Stock Selection Paper
STOCK SELCTION PAPER, DUE FRIDAY, NOVEMBER 30, 2012
On FRIDAY, NOVEMBER 29, your stock selection papers are due. They
should be a minimum of three pages and a maximum of five, excluding
appendices. You should begin this paper by writing several paragraphs
explaining your philosophy of investing. You should then cite the stock
you have invested in and explain in detail why this stock is
UNDERVALUED at the time. You should have consulted at least three or
four sources in making your choice. Those sources should probably
include the annual report, VALUE LINE and, perhaps, the Morningstar
website. I would include some of the material you looked at in your
appendices. You should answer the following questions in your paper:
Why do you want to invest in this company’s product? What is its
position in the industry? How financially healthy is the company? What
is the management of the company like? How healthy is the company for
the long term? How expensive is the stock? These questions should help
you write the STORY of your company that will form the rationale for
your buying the stock and also selling the stock once the story changes.
You should make every effort to invest a small amount of money in the
stock of your choice. Hey, what are grandparents for anyway?!
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