Project's Objective

Project's Objective:

Conducting security analysis of a publicly listed company using data retrieved from the Bloomberg terminal and writing a brief report summarizing your analysis.

Step 1.

Complete the BMC certification courses & the “Terminal Basics” by the project due date.

Step 2.

Choose a company whose stocks are publicly available on NASDAQ. (Please don’t choose a financial institution!!!)
I suggest you to check this list You can also find the same information using the Bloomberg terminal. Please fill in your choice at the following excel sheet until October 31, 2021, so that I can approve it before commencing the analysis. Please enter only student IDs, not names in the file. Please don’t write your name in the group if you haven’t agreed to be in the group together. There could be some groups with only one or two members, don’t add your names to their group. Deadline: October 31,2021. 

Before you enter your choice, please check if any other group has chosen the same company. Each group must work with the data of a different company. If two or more groups choose the same company, I will assign that company to the one who entered the company of their choice to the excel sheet the earliest (first come, first serve) and I will ask the others to choose another company.
IMPORTANT: If you haven’t entered your company of choice at the excel sheet and worked with the data of any company you like, you will automatically get a Zero! This step is essential and compulsory! 

 

Step 3.

Attend /or watch the recording of the training session with the Bloomberg lab coordinator. If you have any difficulties related to Bloomberg terminal login and data extraction, you can contact our Bloomberg lab coordinator.

 

Step 4.

Start working on your report. The report should include the following:

1- Title Page (including the member names& IDs & the company of choice)

2- Company Overview (general business description and mention if there are any key recent news affecting the company’s stock for e.g. change in management, introduction of new product line, merger and acquisition etc). All that information should be available at Bloomberg. (Security Description function and CN function. Using the CN function, choose the top 3 ranked news) 

 

3- Find the following using the Bloomberg terminal:

A. Daily price and volume for the last 10 years (HP function)

Step 2

B. S&P 500 index (daily) for the last 10 years

C. Company’s beta:-

i. Plot the daily price return and S&P 500 return in a graph and comment how the company is doing relative to the market. (while commenting here, please use the company’s beta. Tip: use your knowledge about the beta. For example; if the beta is one, the stock moves with the market, so you will see similar trends in both the stock and market movements)

ii. Export the daily stock price data in the excel file and calculate the stock price return, average return and the standard deviation (using the built-in formulas in excel). You will get more explanations on this point. I will provide you an example.

 

D. Industry Overview (list the major competitors in the industry and a comparison
with the major competitor-compare ROA, ROE, P/E ratios for the last 5 years)

E. Fundamental Analysis (for the past 5 years) :-

i. Liquidity analysis (Working capital and current ratio)
ii. Solvency analysis (debt to equity and times interest earned ratio)
iii. Activity ratios (Accounts receivable turnover, inventory turnover, total assets turnover)
iv. Profitability ratios (Net profit margin, ROA, ROE)
v. Valuation ratios (Price Earnings ratio , Market to Book ratio, dividend payout)
vi. Graphs/charts for each ratio 

 

F. Board structure and executives structure (MGMT function). -Number of directors, % non-executive directors, %women directors, average age, age range,
average tenure, number of directors with more than 5 years tenure, number of directors with more than 10 years tenure, average number of boards served,
highest number of boards served, % executive directors on 2+ boards, % nonexecutive directors on 3+ boards, number of executives, % women executives, average age, CEO age, average tenure, CEO tenure, % executives holding shares and % CEO ownership.

G. Analyst reviews (ANR function)

H. ESG Disclosure score, Environmental disclosure score, Social disclosure score and Governance disclosure score for the past 10 years

 

4- Conclusion (how well is the company doing, what to expect for the future, would you recommend investing in such company).
5- References (if any)
6- Appendix (Any other charts/tables/graphs you find relevant & the screenshots of the data retrieval process) You are going to submit one excel file. Please organize your excel file by naming each worksheet according to the outline given above.

 

Step 5.

Submit your project on blackboard on or before December 5th, 6 pm. Please submit all the work as an excel document.

Step 3

 

Rules:

a.} You can work in groups of maximum 3 students. No more than 3 students can form a group! Please make sure to allocate the work evenly across all group members, you are one team, and will get one grade; if you have any “free riders” in the group, you need to inform me as soon as possible- not the last week!

b.} Each team needs to provide me with evidence that they retrieved the data from the Bloomberg terminal, so you need to provide me with screen shots of the data retrieved in the appendix of the report.

c.} Needless to say, no report should be in any ways similar (INCLUDING THE FORMATTING) to another student’s/group’s report. Any similarities will be considered as academic dishonesty and a violation of ZU Honor Code. The assignments will be scanned by “SafeAssign” and any indications of plagiarism will be taken seriously. Students must be prepared to accept the appropriate sanctions for any dishonest academic behavior. At the very minimum, your assignment will get a zero score.

d.} You will need to use 5 years of annual data for the competitor comparison and fundamental analysis (the most recent years, i.e., 2020, 2019, 2018, 2017, 2016).

e.} Include any relevant graphs and charts to make your report interesting!

f.} Please attend the session with the Bloomberg lab coordinator (or watch the recording). She will be explaining you how to collect the necessary data. In case you have further questions, she will be able to assist you. However, please don’t wait until the last day to collect the data you need.

g.} If you have any problems about logging in the Bloomberg anywhere, or finding the data, you can contact the Bloomberg lab coordinator. I will be explaining each step of the project in detail during the class and the class recordings will be available to you. If you have any questions regarding the project, please send me an email immediately so that I can assist you on time.

i.} The due date for this assignment is December 5th, no later than 6 p.m. There will be an assignment folder on BB where all group members should upload their work. If you don’t upload your assignment, you will get a zero, even if your group members upload it.

Note that, I value the way information is presented; which means that I would like to see neat, well-organized, nice looking projects.

Papers will be graded on application of course content and organization of research information. 

 

Please note: ‘Late papers will not be accepted’.

You need to enroll on the BMC course of the course in order to complete the Terminal Basics and BMC certifications. I will give the points only based on the “complete” status as reported by Bloomberg to me. Information on how to enroll yourself to the BMC course will be provided to you during class and put as an announcement to blackboard.