Outline for a Stock Report

Profile of Stocks to Be Considered

Risk: S&P B+ or better

Merrill Lynch B or better

Value Line "3" or better

The stock should be rated by two of the three

The stock under consideration must have been public (data available) for 5 years to be eligible.

Any stock considered should have the potential for above average total return on a long-term basis. The more stable the stock the better. The potential for growth in earnings should be shown.

I. Title Page Firm Name Author's Name

A. Current Price - Dow Jones News Retrieval (Pull up just before your presentation)

B. 52 Week High - WSJ

C. 52 Week Low - WSJ - Add purchase price on short reports and any follow-up report.

D. P/E Ratio - Current price/current year estimated earnings.(Do not use Value Line P/E)

E. Beta - Value Line

F. Dividend Yield - current dividend (annualized)/current price. (Do not use Value Line yield)

G. Exchange - Value Line and WSJ

H. Relative P/E [P/E of your firm divided by S&P 500 P/E] Show S&P data.

I. Book Value (Value Line Equity/shares) (Value Line shows for most)

J. Market Value/Book Value

K. Merrill Lynch Rating A or B

Value Line Safety 3/2/1

As part of Value Line data show 1) Company's Financial Strength 2) Stocks Price Stability, 3) Price Growth Persistence, and 4) Earnings Predictability: Found on lower right hand corner of each Value Line Sheet.

S&P Ranking (B+ or better)

Show Investor' Business Daily Smart Select Ratios:

a. Composite rating a 84

b. EPS rating b 96

c. Relative Strength Rating c 56

d. Industry Group Relative Price Strength Rating d B

e. Sales + Profit Margins + ROS Rating e A

f. Accumulation/Distribution rating f C

L. Market Cap - (Shares x price) (Calculate - Do not use Value Line report)

M. High Target Price

N. Low Target Price

O. PEG (P/E /projected EPS growth rate)

P. Projected EPS growth + yield

Q. Value line projected total return range. (annualized)

R. First Call type Consensus (give number of analysts)

II. Economic Analysis

A. Provide a table showing:

1. Gross domestic product (GDP) for last five years and forecast for five years.

2. GDP rates of change for time period in 1.

3. Stock prices (S&P 500 or other index) to include most recent price.

4. T Bill (3 Mos.) T Bonds (20 years) and corporate profits for last five years Sources: Federal Reserve Bulletin, Value Line, Analyst Handbook; current Business Conditions (documents section)

B. Your interpretation of the data presented.

III. Industry Analysis

A. Stability (variability) of sales and earnings. Regress industry sales and (separately) industry earnings against time. Variability answered = R2; unanswered variability = 1-R2.

B. What is the impact of governmental control and/or regulation?

C. What is the expected future demand for the products and/or services? Are there useful relationships to GDP, industrial production or other economic variable? (Regress variable on GDP, industrial production ÐŽK the square root of R2 = correlation.)

D. Regress industry earnings against S&P 500 (or other index) earnings. R2 or gives the correlation with the index earnings.

E. Chart of company stock price vs Industry vs competitor (Value-Line and/or Big Charts.com)

IV. Company Analysis

A. Give a profile of the company.

1. Describe the companyÐŽ¦s products/services and the industry in which it competes.

2. List major competitors and rankings available. Give the basis for the ranking, i.e. sales, total earnings, profitability ÐŽK(Do not use EPS)

3. What is the nature of the demand for the products (cyclical, growth, stable --?

4. Are there any special problems, economic, political or otherwise?

5. Chart of company's stock price (www.bigchart.com) 1 year & 5 year

6. Chart of competitor's stock price (www.bigchart.com)

B. Make a managerial comparison with at least one major competitor in the following format: (Use at least seven years of data. Take out non-recurring items before computing ratios)

1. Sales

S&P Industrials Industry Major Competitor Firm Name

2. EPS (Show EPS for last seven years; the most recent yearly estimate/projection for your firm.

(Show growth calculation for each series of Sales and EPS. Geometric growth rate.) (No Annual growth rate to be shown).

3. Return on Sales. (Show seven years data and average for each series.) Check Value Line first.

4. Return on Equity. (Show seven years data and average for each series.) Check Value Line first.