Investing involves making informed decisions, which means researching companies and industries before plunking down your hard-earned money! An excellent source of information about a company is the company itself, particularly its annual report to stockholders. In this project, you’ll examine the annual stockholders’ report of a company in which you are interested.
The annual report is a document that provides financial and operating information about a company to its owners, the stockholders. Obtain a copy of the latest annual report of the company you are researching. Copies can be found in many public and college libraries, at local brokerage offices, or on the company’s Internet site. Carefully study the annual report and then prepare a corporate profile of the firm you selected. Your profile should include the following elements:
a. Name of the company, its ticker symbol, and the exchange on which it trades
b. Current market price of the stock and its percentage change from 1, 3, and 5 years ago (try
to find a chart of its stock price)
c. Location of its corporate headquarters, names of its officers, and percentage of inside ownership
d. Brief description of the company, including its major products or services
e. Brief history of the company
f. Major competitors
g. Sales and profit summaries
h. Other relevant financial ratios and measures
i. Recent developments and future plans
Based on your findings, would you consider this company for a potential investment? Why or why not?