3 pages

Seneca College of Applied Arts and Technology

School of Business Management

Public Corporation Stock Report

Subject: BUS106 - Business: Its Nature and Environment

Value: 10%+ of final grade

Professor: Pierre Yuen Phone: (416) 491-5050 ext.26313

Office: B3078 Newnham Campus E-Mail: [email protected]

This assignment is designed to familiarize you with public corporations and the major stock exchanges.

1. Select a publicly traded corporation on your own or through the resources mentioned in class. Every student must have a different corporation. You must post your choice on the Discussion Board beginning Friday, Week 7 (Before Study Week) at 6 pm and not one minute earlier . Be sure to post both your name and your choice so students can see what has been chosen.

2. Visit the company profile, available through the web site, of the stock exchange on which the company is traded. This could be any stock exchange in the world. As well, link to the company web site to obtain an overview of the company’s purpose and performance.

3. On Friday, Week 4, invest $10,000 (on paper!) in stocks issued by this company. Use the Stock Report Worksheet (see attachment) to record your purchase and track your investment once a week up to and including the week 10. You must use the closing quotes for the Friday of each week.

4. During the first class of the week 12, submit your written report in a folder. It should be word processed, 12 font, double-spaced, and include the following information:

I. A title page with your name, subject, section, assignment title, professor's name and date.

II. A one-page summary on the company. Set it up with the following sub-headings using point form.

· Company name, company mission statement or statement of purpose

· Industry area (technology, entertainment etc.)

· Major products or services

· Location of the head office, the geographic area served by this company (local, domestic, global-be specific)

· The revenue for the current year and the loss or profit for the previous year if available, (do not print the financial statements)

III. Using complete sentences, include the following:

· A brief summary of a recent company press release (written by some one in the company) and attach the document

· A brief summary of a third party news report on this company (written by some one outside the company) and attach the document

· A brief explanation on why you chose this company

IV. A one to two page analysis in essay format which details your insights and opinions on the company. For instance you might want to discuss the company’s operations, trends/challenges, social responsibility, future plans, financial stability, investment risks, recent awards, investigations or charges against the company, the CEO, employees, or board members.

Your report must relate directly to factual information you obtained from any of the following:

· The company web site

· Company annual report

· Your personal association with the company if appropriate (e.g. customer, employee, actual stock holder)

· Current news articles (i.e. at least one third party report - independent of company press release)

V. A closing paragraph, which explains what you learned from completing this assignment.

VI. A one page document citing your sources. You must use proper MLA citation format.

VII. Attach the Stock Market Worksheet & Risk Factor Checklist & Analysis (4 pages)

5. Evaluation

Your corporation report will be given a maximum of 40 marks and will then be translated into a mark out of fifteen towards your final grade.

Marking Scheme	Marks
Title page	1
Summary of company	5
Summary of press release and third party news report, why you chose this company	6
Analysis, insight and opinion on this company, what you learned by doing this assignment	12
Stock Market Worksheets 1-4	12
Your ability to write in proper essay form i.e. grammatically correct sentences, error-free spelling, organization and clarity of thought. Reference material cited using MLA style	2 2
	40

Note: Reports submitted with 5 or more spelling errors on the first page will not be marked. Please use “spellchecker” and proofread to ensure that all words including names and technical terms are spelled correctly.

Late Assignments: Late assignments will result in a penalty of 10% per day. Assignments will not be accepted after 5 consecutive days. If there are valid reasons for the late assignment, the students MUST:

a) Contact the professor no later than the date the assignment is due to indicate

the assignment will be late, and

b) Present the professor with a signed, word-processed memo indicating why the

assignment was late. If the reasons are deemed to be valid, there will be no

penalty.

Student Names: 1._______2.______3._____4._____ Section: BUS 106________________ Date: _____________

BUS106: Stock Market Worksheet

Company Name: ___NVIDA Corp______________________________ Trading Symbol (or Ticker): ____ NVDA_________

Purchase Date: _____________02/06/2015_________________________ Stock Market: _________US_____

___20.40__________ x ________490____ = ______________9996______________

purchase price number of shares total value of investment (not to exceed $10,000)

#1		#2	#3	#4	#5
Friday of each week		Stock Value (price $0.00)/share	Total Value of Gain or (Loss) from previous week Gain or (loss) from #3 in dollars and cents x the #of shares you bought	Overall Value of Investment Total gain or loss from #4 add or subtract from previous week.	Professor’s comments
Purchase date Week 4	02/06/2015	20.40	$0.00	$0.00
Week 5	02/13/2015	$22.31	$935.9	$10931.9
Week 6	02/20/2015	$22.335	$12.25	$10944.15
Week 7	02/27/2015	$22.06	$-134.75	$10809.4
Week 8	03/06/2015	$22.55	$240.1	$11049.5
Week 9	03/13/2015	$22.70	$73.5	$11123
Week 10	03/20/2015	$23.47	$377.3	$11500.3
Week 11	03/27/2015	$21.38	$-1024.1	$10476.2
Overall Gain/Loss	03/27/2015	$21.38	$-1024.1	476.2

NOTE: Always show loss in brackets e.g. (0.50) means a loss of .50/share

What is the stock’s gain or loss as a percentage of initial investment? ________________________________

Analysis:

Look at the 3-5 year history of this stock. Record the high and low price/share.

High: ____26.01_________ Low: __8.8825___________

Date: ___02/17/2011__________ Date: ______08/11/2010______

What events caused the rise and/or fall of the share prices?

On 08/11/2010, Nvidia had its lowest price of stock. It basically was because Nvidia's faced its share of challenges from AMD Radeon. (Marcus Yam AUGUST 11, 2010)

Complete the Risk Factor Checklist (page 5) Before Continuing…………..

Would you continue to invest in this company? Why or Why not?

I will continue to invest in this company, because Nvidia still has the great potential in the area of manufacturing GPUs and SOCs. Its products are widely used in many high-performance computer games around the world. Also, Nvidia has entered the mobile computing market recently. It shows a sustainable prospect.

NOTE: Attach this form to written report and submit for final grading.

Risk Factor Checklist - All stocks are risky!

Here are some factors to help you identify how risky!

For each category circle the word that best describes your stock.

CATEGORY	HIGH	MEDIUM	LOW	COMMENTS
TYPE OF STOCK	common	preferred	**********************
FINANCIAL STABILITY OF COMPANY	high debt	break-even	profit
COMPANY’S CUSTOMER BASE	few 1 region	moderate some diversification	high lots of diversification
INDUSTRY COMPETITION	high	moderate	little
INDUSTRY STABILITY	unstable	some fluctuations	little fluctuations
INDUSTRY/COMPANY RECESSION PROOF	no	somewhat	yes
STOCK VALUE FLUCTUATION (last 12 mths)	>20%	Between 10 – 20%	< 10%
STOCK HISTORY	new stock or negative history	some history mostly positive	long history positive

What other factors contribute to the risk of your stock?

· Did large amounts of stock get sold? Did an individual or company buy a large amount of stock in this company?

· On 02/12/2015 Nvdia’s stock get sold 16922588 shares. There was no an individual or company buy a large amount of stock in this company. The reason why large amounts of stock get sold is because the price of stock reached the highest point on 02/12/2015. So many people choose to sell their shares at that date.

· Is there talk of mergers, acquisitions, takeovers?

· There was no talk of mergers, acquisitions and takeovers.

· Did the company announce plans for a major launch or expansion? Did they announce that they are paying off debt, restructuring the company?

· On March 17,2015 the CEO of the Nvidia Jen-Hsun Huang announced Nvidia’s 2016 roadmap shows huge performance gains from upcoming Pascal architecture.

· Any negative press (company press release or third party)?

· Samsung sues NVIDIA for patent infringement, claims benchmark test results were fake.(  11 Nov 2014, 23:13, by Alan F)

Other risk factors:

Nvidia Corporation ( NASDAQ:NVDA ) stock has dropped 5.8% at $21.14 as of 3:23 PM EDT, in response to a report warning of the risks surrounding the ambiguity it’s licensing agreement with Intel Corporation( NASDAQ:INTC ). The agreement which has brought substantial cash payments to the graphics giant ends in first-quarter fiscal 2016 (1QFY16). ( LARRY DARRELL .  Mar 25, 2015)

Analysis:

Which categories mentioned above have a greater influence of your stock’s performance? Explain.

The report published from Larry Darrell, on March 25, 2015 had a greater influence of NVDA stock’s performance, because On March 27, 2015, my stock dropped to $21.38 and I lost $1024.1 in total. The risk of desktop GPU demand weakness, currency headwinds at channel partners, and high company inventory has brought the instability to the company and the investors.

With reference to the Risk Factor Checklist (page 5), do you think this stock is a high risk, medium risk or low risk? Why?

Based on the reference, I think NVDA stock is a medium risk. It does exist certain level of risk because of its licensing agreement with Intel Corporation, but it is a short term risk and it can be solved by adjusting the operation and negotiating with their investors. It will not cause a high risk to the stock. Also, the company has the highest technology in manufacturing products such as GPUs, which other competitors can hardly surpass. Therefore, as long as the company has its own sustainable technologies to manufacture and innovate, the stock will not have a high risk.

Now return to Page 4 and answer final question.

NOTE: Attach this form to written report and submit for final grading.