Essays on ASX

Overview of the performance

According to an article published on Market Watch Samsung Electronics reported that the net profit of the company rose by 5.2% which could be estimated to $1.8 Billion. The results were achieved by the successful sales of LCD panels. The sales of the company increased dramatically from 18.1 trillion won a year earlier to 21 trillion won comparatively. This rise which was observed in the share price of Samsung Electronics was 0.8% during the morning trade in Seoul (Kitchen, 2009)

The South Korean electronics giant Samsung Electronics announced an issues which the company was facing regarding the management shake ups. ...

Introduction:

The analysis was conducted so as to study the behavior of two stocks i.e Commonwealth Bank of Australia and ABM resources. We began our analysis using various financial and government websites. For Instance, the risk free rate was derived from RBA, Australia using 30 Day Bank Accepted Bill as a proxy. On the other hand, all the stock related and market index(S&P 500-APX 200)information was derived from Yahoo Finance. We concluded the report by conducting a regression analysis between the excess return of each stock over risk free rate and excess return of market index over risk free rate

Stocks Analyzed

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One of the main points from BHP Billiton Corporation’s annual report about their corporate governance structure can be summarized by the following statement given by the company’s chairman himself: “At BHP Billiton, we have a governance framework that goes beyond an interest in governance for its own sake or the need to comply with regulatory requirements. Instead, we believe that high quality governance is good business, and our approach is to adopt what we consider to be the better of the prevailing governance standards in Australia, the United Kingdom, and the United States” . As of July ...

- Introduction The report is the second part of the SIM and Statistical arbitrage assignment. This report describes the process which has been done in the first part. It includes the collecting of the necessary information and data, a determination of the stocks, analysis of this data and the obtained results. - Stocks Analyzed

The average return of News Corporation is higher than the average return of Commonwealth Bank of Australia. The standard deviation of the first one is lower than the standard deviation of the second company. Therefore, the stock of the News Corporation is more efficient ...

- Introduction The report describes the process of the analysis of two stocks which has been done using the Single Index Model. It includes collecting and sorting the data, analysis this data using the SIM and regression analysis and the explanation and the evaluation of the results. The findings are useful for decision making in the financial planning. - Stocks Analyzed The table above contains the information about two analyzed stocks: the company name, stock code, relevant sector, the average return and the standard deviation of the return. Last two points have been computed using the ...

Profitability ratios

Gross profit margin =Gross profit/Net sales The formulae used in the calculations are listed in the appendix. ("Growth, Profitability, and Financial Ratios for Myer Holdings Ltd (MYR) from Morningstar.com," n.d.)

Commentary

- Profitability

Generally, profitability ratios give someone an idea on how the company is utilizing resources to make the profit.

Myer has a lower gross profit margin compared to David Jones. The gross profit, net profit margins for Myer decline over the two-year period, 2012 and 2013. During the same time, David Jones improves marginally on the margins. This is an indication of changing fortunes in the industry, where one company gains as the other declines. The two companies have a similar tax environment as tax expense ...

Introduction:

The report is based on the quantitative results derived from the regression analysis conducted between the excess returns of two stocks and the excess return of S&P-ASX 200(market index) over risk free return( 30 day bank accepted bill(BAB) rate). Our findings revealed the average returns, risks, beta and R-square multiple for each stock.

Stocks Analyzed

As noted from the above table, West Bank Corporation has a higher risk multiple with standard deviation of 7.42% and is thus offering a higher return of 1.75%. On the other hand, Metcash Limited which although has a lower risk than WBC, but offering a negative return even ...

Executive Summary

One Tel Communications was the fourth largest telecommunications company in Australia. It touches on matters regarding poor management, fraudulent misstatements, the use of remuneration packages for self-interest and lack of regard of accounting policies and legal regulations. These, together with other factors, have led the company to liquidation in 2001. This report summarizes the key facts from the start of the company business, its capital structure, the people involved in the accounting scandal, the auditing scenario, factors that contributed to the business failure, the audit risks existing at that time, to the conclusion and possible audit procedures that ...

Introduction:

The concern and financial objectives of the old lady can be met on the basis of a sound financial plan. The lady is investing her money in saving bank account but because of really low interest rates, she is now preferring her investment in ABC supermarket which she considers good for her portfolio. Another consideration that cannot be overlooked is her concern for dividends as the lady relies on regular income. Thus my decision at then end will be based on sound financial considerations and objectives of the old lady where i shall be comapring current situation in supermarket industry ...

In this paper, we will look at the case between Australia Securities and Investments Commission (ASIC) and Peter James Shafron. The case comes by from the employment of Mr. Shafron in 1998 as general counsel and company secretary of James Hardie Industries Ltd (JHIL). A year later, Mr. Donald Cameron was then appointed joint secretary with Mr. Shafron. The court of appeal found that Mr. Shafron had contravened s 180(1) of the Corporations Act 2001 (Cth) in two respects that are put in issue in the appeal. Both the contraventions were those of omission: failing to give ...

Introduction

For the purpose of analyzing the governance structure of a business in New Zealand, Mighty River Power has been chosen. Mighty River Power is a New-Zealand headquartered electricity generation company, which was formed in the year 1999 after splitting from the Electricity Corporation of New Zealand. On May 2013, the firm was partially privatized by the government, with the government retaining 51.78% stake and the remaining 48.22% of the stake held by private investors. They generate electricity in a number of ways; which also includes hydroelectric power and geothermal plants located in various parts of the country. They are a major source of ...

1. The name of the organisation, the industry it operates in and the issue relevant to ethics and corporate governance with which it was connected. a. What were the conditions at the organisation that led to this example of poor corporate governance? (5 marks) b. What were the outcomes for the board of directors, the shareholders, the staff of the organisation, its customers and the general public? (5 marks) The processes and structures for control and direction of firms is corporate governance. It is concerned with the associations between board of directors, management, control of major ...

1. An efficient market hypothesis which also known as the random walk theorem assumes that the obtaining stock prices completely reflect all the information available about the value of a firm or stock. It proposes that in no way can the excess profits be made on the overall (Clark, et al). It is also given that most investors try to be on a look out for undervalued stocks and securities which are expected to increase in value in the near future, especially securities that are more volatile than others. These investors who include investment managers have believe that they can select ...

INTRODUCTION:

There has been increasing and ongoing focus on corporate governance and sustainability of the business. Owing to rapidly changing business environment and conditions it has become important for the organizations to implement effective and efficient corporate governance strategies and frameworks. This in turn will allow the organizations to carefully monitor and regulate the business operations and their impact on different stakeholders and environment. Apart from this corporate governance is also being given additional information because of the increasing pressure on the organizations regarding the ethical behavior and operations on part of the different regulatory bodies and consumers. Also it ...

Table of contents 1. Outline 2. Introduction 3. Recent issue facing corporate governance 4. Relationship between corporate governance and business ethics 5. Review on ASX Corporate Governance Council’s “Corporate Governance Principles and Recommendations”. The key principles that focus on ethics 6. Summary.

In many large and well established businesses and enterprises, corporate governance is a common term used when in any conversation or explanation that may include the company’s operation and governance. The term corporate governance refers to a wide aspect the processes, law, or rules by which a business is regulated, controlled, and ...

Part 2- Company Research/Graphs/investor Information

Commonwealth bank Newcrest Mining Limited is a gold mining company is in the Resource sector. It deals with mining of gold. Managing directors name, Greg Robinson. Managing Directors share. Total assets for the year 2010 was $6,334 Dividends given- 20% per share for the year ended 30th June.

Numbers of employees are over 16000 in all the countries the company operates in.

Total share price was $1,762,200 It is in the service provider sector and financial services to the people of Australia. These services are like offering of loans, credits, managing of accounts etc

Managing director and chief executive officer is Ian Nerev.

Dividends given- $1.37 per each share. The total shares are ...

Executive Summary This report aims at analyzing the options available to ASX with the view to come up with a plan of action that could not only maintain the profitability of the company but could also help the company to preserve its core values owing to which ASX is considered to be the best in the industry for what it does.ASX, in the present situation is experiencing multiple problems in relation to profitability, strategic management and cultural aspects. The purpose of this report is not to merely chalk out a cost cutting strategic plan but to also streamline the management ...

The most popular share portfolio in Australia is Tyndall Australia share portfolio that encourages investors to invest 2,000 million dollars and above. This fund is extremely reliable and uses unique values through ensuring that the traded shares rank among the top in the Australian Securities Exchange (ASX) market. Most companies in Australia falling under different sectors seek to increase their share values through encouraging many investors into their organization although; some end up selling at terrifically low prices, closing as low as $100. All businesses from different sectors, be it financial sector, resource sector, consumer sector, and health ...

INTRODUCTION

It forms part of the four business analysis. It is the last step among the process of business analysis. The first step of business analysis is business strategy analysis, accounting analysis, financial analysis and lastly is the prospective analysis. As noted earlier that the final step in business analysis is the prospective analysis and mainly focuses on forecasting a firm’s future earnings and cash flows. Prospective analysis is drawn from the findings from accounting, financial, strategic and business environmental analysis. According to the 2010 Annual Report to Shareholders, Gale Pacific communicates the results of the 2009-2010 financial ...

There are various techniques used to evaluate viability of investments and in comparing different investments. These techniques include net present value, payback period, accounting rate of return and internal rate of return . Net present value is preferred when evaluating projects because in takes into consideration time value of money unlike Payback period and accounting rate of return. Although internal rate of return considers time value of money it is confusing to compute and conceptualize . Net Present value is computed by discounting annual cash flows at a given discounting rate. Annual cash flows are determined by subtracting annual cash outflows ...

The Australian stock exchange has been established to economically assist the investors by bring to together in one market the investors who have the capital and the companies in need of capital in a highly liquid and well regulated market. In this case the companies are assisted to raise capital while the investors are given the chance to create and accumulate their wealth. Investors have a pool of more than 2000 listed companies to invest in. Amcor ltd, APA ltd, amp ltd, ASX ltd, Asciano ltd and Suncorp ltd are some of the companies listed in the ASX; each operates in ...