Cover page

Black Hills State University

College of Business & Technology
BADM 101 Survey of Business
Student Name
The Stock Market Game Written Report
As required by Professor Altmyer
@ November 24, 2003

Table of Contents page

Item Page number

Written Report 1-3

Exhibit 1:Final Ranking Report 4
Exhibit 2:Final Account Holdings Report 5
Exhibit 3:Final Realized Gains & Losses Report 6
Exhibit 4:Final Account Summary Report 7

Written Report Pages

Part 1: Overview and Return on Investment For Team # SD_12_A24

I
The value of my portfolio of stocks at November 21, 2003 (end of Week 7) was
$ 106,254 (Exhibit 4 ). I am in fourth place in the Rankings ( Exhibit 1 .) For this time
period, the major market indices performed as follows
(Table/Insert/Table/4column4rows)
Market Index Beginning Index Ending Index ROI % and
Reading at 10/6/03 Reading at 11/21/03 comparable
$100,000 index
investment
Dow 9,572 9,628 +.59% or $100,590
NASDAQ 1,881 1,894 +.69% or $100,690
S & P 500 1,030 1,035 +.49% or $100,490
My Return on Investment for my total portfolio is +6.25% (+6,254/100,000.)
Therefore, my ROI exceeded that of the three major market indices and qualifies me for
Nine (9) extra credit points or three (3) extra credit points per index.
 Student Name/Written Project for BADM 101/Page

The Returns on Investment for the stocks in my portfolio are as follows:

(Exhibit 2) (Table/5col/7rows)
1. Ticker 2. Current 3. Net Cost 4. Price 5. ROI
Symbol Price per per share Change (Col. 4
share ( + or - ) divided by
Col. 3) X
100%
DCOM 29.53 27.60 + 1.93 6.99 %
MIK 46.14 48.41 - 2.27 -4.69
SKYW 17.12 17.95 - 0.83 -4.62
MO 50.09 45.73 + 4.36 9.53
BOBE 29.80 28.33 + 1.47 5.21
FAF 29.01 26.67 + 2.34 8.77

Part 2: Fundamental Analysis of Company, Industry and Leading Competitors

Reference: http://finance.yahoo.com/?u

I have selected the Altria Group Inc. (formerly known as Philip Morris Company) to
profile (in bold) and to compare with competitor and industry data:
(Table/6col/5row )
Ticker PE Ratio Market Revenues Net PEG
Symbol (ttm) capitalization (billions) Income ratio=PE(ttm)
Trailing (billions) (billions) divided by
EPS growth
rate
MO 11.74 103.77 B 80.4 8.88 1.22
BTI 21.18 26.82 Not listed 1.27 1.13
RJR NA 4.61 6.21 -3.41 2.05
Industry 11.63 3.01 2.77 116.5m 1.49
Average

Part 3: Industry and Competitor Comparisons

With regard to the Industry Competition, Altria competes in the Tobacco Industry . Its
main competition is British Tobacco (BTI) and RJ Reynolds (RJR.) On a valuation
comparison, MO has the lowest PE and well below the average S & P 500 Index PE of
20-25. In terms of the market capitalization, Altria is bigger than BTI (26.82B) and RJR
(4.61B) and produces the highest amount of sales revenue and net income. It has a better
PEG ratio than RJR (2.05) and the Industry (1.49).
 Student Name/Written Project for BADM 101/Page

Part 4: Price Graph compared with 3 Major Market Indices

http://finance.yahoo.com/?u (input ticker symbol/3 month chart/compare/)

Save to file/Control C copy/Control V paste

MO outperformed the Dow (DJI) and the S & P 500 (GSPC) for the entire 3
month period. MO started out by outperforming the NASDAQ (IXIC), fell behind at the
end of March/beginning of April, then outperformed for the end of April to current
period.

Part 5: Company Profile, Investment Strategy and Buy/Hold/Sell Recommendation

1. (Company Profile: Explain how the company earns its revenues )

Altria Group, Inc is a holding company producing revenues from various

consumer products such as: cigarettes, foods and beverages including Marlboro
and Virginia Slims cigarettes, Kraft and Nabisco food products and Miller
Brewing. Miller Brewing merged into South African Breweries (SAB) in July
2002 in a stock-swap. Altria still owns 34% of SAB, making MO its largest
individual shareholder. It changed its name from Phillip Morris to Altria in
January 2003, a strategy to lessen its image as a pure tobacco company.
 Student Name/Written Project for BADM 101/Page

2.(Investment Strategy: What are your reasons for purchasing the company?)

Altria Group, Inc. is a “value” stock, due to its low PE and a “defensive-play”
because its revenue is produced from consumers buying its food, beverage and
tobacco products. Consumers, regardless of their income or employment situation
will continue to spend money on eating, drinking and smoking. Its high dividend
yield of 5.35% (Annual dividend of $ 2.72 divided by current price of $ 50.82)
makes it a good investment for income producing portfolios.

3.(Your final conclusion and “Report Card” recommendation )

I would recommend MO as a Strong Buy. It would a make a good core

investment in a diversified portfolio. Because of the high dividend yield and
leading brand recognition in its product lines and product mixes, it is well
positioned for solid sales and income growth in the future.

Grading Scale:

A = Strong Buy
B = Buy
C = Hold
D = Sell
F = Strong Sell

Summary highlights of Stock Market Game Reports

( Note: These Exhibits are Documentation that supports statements made in your report)

Exhibit 1: Final Ranking Report

My Final Portfolio value of $ 106,254 ranked me in First Place of the 35 teams in the
College Division (Region) and 4th Place in the 134 teams in the State of South Dakota.

Exhibit 2: Final Account Holdings Report

My final portfolio contains 6 stocks. My best performing stock was MO with a 9.53%
ROI. My worst performing stock was MIK with a – 4.69% ROI.

Exhibit 3: Final Realized Gains & Losses Report

I did not sell any of my stocks during the trading period and therefore did not have any
realized gains or losses. (If you did, indicate the gain or loss here and why you sold it.)
Student Name/Written Project for BADM 101/Page 5

Exhibit 4: Final Account Summary Report

My final loan balance (red cash number) was $ 94,769. (Or state your final cash
balance (black cash number.)
My final Buying Power was $ 1,183. Buying power is the amount of loans available to
purchase stocks.

My final Interest and Dividends earned was $ 110. Interest earned on idle cash,
dividends received on stocks held and interest expense on margin loans.
My final Fees and Commissions was $ 3,821. The total commissions paid (@ 2%) of all
shares purchased and sold.
Black Hills State University
College of Business & Technology
BADM 101/Professor Altmyer

Stock Market Game/Student Presentation Format

1. You will have approximately 5 minutes to present.

2. Introduce yourself as follows: name, hometown, declared major and future career
plans.

3. On the Rankings screen, identify your portfolio ranking and amount.

4. Display your Account Holdings report.

5. Comment on the stocks in your portfolio in terms of your best and worst
performers according to your Return on Investment calculation. If you have
sold any stocks, display the Realized Gains and Loss report and indicate your
reasons for selling.

6. From the http://finance.yahoo.com/?u site, indicate the highest and lowest PE’s
in your portfolio.

7. For your best performing stock, would you recommend it as good investment in
the future? What are your reasons for this recommendation?

Presentation Order (Note: 7-8 students will present each day)

Last names You present on:

Abernathie to Bloomgren Friday, December 5
Broadwine to Huber Monday, December 8
In’T Veld to Reed Wednesday, December 10
Selland to Williams Friday, December 12
 Black Hills State University
College of Business & Technology
BADM 101: Survey of Business Class
South Dakota Stock Market Game Written Project Format
Donald J. Altmyer, CPA, Associate Professor

Report Requirements:

All reports must be completed on a word processor using Microsoft Word and the Table
function to display required financial information. The report should have a title page
with a table of contents. The actual written report should be a minimum of three pages
and a maximum of five pages not including the Summary Report Exhibits. All reports
must contain the following:

1. Title Page
2. Table of Contents page
3. Actual Written Report (minimum of 3 and maximum of 5 pages)
0.Yahoo Price Graph of selected stock compared to Major Market Indices
4. Summary Highlight Information (Exhibits) of the following Stock Market Game
Reports (see my example paper):
Your final Account Holdings Report
Your final Realized Gains or Losses Report
Your final Account Summary Report
Your final divisional Ranking Report

Title Page Format :

Black Hills State University
BADM 101 Survey of Business
Student Name,
Stock Market Simulation Research Report
As required by: Professor Altmyer
Date

Table of contents format:

1. Written Report content (3-5 pages, see required information below)

2. Exhibit 1: Final Ranking (note: all Exhibits must be printed out AFTER the close
of trading on April 23, 2004)

3. Exhibit 2: Final Account Holdings Report

4. Exhibit 3: Final Realized Gains and Losses Report

5. Exhibit 4: Final Account Summary Report

BADM101/Written Report Requirements/Altmyer/Page 2

Written Report Content Requirements:

Part 1: Overview of Results and Return on Investment :

Indicate whether your total portfolio’s final Return on Investment (+ or – point

change divided by $ 100,000 X 100%) beat any of the 3 major stock market indices
ROI. Note: See final Stock Market Game Coordinator newsletter for Week 10 for
this information. You must tell me if your overall portfolio exceeded the ROI of
the Dow, S & P 500 or the NASDAQ Composite or the NASDAQ Composite for
the 10-week period. If so, make a statement such as:

“My overall portfolio ROI exceeded the ROI of the Dow and the S & P 500
index.”

List your final ranking in the college division (17 teams) and the entire State of
South Dakota (191 teams)
1. Indicate the Return on Investment for each stock purchased (whether sold or not.)
Provide this data using the Table function in Microsoft Word. Table/Insert/6
columns/6 rows.
Part 1 (continued): Return on Investment Calculations (based upon Final Account
Holdings Report) Choose any 4 stocks in your portfolio):

1. Stock 2. Current 3. Net Cost 4. + or – 5. Di vi d Multiply

Ticker Price @ per share Point e Column 5
Symbol 4/23 (per Change Column by 100% =
share) 4 by ROI
1. Column 3
2.
3.
4.
 BADM 101/Written Report Requirements/Altmyer/Page 9

Part 2: Fundamental Company, Competitor and Industry Comparisons

1. Select one company in your portfolio to analyze.

2. Go to http://finance.yahoo.com/?u
3. Enter your company’s ticker symbol in the quote box in the upper right corner of
the screen, then click Go.

Part 3: Industry and Competitor Comparisons

1. Under the Company data, click on “ Competitors ”

Ticker PE Ratio Market Revenues Net Income PEG ratio
Symbol (ttm) Capitalization (billions) (billions) (PE / EPS
Trailing (billions) growth
rate)
Company
Competitor
1
Comptetior
2
Industry
Average

The far right hand column lists the Industry averages for the following Key Statistic data
listed above: PE ratio (ttm), PEG ratio and Market Capitalization. Compare your
company’s PE to that of its main competitors.

Is it more risky or less risky than its competitors? Assume that the PE ratio for the blue
chip stocks in the S & P 500 Index is 25. Based upon your stock’s PE, is your stock more
risky or less risky than the S & P 500 average?

Also compare each competitor’s and the Industry Average for Revenues, Market Caps,
Net Income and the PEG ratios and indicate if your company is comparitively better or
worse

Be sure to list the Industry that the company operates in (See the Industry designation
beneath this chart.)
 BADM 101/Written Report Requirements/Altmyer/Page

Part 4: Price Graph of Company compared to the major market indices.

1. Go to the finance.yahoo.com location. In the Quote box (located in the top

center of the screen) enter your company’s ticker symbol and click “ Go.”
2. Click on the Chart button. Click on the 3 month Range button. In the
“Compare” field, check the boxes for the S & P 500, the NASDAQ and the DOW
and click on Compare . Indicate if this particular stock beat the Dow, S & P
500 or the NASDAQ for the prior 3 month period.
3. Save this screen to a file. Copy (Control C) and Paste (Control V) this file into
the report under the Part 4 section
4. Comment as to whether your company outperformed any of the three major
market indices.

Part 5: Company Profile and Buy/Sell/Hold Conclusion

Under Company data, click on the Profiles link. Under Business Summary, read
the description of what the company sells to produce revenues. Re-state this description
so that a twelve year-old child could understand what the company does.

Based upon the fundamental analysis performed above, indicate whether you would
recommend investing in this company. In other words, in your opinion, is this company
well positioned to generate superior sales revenues (top line of the Income Statement)
and earnings per share (bottom line of the Income Statement) in the future?

Your answer must consist of three separate parts:

Part 1: Describe how the business produces revenues.

Part 2 : Explain your strategy or reasons for buying this stock

Part 3: Your concluding recommendation. Like a professional research analyst, give

a letter grade (report card style) to your profiled stock using the following grading scale:

A = Strong Buy, B = Buy, C = Hold, D = Sell and F = Strong Sell

 BADM 101/Written Report Requirements/Altmyer/Page

BADM 101
Written Report Grading Checklist
Total possible points = 90 points
1.Title Page and Table of Contents_____
2.Exhibits Highlights includes:
Account Holdings report____
Realized Gains or Losses report____
Account Summary report___
Final Rankings report____
3. Written report includes:
ROI of total portfolio and 3 major market indices including extra credit
points_____
ROI calculations per Account Holdings and Realized Gains and Losses report in
Word Table format____
Fundamental analysis of selected stock in Word table format____
Yahoo price graph comparison with major market indices for 3 month period____
Competitor Information included
Business Profile and Revenue Description included_____
Reasons for Final Conclusion___
Final Strong Buy, Buy, Hold, Sell or Strong Sell Conclusion

Note: Each one of the omissions noted above is a 4 to 10 point deduction from
the 90 points. I also deduct points for spelling errors (use the Spell
checker) and poor syntax (proof read your paper by printing it out and
reviewing it.)