Finance 443Advanced Investment Analyses II

College of Business and Economics, CSUF

Course Syllabus –Spring 2014

Professor:Michael Milligan

Contact Information

Office: SGMH 5177Office Hours: M/W 1:00 to 4:00 or by appointment

Email:

Finance Department:SGMH 5113657-278-2217

Course Description

(Prerequisite: Finance 320, 321 & 340)

Topics covered include: Economic forecasting, sector forecasting, sector analysis, stock analysis, portfolio management and risk management.

Objective:Securities markets and company analysis, security valuation models, and portfolio models. Practical application of investment theory and recent literature will be emphasized.Based upon the strategies learned and the prospectus the teams wrote in FIN 442 students will implement these in the portfolios. Students will use Capital IQ for fundamental research.

Class Protocol: Students will be presenting to peers, faculty and guest portfolio managers. Students will be asked to comment in class on news items related to the securities markets.

Class Materials

  • Textbook – Bodie, Kane and Marcus Investments, Edition, ISBN# 9780073530703
  • Capital I.Q. – Students will have access to Capital I.Q. Students are expected to use this resource in managing their fund.
  • Other Publications – The Wall Street Journal and Barron’s are highly recommended, student subscriptions are available from the instructor
  • Campus Library – The campus library has two databases that you will find helpful in your research. Factiva and S&Ps Net Advantage Industry Surveys

ATTENDANCE IS MANDATORY!

Course Outline:

Students will be divided into two teams. Each team will be responsible for designing and managing a fund under the criteria set forth in the Investment Policy for Student Managed Investment Fund. The students shall be responsible for all aspects of the fund.

Attendance:

Attendance is Mandatory. There are approximately 32 class meeting. Students will lose 1 point per class missed.

Networking:Networking is key to succeed in finance industry. As portfolio managers you are always looking to raise capital. Each student is required to go out and network. Students must meet at least 2 professionals in the finance industry. In our class a professional must be an analyst, portfolio manager or hedge fund manager. Students are required to bring back the business card of the professional that they have met. Make sure you leave a lasting impression, because I will be calling the professional to see if they have met you.

Individual Reports:

Each student will give at least one equity research presentation and paper; and one fund service presentation and paper. Equity research will be graded based upon the fundamental analysis of the company. Students will use Capital IQ for the financial data. The reports will also be graded upon the students analysis of the company’s driver of growth; why is driving the values of the company. The grading will also include how closely the research report follows the criteria that the team has established in their prospectus.

Each student will be assigned a task for their fund. These tasks include industry analysis, compliance officer, trade confirmation etc. Each student shall write a report and present on one of their fund services. Students are expected to tell exactly what it is task and how do they perform these task.

All reports must have the same formatting and template for the entire team. The presentation will be no longer than 30 minutes. The thirty minutes will include time for questions and answers. Students will be graded on their PowerPoint with regards to clarity of the slides, graphics and readability. Student’s presentations will also be graded on the students speaking ability, presentation skills and their ability to articulate their key points clearly and concisely.

Group Project:

The design, structure and managing the fund is a group project. This group project will be graded based upon the fund designs, the group presentations, and the fund managers’ ability to maintain and stay within the fund’s guide lines. The funds managers’ ability to meet the criteria established in the Investment Policy for Student Managed Investment Fund. The funds will be responsible for monthly client reports and statement. The fund managers will also have to present to the board (client).

Managers of these funds are entrepreneurs. Your ability to create and market yourself and your fund will have an impact on your project grade.

Team members will grade each other using a Peer Evaluation Form. Professor Milligan will grade the project, but team members will grade each other.

Graduate Students:

Graduate students will be required to find a publically traded company in OrangeCounty. The student will be required to write a research report on the company. A requirement for this report is that the student interview at least one senior manager for this report. In the report the student will issue a buy, sell or hold for the company.

Presentations:

Students and teams will be presenting on a regular basis. Your presentation will consist of a paper and a PowerPoint. All papers and PowerPoint’s are to be cited. All PowerPoint and papers will be posted on Titanium as well as the team folder that I will create for each team. Students will be required to engage in open dialog. Your peers, faculty and guest will be critiquing your presentations!

Grading Policy:

Percentage
Attendance 10%
Networking Events/Business Cards 10%
Individual Presentations (min 2, 10% each) 20%
Individual Research Reports (min 4, 5% each) 20%
Group Presentations (min 2, 10% each) 20%
Group Papers/Reports (min 2, 10% each) 20%
Total 100%

There is NO FINAL EXAM; there is a final group presentation.

For the fall semester (FIN 442) grade student will receive an RP (reported progress). Once the student has completed FIN 443, in the spring semester, their grade for the previous fall (FIN 442) will be changed to reflect the grade that they have earned. If the student does not complete FIN 443 in the spring semester, the RP will be changed to an “F”.

The Final Grade.

Each student’s final grade is based upon the student’s performance and will not be subject to negotiation after it is assigned. Your final letter grade for the class WILL NOT be curved. The following scale is used to determine your class grade:

98 – 100% / A+ / 78 – 79% / C+ / Below 60% / F
94 – 97% / A / 74 – 77% / C
90 – 93% / A- / 70 – 73% / C-
88 – 89% / B+ / 68 – 69% / D+
84 – 87% / B / 64 – 67% / D
80 – 83% / B- / 60 – 63% / D-

Academic Dishonesty: The Department of Finance requires that students engaging in academic dishonesty receive a grade of “F” and be reported to the appropriate authority for possible additional discipline. Academic dishonesty takes place whenever a student attempts to take credit for work that is not his/her own or violates test-taking rules. Please see the Cal State Fullerton Catalog for details.

Withdrawal Policy: Students will be allowed to withdraw from this course in accordance with University policy. For details, see the CSUF Class Schedule.

Assessment Statement:

The main purpose of the degree program at the College of Business & Economics (College) at Cal State Fullerton is to provide you with the knowledge and skills that prepare you for a successful career in business. In order to assist us in achieving this goal, we will use a number of assessment tools to track your progress throughout the College curriculum. Please expect to participate in College assessment activities in several of your courses while at CSU, Fullerton. As you do so, you will assist us in identifying our program’s strengths and weaknesses as well as areas for potential improvement. In other words, you are making an important investment in the value of your degree.

Disability Statement

If you have a disability or special need for which you are or may be requesting an accommodation, please inform me and contact the Disabled Student Services Office, located in University Hall 101, as early as possible in the term. For more information, the Disabled Student Services Office can be reached by calling (657) 278-3117 or visit their website at . Confidentiality will be protected.

WEEK
/ TOPIC(S) / STUDENT ACTIVITIES / ASSIGNMENTS
DCF Model / Presentations
Investment Strategies (Earnings Plays) / Presentations
Technical Analysis (Ch 12) / Presentations
Managing Portfolio (Portfolio weights and Risk Ch 6&7) / DCF Models due;
Jan Statement due
Individual Research Reports (Session I) / Presentations
Individual Research Reports (Session I) / Presentations
Individual Research Reports (Session I) / Presentations / Prospectus Update Written report to be turned into the ASAP Board
Guest Lecturer / Feb. Statement due
Client Update (Team presentations) / Advisory Board Present
Investment Strategies (Primary & Secondary Stock Offerings Ch 3&12) / Presentations
Risk Management / Presentations
Portfolio Balancing / March Statement due
Guest Lecturer (Industry Professionals) / Presentations
Individual Research Reports (Session II) / Presentations
Individual Research Reports (Session II) / Presentations
Semester-end re-balancing
Final Group Presentation / April Statement due
Final Portfolio

Useful Websites

Capital IQCapital IQ

NASDAQ.comNASDAQ

Seeking Alphaseekingalpha.com

Bloomberg (financial and market news)

IndexFunds (best in-depth source on indexing)

American Stock Exchange (information of ETFs)

Securities and Exchange Commission

(Obtain company reports directly from EDGAR)

ValueLine.com (company profiles and analysis)

Zacks.com (earnings estimates and analyst recommendations)

StockCharts.com (Chart School is informative)

Big Charts (interactive charting)

Treasury Direct (information on purchasing Treasury debt)

FutureSource (Commodities)

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