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the Instructor Center.
Assignment 1: Financial Research Report
Due Week 9 and worth 3 points
Imagine that !ou are a "nancial manager researching in#estments $or !our client
that align with its in#estment goals. %se the Internet or the &tra!er 'i(rar! to
research an! %.&. pu(licl! traded compan! that !ou ma! consider as an in#estment
opportunit! $or !our client. )*ote: +lease ensure that !ou are a(le to "nd enough
in$ormation a(out this compan! in order to complete this assignment. ,ou will
create an appendi- in which !ou will insert related in$ormation./
0he assignment co#ers the $ollowing topics:
Rationale $or choosing the compan! $or which to in#est
Ratio anal!sis
&tock price anal!sis
Recommendations
Re$er to the $ollowing resources to assist with completing !our assignment:
&tock &election
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For(es 4&i- Rules to Follow When +icking &tocks5
C** 6one! 4&tocks: In#esting in stocks5
0he 6otle! Fool 413 &teps to In#esting Foolishl!5
&eeking Alpha 40he 7raham And Dodd 6ethod For 8aluing &tocks5
In#estopedia 47uide to &tock+icking &trategies5
&eeking Alpha 47et ,our &mart eta ;ere< Di#idend 7rowth &tocks As =&trategic
eta> In#estments5
6arket and Compan! In$ormation
%.&. &ecurities and ?-change Commission 46arket &tructure5
,ahoo< Finance
6ergent @nline )*ote: 0his resource is also a#aila(le through the &tra!er 'earning
Resource Center./
&eeking Alpha )*ote: Also a#aila(le through the Android or i0unes App store./
6orningstar )*ote: ,ou can create a nocost asic Access account./
Research ;u( located in the le$t menu o$ !our course in lack(oard. Write a ten to
"$teen )11/ page paper in which !ou:
Wells Fargo
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1.Provide a rationale for the U.S. publicly traded company that you
selected, indicating the signicant factors driving your decision as a
nancial manager. 4 0his paper will determine i$ Wells Fargo is a sound stock
in#estment $or m! client. 0his has to (e determined in order to gi#e m! potential
in#estor good sound ad#ice concerning Wells Fargo. W?''& Fargo is a good stock
in#estment.0his paper will anal!Be the stock num(ers ratios at Wells Fargo as well
as show the signi"cance o$ "nance industr! to pro#e this is a "t $or m! client. Wells
Fargo is not the per$ect in#estment (ut has man! o$ the ualities that the 21st
centur! in#estor needs in an in#estment. First o$ all I will e-amine the pro"le o$ m!
potential in#estor.
2. Determine the prole of the investor for which this company may be a
t, relative to that potential investor’s investment strategy. Provide
support for your rationale. 0he in#estor likes to tr! to in#est in "nancial
institution like (anks. 0he $ollowing is a pro"le o$ the Wells Fargo Co: 4Wells Fargo
Co. is a nationwide di#ersi"ed communit!(ased "nancial ser#ices and (ank
holding compan!. It pro#ides (anking insurance in#estments mortgage and
consumer and commercial "nance through its stores A06s the Internet and other
distri(ution channels across *orth America and internationall!. 0he compan!
operates through three operating segments: Communit! anking Wholesale
anking and Wealth rokerage and Retirement. 0he Communit! anking segment
oEers a complete line o$ di#ersi"ed "nancial products and ser#ices to consumers
and small (usinesses. It also oEers in#estment management and other ser#ices to
retail customers and securities (rokerage through aliates. 0hese products and
ser#ices include the Wells Fargo Ad#antage Funds &6 a $amil! o$ mutual $unds. Its
'oan products include lines o$ credit auto Goor plan lines euit! lines and loans
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euipment and transportation loans education loans origination and purchase o$
residential mortgage loans and ser#icing o$ mortgage loans and credit cards. 0he
Wholesale anking segment pro#ides "nancial solutions to (usinesses across the
%nited &tates. It also pro#ides a complete line o$ commercial corporate capital
markets cash management and real estate (anking products and ser#ices. 0he
Wealth rokerage and Retirement segment pro#ides a range o$ "nancial ad#isor!
ser#ices to clients using a planning approach to meet each clients needs. It also
pro#ides aJuent and high net worth clients with a complete range o$ wealth
management solutions including "nancial planning pri#ate (anking credit
in#estment management and trust. 0he compan! was $ounded (! ;enr! Wells and
William 7. Fargo on 6arch 1K 1K2 and is headuartered in &an Francisco CA5
).http:LLwww.marketwatch.comLin#estingLstockLw$cLpro"le/. Wells Fargo oEers
di#erse "nancial ser#ices. 0his "ts the pro"le o$ m! potential in#estor (ecause he
wants to (e in#ol#ed in a compan! that oEers "nancial ser#ices to the regular
consumer (usinesses the wealth and other segments o$ the (usiness world and
other sect o$ the population. For one reason this in#estor likes the success$ul
acuisition histor! o$ Wells Fargo. Another reason the in#estor wants to in#est in a
"nancial institution (ecause he wants to help others with their liuidit!. 0he market
$or "nancial institutions is #er! competiti#e. 0he $ollowing is a little (it a(out how
the pro"le o$ Wells Fargo "ts m! client. Wells Fargo is a great choice $or someone
that wants to in#est in a constitution that has low contro#ers! and !et at the same
time is a good ualit! compan!. 4WFC a#oids contro#ers! and pa!s in#estors
handsomel!Mnow it>s the world>s most #alua(le (ank5 )%& *ews
mome!.usnews.com/N.I$ !ou opened up a Wells Fargo )ticker:WFC/ checking
account with O a !ear ago !ou made somewhere in the neigh(orhood o$ .1
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percent annual percentage !ield. ut i$ !ou in#ested that same amount in Wells
Fargo stock then (oomM!ou made !oursel$ more than OPH or close to 13 percent
on !our mone!. Wells Fargo has deli#ered ut i$ !ou think that means highQ"#es
and dancing on the desks $or the 2PP emplo!ees o$ this &an Franciso(ased
compan! guess again. 4It>s certainl! a nice recognition (ut $or sit>s prett! much
heads down and keep !our $ocuson !our wprk5W?''& Fargo spokeswoman 6ar!
?shet sa!sNW?''& Fargo stock has pro#en stead! )with a $ew dips here and there/
going (ack to third uarter o$ 29and more than dou(ling since5
)mone!.usnews.com/. Wells Fargo is not a per$ect institution and has Guctuations in
the prices o$ its stock (ut what stands out a(out Wells Fargo it is a #er! #alua(le
(ank and has pro#en itsel$ to (e #alua(le and stood without the assistance o$
(ailout mone! despite the economic crisis. I$ a (ank is according to the a(o#e uote
is the most #alua(le (ank and has stood despite the economic crisis that came
along then this is a per$ect $or the in#estor. ;owe#er instead o$ going (! the claim
it is the most #alua(le (ank I will do a ratio anal!sis to ensure it is a good "t $or the
in#estor.
3.Select any ve (! nancial ratios that you have learned about in the
te"t. #naly$e the past three (%! years of the company’s nancial data,
which you may obtain from the company’s nancial statements. Determine
the company’s nancial health. (&ote' Suggested ratios include, but are
not limited to, current ratio, uic) ratio, earnings per share, and price
earnings ratio.! I am going to anal!Be "#e o$ the ratios to ensure that Wells Fargo
is a right "t $or m! in#estor. 0he "rst on e that I am going to e-amine is the current
ratio o$ Wells Fasrgo $or the last three !ears. First o$ all let>s start with the de"nition
o$ current ratio.
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*+he current ratio is a liuidity ratio that measures a companys ability to
pay short-term obligations. t is calculated as a companys +otal /urrent
#ssets divided by its +otal /urrent 0iabilities. 1ells 2argo 3 /os current
ratio for the uarter that ended in Sep. 456 was 5.55. 1ells 2argo 3 /o
has a current ratio of 5.55. t indicates that the company may have
di7culty meeting its current obligations. 0ow values, however, do not
indicate a critical problem. f 1ells 2argo 3 /o has good long-term
prospects, it may be able to borrow against those prospects to meet
current obligations8
(http'99www.gurufocus.com9term9current:ratio912/9/urrent;4<=atio91ells
;4<2argo;4<;44>;4</o!.
Since 1ells 2argo current ratio is 5.55 it means has a lot of liabilities.
?owever, if their credit is in good standing it can obtain loans to pay o@
those liabilities or use collateral to pay the liabilities.
&ow let’s e"amine the current ratio of 1ells 2argo for the last three years'
Sept. %5, 456 5.6AB
Cune %5, 456 6.45%
arch %6, 456 6.66A
Dec. %6, 456E 6.>F>
Sept. %5, 456E .56
Cune %5, 456E 5.F45E
arch %6, 456E 5.>%
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Dec. %6, 456% 6.5A5
Sept. %5, 456% 5.%6
Cune %5, 456% 5.%6EF
arch %6, 456% 5.4>B4
Dec. %6, 4564 5.A46>
Sept. %5, 4564 5.%4>A
Cune %5, 4564 5.%556
arch %6, 4564 5.%%%>
+he current ratio measures a companys ability to pay short-term debts
and other current liabilities (nancial obligations lasting less than one
year! by comparing current assets to current liabilities. +he ratio
illustrates a companys ability to remain solvent8
# current ratio of one means that boo) value of current assets is e"actly
the same as boo) value of current liabilities. n general, investors loo) for
a company with a current ratio of 4'6, meaning current assets twice as
large as current liabilities. # current ratio less than one indicates the
company might have problems meeting short-term nancial obligations. f
the ratio is too high, the company may not be e7ciently using its current
assets or short term nancing facilities8
(https'99ycharts.com9companies912/9current:ratio!.
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n the last three years based on this G chart it seems li)e Sept %5, 456E
was the only time 1ells 2argo had s good current ratio. #ll of the other
months they seem to have a little more assets than liability but not much
more.
4. Huic) ratio-#cid test or uic) ratio-current assets, less inventories,
divided by current liabilities8 ( <aron’s 2inance!I<y eliminating
the less liuid inventory and concentrating on assets more easily
converted into cash, the acid-test (or uic)! ratio determines whether a
rm could meet its creditor obligations if sales were to drop
catastrophically8 (<arnes 2inance.
1ells 2argo 3s Huic) =atio- +he uic) ratio measures a companys ability
to meet its short-term obligations with its most liuid assets. t is
calculated as a companys +otal /urrent #ssets e"cludes nventory divides
by its +otal /urrent 0iabilities. 1ells 2argo 3 /os uic) ratio for the
uarter that ended in Sep. 456 was 5.55.
1ells 2argo 3 /o has a uic) ratio of 5.55. t indicates that the company
cannot currently fully pay bac) its current liabilities.
12/s uarterly Huic) =atio and /ash 3 cash euivalent, /urrent
0iabilities growth
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12/s uarterly Huic) =atio and /ash 3 cash euivalent, /urrent
0iabilities growth
(http'99csimar)et.com9stoc)s9single2inancialStrength.phpJ
codeK12/3Hr3histK412/ /ompany Prole LL <ac) to 12/ 2inancial
Strength /omparisons LL Mo to /ompare
12/ Huic) =atio to its /ompetitors
12/ Huic) =atio (arch %6, 456!
. Huarter (Dec. %6, 456E!
N. Huarter (Sep. %5, 456E!
. Huarter (Cune %5, 456E!
. Huarter (arch %6, 456E!
. Huarter
G 9 G /urrent 0iabilities /hange 64.6E ; A. ; F.>B ; F.%% ; >.5F ;
G 9 G /ash 3 cash euivalent /hange 45.6A ; 6>.AE ; B.BE ; E.BB ; -6.E
;
Huic) =atio =H 5.4B 5.4B 5.4> 5.4> 5.4
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Overall =an)ing 456 %4B %> 64 EFB
Se. /urrent 0iabilities /hange %.% ; %.F% ; 6.A ; 4.>F ; 6.6 ;
Se. /ash 3 cash euivalent /hange E.B ; B.F ; 4.56 ; E.B% ; 6.B ;
&ew' ore 12/s historic Huic) =atios LL
Huic) =atio rst uarter 456 /omment
Due to increase in /urrent 0iabilities in the rst uarter 456, Huic) =atio
fell to 5.4B below 1ells 2argo 3 /ompany average.
1ithin oney /enter <an)s industry other companies have achieved
higher Huic) =atio than 1ells 2argo 3 in rst uarter 456. 1hile Huic)
=atio total ran)ing has improved so far to 456, from total ran)ing in
previous uarter at %4B.
Q"plain Huic) =atioJ
1hat are 12/ SegmentsJ
See Huic) =atio 12/ on the trailing twelve month basis
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Huic) =atio rst uarter 456 /ompany =an)ing
1ithin' &o.
ndustry >
Sector 4E
S3P 55 456
Huic) =atio Statistics
?igh #verage 0ow
5.4A 5.6F 5.5%
(Cune %5, 456! (arch
12/ Huic) =atio (arch %6, 456!
. Huarter (Dec. %6, 456E!
N. Huarter (Sep. %5, 456E!
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. Huarter (Cune %5, 456E!
. Huarter (arch %6, 456E!
. Huarter
G 9 G /urrent 0iabilities /hange 64.6E ; A. ; F.>B ; F.%% ; >.5F ;
G 9 G /ash 3 cash euivalent /hange 45.6A ; 6>.AE ; B.BE ; E.BB ; -6.E
;
Huic) =atio =H 5.4B 5.4B 5.4> 5.4> 5.4
Overall =an)ing 456 %4B %> 64 EFB
Se. /urrent 0iabilities /hange %.% ; %.F% ; 6.A ; 4.>F ; 6.6 ;
Se. /ash 3 cash euivalent /hange E.B ; B.F ; 4.56 ; E.B% ; 6.B ;
&ew' ore 12/s historic Huic) =atios LL
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Huic) =atio rst uarter 456 /ompany =an)ing
1ithin' &o.
ndustry >
Sector 4E
S3P 55 456
Debt9Quity
http'99www.businesswire.com9news9home9456E566E55F%>9en91ells-
2argo-=eports-=ecord-2ull-Gear-HuarterlyR
Wells Fargo ;istorical Tuick Ratio )Tuarterl!/ Data
Sept. %5, 456 5.6AB
Cune %5, 456 6.45%
arch %6, 456 6.66A
Dec. %6, 456E 6.>F>
Sept. %5, 456E .56
Cune %5, 456E 5.F45E
arch %6, 456E 5.>%
Dec. %6, 456% 6.5A5
Sept. %5, 456% 5.%6
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Cune %5, 456% 5.%6EF
arch %6, 456% 5.4>B4
Dec. %6, 4564 5.A46>
Sept. %5, 4564 5.%4>A
Cune %5, 4564 5.%556
arch %6, 4564 5.%%%>
Denition
+he Huic) (a)a acid! =atio is used as a solvency metric to determine a
rms ability to pay down current liabilities with its cash, short term
euivalents, and accounts receivables. +his ratio was nic)named uic) to
describe the uic) assets needed to pay down any current liabilities.
2irms with high uic) ratios often indicate the rm is solvent and able to
pay current liabilities uic)ly.
2irms with low uic) ratios may mean that the rm is potentially having
solvency issues.
Other similar solvency ratios include '
/ash =atio - easures the amount of cash that can be used to pay
liabilities (stricter!
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/urrent =atio - easures the amount of current assets over current
liabilities (more lenient!.
+he uic) ratio is more lenient than the cash ratio, but stricter than the
current ratio. +he cash ratio is the most strict because it only calculates
the amount of cash and short term euivalents to pay o@ current
liabilities. +he uic) ratio assumes accounts receivables to be a liuid
enough asset that can potentially be used to pay o@ current liabilities.
/ompanies with poor credit policies (managing accounts receivables! may
have high uic) ratios, but not be as solvent as they appear.
#
2ormula
G/harts calculates this formula by adding /ash, Short +erm Quivalents,
and #ccounts =eceivables 9 /urrent 0iabilities8 (Gchart! +he uic) rtio is
indeed strict.
&ow let’s loo) at earnings per share'
Qarnings Per Share- 4?arnings +er &hare )?+&/ is the amount o$ earnings per
outstanding share o$ the compan!Us stock. In calculating earnings per share the
di#idends o$ pre$erred stocks need to (e su(tracted $rom the total net income "rst5
)guru$ocus.com/.
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1P
*1ells 2argo ?istorical QPS Diluted (Huarterly! Data
Data for this Date =ange
Sept. %5, 456 6.5
Cune %5, 456 6.5%
arch %6, 456 6.5E
Dec. %6, 456E 6.56A
Sept. %5, 456E 6.54
Cune %5, 456E 6.56
arch %6, 456E 6.5
Dec. %6, 456% 6.554
Sept. %5, 456% 5.AA
Cune %5, 456% 5.AF
arch %6, 456% 5.A4
Dec. %6, 4564 5.A5AB
Sept. %5, 4564 5.FF
Cune %5, 4564 5.F4
arch %6, 4564 5.B
Denition
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*Qarnings per share (QPS! the amount of income that belongs to each
share of common stoc). #n important tool for investors, QPS is often used
in determining the value of a stoc).
+he average number of shares outstanding (the denominator of the QPS
formula! is usually calculated by averaging the number of shares at the
beginning of the earning period and the number of shares at the end of
the period. 2or e"ample, if a company earned T6 million in 455A and had
A55,555 shares at the beginning of 455A and 6.6 million shares at the end
of 455A, the 455A QPS would be T6 million9(.A million shares V 6.6 million
shares!94W K T69share.
QPS is generally reported in annuali$ed form from the most recent scal
year. 2rom time to time, you will see the abbreviation (ttm! associated
with earnings per share. +hat means that the earnings number is a sum of
the previous four uarters, which is not necessarily the same as the
previous scal year.
2ormula
Qarnings per Share K &et ncome 9 #verage &umber of Shares Outstanding
during ncome Period
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1K
Qarnings per Share (++! K &et ncome (0ast 2our Huarters! 9 #vg &umber
Shares Outstanding
G/harts uses &et Qarnings Per Share (Diluted! as its QPS number. +his is
net earnings or losses attributable to common shareholders divided by
shares outstanding after all convertible securities, options and warrants
have been e"ercised8( https'99ycharts.com9glossary9terms9eps!.
E- Price earnings ratio- *+here are at least three )inds of P9Q ratios used
by di@erent investors. +hey are +railing +welve onth P9Q =atio or P9Q
(ttm!, forward P9Q, or P9Q (&=!. # new P9Q ratio based on inXation-
adYusted normali$ed P9Q ratio is called Shiller P9Q, after Gale professor
=obert Shiller.
n the calculation of P9Q (ttm!, the earnings per share used are the
earnings per share over the past 64 months. 2or 2orward P9Q, the earnings
are the e"pected earnings for the ne"t twelve months. n the case of P9Q
(&=!, the reported earnings less the non-recurring items are used.
2or the Shiller P9Q, the earnings of the past 65 years are inXation-adYusted
and averaged. +he result is used for P9Q calculation. Since it loo)s at the
average over the last 65 years, Shiller P9Q is also called
PQ658(http'99www.gurufocus.com9term9pe912/9P;442Q;4<=atio91ells
;4<2argo;4<;44>;4</
Dec. E, 456 6%.E Dec. E, 4564 65.4A
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Dec. E, 456E 6%.% https'99ycharts.com9companies912/9pe:ratio
1ells 2argo PQ =atio (++&!&12/:G /harts!. (n.d.!. =etrieved from
http'99ycharts.comm9company12/9pe-ratio
Dec. E, 456% 66.6
delete
n-te"t
1ells 2argo shares seem to be earning pretty much.
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Dividend payout ratio measures the percentage of the companyZs
earnings paid out as dividends.
1ells 2argo 3 /os Dividend Payout =atio for the scal year that ended in
Dec. 456E is calculated as
Dividend Payout =atio K Dividends Per Share (#' Dec. 456E ! 9 Qarnings per
Share (#' Dec. 456E !
K 6.% 9 E.6
K 5.%%
1ells 2argo 3 /os Dividend Payout =atio for the uarter that ended in
Sep. 456 is calculated as
Dividend Payout =atio K Dividends Per Share (H' Sep. 456 ! 9 Qarnings
per Share (H' Sep. 456 !
K 5.%B 9 6.5
1ells 2argo 3 /o #nnual Data
Dec5 Dec5> Dec5B Dec5F Dec5A Dec65 Dec66 Dec64 Dec6% Dec6E
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payout 5.EE 5.EE 5.5 6.F> 5.4F 5.5A 5.6 5.4% 5.%5 5.%%
1ells 2argo 3 /o Huarterly Data
Cun6% Sep6% Dec6% ar6E Cun6E Sep6E Dec6E ar6 Cun6 Sep6
payout 5.%6 5.%5 5.%5 5.4A 5.% 5.%E 5.%E 5.%E 5.%> 5.%>
http'99www.gurufocus.com9term9payout9&GSQ'12/9Dividend;4<Payout
;4<=atio91ells;4<2argo;4<;44>;4</o
https'99ycharts.com9companies912/9cash:dividend:payout:ratio
Sept. %5, 456 %E.4A;
Cune %5, 456 E6.%>;
arch %6, 456 EE.>;
Dec. %6, 456E E4.E5;
Sept. %5, 456E 4%.FA;
Cune %5, 456E 6F.A>;
arch %6, 456E 64.%>;
Dec. %6, 456% 65.6;
Sept. %5, 456% 65.F4;
Cune %5, 456% 66.E>;
arch %6, 456% A.46;
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Dec. %6, 4564 B.A4;
Sept. %5, 4564 6>.E6;
Cune %5, 4564 6F.%F;
arch %6, 4564 4>.B4;
https'99ycharts.com9companies912/9cash:dividend:payout:ratio
*#bout /ash Dividend Payout =atio
Proportion of free cash Xow (after preferred dividends! that is paid as
dividends to common shareholders. f icrosoft generates 5 million in
operating cash Xow, has capital e"penditures of 45 million, pays preferred
dividends 65 million and pays common dividends million, icrosoft has a
cash dividend payout ratio of 4;. 9(5-45-65!
<ecause net earnings can be easily manipulated and cash Xows are harder
to manipulate, this ratio is useful to analy$e cash Xow being paid in
dividends. f this number is consistently high, or greater than 6, it
indicates that the rm is paying out more in dividends than it is receiving
in actual cash8 https'99ycharts.
basedcom9companies912/9cash:dividend:payout:ratio. 1ell based on the
analogy pf the G chart. 1ells 2argo seems to be paying out signicant
dividends. believe based on the other ratios 1ells 2argo pays out a lot of
cash dividends and has a lot of e"penditures. ?owever, based on their
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good credit history 1ells 2argo will not go into a hole because they )now
how to wor) their wor)ing capital.
H.<ased on your nancial review, determine the ris) level of the company
from your investor’s point of view. ndicate )ey strategies that you may
use in order to minimi$e these perceived ris)s. 1hile *1ells 2argo
investors should always watch out for changes in )ey indicators, including
slowdowns on the mortgage ban)ing and earnings growth side, the future
has only clear s)ies ahead for 12/ stoc), Pattnai) says.
1e notice that 1ells 2argo continues to e"hibit strong fundamental
performance and has enYoyed a premium valuation multiple to its peers
over the years, she says. #nd we believe thats Yustied, considering
1ells better Kprotability, well-diversied business model and consistent
earnings performance. 1ells 2argo is a protable company and has lots
of earnings. 1ells 2argo also has a diversied portfolio. t is a mortgage
company, an investment lender among other things. t has been said that
1ell 2argo is conservative compare to other nancial institutions. +he ris)
in 1ells 2argo is small as long as they do not get caught up into too many
ventures.
#nd be cautious
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2H
[http'99money.usnews.com9money9personal-nance9mutual-
funds9articles945695B94E9why-wells-fargo-is-the-best-ban)-stoc)-today!.
*1ells 2argo 3 /o., the largest ban) in the U.S. by mar)et value, has
been rewarded for )eeping its business simple. &ow it is slowly creeping
into more comple"\and ris)ier\territory
http'99www.wsY.com9articles9wells-fargo-warms-up-to-ris)-6E4FFBB%>
41ells 2argo 1arms Up to =is)8 <y
Qmily Mla$er
+hey can minimi$e ris)s by really researching any new territory before
getting into it. #lways have appropriate sta@ for any territory that they
are getting into. 1ells 2argo should )eep whatever new territory they are
getting into simple.
Updated #pril 64, 456 A'%E p.m. Q+
. Provide your recommendations of this stoc) as an investment
opportunity. Support your rationale with resources, such as peer-reviewed
articles or material from the Strayer 0ibrary. 6! recommendations are (ased
on the $ollowing: While the old in#esting a-iom 4past results do not guarantee
$uture per$ormance5 is true and $reuentl! repeated it is also misleading. In
order $or a stock to meet the criteria o$ this in#esting strateg! it has to (e a strong
past per$ormer. It doesn>t ha#e to (e up o#er the last !ear or e#en a couple o$
!ears (ut the longterm chart has to (e compelling.
)http:LLwww.$or(es.comLsitesL(enBingainsightsL212LPL1Lsi-rulesto$ollowwhen
pickingstocksL/.5
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P.%se at least "#e )/ ualit! academic resources in this assignment. *ote:
Wikipedia and other We(sites do not uali$! as academic resources.
,our assignment must $ollow these $ormatting reuirements:
e t!ped dou(le spaced using 0imes *ew Roman $ont )siBe 12/ with oneinch
margins on all sidesV citations and re$erences must $ollow A+A or schoolspeci"c
$ormat. =eferences
Check with !our pro$essor $or an! additional instructions.
Include a co#er page containing the title o$ the assignment the student>s name
the pro$essor>s name the course title and the date. 0he co#er page and the
re$erence page are not included in the reuired assignment page length.
0he speci"c course learning outcomes associated with this assignment are:
Critiue "nancial management strategies that support (usiness operations in
#arious market en#ironments.
Anal!Be "nancial statements $or ke! ratios cash Gow positions and ta-ation
eEects.
Re#iew "-ed income strategies using time #alue o$ mone! concept (ond #aluation
methods and interest rate calculations.
?stimate the risk and return on "nancial in#estments.
Appl! "nancial management options to corporate "nance.
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Determine the cost o$ capital and how to ma-imiBe returns.
Formulate cash Gow anal!sis $or capital proects including proect risks and returns.
?#aluate how corporate #aluation and $orecasting aEect "nancial management.
Anal!Be how capital structure decisionmaking practices impact "nancial
management.
%se technolog! and in$ormation resources to research issues in "nancial manage