Stock Analysis free essay sample

This section of my analysis includes descriptive statistics, charts, tables, correlation analysis, ration analysis and financial statement analysis during the period of which the data is collected. Moreover, I’ve tried to align the numerical data to the practical events and consequences that I’ve been studying during the period, which might help to make better evaluation. Descriptive Statistics and Financial Analysis From January 18-th to March 2-nd the stock has been growing constantly from 427USD to 544USD (average), and the difference between the mean and median for this period is relatively low which is a good indication. The core of the Apple’s operation is the innovation based new products, but the newly introduced IPAD did not satisfy the customer’s and experts’ expectation. On the 13-th of February their stock price exceeded 500USD for the first time. Financial Statement Analysis Financial Statements analyzed for this assignment includes Unaudited Consolidated Condensed Balance Sheet, Statement of Cash Flow and Income Statement that are downloaded from http://investor. We will write a custom essay sample on Stock Analysis or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page apple. com/financials. cfm. (APPENDIX II) In January 18, 2011, Apple announced financial results for its fiscal 2011 first quarter ended December 25, 2010. The Company posted record revenue of $26. 74 billion and record net quarterly profit of $6 billion, or $6. 43 per diluted share. These results compare to revenue of $15. 68 billion and net quarterly profit of $3. 38 billion, or $3. 67 per diluted share, in the year-ago quarter. Gross margin was 38. 5 percent compared to 40. 9 percent in the year-ago quarter. International sales accounted for 62 percent of the quarter’s revenue. Combining the financial statement numbers with the real number of devices and laptops they sold, would give clear understanding of how they generate the revenue and what is the basis of the growth. Apple sold 4. 13 million Macs during the quarter, a 23 percent unit increase over the year-ago quarter. The Company sold 16. 24 million iPhones in the quarter, representing 86 percent unit growth over the year-ago quarter. Apple sold 19. 45 million iPods during the quarter, representing a seven percent unit decline from the year-ago quarter. The Company also sold 7. 33 million iPads during the quarter. Their total liabilities is 3 times less than their total assets which indicates how healthy their operations is. Ratio Analysis This section will include financial ratio analysis for Apple as well as provide forecasted financial statements for the upcoming ten years. The ratios will supply the overall profitability, liquidity (short-term solvency), and capital structure (long-term solvency) for Apple. The major purpose of using financial data in ratio form is making the results comparable across firms and over time by controlling for size. After computing the selected ratios, we will be able to compare Apple to its top competitors within the technology industry, and against the overall industry average. Analysis of these ratios is important to numerous parties, but for our purposes, it will provide information not so easily derived or transparent in the financial statements. According to Appendix III, their inventory turn-over ration is 67. 4, which measures the inventory management efficiency of their business. The ratio is relatively high which may result in loss of sales due to inventory shortage which does not often happen for Apple Inc. But based on the circumstances related to the Foxxconn, inventory shortage may face the corporation. Risk Analysis Looking at the data I’ve collected for this assignment, I’d definitely say that Apple stock is well work to purchase. But there were ups and downs until their stock finally reached 500 for the very first time. There was a lot to do with leadership that defines the path of the company which makes it distinguished from the others. For trading purposes, Apple stock would definitely increase to the certain point in the next couple of months but after that It might stabilize. But for investors Apple Inc. is still the best innovative IT company in the world. The reason why stock rate might stabilize is that newly introduced IPAD and IPHONE didn’t satisfy customers’ and experts expectation for one step ahead innovation. So there is a clear doubt that how many people would replace their IPHONE 4 and IPAD 2 to the newly presented products with almost the same features. In addition their BETA rate is 1. 04 on average which is lower than Apple’s main competitors Samsung, Sony or Dell. And it clearly has better ratios and other financial facts compared to those. So Apple Inc’s stock is not risk free, but would be a good investment just for a certain period of time. Conclusion The most interesting thing about Apple is how they are very innovative and early adapters. Apple is usually the first company to come out with a new product line before anyone else. This is very risky but it is one of their main characteristics. A large portion of Apple’s fate comes from cash flow and professional trading activity that are directly attached to their product sales. As long as they apply innovative technologies in their products and make sure their products satisfies customers’ demand they would still be on the top of the industry. Appendixes

Fogdog Essay Example

Fogdog Essay Example Fogdog Essay Fogdog Essay Donna De Verona represented women, but there Is no Information about her contribution to the company aside from her probable media connections. Id rather recommend inviting to the board more outside directors to make the decision-making process unbiased and transparent. The separation of the roles of the Chairman and CEO is one more condition that I would remain unchanged. The dominance of venture capitalist Investors has turned to be a complete failure for the company. As, on the one hand, they were passive and not willing to participate in strategic management. Investors dont take responsibility for the companys operations, they are merely participate in the profits. Venture capitalists were over-committed In terms of the number of board seats they held, which limited the amount of time they could spend with any one company [Case, p. 1 | On the other hand, when they faced the risk of losing capital and not reaching short-term profitability, they were not able to consider allowing the management team to proceed accomplishing their long-term plan, thus leading the company to the end of Its Independent existence. Its a Coos responsibility to nominate the board members, and shareholders have to appoint the nominees. So they equally can be blamed for the company not possessing the most effective board possible. : Moreover, Its a Tim Harrington fault n letting the board behave passively, as it was convenient for him to make strategic decisions practically alone. To draw the conclusion, to execute best practice board and composition It Is necessary to: Increase the number of outside directors (non-affiliated Leave the separation of Chairman and CEO; Reduce the number of PVC investors; Invite directors with extensive knowledge of product, of rapidly changing environment, with proved reputation and willingness to contribute to the long-term success of the company. . Two month before the crucial meeting it became clear for management team that there was not enough cash to achieve profitability: Fog needed an additional $15 million to $20 million. That was not possible due to the extremely tight financial environment for Internet companies at that time. [Case, p. 101 Tim Harrington and his team tried to work on the first option, determined by the board of directors, in order to save the company, wh ich included the amendment of Dustless model to conclave pronto TTY slung ten scans available. I nee consolable TN partnership with brick-and-mortar retailers as one of the ways out. One of the estates, I think, was the companys concentration on attracting capital. The CEO could have foreseen that challenging business climate would affect dramatically Fogs performance, and could put at least half of his forces to adopt to it. Besides this, as Ralph Sparks noticed, and I cant but agree with him, the operating expenses were too high, so that it was difficult for a company to show net income. Another mistake was in missing the opportunity to establish brick-and-mortar partnership, while the conditions were more favorable for Fog. Nevertheless, it can be said, hat Tim and his management team did a great work on revision of the Fogs business plan to amend it to reach profitability in the long run. Tim thought, that it was better to ask for forgiveness than beg for permission, because he didnt believe that anyone in the board besides him was able to make a substantive decision. He pretended to know the company and its needs best. He saw that the board lacks commitment and stimulus but, as a leader, made no attempt to correct the situation. As it was already mentioned, it seemed convenient to him to be responsible to make decision with no interference from the passive board. Thus if anything goes wrong he can ask for forgiveness, but he was self-confident and was sure that his direction is the right one. This overconfidence made harm to Fog, notwithstanding the fact, that Tim Harrington can be considered a respectable CEO. Moreover, the members didnt appreciate Times self-confidence in making decisions although his work was directed on a long-term success of a company. 3. As a venture capitalist Im interested to see the return of my investment. The long- term results about which CEO speaks every time are quite questionable and uncertain, as I see that the situation is getting worse every minute. And the evidence or it is the dramatically reduction of Fogs stock price from its $1 1 offering price per share in December, 1999, to less than $1 in the end of August. Concerning the financial environment affecting the Internet companies (and Fog is not the exception), it becomes too risky for a company to survive alone. I am quite anxious about shareholders interests, because as a board member, its my duty to make sure that nothing threatens their deserved benefit. It is too much obvious that it would be better to sell the company (and receive 0. 135 of a share of Global Sports common stock for each share [9]) rather that observe how it decays.