/reader035/viewer/2022062803/56649f355503460f94c534ac/html5/thumbnails/28.jpg)
Industry
Sector: Services
Industry: Home Improvement Stores- 11 Stocks
Home Depot vs. the industry leader (KGF.L)
1. Market Cap comparison
2. Price per share
3. Price/Earnings Ratio
![Page 29: Stock Trading 102 Seminar Arlen Novelli, Sesame Chen, Stefan Filipovic and Abby Holtan](https://reader035.vdocuments.net/reader035/viewer/2022062803/56649f355503460f94c534ac/html5/thumbnails/29.jpg)
Industry Continued
![Page 30: Stock Trading 102 Seminar Arlen Novelli, Sesame Chen, Stefan Filipovic and Abby Holtan](https://reader035.vdocuments.net/reader035/viewer/2022062803/56649f355503460f94c534ac/html5/thumbnails/30.jpg)
Financial Health
Total Revenue- $70,395,000
Cost of Revenue- $46,133,000
= Gross Profit= $24,262,000
Total Current Assets- $14,520,000
Total Assets- $40,518,000
Total Current Liabilities-
$9,376,000
Total Liabilities- $22,620,000
Total Stockholder Equity- $17,898,000
Total Operating Expense- $18,755,000
Total Debt- $10,788,000
Total Cash Flow- $6,651,000
![Page 31: Stock Trading 102 Seminar Arlen Novelli, Sesame Chen, Stefan Filipovic and Abby Holtan](https://reader035.vdocuments.net/reader035/viewer/2022062803/56649f355503460f94c534ac/html5/thumbnails/31.jpg)
Determining Financial Health
Total Cash Flow- $6,651,000
Cash Flow Growth Rate- 10.28%
Earnings Growth Rate- 13.40%
Debt-to-equity ratio- 0.6073(2012)0.6027(2011)0.5161(2010)
Return on equity- 25.42%
Gross Profit Margin- 34.37%(2012)34.27%(2011)33.87%(2010)
![Page 32: Stock Trading 102 Seminar Arlen Novelli, Sesame Chen, Stefan Filipovic and Abby Holtan](https://reader035.vdocuments.net/reader035/viewer/2022062803/56649f355503460f94c534ac/html5/thumbnails/32.jpg)
Smith & Wesson
![Page 33: Stock Trading 102 Seminar Arlen Novelli, Sesame Chen, Stefan Filipovic and Abby Holtan](https://reader035.vdocuments.net/reader035/viewer/2022062803/56649f355503460f94c534ac/html5/thumbnails/33.jpg)
Smith and Wesson
History of the Company:
Horace Smith and Daniel B. Wesson
First partnership in 1852
Second in 1856
Introduced the Model 10
![Page 34: Stock Trading 102 Seminar Arlen Novelli, Sesame Chen, Stefan Filipovic and Abby Holtan](https://reader035.vdocuments.net/reader035/viewer/2022062803/56649f355503460f94c534ac/html5/thumbnails/34.jpg)
![Page 35: Stock Trading 102 Seminar Arlen Novelli, Sesame Chen, Stefan Filipovic and Abby Holtan](https://reader035.vdocuments.net/reader035/viewer/2022062803/56649f355503460f94c534ac/html5/thumbnails/35.jpg)
NASDAQ Dozen
![Page 36: Stock Trading 102 Seminar Arlen Novelli, Sesame Chen, Stefan Filipovic and Abby Holtan](https://reader035.vdocuments.net/reader035/viewer/2022062803/56649f355503460f94c534ac/html5/thumbnails/36.jpg)
Revenue-Pass
![Page 37: Stock Trading 102 Seminar Arlen Novelli, Sesame Chen, Stefan Filipovic and Abby Holtan](https://reader035.vdocuments.net/reader035/viewer/2022062803/56649f355503460f94c534ac/html5/thumbnails/37.jpg)
Earnings Per Share-Pass
![Page 38: Stock Trading 102 Seminar Arlen Novelli, Sesame Chen, Stefan Filipovic and Abby Holtan](https://reader035.vdocuments.net/reader035/viewer/2022062803/56649f355503460f94c534ac/html5/thumbnails/38.jpg)
Return on Equity (ROE)-Fail
![Page 39: Stock Trading 102 Seminar Arlen Novelli, Sesame Chen, Stefan Filipovic and Abby Holtan](https://reader035.vdocuments.net/reader035/viewer/2022062803/56649f355503460f94c534ac/html5/thumbnails/39.jpg)
Analyst Recommendations-Pass
![Page 40: Stock Trading 102 Seminar Arlen Novelli, Sesame Chen, Stefan Filipovic and Abby Holtan](https://reader035.vdocuments.net/reader035/viewer/2022062803/56649f355503460f94c534ac/html5/thumbnails/40.jpg)
Positive Earnings Surprises-Pass
![Page 41: Stock Trading 102 Seminar Arlen Novelli, Sesame Chen, Stefan Filipovic and Abby Holtan](https://reader035.vdocuments.net/reader035/viewer/2022062803/56649f355503460f94c534ac/html5/thumbnails/41.jpg)
Earnings Forecast-Fail
![Page 42: Stock Trading 102 Seminar Arlen Novelli, Sesame Chen, Stefan Filipovic and Abby Holtan](https://reader035.vdocuments.net/reader035/viewer/2022062803/56649f355503460f94c534ac/html5/thumbnails/42.jpg)
Earnings Growth-Pass
![Page 43: Stock Trading 102 Seminar Arlen Novelli, Sesame Chen, Stefan Filipovic and Abby Holtan](https://reader035.vdocuments.net/reader035/viewer/2022062803/56649f355503460f94c534ac/html5/thumbnails/43.jpg)
PEG Ratio-Pass
![Page 44: Stock Trading 102 Seminar Arlen Novelli, Sesame Chen, Stefan Filipovic and Abby Holtan](https://reader035.vdocuments.net/reader035/viewer/2022062803/56649f355503460f94c534ac/html5/thumbnails/44.jpg)
Industry Price-Earnings
![Page 45: Stock Trading 102 Seminar Arlen Novelli, Sesame Chen, Stefan Filipovic and Abby Holtan](https://reader035.vdocuments.net/reader035/viewer/2022062803/56649f355503460f94c534ac/html5/thumbnails/45.jpg)
Days to Cover-Fail
![Page 46: Stock Trading 102 Seminar Arlen Novelli, Sesame Chen, Stefan Filipovic and Abby Holtan](https://reader035.vdocuments.net/reader035/viewer/2022062803/56649f355503460f94c534ac/html5/thumbnails/46.jpg)
Insider Trading-Pass
![Page 47: Stock Trading 102 Seminar Arlen Novelli, Sesame Chen, Stefan Filipovic and Abby Holtan](https://reader035.vdocuments.net/reader035/viewer/2022062803/56649f355503460f94c534ac/html5/thumbnails/47.jpg)
Weighted Alpha
![Page 48: Stock Trading 102 Seminar Arlen Novelli, Sesame Chen, Stefan Filipovic and Abby Holtan](https://reader035.vdocuments.net/reader035/viewer/2022062803/56649f355503460f94c534ac/html5/thumbnails/48.jpg)
Strength of Company Stock
Pass: 8
Fail: 4
8:4
Moderate
![Page 49: Stock Trading 102 Seminar Arlen Novelli, Sesame Chen, Stefan Filipovic and Abby Holtan](https://reader035.vdocuments.net/reader035/viewer/2022062803/56649f355503460f94c534ac/html5/thumbnails/49.jpg)