Stock Tracking & Analysis - Coursework Example

Running Head: STOCK TRACKING & ANALYSIS Stock Tracking & Analysis [The [The of the Stock Tracking & Analysis Background For Suncor Energy Inc., I have purchased 16 shares at $73.79. For Agnico-Eagle Mines Limited, I have purchased 35 shares at $36.66. For Wella AG., I have purchased 50 shares at $25.57. For Procter & Gamble., I have purchased 26 shares at $47.70. For DHL I have purchased 29 shares at $55.75. Moreover, for J Sainsbury plc, I have purchased 50 shares at $25.50. The total values of all stocks are $4982.44. Introduction I have chosen a company for purchase stocks are quite popular in their respective field and the prominent company is the Procter & Gamble Company which was integrated in Ohio in 1905, having been built from a commerce established in 1837 by William Procter and James Gamble. Today, the Company producers and markets a wide range of consumer products in lots of countries all through the world. The company markets over 300 branded products in more than 160 countries. Moreover, this company like all following companies manages its commerce in five product section: Fabric and Home Care, Baby and Family Care, Beauty Care, Health Care and Snacks and Beverages. No doubt, in March 2003, the Company entered into an agreement to obtain a controlling attention in Wella from the bulk shareholders(InvestorGuide.com, 2004). Now I want to highlight J Sainsbury plc is one of the worlds foremost retailers, playing a part in the lives of 15 million clients a week. John James and Mary recognized Sainsbury Supermarkets in 1869. DHL is the worlds most important state and logistics corporation offering customers ground-breaking and modified solutions from a solitary source. With worldwide skill in answer, express, air freight and overland transport DHL unites universal coverage by means of a deep sympathetic of local markets. Company Assessment According to the annual report of company in September 2003, it finished this purchase of the shares of Wella AG. Moreover, in June 2004, the corporation and Wella entered into a power and Profit Transfer Agreement (the power Agreement). Beneath the Domination Agreement, they are free to work out full-operating control and take delivery of 100% of the future earnings of Wella. In June 2004, it purchase the residual 20% stake of its China undertaking from its associate, Hutchison Whampoa China Ltd. (Hutchison), giving the business occupied possession of its operations in China. No doubt, this companys portfolio of trusted brands encompass bunch of products like Pampers, Tide, Ariel, Always, Pantene, Bounty, Folgers, Pringles, Charmin, Downy, Iams, Crest, Actonel and Olay etc. According to the annual report of this company, Sainsburys Supermarkets make use of over 138,000 people. Moreover, of these 70 per cent are part time employee and 30 per cent are full time employee. No doubt, 58 percent of contemporaries are females. A big Sainsburys Supermarket present over 23,000 products 40% of these are Sainsburys own brand. Sainsburys serve almost 10 million customers at 432 stores all through the UK every week. Of these stores, 17 are in Scotland, nine in Wales and seven in Northern Ireland. Almost 60 percent of their stores are in town-centre or edge-of-centre site. Now I want to highlight the DHL continues to be at the forefront of skill and, with over 170,000 devoted employees, guarantees fast and dependable services aimed at more than customers prospect. Total revenues in 2002 accounted for US$1,046 million in the U.S., and about US$5.8 billion universal (DHL, 2004). Company’s Goal No doubt, these companies Suncor Energy Inc., Agnico-Eagle Mines Limited, Wella AG., Procter & Gamble., DHL, J Sainsbury plc, goal is to deliver carry on sales enlargement in order to surpass its financial goals. By means of a strong and reliable performance they were able to meet their goals in the fiscal year 2004: Volume was up 17%, sales boost by 19% to $51.4 billion and earnings were up 25% by a free cash flow of $7.3 billion. To analyze where this increase come from we will examine the statement of owners equity and the statement of cash flow. No doubt, the statement of shareholders evenhandedness is comprised of favored stock, common stock, coffers purchases, paid-in capital, and dividends, build up wide-ranging income and retained earnings. On the other hand the statement of cash flows is encompass of operating behavior, counting net earnings, reduction and amortization, change in accounts receivable, alter in inventories, accounts payable and modify in other operating assets and accountability. Cash flows also comprise investing behavior such as capital expenditures, profits from benefit sales, gaining and alter in investment securities. Financing behavior are part of the cash flows as well. They comprise bonus payment to shareholders, modify in short-term debt, additions to and decrease of long-term debt, treasury purchases and profits from the work out of stock options. When I purchased shares in June 30, 2004, Suncor Energy Inc., Agnico-Eagle Mines Limited, P&Gs sales, earnings and without charge cash flow grew above their long-term targets. There was an increase in overall market share, by means of share enlargement in categories instead of about 70% of Suncor Energy Inc., Agnico-Eagle Mines Limited, P&Gs net sales. By means of all business segments and regions achieve unit volume enlargement, unit volume for 2004 augmented by 17%. Sales reached a record elevated level of $51.41 billions. This augment could be credited to the addition of DHL, J Sainsbury plc and Wella, a positive foreign swap impact of 4% due to intensification of the Euro, British pound and Canadian dollar. Gross margin in 2004 reached 51.2%, an increase of 220 basis points compared to 2003. Improvements, increased volume and the addition of DHL, J Sainsbury plc and Wella drove this increase. Net operating items counting interest expenditure increased $68 million to $629 million in 2004, first and foremost due to extra debt acquired in order to support the gaining of DHL, J Sainsbury plc and Wella. Further non-operating income was $352 millions, which demonstrate a decline over the preceding year due to lower gains from divestitures. The effectual tax rate for 2004 also refuse 40 basis points driven mostly by the impact of foreign operations, as earnings greater than before excessively in countries with lower largely tax rates. Net earnings in 2004 improved by 25% due to augmented volume and the conclusion of the reformation program. Suncor Energy Inc., Agnico-Eagle Mines Limited, and P&Gs operating cash flow has been at an all-time high of $29.36 billion, representing an increase of 81%. Higher net earnings were the primary driver of the increase in operating cash flow. Operating cash flow enlargement trailed earnings enlargement due to an add to in accounts receivable, cash payments for reform program changes accrued last economic year and a extra established from a combined venture in the base period. As a outcome of Suncor Energy Inc., Agnico-Eagle Mines Limited, and P&Gs focus on cash management their cash flow have been kept to a smallest amount. Free cash flow is an significant measure since it is one factor impacting the amount of cash obtainable for dividends and optional investment. It is one of the measures used to assess senior management and decide their at risk compensation(Financial trends, 2004). Net cash used for gaining in 2004 was $7.48 billion. The money were used in the gaining of DHL, J Sainsbury plc., Wella and in the buy of the remaining stake in the China business enterprise with Hutchison Whampoa China Ltd. Common share bonus grow the 48th successive time to $0.93 per share in 2004. Total dividend payments to together common and favored shareholders, were $25.54 billions. P&G maintains debt levels it believe appropriate considering their cash flow prospect, cash requirements for continuing operations, investments plans and the largely. Purchased Option They also purchase options depending on cash availability and market trends. The buy is expected to continue but management will have to take in consideration the available cash flow and any future possible investments for which they would need to preserve cash capital. There are numerous notes to monetary statements that could help management and shareholder make good business decisions. No doubt, these companies Suncor Energy Inc., Agnico-Eagle Mines Limited, and Procter & Gamble Companys commerce is focused on given that customer branded products of better quality and value. An important note would be in regards to their reformation program, which started a few years back and was finished at the beginning of 2004 fiscal year. This reform incorporated enrollment reductions, manufacturing consolidations and portfolio choices to scale back or stop under-performing businesses and proposal. Continuing the restructuring program it will help management maintain a competitive cost structure, including developed streamlining and work force explanation, as part of its usual operations. Profit Ratio Another note would be under gaining and spin-offs. In 2003, Suncor Energy Inc., Agnico-Eagle Mines Limited and P&G acquired a controlling interest in Wella AG. In June 2004, the Company and Suncor DHL, J Sainsbury plc, Wella entered a Domination and Profit Transfer Agreement pursuant to which the company is at liberty to work out complete operating control and receive 100% of the future earnings of DHL, J Sainsbury plc, Wella. It was determined to pay the holders of the remaining exceptional shares of DHL, J Sainsbury plc, Wella a guaranteed continuous annual bonus payment (J Sainsbury plc, 2004). Risk Management Activities An important note as well would be under risk management activities. As an international company, Suncor Energy Inc., Agnico-Eagle Mines Limited and P&G is uncovered to market risks, such as alter in interest rates, currency swap rates and product pricing. The companys policy is to direct interest costs using a combination of fixed-rate and variable-rate debt. If a company is capable to direct interest costs it will demonstrate investors that the company is professionally cutting costs. Since the company is concerned in developed and selling its products in frequent countries they are exposed to actions in overseas currency rates. In order to direct these actions they have a foreign currency prevarication program in order to decrease the risk caused by the short-term changes in swap rate(Procter & Gamble Retrieved, 2004). Large Investment ROI A Company by great investment ROI (return on investment) needs managers not to look at the present market trend and examine the existing monetary institutions. No doubt, in my opinion they need to be aware of proportional market on a broad scale, which go beyond the domestic market and examine the global business activities. It is significant to see, measure and analyze all mechanism of operations. Conclusion No doubt, these companies Suncor Energy Inc., Agnico-Eagle Mines Limited, Wella AG., DHL, J Sainsbury plc and Procter and Gambles presentation is at its pinnacle level. Suncor Energy Inc., Agnico-Eagle Mines Limited and P& G announced that for fiscal year 2005, the company be expecting strapping top line growth and double-digit earnings enlargement, on top of a muscular base period. Sales growth is predictable to be toward the upper end of the companys lasting enlargement target, behind volume enlargement of 66% to 77%. These companies are devoted to final success. No doubt, their management wants to be conscious of alter in both the domestic and the worldwide markets. They must use their good decision when making commerce decisions. They have to be original, customers oriented, important and have a clear commerce plan. They have to learn to use the monetary records in a way that it will assist provide the right picture on the presentation of the corporation. References InvestorGuide.com, (2004). Procter & gamble. Retrieved Oct 05, 2004, from http://www.investorguide.com/cgi-bin/stock.cgi?stock=PG&code=g. Procter & Gamble, (2004). 2004 Annual Report. Retrieved Oct 01, 2004, from P&G Web site: http://www.pg.com/investors/annualreports.jhtml J Sainsbury plc, (2004). Financial trends. Retrieved Oct 05, 2004, from J Sainsbury plc. DHL, (2004). Who we are. Retrieved Oct 05, 2004, from DHL. Read More