McMaster University Apple Inc Team Investment Project

The second part of the project will involve choosing a company within the industry chosen for the firstpart and prepare a report for individual investors on the company’s prospects, including arecommendation as to the whether the stock is a buy, sell or hold; the type of portfolio for which it isappropriate (income, growth, value, speculative, etc); and the investment horizon of the investor forwhom it is recommended (day-trader, short-term (up to one year), medium-term (up to five years) or longterm (forever if your client is Warren Buffett)). In this part you should consider the quality of themanagement team (e.g look at its track record in creating value for investors), You should also look atrecent years’ financial data for the company. These can be obtained for the companies’ annual reports, 10-K reports, etc (look at the SEDAR website for Canadian companies and the EDGAR website for UScompanies). The various sources of information you consult can then be used to make forecasts about thecompany’s future prospects and arrive at an estimate of the value of the company’s common stock (usingvaluation tools introduced in the course; you should consider multiple (at least two) valuation methods).Your consensus estimate (or, more likely, range of estimates) should then be compared with the currentprice (the current price should be the closing stock price on any date between November 15 andDecember 15; identify the date chosen in your report) in order to arrive at your recommendation. Thecompany report (15 pages approx with supporting analysis, tables, figures, etc)