Questions On The Value Of Value

OTT purchased 11 shares of Happy New Year & Co. stock on at $20 a share 
on Jan. 3, 20X1, and the price dropped to $15 in March and remained steady till Dec. 31, 20X1. OTT management does not believe the decline in price to be

The ‘Last Sale’ trading price on 18th September is $0.880 per share. Available investment fund is $200,000. Therefore, $200,000 divided by $0.880 per share equals to 227,272.73 share can be purchased. . From the annual report

sold at $65 per share less $8,400 brokerage fees. The cost of the securities purchased

In 2013, this department store has been celebrating being in business for 110 years. It also once lured its customers in with its famous discount pricing strategy and coupons. The retailer is J.C. Penney, a fixture at shopping malls across the country. In 2012, J.C. Penney rebranded itself by making the announcement that it wanted to become America 's favorite store by creating a specialty department store experience (JCP, 2013). Founder James Cash Penney began the company with a Golden Rule: treat others the way you want to be treated Fair and Square (JCP, n.d.).

of them. For this assignment I selected one product that was featured on the NYSE landing page

A) What is the possible meaning of the changes in stock price for GEICO and Berkshire Hathaway on the day of the acquisition announcement?

Macy’s, Inc. common stock trades on the New York Stock Exchange. Their company’s trading symbol is “M” (Quote, 2014). As of February 1, 2014 Macy’s, Inc. had approximately 19,000 shareholders and approximately 364.9 million shares of common stock outstanding. Macy’s authorized shares consisted of 125 million shares of preferred stock and 1,000 million shares of common stock. Since 2011 Macy’s have retired a total of 84.4 million shares of common stock. On May 15, 2013, Macy’s board of directors approved an additional purchase of common stock in the amount of $1,500 million. Also Macy’s purchased approximately 33.6 million shares of common stock under its share repurchase program for a total of $1,570 million. As of February 1, 2014, $1,432 million of authorization remained and not sold (SEC Filing,

offered the option to reinvest $20 to receive additional new Ford common shares. In this

A) What is the possible meaning of the changes in stock price for GEICO and Berkshire Hathaway on the day of the acquisition announcement?

The 7 stocks that I chose were, American Eagle, General Electric, Tanger Outlet, Procter & Gamble, Nestle, Microsoft Corporation, and Sprint Corporation. Some of the stocks I chose were for the some reasons and others were for different reasons. I chose American Eagle because I buy clothes from there and their stock seemed to be doing alright. The reason I chose General Electric because it is a technology company and technology is taking the world by storm recently. I chose Tanger Outlet because they just recently built a new one near where I live. The reason I chose Procter & Gamble because Tanner was doing it and it seemed like a good choice. I chose Nestle because I like their chocolate milk. I chose Microsoft Corporation because

We examine 82 situations where the market value of a company is less than its

Hony purchased Santos share on $5.70 per share which was a healthy premium of the trading in Santos ahead of the deal and, more importantly, over a trading range subsequently battered by the 1-1.7 rights issue. Through that time Santos share fall down to $2.46 a share after acquisitions between Hony and Santos limited. The share price of Santos is turn back around $4 a share.

Additionally, the organization was scrutinized for its revenue recognition of an accident on September 30, 2010 rendering the shipment unsalable until analyzed for quality. Said accident resulted in several analysts downgrading the organization’s stock and issuing sell recommendations. Finally, such recommendations resulted in significant declines in stock prices and revocation of stock coverage. As such, questions arose as to the accuracy of revenue loss claims and aggressive accounting practices.

Further, our strategy involved paying attention to current events and attempting to use them to generate a return. For example, Horizon Pharmaceuticals’ stock price took a nosedive after an October 19th New York Times article suggested that Horizon was attempting to thwart Express Scripts’ attempts to lower the price of prescription drugs. The decision was made to buy 100 shares of stock in Horizon when its price spiraled down to a measly $14.62 per share, as we expected Horizon would do something to stop the bleeding, and historically has been a pretty volatile stock. Horizon came back with a scorching rebuttal in an open letter later that day, spiking its stock price more than 30% on October 23rd, and by October 28th, this move landed us our greatest return of any stock that we purchased and held until the end of the period: 18% (see appendix).

At this stage please allow me to make it clear, just for the adverse thinkers that may be lurking here. This does not affect me as my holding is, on average, a tad above today’s closing, therefore, showing a very slight paper loss, but as I have no intention of selling over and above my last sell at a too good to miss profit, it matters not. The profit went back into this share on the SP drop, so actually the fall has been of benefit to me.