AC 4103

FINAL GUIDE on towards SOFT LANDING;

Group Work:
Favor please;
For the last weekly advisory ; kindly provide two tables on all moving stock prices
on your selected move and your non selected move covering only the weekend
from start after midterm cut off to last Friday Dec 15. Plus the growth percentage.
Kindly indicate again please if you are on the offense or defense for my easier
referencing, thank you.
Did your company have last cutoff Santa rally which started last Thursday ? Or
your company was hit by the fund rotation of the institutional fund managers.
Were your forecasted companies on our previous participation activities won
among its peers? Hope so, but then, what is important is the learning and
experience that you had even though you did not employ real money. As one day,
you will navigate and will start creating your portfolio and you will remember all of
these. Here’s to all of you becoming millionaires at the earliest age, the better.
Though stay as humble and good natured as you are, yet smart and not deceived
in this world we live, remember, the smartest in the room might not be the one
having the highest exam scores. Yet you can always be both street smart and
book smart if you just have to be open minded and learn how to play both games.
Now, on top of the previously advised minimum contents on previous topics
Cashflow and Capital Structure. ( four topics to be included as a minimum on your
final group work = cashflow, structure, dividends, working capital ) here are the
other two topics;
Minimum contents = Dividends:
1. Dividend policy of the company. Is it optimal? Observe and contrast payout
ratio, and dividend per share , for the last 5 years. If no dividends, your take
on the company’s policy on non issuance of dividends. Does the company
employ regular plus extra?
2. Contrast the dividend policy of the company as to its profitability, and
cashflow, for the last 5 years.
 3. Any observable theory? MM theory, bird in the hand, signaling or clientele.
4. Contrast behavior of the stock as to how it reacts to declaration date, ex
dividend date, and payment date. For the last 5 years.
5. Any stock dividends, repurchases?
Minimum contents = Working capital.
1. Level of current assets for the last 5 years. Its composition in total assets as
contrasted with long term assets. Is the company employing relaxed,
moderate or restricted current assets level over the last 5 years. You can
also contrast this with the company’s growth = topline/sales, bottom
line/profitability for the last 5 years as well.
2. Levels of net working capital, NOWC, for the last 5 years.
3. What is the company’s financing on the total assets for the last 5 years, i.e.,
contrast short term vs. long term financing.
4. Realizations on cash, marketable securities, cash conversion cycle,
inventories, receivables.
5. Realization on trade payable, bank loans, commercial paper ( if any ),
accruals.
Note guys, these are just the minimum requirements as to contents and topics ,
you can add if you wish, since as what we agree this activity is a competition
amongst the different groups.

There you kidos. Please submit your work on or before Dec 22 ( Friday ) so you
can also enjoy the holiday season already. Let the market digest on all of our
endeavors.

All the best kidos,

As you move on with your careers, there are only two things that you should not
trade with the treasures of this world = your health and your values ( integrity ).
Here’s to your first million.
Sincerely,
Sir Oscar