Financial Analysis

Financial Analysis



Financial Analysis

a.Determine the percentage increase or decrease in each of your stocks over the period of your investment (8/29-9/30) and provide that percentage in a table like the one below. In addition, offer the primary reason for this change in the stock price based on news about that stock or your own intuition. To review the recent news about each of your stocks, click on http://finance.yahoo.com/?u and insert the ticker symbol for each firm. Recent news is provided at the bottom of the screen.

NAME OF FIRM

PERCENTAGE CHANGE IN STOCK PRICE

PRIMARY REASON

1. Barclays PLC

(BCS)

The percentage change in stock price in Barclays PLC (BCS) has experienced a decrease of 10.02% from 29th August to 30th September 2011.

The primary reason for the decrease in the stock has been the recent development Goldman Sachs and Morgan Stanley. These banks have reached their lowest stock index value and are expected to incur enormous losses. This has certainly created a negative impact on Barclays PLC.

2. Toyota Motor Corp (TM )

The percentage change in stock price in Toyota Motor Corp has experienced a decrease of 5.33% from 29th August to 30th September 2011.

The primary reason for the decrease in the stock has been the low production of Toyota and it has now touched the pre-tsunami production level. Low production is the main reason.

3. McDermott Intl

(MDR)

The percentage change in stock price in McDermott International has experienced a decrease of 23.31% from 29th August to 30th September 2011.

The primary reason for the decrease in the stock has been the declining of shares of Orion Marine Group because they have faced uncertain and tough times exacerbated by the inaction of US Federal Government for funding costly infrastructure projects. As, McDermott International deals in the same industry and are going to face the same consequences, their stock prices have decreased.

4. ConocoPhillips

(COP)

The percentage change in stock price in ConocoPhillips has experienced a decrease of 6.58% from 29th August to 30th September 2011.

The primary reason for the decrease in the stock has been the malfunction that occurred in ConocoPhillips refineries which created a negative impact on the production but the company resolved the problem at the end of last month.

Portfolio (average)

The overall portfolio (average) was a decrease in 11% which all the companies experienced.

The primary reason was the external conditions rather than any internal issues of the company.

Determine whether the performance of each of your U.S.-based MNCs (MDR and COP) is driven by the U.S. market. Go to the site http://finance.yahoo.com/?u and insert the symbol for your stock. Once the quote is provided, click on Chart. Click on the box marked S&P (which represents the S&P 500 Index). Then, click on Compare and assess the relationship between the U.S. market index movements and the stock's price movements. Explain whether the stock's price movements appear to be driven by U.S. market conditions. Repeat this task for each U.S.-based MNC in which you ...