ABC

626 views

Published on

Published in: Business, Economy & Finance
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
626
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
14
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

ABC

  1. 1. A Presentation by David Brokate October 6, 2003
  2. 2. Presentation Outline <ul><li>Company Outline </li></ul><ul><li>Value of Holding </li></ul><ul><li>Company Snapshot </li></ul><ul><li>Current News an Information </li></ul><ul><li>Financial Statements </li></ul><ul><li>Stock Performance </li></ul><ul><li>Earnings and Net Income Estimates </li></ul><ul><li>Trend Analysis and Comparative Analysis </li></ul><ul><li>Ratio Analysis </li></ul><ul><li>Spreadsheet Model Valuations </li></ul><ul><li>Riskgrade Analysis </li></ul><ul><li>Analyst Recommendations </li></ul><ul><li>Conclusion </li></ul><ul><li>Recommendation </li></ul>
  3. 3. Company Outline <ul><li>Ticker: ABC </li></ul><ul><li>Sector: Healthcare </li></ul><ul><li>Industry: Drug Wholesale </li></ul><ul><li>Market: New York Stock Exchange </li></ul><ul><li>Market cap: $6154.50 (mil) </li></ul><ul><li>52 week-high: $76.95 </li></ul><ul><li>52 week low: $45.65 </li></ul><ul><li>Recent price: $56.71 </li></ul><ul><li>Shares outstanding: 111.90 (mil) </li></ul>
  4. 4. Value of Holding <ul><li>Number of shares currently held: 50 </li></ul><ul><li>Date shares were bought: 02/04/2002 </li></ul><ul><li>Purchase price: $63.90 </li></ul><ul><li>Total cost of purchase: $3195.00 </li></ul><ul><li>Recent price/ share: $56.71 </li></ul><ul><li>Market value of holding: $2835.50 </li></ul>
  5. 5. Company Snapshot <ul><li>Business Description : Wholesale distributor of pharmaceutical products and related healthcare services and solutions, including pharmaceuticals, proprietary medicines, cosmetics, toiletries, personal health products, sundries and home healthcare supplies and equipment. </li></ul><ul><li>Location : Valley Forge, PA, USA </li></ul><ul><li>* Nation’s number 1 drug wholesaler </li></ul>
  6. 6. Current News and Information <ul><li>On January 6, 2003, Amerisource Bergen completed the purchase of Bridge Medical, Inc. which has the industry-leading bedside scanning capabilities. </li></ul><ul><li>On January 17, 2003, Amerisource Bergen acquired US Bioservices Corporation which is a national pharmaceutical services provider. </li></ul>
  7. 7. Current News and Information (cont.) <ul><li>On September 19, 2003, The Wall Street Journal reported that the Food and Drug Administration and the FBI were looking into allegations that Amerisource Bergen illegally diverted prescription drugs into a second market to boost profits. </li></ul><ul><li>The CEO, R. David Yost, acknowledged that a former employee had been engaged in misconduct a few years ago but was found quilty to mail fraud. He also acknowledged that a former customer participated in illegal actions in 2000. </li></ul><ul><li>R. David Yost guaranteed that an investigation would vindicate the company. </li></ul>
  8. 8. Financial Statements <ul><li>See Handouts </li></ul>
  9. 9. Stock Performance (2 yrs)
  10. 10. Stock Performance (1 yr)
  11. 11. Stock Performance vs. competitors (1 yr)
  12. 12. Earnings Estimate
  13. 13. Net Income Estimate
  14. 14. Trend Analysis: Income Statement
  15. 15. Comparative Analysis: Income Statement
  16. 16. Trend Analysis: Balance Sheet
  17. 17. Comparative Analysis: Balance Sheet
  18. 18. Ratio Analysis
  19. 19. Ratio Analysis (cont.)
  20. 23. Summary of Valuations <ul><li>Stock Value: Constant Growth Model - $75.48 </li></ul><ul><li>Stock Value: Variable Growth Model - $13.59 </li></ul><ul><li>Stock Value: Dividend & Earnings Model - $74.66 </li></ul><ul><li>Stock Value: Price/Earnings Model - $83.74 </li></ul><ul><li>Free Cash Flow - $87.55 </li></ul><ul><li>Average Stock Value - $67.00 </li></ul><ul><li>EVA and MVA - Firm is Creating Shareholder Wealth </li></ul>
  21. 24. Risk Analysis <ul><li>ABC’s risk grade is 137. </li></ul><ul><li>71% of the tickers in the US Market are riskier than ABC. </li></ul>
  22. 25. Analyst Recommendations <ul><ul><ul><ul><ul><li>www.morningstar.com </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Strong Buy - 11 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Buy - 1 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Hold - 1 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Sell - 0 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Strong Sell - 0 www.quicken.com </li></ul></ul></ul></ul></ul>
  23. 26. Conclusion <ul><li>New acquisitions could create a unique position to control the market. </li></ul><ul><li>The position of the nation’s #1 drug wholesaler going into an older generation era is promising. </li></ul><ul><li>Most of the stock valuations produced a higher stock value than the current stock price. </li></ul>
  24. 27. Recommendation <ul><li>Hold 50 shares of AmerisourceBergen </li></ul>

×