Dublin Institute of Technology Alibaba Global Holding Investment Report

Your final report, limited to 8-10 pages plus references, tables, exhibits, and appendix, should include the following parts:

1. Summary

The executive summary should include a summary of all of the key points, the idea is that an investor can read the summary and if it appears logical and in line with expectations the recommendations can be followed without the need to read further. This is in fact the most important part of the report and should be written last. The summary should include a summary of all parts of the report including recommendations.

2. Contents

The Contents of the report should be consistently laid out throughout the report and you should include both page numbers and title numbers.

3. Introduction

The introduction should say why the report is being written.

4. Main Body

The main part of your report will be the information you have found. With thorough research and analysis you will be able to come to effective conclusions and create recommendations.

5. Conclusions

The conclusions should summarize the main body section, do not include diagrams or graphs in this area. This area should be short, clearly follow the order of the findings and lead naturally into the recommendations.

6. Recommendations

All reports should include recommendations or at least suggestions. It is important to make sure that there is at least an indicator of what the Return on Investment would be. Make sure that your recommendations clearly follow what is said in the conclusion.

EACH student writes his/her best idea of a long-term investment, distressed/turnaround or short sale investment idea fitting the following description:

TURNAROUNDS: FOCUS ON LEFT-FOR-DEAD SECTORS/STOCKS For example, an analyst covers a sector that is very out-of-favor and mentions that XYZ Inc. hit estimates and you realize it’s the first time in many quarters that they didn’t miss. You look at the chart and its very saucered out as the market has run out of sellers to depress it further. You ask the key turnaround GRID question: is there any quantitative evidence that the worst is behind XYZ (this means you are looking for some sign that the fundamental problems inflicting XYZ have abated or turned course). You then run XYZ through the rest of the GRID.

TURNAROUND GRID: Left for dead, leading to deep undervaluation given healing process underway

VALUATION: Deep discount (P/E, EntVal/Sales, EntVal/EBITDA) to group or historicals

FUNDAMENTAL TRENDS: Quantitative signs that the worst is behind the company

SENTIMENT: Negative or neutral (mostly hold ratings on sellside and buyside doesn’t care)

BALANCE SHEET: Non lethal (coverage of debt service by 2 to 1)

TECHNICALS: Seems “bottomed out” on a chart

MANAGEMENT: Either new (replaced) or improved (admitted they had problems and are fixing them)

SHORTS: FOCUS ON BUY-RATED STOCKS (Streetwide – use ANR function- Analyst recommendations and consensus rating) with toppy charts (e.g. MACD W chart) and estimate trends (e.g. EE- earnings estimates chart). Typical tip offs are when an analyst keeps a buy rating on a stock but either a) slightly cuts estimates or b) hasn’t raised estimates in a quarter or two.– some quantitative evidence of deceleration at a company.

SHORT GRID: The best is behind the stock given signs of deceleration

VALUATION: Steep premium (multiple contractions will kill the stock):

FUNDAMENTALS: quantitative evidence of deceleration (estimates not going up anymore or if so, barely)

SENTIMENT: Positive/complacent (almost all buy ratings)

BALANCE SHEET: Preferably lethal: debt, receivable and/or inventory trends worrisome

CHART: Topping out: weekly chart forming a lid over stock

MANAGEMENT: Arrogant and promotional