SMG Stock Research Worksheet 201: Answers to Students' Questions

SMG Stock Research Worksheet 201

Nancy KingAlaska SMG Coordinator

Creator of Stock Research Worksheet

Vincent Young, AVP Curriculum Initiatives, SIFMA Foundation

Moderator

SMG Stock Research Worksheet 201

Nancy King, Alaska SMG CoordinatorNanKing@gci.net

Stock Research Worksheet

SMG Stock Research Worksheet 201

• Review: – SMG Stock Research Worksheet

Watch the video• New Today: Stock Research Worksheet 201

– Answers to often asked questions

Frequently Asked Questions

• Where do I get ideas for stocks?• How many Worksheets do I have to do?• I have found a company; now, what do I do?• I have purchased a stock; now, what do I do?

#1. Where Do I Get Stock Ideas?

Start with a known company, but add a twist

Competitors of a Known Company

Company2013 EPS

Growth RateProfit

Margin

McDonald’s 3.5% 19.5%

Yum Brands -30.8% 10.8%

Sonic 6.7% 7.5%

Worksheet Results

A Lesser Known Company

• Quality competitors of the super hyped company• Find competitors at

– Morningstar– Yahoo! Finance– Market Watch

Morningstar.com

Yahoo! Finance

MarketWatch

Quality Stocks in Top Industries

• Leading Industries• Locating the Leading Industries

– Wall Street Journal online– Bloomberg (visual data)– MarketWatch (tools--map of the market)– FinViz (financial visualization)

Wall Street Journal

Bloomberg

MarketWatch

FinViz

#1. Where Do I Get Stock Ideas

• Recap– A Company’s Competitors– A Hyped Company’s Competitor– A Quality Stock in a Top Industry

#2. How Many Worksheets Do I Have to do?

• It depends on:– Quality of your stock ideas– Current stock market action– Economy

#3. I Have Found a Stock; Now, What Do I Do?

• Check company news and price chart– Yahoo– Morningstar

• Decide how many shares to buy• Decide and record your plan for selling the stock• Place the order to buy the stock

#4. I Bought the Stock; What Do I Do now?

• Watch It• Build a Watch List• Set up an online portfolio to track your Watch

List

You can make money doing this homework. How often in life does that happen?

Investing

• is a craft• is an art, not a precise science• requires patience, persistence, consistency• requires objectivity, discipline, responsibility

SMG Stock Research Worksheet 201

Nancy King, NanKing@gci.netVincent Young, vyoung@sifma.org

www.stockmarketgame.org