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Mm Management Skills

Autor:   •  December 31, 2015  •  Research Paper  •  308 Words (2 Pages)  •  344 Views

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Introduction

This report will focus on my investment of the two portfolio of shares and the aim is to beat the market with both portfolios. I have selected 10 shares by fundamental analysis and 10 shares by technical analysis and I have chose Value investing and Small firms as my two strategies for Technical analysis.

Method

Fundamental analysis takes account of company accounts, technological changes and news events. Fundamental analysis also looks to interpret interesting global and domestic events to predict future movements in the forex markets. Whilst all major news events will affect currency values, their effect will depend on their location and impact within the global financial system.

Post-earnings announcement drift is the 'tendency for stocks to earn positive average abnormal returns in the three quarters subsequent to extreme positive earnings surprises and, more strongly, to earn negative average abnormal returns in the three quarters subsequent to extreme negative earnings surprises' (Hirshleifer, Myers, Myers, Teoh, 2008, p.1).

Post-earnings-announcement drift is 'typically characterized as an underreaction to earnings news. Bernard and Thomas (1990) show that seasonal quarterly earnings changes are positively serially correlated' (Hirshleifer, Myers, Myers, Teoh, 2008, p. 10).

For fundamental analysis, I have selected 10 companies by reading the headlines from yahoo finance website and looking at company accounts such as their income statement, balance sheet and cash flow, See Appendix A.

For Technical analysis, I have chose Value investing and small firms as my two strategies. Value investing is the identification and holding of shares which are fundamentally undervalued by the market, given the prospects of the firm. The way you can classify as being value are 'a share with a price which is low

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