Last week students in FIN 422: Student Managed Investment Fund presented equity analysis reports to the Finance Committee of the WSU Foundation. Through the generosity of the Foundation, students in this course advise the Finance Committee on the investments in a $200,000 portfolio. This semester students analyzed several potential or current equity positions, including The Children’s Place (a traditional and internet retailer of children’s apparel), Take-Two Interactive Software (producers of Grand Theft Auto and the forthcoming Red Dead Redemption 2), Neophotonics (a leading designer and manufacturer of hybrid photonic integrated optoelectronic modules), and iRobot (the maker and developer of the vacuuming robot, Roomba).
Students study the complex financial positons of these firms forecasting future cash flows and growth to determine the value of the firm. This analysis involves examining the economy, the firm’s specific industry and its competitive position in that industry. Students also consider the firm’s investment risk exposure to potentially negative industry and company developments as well as the opportunities open to the firm using SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis.
Larry Schrenk, PhD Assistant Professor Finance Department lschrenk@winona.edu