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Stock Purchase Recommendation By: Dusty Longoria With Jackie DaSilva & Jennifer Hovey

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Stock Purchase Recommendation. By: Dusty Longoria W ith Jackie DaSilva & Jennifer Hovey. Auto Industry Stock Choices. Our Group C riteria. Performance Year-to-Date Dividends Paid Market Share* Debt / Asset Ratio Earnings. *Percentage of respective market. How we broke it down…. - PowerPoint PPT Presentation

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Page 1: Stock Purchase Recommendation

Stock Purchase RecommendationBy: Dusty Longoria With Jackie DaSilva & Jennifer Hovey

Page 2: Stock Purchase Recommendation

Auto Industry Stock ChoicesDusty Longoria Jennifer Hovey Jackie DaSilva

Ford Motor Company Harley Davidson Honda

TATA Motors Polaris Toyota

General Motors Triumph Thor

Page 3: Stock Purchase Recommendation

Our Group Criteria

•Performance Year-to-Date•Dividends Paid•Market Share*•Debt / Asset Ratio•Earnings

*Percentage of respective market

Page 4: Stock Purchase Recommendation

• Each stock was ranked within each category, with the winner assigned “9” points, and the worst in the category assigned “1” point. • The only category which did not follow this rule was market

share. Not every stock fell within the same market, so we ranked them according to their share in respective markets.* • We created a table with all 9 stocks, assigned the points 1 (worst) -

9 (best) in each category (column), and added the rows (stocks) within each row to get a final total. The highest stocks (in points) were the stocks we selected.

How we broke it down…

*based on market research data

Page 5: Stock Purchase Recommendation

PerformanceYear to Date* Dividends* Market Share Debt/Asset

%* Earnings* Total

Ford 6 2 5 1 1 15Tata 3 8 2 2 7 22

General Motors 4 1 5 3 6 19Harley

Davidson 5 5 9 4 3 26Polaris 9 6 7 8 4 34

Triumph 2 3 7 7 5 24Toyota 7 9 3 5 9 33Honda 1 7 2 6 8 24Thor 8 4 9 9 2 32

The chart

*Research from Morningstar.com

Page 6: Stock Purchase Recommendation

Performance Year to DateMorningstar provided us year-to-date stock percent change (see example graphic to the left) which we pulled for each stock and ranked highest to lowest.

In order to keep the date current and relevant, we opted to only use the Year-to-Date data

Page 7: Stock Purchase Recommendation

Automotive Stocks

AutomotiveMarket Share

Points awarded

Motorcycle Stocks

MotorcycleMarket Share

Points awarded

Recreational Vehicles

Recreational Vehicle Market Share

Points awarded

Ford 17% 5 Polaris 21% 7 Thor 35.4% 9

General Motors

16% 5 Harley Davidson

65% 9

Tata Motors

8.9% 2 Triumph 20% 7

Toyota 14% 3

Honda 9.8% 2

Deciding Market Share

Where market share was somewhat equal, we assigned them similar points. In areas where there was a company dominating their respective market, they received 9 points.

Page 8: Stock Purchase Recommendation

Ford17%

General Motors16%

Tata Motors9%

Toyota14%

Honda10%

Everyone Else34%

Automotive Market Share

Page 9: Stock Purchase Recommendation

0

50

100

150

200

250

300

Ford Tata General Motors Harley davidson PolarisTriumph Toyota Honda Thor

Earningsearning

s rankingFord 1Tata 7

General Motors 6Harley

Davidson 3Polaris 4

Triumph 5Toyota 9Honda 8Thor 2

Page 10: Stock Purchase Recommendation

Ford 91%Tata 78%General Motors 76%Harley Davidson 72%Polaris 54%Triumph 61%Toyota 66%Honda 63%Thor 32%

Debt to Asset Ratio

Page 11: Stock Purchase Recommendation

•Polaris – 34 points•Toyota – 33 points•Thor – 32 points

The winners are…

Page 12: Stock Purchase Recommendation

•None of our stock choices were ranked “1” in any category•The “2” that Thor received in Earnings, was offset by strong performance in Year-to-date performance, Debt to Asset Ratio and Market Share. •No other stock ranked below a 3 in any category

In Conclusion

Page 13: Stock Purchase Recommendation

Biblography• Edmunds.com. (2013,10 02). Market Share by Manufacturer. Retrieved 10

02, 2013, from Edmunds.com: http://www.edmunds.com/industry-center/data/market-share-by-manufacturer.html

• Wagner, I. (2013, February). Statistics and facts about motorcycles in the U.S. Retrieved from Statista.com: http://www.statista.com/topics/1305/motorcycles-in-the-us/

• Rvbusiness.com. (2013, 10 15). SSI: Motorhome Sales Climb 22.7% for August. Retrieved 10 15, 2013, from rvbusiness.com: http://www.rvbusiness.com/tag/motorhome-sales/

• Morningstar.com. (2013, 10). Morningstar.com. Retrieved from Morningstar.com: www.morningstar.com