Stock analysis - Essay Example

Comments (0) Cite this document
Summary
Introduction: The relationship between special information, event announcement, and stock return behavior is most specifically concerned with an increasing number of investors, portfolio managers, regulators, and researchers. This report is directed towards helping the reader/analyst to examine the InterContinental Hotels Group’s (IHG) stock price reaction with regards to its disclosure of company specific events…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER93.4% of users find it useful
Stock analysis
Read TextPreview

Extract of sample
"Stock analysis"

Download file to see previous pages This includes, but is not limited to, the background of IHG and a brief statement of four special informational events which will be analyzed in depth within this brief response. Accordingly, a literature review will be shown which helps to underscore and elaborate upon many of the specific theoretical interpretations of the methods utilized within this report as well as relate pertinent information with regards to how such a process has been traditionally understood. Additionally, a demonstration of development of an event study is included and defined. Furthermore, the third part of the piece will include a methodological review. The explanations of approaches which have been utilized to conduct this report will be given as well as some assumptions and critical common factors that are associated with this methodology. Likewise, a research design and results section will comprise the fourth part of this analysis. Ultimately, the issues which will be explored and/or discussed will be analyzed based upon an event study methodology. This part will begin with defining the date of events and then choose the estimated period and test period. Following this, marker models will be chosen as a specific benchmark for abnormal returns. Similarly, a linear regression for the market will be chosen to shed further light on the theoretical interpretation and key data presented. In such a way, ordinary least square assumptions will be necessary to estimate the stability or whether or not it exists to a discernible degree at all. Based on the results of linear regression, the abnormal return will be calculated. Next, the Cumulative abnormal return, or CAR will be utilized as a means of indicating the effect of events specific to those which have already been related and identified. Further, a T-test by CAR will be presented to show the significant of these events. A final portion of the research will necessarily be the conclusion of this report. Within this conclusion, it is the intent of this researcher to show the basic information of this report and summarize it according to the inference which has been drawn. Background information: InterContinental Hotels Group (IHG) is global hotel group which operates nine hotel brands; which in turn comprise a total of 4,600 hotels in more than 100 countries and regions, more than 676,000 rooms. IHG was established in 1946 and is the world's largest and most widely distributed network of professionally managed hotels. With regards to the business model that IHG exhibits, this can be understood in three distinct ways. First, IHG operates as a franchisor, second as a management accessory, and thirdly it operates upon a rental basis. In addition, the franchise has been recognized as exhibiting an effective business philosophy by many leaders within the industry. This report chose four specific events to explore the relationship with the IHG stock price volatility for a period time. These four events are shown below: (1) On the 18th April 2012: IHG shows its support for small business owners, entrepreneurs and Road Warriors. (2) On the 7th August 2012: IHG reported interim results from the 30th June 2012 and announced $1bn return of capital. (3) On the 8th October 2012: IHG reported the results of general meeting about Special Dividend and Share Consolidation. (4) On the 12th November 2012: IHG announced that ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Stock analysis Essay Example | Topics and Well Written Essays - 4500 words”, n.d.)
Stock analysis Essay Example | Topics and Well Written Essays - 4500 words. Retrieved from https://studentshare.org/marketing/1478893-stock-analysis
(Stock Analysis Essay Example | Topics and Well Written Essays - 4500 Words)
Stock Analysis Essay Example | Topics and Well Written Essays - 4500 Words. https://studentshare.org/marketing/1478893-stock-analysis.
“Stock Analysis Essay Example | Topics and Well Written Essays - 4500 Words”, n.d. https://studentshare.org/marketing/1478893-stock-analysis.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
NIKE Stock Analysis
... 12/03 NIKE STOCK ANALYSIS Executive Summary Nike is a multinational corporation (MNC). It has a varietyof products that reach the market. Among the traded goods at the unit includes footwear, clothing and sportswear. There are also other products and equipments of sports. The company location is in the United States of America. The operation of the company persists in a way that corporate a normal business environment. This means that analysis of the strategic competitive advantage of the company is the drivers for the business growth. A good management position concerning the main product lines will yield positive results (McIntosh, 119) An evaluation procedure of the company requires scrutiny with possible employment of various... in...
15 Pages(3750 words)Research Paper
Stock Analysis
...? Stock Analysis Table of Contents Table of Contents 2 Introduction 3 Technical Analysis 3 The Fundamental Evaluation approach 4 Market Breadth 6 Stocks’ Relative Strengths 7 Discussion 7 References 9 Appendix 10 Introduction Various approaches are useful in scrutinizing securities in order to aid someone in making decisions concerning different investment directions and actions (Timo, 2009). The broad categories of these approaches are the fundamental evaluation approach and the technical scrutiny approach. The fundamental evaluation method implies the comprehensive investigation of a business with the purpose of determining its approximate total worth. On the other side, the technical scrutiny approach involves the analysis... of a...
5 Pages(1250 words)Research Paper
Pepsi Co and Coca Cola Stock Analysis
...about the risk factor. For example at the above the share prices of Pepsi Co and Coca Cola were sometimes negative, that does not mean that one should not invest but it is the risk factor it depends on you whether you are risk averse or not. I learned from my analysis that one has to take the recent data of share prices of each corporation and can compare the stock prices by taking average returns and converting them to standard deviation. Standard deviation gives the idea of where it is suitable for an investor to invest. The news does have an effect on the share prices of any organization it depends. Before investing one should know how much of the risk he can take and whether he can handle the risk or...
5 Pages(1250 words)Essay
Stock Analysis
...? STOCK ANALYSIS Financial ment Analysis Walmart is the largest discount retailer in United s and it is the third largest retail company inthe world. For the year ending 2012, the company reported net profit over US$ 16.99 billion from total revenues over US$ 469.16 billion and operating profit of over US$ 27.8 billion. The total assets and equity of the company as on Jan 2013 was over US$ 203 billion and US$ 76 billion respectively. The company’s stocks are currently trading at $69.95 at the end of Jan 2013. For the year ending 2012, the company has paid dividends at rate 0.398. The earnings per share (EPS) of the company are 5.08 and the company’s internal growth rate is expected to be 14.994%. The company’s sales and revenues... ) 0.47...
5 Pages(1250 words)Research Paper
Stock Investment Analysis
..., 2009). He should also put more attention to the locally domiciled companies to help mitigate the risks associated with foreign entities. This will help the fund to register a growing trend thereby fetching good returns. References Graham, B., & Dodd, D. L. (2009). Security analysis: Principles and technique. New York: McGraw-Hill. Elton, E. J. (2010). Modern portfolio theory and investment analysis. Hoboken, NJ: J. Wiley & Sons Vishwanath, S. R., & Krishnamurti, C. (2009). Investment management: A modern guide to security analysis and stock selection. Berlin: Springer.... ? Financial Analysis Grade July, 7, Financial Analysis The business and investments all over the world today is proving to be very...
4 Pages(1000 words)Assignment
Pfizer Stock Analysis Paper
...FI410 Investments ___________________ Stock analysis paper You will need to perform an EIC (economy, the industry and company) analysis looking for strengths, weaknesses, opportunities, and threats that affect the company as an investment. A. A good analysis will use many sources. At least 6 sources must be cited; two must be from other than the Internet; one must be the annual report. While the use of textbooks is not prohibited, they are not included in the count. B. Answer the questions for each chart on a separate page and attached to the corresponding chart. Each set of answers should be at least one page. A complete bibliography must be given on the last page. C. The following rubric will be used to grade your paper... ,...
5 Pages(1250 words)Coursework
Stock analysis
...customers. Apple customers are brand loyal and find it difficult to switch to a competing brand Investment Summary The company has witnessed significant changes in the top management in the last year. While 2011 has been a great year in terms of sales, the loss of its founder and CEO, Steve Jobs might have an impact on the organization. However, the company is having a great product line which is innovated regularly. The company is also expanding its business in China, Russia and Brazil which present huge market potential for the organization. With this analysis, we recommend it as BUY. Valuation The stock has outperformed the broader market in the last 12 months. The shares have surged 19.2% year...
6 Pages(1500 words)Essay
Stock analysis
...by purchase of two call options, at-the-money option and out-the- money option. An example is where I own 1000 shares of the stock at the cost of $525.20. If the stocks are expected to rise soon we can enter into a call spread by buying JUL $500 call for $100,000 and writing JUL 600 call for $50000. The net investment to put on this spread is $150000. When the stock price of the company starts to rise and the figure at the expiration date is checked. When the price goes beyond the up price then the spread expires and the cost of the spread is debited while we keep the profits. In case of prices below the lower spread these options expire and the cost of the spread is lost. Works...
2 Pages(500 words)Essay
Columbia Sportswear Stock Analysis
... Finance and Accounting: Columbia Sportswear Stock Analysis Stock analysis aims at identifying information on a stock and determining if the stock is able if purchased and the future business that it has. The study also aims at identifying the risks that the buyer stands if they purchased this stock and the effects that the stock would undergo in the future to determine the profitability. Stock analysis also helps identify the growth rate of a stock in quest to understand the profitability of the stock in the future. The details of the report below indicate on the stock analysis of Columbia Sportswear represented on the stock exchange market as COLM. Company Description and History Columbia Sportswear Company manufactures outwear... is...
9 Pages(2250 words)Case Study
Stock Analysis
...Stock Analysis CVX The choice of assets by investors is the single most determinant of the degree of risk taken by the investor as well as returns in terms of risk premium for the corresponding risk. The desired level of return determines whether investor can attempt to reach the efficient frontier on the portfolio. Generally, diversification has the potential to cut down on the total risk of the portfolio by reducing its volatility. It is essential to consider a portfolio in terms of diversification when carrying out a construction on more than thirty assets. The risk-return feature of an asset influences portfolios in different ways. Surprisingly, the same investment could pose different influences on...
3 Pages(750 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Let us find you another Essay on topic Stock analysis for FREE!
logo footer
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • StudentShare App Store
  • StudentShare Google play
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • Miscellaneous
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us