Running head: STOCK PERFORMANCE AND EQUITY INVESTMENTS 1 STOCK PERFORMANCE AND EQUITY INVESTMENTS 2 Stock Performance and Equity Investments How are the stocks in your watch list performing since you first selected them? The table below shows the comparison in stock performance between the time we last viewed them and current market performance. Company Selection and Stock Watch No. Date Stock Name Stock Symbol Current Price Exchange Traded On Financial Facts 1 07/29/14 Puma Biotechnology PBYI $222.00 NYSE Trade Value 147.24m Market cap 6.69b Share Volume 30,117,819 9/4/14 $ 262.20 Trade value 147.24m Market cap 7.8 b Share volume 30,117,819 2 7/29/2014 Birks Group Inc. BGI $1.47 AMEX Market cap $26.23m Share Volume 17,840,568 P/E ratio 39.67 9/4/14 $1.08 Market cap 23.9m Share volume 14.8m P/E ratio - 3 7/29/2014 GoPro Gpro $44.07 NASDAQ Market cap $5.43b Revenue per employee $1.53m P/E ratio 76.70 $ 53.94 Market cap 5.4 b Revenue per employee 1.53m p/e ratio 79.2 4 7/29/2014 Dollar Tree DLTR $54.44 NASDAQ Revenue per employee: $91,245 P/E Ratio: 19.21 Market cap $11.35b 1 $55.57 Revenue per employee $ 93, 200 p/e ratio 19.36 market cap $ 11.40b 7/29/2014 El Pollo Loco Holdings LOCO $29.90 NASDAQ 2013 Sales Growth: 7.19% Revenue per employee: $70,567 Market cap: $990.13m 5 $ 34.39 2013 sales growth 2.3% Revenue per employee $ 750.12m Market cap $1.23 b As reported in the above table, most of the stocks that had been selected had reported considerable growth. This is with exception of El Pollo Loco Holdings and Birks Group Inc. this shows that the general economic infrastructure is allowing growth in different industries. Of the companies that were under watch, Puma Biotechnology recorded the highest rise in shares price. This was due to the perceived strength in the competitive advantage that the company continues to command in its category. The El Pollo Loco Holdings however reported poorly on stock market despite the rise in the share price. This was due to the perceived loss of preference for the shares. This is due to the fact that the value of the stock is not proportional to the returns on investments which have been relevantly low. Do any of the firms selected have preferred stock or convertible investments available? El Pollo Loco Holdings Inc, Dollar Tree, GoPro, Birks Group Inc and Puma Biotechnology do not have preferred or convertible investments. The difference between preferred shares and common stock is usually drawn from the payment of dividends. The level of preference varies from one company to another. In this case I will discuss two types of preference. First there is preference in ensuring that all dividends to preference shares are paid out before any common stock can receive its due. On the other hand, there are preference shares which earn dividends even when the company does not report operating income. On the other ha.

1. Running head: STOCK PERFORMANCE AND EQUITY
INVESTMENTS 1
STOCK PERFORMANCE AND EQUITY INVESTMENTS 2
Stock Performance and Equity Investments
How are the stocks in your watch list performing since you first
selected them?
The table below shows the comparison in stock performance
between the time we last viewed them and current market
performance.
Company Selection and Stock Watch
No.
Date
Stock Name
Stock Symbol
Current Price
Exchange Traded On
Financial Facts
1
07/29/14
Puma Biotechnology
PBYI
$222.00
NYSE
Trade Value 147.24m

2. Market cap 6.69b
Share Volume 30,117,819
9/4/14
$ 262.20
Trade value 147.24m
Market cap 7.8 b
Share volume 30,117,819
2
7/29/2014
Birks Group Inc.
BGI
$1.47
AMEX
Market cap $26.23m
Share Volume 17,840,568

3. P/E ratio 39.67
9/4/14
$1.08
Market cap 23.9m
Share volume 14.8m
P/E ratio -
3
7/29/2014
GoPro
Gpro
$44.07
NASDAQ
Market cap $5.43b
Revenue per employee $1.53m
P/E ratio 76.70

4. $ 53.94
Market cap 5.4 b
Revenue per employee 1.53m
p/e ratio 79.2
4
7/29/2014
Dollar Tree
DLTR
$54.44
NASDAQ
Revenue per employee: $91,245
P/E Ratio: 19.21
Market cap $11.35b
1
$55.57
Revenue per employee $ 93, 200
p/e ratio 19.36
market cap $ 11.40b

5. 7/29/2014
El Pollo Loco Holdings
LOCO
$29.90
NASDAQ
2013 Sales Growth: 7.19%
Revenue per employee: $70,567
Market cap: $990.13m
5
$ 34.39
2013 sales growth 2.3%
Revenue per employee $ 750.12m
Market cap $1.23 b
As reported in the above table, most of the stocks that had
been selected had reported considerable growth. This is with

6. exception of El Pollo Loco Holdings and Birks Group Inc. this
shows that the general economic infrastructure is allowing
growth in different industries. Of the companies that were under
watch, Puma Biotechnology recorded the highest rise in shares
price. This was due to the perceived strength in the competitive
advantage that the company continues to command in its
category. The El Pollo Loco Holdings however reported poorly
on stock market despite the rise in the share price. This was due
to the perceived loss of preference for the shares. This is due to
the fact that the value of the stock is not proportional to the
returns on investments which have been relevantly low.
Do any of the firms selected have preferred stock or convertible
investments available?
El Pollo Loco Holdings Inc, Dollar Tree, GoPro, Birks Group
Inc and Puma Biotechnology do not have preferred or
convertible investments. The difference between preferred
shares and common stock is usually drawn from the payment of
dividends.
The level of preference varies from one company to another. In
this case I will discuss two types of preference. First there is
preference in ensuring that all dividends to preference shares
are paid out before any common stock can receive its due. On
the other hand, there are preference shares which earn dividends
even when the company does not report operating income.
On the other hand, convertible stocks are stocks which can be
converted from preference stock to common stock at the request
of the stock holder. Depending on the company policy, the
shares once converted to common stock may either retain or
lose their convertibility.
References
http://www.marketwatch.com/investing/stock/loco/financials/bal
ance-sheet
http://www.gurufocus.com/term/Preferred%20Stock/FRA:DT3/P
referred%2BStock/
http://www.gurufocus.com/term/Preferred+Stock/GPRO/Preferr

7. ed%2BStock/
http://www.gurufocus.com/term/Preferred+Stock/BGI/Preferred
%2BStock/
http://quote.foxbusiness.com/symbol/loco/#news
http://investing.businessweek.com/research/stocks/snapshot/sna
pshot.asp?ticker=BGI
http://www.zacks.com/stock/research/GPRO/equity-research
http://www.marketwatch.com/investing/stock/dltr
http://investing.businessweek.com/research/stocks/snapshot/sna
pshot.asp?ticker=PBYI
Ratio Analysis
Sheet1Ratio AnalysisDollar Tree, IncDollar Tree, InBalance
SheetConsolidated Income StatementMay 22 2014may 22
2014AssetsLiabilities and Shareholders' EquitySales$
2,000.3Current AssetsCurrent liabilitiesCost of products
sold1,303.7Cash and cash equivalents$ 387.1Short-term
debtGross Profit696.6Receivables (net of allowance)92.8Long-
term debt due within a year196.4Selling and administrative
expense696.6Inventories1,042.9Accounts
payable447.0Operating income231.9Other current
assets14.2Other accrued liabilities81.1Other income- 0Total
current assets1,537.0Total current liabilities724.5Earnings
before interest and taxes231.9Property, plan and
equipmentInterest expense8.1Land609.1Long-term
liabilitiesTaxes85.5Buildings529.5Long-term debt757.0Net
income$ 138.3Equipment88.9Deferred taxes5.5Less
accumulated depreciation112.0Other long-term
liabilities153.2Total property, plant and equipment1,115.5Total
long-term liabilities915.7Other noncurrent
assets305.5Shareholders' equity1,317.8Total assets$
2,958.0Total liabilities and shareholders' equity$ 2,958.0Ratio
analysisLiquidity ratios:Current ratio2.12Quick
ratio0.68Activity ratios:Inventory turnover1.9Receivables

8. turnover21.6Days sales outstanding16.9Fixed asset
turnover1.8Total asset turnover0.7Profitability ratios:Gross
profit margin34.8%Operating profit margin11.6%Net profit
margin6.9%Return on assets4.7%Return on
equity10.5%Leverage ratios:Debt / Net worth0.6Debt
ratio55.4%Coverage ratios:Times-interest-earned28.6Analysis
of Dollar Tree financial health
Sheet2Ratio AnalysisGoPro IncGoPro InBalance
SheetConsolidated Income StatementJune 30 2014June 30
2014AssetsLiabilities and Shareholders' EquitySales$
480.3Current AssetsCurrent liabilitiesCost of products
sold280.9Cash and cash equivalents$ 104.9Short-term debt$
54.9Gross Profit199.4Receivables (net of allowance)49.2Long-
term debt due within a year78.8Selling and administrative
expense199.5Inventories80.4Accounts payable12.5Operating
income (loss)(0.1)Other current assets65.4Other accrued
liabilities66.3Other income(3.2)Total current assets299.9Total
current liabilities212.5Earnings before interest and
taxes(3.3)Property, plan and equipmentInterest expense-
0Land45.2Long-term liabilitiesTaxes5.5Buildings27.3Long-
term debt41.4Net income$ (8.8)Equipment32.2Deferred
taxes3.0Less accumulated depreciation12.4Other long-term
liabilities10.7Total property, plant and equipment92.3Total
long-term liabilities55.1Other noncurrent assets- 0Shareholders'
equity124.6Total assets$ 392.2Total liabilities and
shareholders' equity$ 392.2Ratio analysisLiquidity
ratios:Current ratio1.41Quick ratio1.03Activity ratios:Inventory
turnover6.0Receivables turnover9.8Days sales
outstanding37.4Fixed asset turnover5.2Total asset
turnover1.2Profitability ratios:Gross profit
margin41.5%Operating profit margin-0.0%Net profit margin-
1.8%Return on assets-2.2%Return on equity-7.1%Leverage
ratios:Debt / Net worth0.3Debt ratio68.2%Coverage
ratios:Times-interest-earned- 0Analysis of GoPro Inc financial
health

9. Running Header: Ratio Analysis
1
Introduction
This is a financial analysis of two companies both incorporated
in the United States. The corporations are GoPro Inc. and Dollar
Tree Inc. the financial statements on which the financial health
analysis relied on are the reports for:
(1)Financial statements for the period ending June 30 2014 for
GoPro Inc. and
(2) Financial statements for the period ending May 22, 2014 for
Dollar Tree Inc.
The ratios on which the analysis is done are those relating to the
liquidity of the firm which measure how the firm can meet its
obligations as and when they fall due, activity ratios covering
how efficiently the firm is in converting its assets into money,
profitability ratios, leverage and coverage ratios.
Liquidity
Dollar Tree Inc. has a current ratio of 2.12 and a quick ratio of
0.68 while the ratios are 1.41 and 1.03 respectively for GoPro.
By looking at the ratios Dollar tree has a higher ability to pay
back its short-term assets than GoPro. However, given that in
both cases each and every ratio is greater than unity; both the
firms are able to meet their debt obligations when they come
due. This suggests that both of the companies are in good
financial health. However, the quick ratio for GoPro is less than
one and this is pointer that exclusive of the inventories, it may
not be able to meet its obligation as and when they fall due.
However, we cannot rule out its ability since it can have a
variety of ways of seeking funding (Weygandt, 2006).
Activity
The inventory turnover of 1.9 and 6.0 for Dollar Tree and
GoPro respectively point out that it takes Dollar Tree a shorter
time than GoPro to sell and replace its inventories. GoPro is

10. less likely to hedge against slow-moving stock and this may
interfere with its cash flow systems. As for the receivables
turnover Dollar Tree has 21.6 and GoPro has 9.8. Again, GoPro
needs to reassess its credit policies to ensure the timely
collection of its finances that are not earning interests. As for
Days Sales Outstanding, it takes Dollar tree 17 days compared
to GoPro’s 37.4. this implies that GoPro is likely to suffer
revenues flow interruptions hence this may compromise its
financial health.
The fixed asset turnover and total assets turnover for Dollar tree
and GoPro are 1.8 and 0.7 and 5.2 and 1.2 respectively. Again,
Dollar is more effective in using its investments in fixed assets
and total assets in general to generate revenues. GoPro is less
effective in marshaling its assets to generate revenues which
again may impose financial health challenges (Bodie & Marcus,
2014).
Profitability
Dollar Tree has a gross profit margin and operating profit
margin of 34.8% and 11.6% while GoPro has 41.0% and 0.00%
respectively. Dollar Tree is more financially healthy as it has a
higher proportion of money left over from revenues after taking
into account the costs of goods sold and is more operationally
efficient and has better pricing strategy than GoPro.
As for the return on assets and returns on equity, Dollar Tree
has a 4.7% and 10.5% compared to GoPro’s -2.2% and -7.1 for
ROA and ROE. Dollar Tree is more efficient at using its assets
to generate earnings than GoPro. It is thus able to use its
earnings to fulfill the financial needs implying it is financially
healthy. GoPro is registering losses on equity and assets and is
no financially healthy (Bodie & Marcus, 2014).
Leverage
Dollar Tree Inc. has a Debt/Net Worth and Debt ratio of 0.6 and
55.4% compared to GoPro’s 0.3 and 68.2%. Dollar is more
aggressive in its financial policy as it finances majority of its
operations by debt and is more likely to get higher returns as it
will hardly experience cash flow interruptions as compare to

11. GoPro. As for the debt ratio, Dollar tree has a lower value than
GoPro implying that GoPro is more at financial risk than Dollar
Tree as it may be a victim of shareholders’ unrest as they may
not be able to meet their obligations.
Coverage
Dollar tree has a time-interest earned ratio of 28.6 compared to
nothing for GoPro. The implication of this for GoPro is that it
cannot meet its obligations as and when they fall due. The
danger with this scenario is that the company could be forced
into bankruptcy and this is a serious and undesirable
antecedence. This ratio is so much dependent on the company’s
ability to sustain its earnings (Weygandt, 2006).
Conclusion
Based on all the ratios it is apparent that GoPro is not
financially healthy. This is based on its low turnover ratios,
high leverages, zero coverage, low profitability, and liquidity
and activity ratios. Also, based on the financial statements,
dollar Tree Inc. is financially healthy and seems to promise
good returns on any investment made. However, it is important
to put a disclaimer that the financial statements are prone to
human errors and some are based on approximations that do not
apply the real situation that exists within the corporation.

12. References
Bodie, Z., & Marcus, A. K. (2014). Essentials of Investments,
5th ed. . McGraw-Hill Irwin. p. 459. ISBN 0-07-251077-3.
Weygandt, J. J. (2006). Accounting Principles (4th ed.). New
York, Chichester, Brisbane, Toronto, Singapore: John Wiley &
Sons, Inc. p. 801-802.
Running Header: Investments, Interest Rates and Risk
1
The stocks/investments chosen are those of:
Stock
Industry
Company Line of Business
GoPro
Merchandise
Develops, manufacturers and markets cameras
Dollar Tree
Merchandise
Operation of $1 dollar stores
El Pollo Loco
Restaurant
Operates chains of restaurants
US Federal Bonds
-
Purposefully issued by the FOMC for monetary policy

13. Bank of America Bank Certificates
Banking
Banking services provision
Which of the five investments do you think are most highly
affected by the level of interest rates in the economy? Why?
Bank of America Bank Certificates. I think this is the most
likely investment to be affected by interest rates because of the
nature of business it deals in. For instance, the bank enters into
contracts with its debtors (loan beneficiaries) such as fixed
interest mortgages and loans. If it turns out that the interest
rates rise above the agreed levels, they cannot raise them to
hedge against possible losses. Their profits will be adversely
affected in the case of such an eventuality.
The investments in the merchandise industry are least affected
by interest rates because they deal in a variety of products
supplied from several industries and the possible loss is
diversified in its products (Campbell, 2005).
Rank the five investments in order of the most risky to the least
risky and explain in detail why you ranked them in that manner
Least Risky
Most Risky
(1)
(2) (3)
(4)
(5)
US Federal Bonds
El Pollo Loco & Dollar Tree
GoPro
Bank of America Bank Certificates
US Federal Bonds are the least risky because they will always
pay the interest rate on them. This will be paid even if it will
have to cumulate to next years. Actually there is ‘zero’ risk
investing in them. They are also backed by the creditworthiness
of the government.

14. El Pollo Loco and Dollar Tree fall in the same industry so they
considerably fall in the same class of risks. They come before
GoPro because of the diversified nature of products the
companies deal in. Their revenues flows are less likely to be
affected by seasons and business cycles. They can diversify
products to preserve revenue flows.
GoPro is the fourth least risky (second most risky) because of
the line of business it deals in. It deals in cameras whose
demands can easily be affected by business cycles and
fluctuations and they may have little or nothing to do to
preserve undesirable revenue fluctuations.
Bank of America Bank Certificates is the most risky because it
suffers highest due to interest rate fluctuations and it has a lot
of its assets in the hands of debtors who may default on their
payment. Their profits also take long to actualize. For example,
a mortgage loan closed today may run for as long as 30 years
(Ghysels, 2012).
What types of risk do you think affects each of the investments?
US Federal Bonds
El Pollo Loco
Dollar Tree
GoPro
Bank of America Bank Certificates
· Inflation risks
· Inflation risks
· Interest rate risks
· Inflation risks
· Exchange rate risks
· Inflation risks
· Market risks
· Default risks
· Inflation risks
· Interest rate risks
References
Campbell, J. Y. (2005). The term structure of the risk-return
tradeoff. No. w11119. . National Bureau of Economic Research.

15. Ghysels, E. P.-C. (2012). "There is a risk-return trade-off after
all. Journal of Financial Economics 76: 509-548.
Company Selection & Stock WatchCompany Selection and
Stock WatchNo.DateStock NameStock SymbolCurrent
PriceExchange Traded OnFinancial Facts107/29/14Puma
BiotechnologyPBYI$222.00NYSETrade Value 147.24mMarket
cap 6.69bShare Volume 30,117,81927/29/14Birks Group
Inc.BGI$1.47AMEXMarket cap $26.23mShare Volume
17,840,568P/E ratio
39.6737/29/14GoProGpro$44.07NASDAQMarket cap
$5.43bRevenue per employee $1.53mP/E ratio
76.7047/29/14Dollar TreeDLTR$54.44NASDAQRevenue per
employee: $91,245P/E Ratio: 19.21Market cap
$11.35b57/29/14El Pollo Loco
HoldingsLOCO$29.90NASDAQ2013 Sales Growth:
7.19%Revenue per employee: $70,567Market cap: $990.13m