Portfolio Management

BA338-01

Winter, 2008

Meeting Time:  2:503:40 PM  Tuesday                         Instructor:  Paul Magnall

 

Place:   Business Center 101                                                 Office:   Business Center 108

 

Office Phone:  352-8428                                                   Home Phone:  352-2197 (before 10 PM)

 

Office Hours:   M   2:003:00 PM                                   e-mail:  paul.magnall@wartburg.edu

                              T      1:002:00 PM

                             W                2:003:00 PM

                              H    8:309:30 AM

                                                                                                                                                       

Textbook:  The Wall Street Journal will be the source of most of our discussion material. There are many copies of The Wall Street Journal available on campus (library, business administration department complex, instructor's office, etc.) that you may be able to use for this class.  NOTE:  “Use” does not mean confiscate for your use only.  DO NOT remove copies of the paper from their assigned locations.

 

Course Objectives:  "Students will study techniques for analyzing a variety of investment opportunities and make decisions on how the funds of a special endowment fund--Corporation Education Day Fund--will be invested."

 

Course Content and evaluation process:

This course is offered on a Pass/Fail basis only.  Students must fulfill the following 6 requirements to pass the course.

 

   1.      Each student will be asked to monitor two of the current investments in the portfolio.  Students will report weekly about events affecting the value of the CURRENT company's stock: e.g. the announcement of stock dividends (should be at least once during the semester), announcement of quarterly earnings (should be at least once during the semester), introduction of new products, etc.  The basic source of this information would be The Wall Street Journal.  You may also need to use an Internet site or other resources for articles on your companies—must have at least TEN articles per company during the semester plus the report of quarterly earnings and dividend declaration, if appropriate.  These article summaries should be written on the BUFF and GOLDENROD colored forms provided.  Students will be assigned these stocks at the first class session—Tuesday, January 8, 2008—via a lottery system.  The journals will be collected for review by the instructor on Tuesday, February 26th and Tuesday, April 9th.  At the end of the semester the student will make a recommendation regarding the investment--1.  hold the investment,  2.  sell the investment, or  3.  add to the investment.

 

   2.      Each student will select two potential investments that are not currently in the portfolio to follow during the semester.  Students will select these stocks at the third class session—January 22nd—no two students will be following the same stock.  Students will report weekly about events affecting the value of the NEW company's stock: e.g. the announcement of stock dividends (should be at least once during the semester), announcement of quarterly earnings (should be at least once during the semester), introduction of new products, etc.  The basic source of this information would be The Wall Street Journal.  You may also need to use an Internet site or other resources for articles on your companies—must have at least TEN articles per company during the semester plus the report of quarterly earnings and dividend declaration, if appropriate.  These article summaries should be written on the BLUE and PINK forms provided.  The journals will be collected for review by the instructor on Tuesday, February 26th and Tuesday, April 9th.  At the end of the semester, the student will make a short presentation if they feel that the investment is one that should be added to the portfolio. 

 

3.               Students must write a short paper (4—6 pages) on a topic of their choosing.  The topic should be related to personal investment.  Could be a report on a finance term (e.g. What is a DRIP?  How are ADR’s different from domestic stocks?), investment topic (e.g. What is the role of a broker in investment transactions?  What is the purpose of a stock index?), or you could review an investment related book.  Students must select their topics by—you may want to have a conversation with the instructor before that date about possible topics.  Students will also make a 10 minute presentation of their paper to the class during the last few sessions of the course.  The final draft of the paper is due on Tuesday, April 9th.

 

   4.      Students will make decisions regarding the sale of any current holdings in the portfolio and the purchase of any new securities.  Students will make presentations of potential buy or sell decisions during the second to last session—Tuesday, April 9th.  The final decisions will be made during the last session of the semester—Monday, April 14th at 1:30 p.m.

 

  5.       There are two operational positions that students need to fill at each week’s session.  We will make sure that each student serves in each capacity at least once (maybe twice) during the term.   Check the discussion/assignment sheet to see when you are scheduled to fulfill these roles this semester.

 

A.  Secretary--you will take minutes of the session and formally write them up for a historical record of the events of the class--this includes listing which students are present and which students are absent at this session and a summary of events for the day. At the beginning of the next session you may be asked to read the minutes of the previous meeting and you are turn in to the instructor a signed copy of the minutes at this session when the minutes are read.

 

          B.  Treasurer--you will be asked to use the stock quotations from the Monday edition of The Wall  Street Journal to prepare a report of the current valuation of the portfolio.  There is an Excel spreadsheet to assist you with this process.  Either you can come the Professor’s Magnall’s office to enter and print the weekly report, or you can request an electronic copy of the spreadsheet be sent to you.   You are to enter the week’s prices on the sheet labeled “Prices” (enter prices in the column with the appropriate Monday date) and print the sheet labeled “Status Report 2007-2008” (this sheet will bring in this week’s price and last week’s price for you to compare the changes for the week).  You need to print two copies of “Status Report 2007-2008”; bring one copy to class and post the other on the bulletin board outside of Professor Magnall’s office.  You also need to return the electronic copy of the spreadsheet to Professor Magnall for the next week’s treasurer.

 

   6.      There will be 14 class sessions. Students may not miss more than 2 class sessions for any reason.  An attendance record will be a part of each week's minutes.  You will be given a warning after the second absence.

 

The role of the faculty member is a facilitator for the class—he will lead each class session, maintain files on the various investments, assist students in locating information for their reports, and present material that students have requested.

 


DISCUSSION ITEMS FOR Winter TERM 2008

 

(The discussion items listed are a tentative list of topics to be covered during the semester.  If students have some specific topics, Professor Magnall can change items to make sure those items are covered this semester.)

 

 1.  Tuesday, January 8

                        Secretary:         NO ONE

                        Treasurer:         MAGNALL—Status of the fund at the beginning of the semester

                        TOPIC:                        Introduction to the class and Understanding our Process

                                                Assignment of Current Stock Holdings

                                                Discussion of last semester’s decisions

                                                               

 2.  Tuesday, January 15

                        Secretary:         NEIL S.                       

Treasurer:         Everyone—Assignment #1

                        TOPIC:                        Discussion of Investment Terminology

        

 3.  Tuesday, January 22

                        Secretary:         YE T.

                        Treasurer:         MATT C.

                        TOPIC:            Selection of Potential Companies for Investment

                                                Students have financial statements for current stocks

                                                               

4.     Tuesday, January 29

                        Secretary:         NATHANIEL J.

                        Treasurer:         HO YIN L.

TOPIC:            How to Analyze Investments—bring calculators to class this day

                        Assign past decisions to current students for analysis

 

5.    Tuesday, February 5

                        Secretary:         BEN B.

                        Treasurer:         BEN H.

TOPICS:          Discussion of the analysis of past decisions

            Students will have topics for papers ready today

Handout Value Line Workbook

 

6.  Tuesday, February 12

                        Secretary:         ERIC B.

                        Treasurer:         NEIL S.

                        TOPIC:            Discussion of Value Line Material

 

7.  Tuesday, February 19

                        Secretary:         MATT C

                        Treasurer:         YE T.

                        TOPIC:            Portfolio Allocations                                      

 

8.  Tuesday, February 26

                        Secretary:         HO YIN L.

                        Treasurer:         NATHANIEL J.

                        TOPIC:            TOPIC TO BE DETERMINED

Students turn in article summaries for review

 

 

 

9.  Tuesday, March 12

                        Secretary:         BEN H.

                        Treasurer:         BEN B.

                        TOPIC:            topic to be determined

 

10.  Tuesday, March 19

                        Secretary:         MAGNALL

                        Treasurer:         ERIC B.

                        TOPIC:            Student Paper Presentations—group 1

                                                NEIL SUCKOW, YE THWAY, MATT CHEESEMAN

 

11.  Tuesday, March 26

                        Secretary:         _________

                        Treasurer:         _________

                        TOPIC:            Student Paper Presentations—group 2

                                                                NATHANIEL JANZEN, HO YIN LEUNG, BENJAMIN B.

12.  Tuesday, April 2

                        Secretary:         _________

                        Treasurer:         _________

                        TOPIC:            Student Paper Presentations—group 3

                                                KYLE FAABORG, BEN HOGAN, ERIC BRUHN

                                               

13.  Tuesday, April 9    (This session may take longer than the scheduled 50 minutes)

                        Secretary:         __________

                        Treasurer:         __________

                        TOPIC:            Students will make presentations of investments

                                                Final Draft of Paper is Due

                                                Students turn in article summaries for review

 

14.  Monday, April 14    1:30 p.m.    

                        Secretary:         MAGNALL

                        Treasurer:         MAGNALL

                        TOPIC:            Final Investment Decisions are to be made today.