Describes the team investment strategy

Reference no: EM131950406

PROJECT DESCRIPTION: Investments

There is a team project. Each team will be given $ 20,000,000 to invest. The funds must be invested in U.S. dollar securities.

PERMITTED INVESTMENTS:

Cash Equivalents.

2 to 5 year bonds or notes with a rating of C to BB or Ba by either Moody's Investor Services or Standard & Poor's Corporation.

Common stock that trades on the NYSE or NASDAQ with a share price of $ 5 or under.

Each team is only allowed to buy and sell twice during the semester and all positions must be liquidated in the final report. This means that each position can be bought and sold and replaced and sold during the semester.

WRITTEN OBLIGATIONS:

All purchase and sale decisions MUST be documented in a memo addressed to me.

All transactions must occur on the day of class at the closing price of the security.

The memo is due by the end of day AFTER class. This means it must be submitted electronically to my email account.

The memo must state the face amount of the security purchased or sold, price per security and, therefore, total dollars invested or realized on a sale transaction.

AND the reason for making the investment or the sale.

This is, obviously, the most important part of the memo.

Finally, a summary document that describes the team's investment strategy from beginning to end, including internal and external influences, is due the last day of class. It will be presented orally in a very short presentation (LESS than 9 PowerPoint slides). This document and its oral presentation are the most important parts of this assignment.

This info was just sent to me by the group for the memo:

Also, we never specified the type of bond that was purchased. Looking back there is a Treasury bond with a coupon maturity date of 3/31 that was paying a interest rate of 2.875% available on the date of our purchase.

We should be sure to specify the details of the bond purchase in the final memo, the bid on the purchase date was $100.18.

Some research on Cenveo (CVO) which is our biggest loser and feel like there is enough to talk about as to why this could have been a good opportunity. They are in the process of going through a Chapter 11 bankruptcy but have secured debtor in possession financing of $290 million to secure and grow its business, as well as landed a contract with the United States for the Census 2020 for $61 million. They brought back the previous CFO who served from 2007-2012 to help restructure the finances of the company.

Attachment:- Assignment Files.rar

Reference no: EM131950406

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Reviews

len1950406

4/20/2018 3:08:39 AM

Topic: Investments Detailed Question: I was not a part of the first memo, and our investment performance was horrible. The memo was also poorly written, and the only chance we have to save our grade for this project is to talk about how we underestimated sector diversification because we are mostly invested in the tech sector. We can also talk about how we didn't expect the tech sector to take such a hit these last few months, one of our companies almost lost all of its value. Another fact about our project is that we didn't sell when we had one opportunity to do so. We're going to have to prove to the professor that we made many mistakes that we learned from undertaking in this project. We can even talk about with what we learned during the semester what we would do differently with some examples. These are some ideas I'd like to share my ideas on how to tackle this homework, thank you.

len1950406

4/20/2018 3:08:33 AM

The memo should be to the point because it's only a memo, remember we didn't take advantage of the one sell and buy option we had. We only bought those stocks that i sent in the memo. The summary is part two and should also be about a page long. There's also a power point presentation. Memo can be one page, summary will probably be one page also, it is not due tomorrow but would like to have it ready along with the powerpoint slides by Monday.

len1950406

4/20/2018 3:08:23 AM

The grade on the project will be based on the quality of the memos and the presentation as well as market performance of the team's decisions. (Though price performance will be the least important part of the grade. However, the top two or three teams from the perspective of overall price performance will be given additional credit).

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