1. SHELLY LOMBARD AND STEPHEN WEISS WALL STREET MOOC
WEEK 5 ASSESSMENT
WALL STREET MOOC: Understanding Financial Markets
Week 5 Assignment Overview
March 24, 2014 - April 7, 2014
2. SHELLY LOMBARD AND STEPHEN WEISS WALL STREET MOOC
ASSESSMENT
• Because you’ve made it this far
• Because you want your efforts recognized by an attestation
of success
• Because you will learn even more by doing so and gain
valuable feedback from your peers
• Because it’s actually fun, can be done at your home and
either in written or video format
• Because you can win an iPad!
Why complete the assessment?
3. SHELLY LOMBARD AND STEPHEN WEISS WALL STREET MOOC
ASSESSMENT
•Pick the stock of one the following companies: Adidas, Apple, Google, Krispy Kreme
Doughnuts, L’Oreal, Lululemon, Microsoft, Nike, Orange, Starbucks, Under Armour
•Write a 2 page investment recommendation
•Follow clear guidelines introduced during the week 3 Spreecast
1st OPTION: written investment pitch
•Pick the stock of one the following companies: Adidas, Apple, Google, Krispy Kreme
Doughnuts, L’Oreal, Lulelemon, Microsoft, Nike, Orange, Starbucks, Under Armour
•Prepare a 2 minute video-based stock pitch
•Follow clear guidelines introduced during the week 3 Spreecast
•The student with the best video (as determined by the FIRST FINANCE Institute panel of
judges) will win an iPad mini.
2nd OPTION: video investment pitch
4. SHELLY LOMBARD AND STEPHEN WEISS WALL STREET MOOC
ASSESSMENT
• a. what macroeconomic factors could impact the industry or the company's sales/earnings growth
• b. does management's growth strategy make sense? will it work?
• c. competitive analysis: how does their product/price compare with competitors?
• d. market share: do you expect them to gain or lose market share? why?
• e. what catalysts can be identified
(1) Future sales and earnings growth (0-20 points)
• a. what multiple is the stock trading at
• b. what are the comparable companies
• c. what multiples are the comparable companies trading at
• d. is the stock we're opining on trading at the right multiple? should it trade at a higher or lower
multiple and why?
• e. price target
(2) Stock valuation (0-20 points)
Your written stock recommendation or video pitch will cover the following points:
5. SHELLY LOMBARD AND STEPHEN WEISS WALL STREET MOOC
ASSESSMENT
• a. how liquid is the stock? what exchange does it trade on? is it included in the
S&P 500 or the DJIA?
• b. what is the 52 week high? 52 week low? i.e. how volatile is the stock price?
• c. are there options? would you buy puts or calls on this stock? why?
• d. does the company have bonds? what are they rated? what is the yield/spread
to treasuries on the largest bond issue?
• e. what are the risk factors to your thesis?
(3) Other considerations (0-20 points)
• a. does the stock recommendation make sense? Is it globally coherent?
• b. is the form of the recommendation appealing, persuasive?
General coherence and interest (0-20 points)
6. SHELLY LOMBARD AND STEPHEN WEISS WALL STREET MOOC
ASSESSMENT
• Yahoo Finance
• Seeking Alpha
• Motley Fool
• Bloomberg.com
Online Resources to use:
• http://askanalyst.com/equity_research_outsourcing_sample_oracle.pdf
Example of analyst report on Oracle
7. SHELLY LOMBARD AND STEPHEN WEISS WALL STREET MOOC
WEEK 5 ASSESSMENT
Good Luck!
