Stock Investment Assignment Example | Topics and Well Written Essays - 4000 words

Stock Investment - grant ExampleIn his article Strategies for Stock Selection, he put forward four factors to look at markets economic cycle obvious risks and bon ton (How to Choose Stock 2006).Foremost in his recommendations is buying stocks that an investor is non only acquainted with but knowledgeable in. Peter Lynch advises that an investor should buy the stock of a company whose products are purchased by him and his social circle. He should asses if this product forget continue to become popular in the future. He cautioned investors that if they cant explain what a company is doing, they should not invest its stocks. In the process of knowing a company, it is imperative that an investor also looks at the current pecuniary position of the company by looking for at the different aspects of the business with the help of financial ratios. These ratios reflect not only reflect the financial spatial relation of a business entity but also shows the companys strengths and weaknes ses in terms of numbers. Aside from gaining a belatedly insight on the companys operation and current financial position, an investor should also look at the companys historical exploit in terms of financial ratios and stock prices. To maximize the investment profitability, return of a stock should be compared with early(a) stocks in the same industry (How to Choose Stock 2006).This report is an analysis of the profitability of place Ted baker PLCs stocks as ... t an investor also looks at the current financial position of the company by looking at the different aspects of the business with the help of financial ratios. These ratios reflect not only reflect the financial situation of a business entity but also shows the companys strengths and weaknesses in terms of numbers. Aside from gaining a deep insight on the companys operation and current financial position, an investor should also look at the companys historical performance in terms of financial ratios and stock prices. To maximize the investment profitability, return of a stock should be compared with other stocks in the same industry (How to Choose Stock 2006).This report is an analysis of the profitability of holding Ted Baker PLCs stocks as an investment. The next section will briefly introduce the company. Financial analysis will be used to ascertain the current and historical performance of the company. Competitor analysis through a thorough quantitative data will also be employed. The paper will conclude with its findings and recommendations. An appendix containing the accounts used in the financial analysis will be presented. II. Company ProfileTed Baker PLC is chiefly involved in the design, manufacture, wholesale and sell of menswear, womenwear, and childrenswear and related accessories which includes skinwear, fragrances, eyewear, and watches. The company was formed by Ted Baker and J. Peterman and is a leader in the apparel and textile industry in the United Kingdom. Ted Baker PLC h as 100 retail distributors in the United Kingdom. Internationally, the companys product line is sold in 600 other stores abroad (Ted Baker PLC 2006).A. historic PerformanceLooking at the historical performance of the company is essential in determining trends