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Case 2: Investing Information


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Mandy Hackley presents on how to locate and understand Investing Information, using free and widely available resources. For the Maryland Library Association conference, Mary 14, 2009.

Published in: Business, Economy & Finance
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Case 2: Investing Information

  1. 1. Case 2: Investing Information Mandy Hackley, MLS May 14, 2009 Maryland Library Association Ocean City, MD
  2. 2. Bob Cratchit My patron, Bob Cratchit, is looking for a new job. He wants to thoroughly research his next employer. Where can he start his research? What resources can he trust as being valid?
  3. 3. The Annual Report! Bob decides to start by looking at his future  company’s annual report. The annual report can usually be found on the company web site. The company web site is also a great way to see  how the company markets itself. The annual report includes:  ◦ Stock reports ◦ Ratios ◦ The company’s vision
  4. 4. Starbucks!
  5. 5. Highlights from the Annual Report STARBUCKS MISSION STATEMENT AND  GUIDING PRINCIPLES To establish Starbucks as the premier purveyor of the  finest coffee in the world while maintaining our uncompromising principles as we grow. Provide a great work environment and treat each other  with respect and dignity. Bob loves this as his last employer wasn’t always kind! Develop enthusiastically satisfied customers all of the  time. Contribute positively to our communities and our  environment. Recognize that profitability is essential to our future  success.
  6. 6. What Has Bob Learned from the Annual Report? Starbucks is a publicly owned company  Because it is publicly owned it is sold on a stock exchange  and all of its financial information is public knowledge. Starbucks is sold on the Nasdaq exchange  SBUX is Starbucks’ ticker symbol.  Starbucks values their employees.  Now we will turn to a third party for information about Starbucks.
  7. 7. Big What is Big  ◦ BigCharts is the world's most comprehensive and easy-to-use investment research Web site, providing access to professional-level research tools such as interactive charts, quotes, industry analysis and intraday stock screeners, as well as market news and commentary.  Taken from on May 10, 2009
  8. 8. It gets better…. Big is maintained by MarketWatch, Inc., which is a service of Dow Jones and Company . Dow Jones publishes the Wall Street Journal which many business people love!
  9. 9. So we know Big Charts is a reliable source but what can it do? It can draw charts that compare companies  to the top 500 public companies according to Standard and Poor’s  Big Charts can also give you up to 5 years of data regarding your company’s stock price.
  10. 10. Here we see that Starbucks isn’t doing so bad…..
  11. 11. Big Charts also provides industry information. Any guesses as to the best and worst industries according to Big Charts?
  12. 12. ?????????????? Best Industry: Forestry and Paper Worst Industry: Mortgage Finance retrieved 5/13/09
  13. 13. Let’s talk briefly about a book. Standard and Poor’s Industry Surveys  give detailed information about particular industries. For the restaurant industry it covers:  ◦ Current Environment ◦ Industry Trends ◦ Industry Operations ◦ Ratios and Statistics ◦ Industry Terms ◦ Comparative Company Analysis
  14. 14. S&P Industry Surveys are updated frequently in the book format. There is also an online version.
  15. 15. S&P Industry Surveys If your public library does not have the survey books it might be worth it to see if a library close to you does. Perhaps, your patron won’t mind taking a short trip? Especially, if he is like my patron , Bob, and making a career switch from book keeper to barista!
  16. 16. Value Line.. is called “The Most Trusted Name in Investment Research” because that is just what it is!
  17. 17. Value Line is very popular for investment clubs. Perhaps you have seen these people  in your library?
  18. 18. You don’t have to know everything about VL but you might want to know this: Ranking: VL ranks all stocks on a  scale of 1-5. 1 is highest and 5 is lowest!  Analysis: This part of VL is a narrative about your stock. Here a commentator will analyze the future of your stock. This is a highly valued aspect of VL
  19. 19. What does the VL narrative look like? Well, isn’t exactly a Danielle Steel novel but there it is on the bottom of the page. Click here to see this page on the web.
  20. 20. More to know about Value Line.. Historical Data: Here you can see how  your stock sold in the past. Ratios: The most popular ratio is the  Price/Earning ratio. ◦ What is a P/E ratio?  The most common measure of how expensive a stock is. The P/E ratio is equal to a stock's market capitalization divided by its after-tax earnings over a 12-month period. From
  21. 21. Hmmmm? I, myself just like to know where I can find the P/E not how I would figure out the P/E!
  22. 22. Value Line University Value Line has wonderful help pages on their site. So be a wise owl and visit VL university!
  23. 23. What happened to Bob? In the end Bob decided that Scrooge would have to see the ghosts of Christmas past without his help and he went off to work at Starbucks!!