BUS-432 Security Analysis (Huffman)

Tentative Schedule for Spring 2010

All chapters are from the Reilly/Norton text (unless noted otherwise)


                                Introduction and Review: 

Ch   5:    Review IPS and asset allocation
Ch   4:    ETFs  (2009 AAII list is in D2L content)

Ch 11:    EIC methodology

Day  #1                  2-02        Tuesday               

Day  #2                  2-04        Thursday               (Article & Market Student Presentations begin)


WK1--Stock-Trak:  Establish initial position in buy and hold portfolio and in the active portfolio. 

Stock-Trak trading begins on Monday, February 8th and ends on Friday, April 30th.  Students are required to establish a passive portfolio and active portfolio using the given asset allocation using primarily ETFs (except for Treasuries).  Please note that all trades for each week must be completed by Friday at 3pm (true for all weeks, except if Friday is a holiday or if the market is closed for some other reason).  Also, be aware that volume may be an issue for trading low volume securities.  Students may need to submit several smaller orders.

Ch 11:    EIC Methodology

Ch 13:    Economic Analysis

Day  #3                  2-09        Tuesday              Stock-Trak demonstration

Day  #4                  2-11        Thursday            Time for economy groups to meet    


WK2--Stock-Trak: 3 Stops, shorting (1 ETF) and buying on margin (3 ETFs) only in active portfolio—Target active portfolio value of $1,500,000

 

Ch 13:    Economic and Industry Analysis

 Day  #5              2-16          Tuesday                WK1 Stock-Trak summary to D2L dropbox by noon

 Day  #6              2-18          Thursday               4 Group Presentations of Economic Forecasts                                                                 

                                                                                     (report due to D2L discussion by noon)


WK3--Stock-Trak: Rebalancing and buying mutual funds (buy mutual funds, levered ETFs, and short ETFs)

Ch  15:   Company Analysis and Stock Valuation (DCF, PE, and Firm Value)  and Market Analysis

Day  #7                2-23          Tuesday                WK2 Stock-Trak summary to D2L dropbox by noon

Day  #8                2-25          Thursday               Valuation discussion


WK4--Stock-Trak:  Use futures contracts to increase or decrease exposure to commodities and foreign currencies.

Use bond index future contracts to increase or decrease the interest rate risk of the active portfolio.

Ch  15:   Company Analysis and Stock Valuation (DCF, PE, and Firm Value)  and Market Analysis

Ch  17, 18, 19 and 20:         Review futures and discuss bond futures

Day  #9                3-02         Tuesday                WK3 Stock-Trak summary to D2L dropbox by noon

Day  #10              3-04         Thursday               6 Group Presentations of Sector Forecasts

                                                                                          (Report due to D2L discussion by noon)


WK5--Stock-Trak: Use equity index future contracts to increase or decrease systematic risk of the active portfolio.

Use sector ETFs to establish over- or under-weighting of sectors in the active portfolio.

Ch 14:    Financial Statement Analysis and Example

Ch 19:   Equity futures

Day  #11               3-09        Tuesday                WK4 Stock-Trak summary to D2L dropbox by noon

Day  #12               3-11        Thursday               6 12 of 12 group presentations of Assigned Sector Analysis

                                                                 (Report due to D2L discussion by noon)


WK6--Stock-Trak:  Buy 3 stocks, 3 out-of-the money call options and 3 in-the-money calls on the same three stocks.

(see D2L announcement note for option symbol)

Day  #13               3-16        Tuesday                WK5 Stock-Trak summary to D2L dropbox by noon,

                                                                                   Remaining 6 Group Presentation of Sector Analysis

                                                                                  (Reports due to D2L discussion by noon)

Day  #00               3-17        Wednesday            Exam #1 in Testing Center (90 minutes maximum time) OR

Day  #14               3-18        Thursday                Exam #1 in Testing Center (90 minutes maximum time)


SPRING BREAK

WK7--Stock-Trak:  No required trades, but trades can occur

(Turn in summary to dropbox in D2L (due 3/30/2010 along with a summary of week 7 trading)


 

WK8--Stock-Trak:  Basic option strategies:  3 Protective puts, 3 covered calls,

Ch 15:   Company Analysis and ROE

Ch 17:   Review Option Strategies

Day  #15               3-30        Tuesday                Stock-Trak summaries to D2L dropbox by noon (combined WK6 and WK7)

Day  #16               4-01        Thursday                


WK9--Stock-Trak:  Advanced option strategies:  Long Straddle, Short Straddle, Bull (or Bear) Spread and Collar

Ch 14:    Financial Statement Analysis and Example

Day  #17               4-06        Tuesday                WK8 Stock-Trak summary to D2L dropbox before class

Day  #18               4-08        Thursday               DRAFT of Company Valuation Project due to D2L dropbox


WK10--Stock-Trak:  Trade 10 stocks, of which two are from a foreign exchange and two are ADRs

Day  #19               4-13        Tuesday               WK9 Stock-Trak summary to D2L dropbox by noon

Day  #20               4-15        Thursday              EXAM #2 in Testing Center (90 minute maximum time) OR

Day  #00               4-16        Friday                     EXAM #2 in Testing Center (90 minute maximum time)


 

WK11--Stock-Trak:  Begin to close derivative positions (especially, the low volume contracts)

                                    Buy 3 and short sell 2 of the stocks that were presented on Tuesday, and

                                          Buy 3 and short sel1 2 of the stock that were presented on Thursday.

Ch 21:    Evaluation of Portfolio Management

Day  #21               4-20        Tuesday                WK10 Stock-Trak summary to D2L dropbox by noon,

                                                                                Company Presentations (PowerPoint to D2L dropbox by noon)

Day  #22               4-22        Thursday                Company Presentations 

                                                                   (PowerPont and Final report to D2L dropbox by noon)


WK12--Stock-Trak: Rebalance the portfolio to be within the asset allocation guidelines after closing all derivative positions and short positions (volume may be an issue for closing some of these positions—try several times during the week for low volume issues).

Financial articles

Ch 16:    Technical Analysis

Ch 21:    Evaluation of Portfolio Management

Day  #23               4-27        Tuesday                WK11 Stock-Trak summary to D2L dropbox by noon

Day  #24               4-29        Thursday                


Financial articles 

Ch 21:    Evaluation of Portfolio Management

Day  #25               5-04        Tuesday                 15 Stock-Trak 2 minute presentations (PowerPoint due by noon)

Day  #26               5-06        Thursday                Remaining Stock-Trak 3 minute presentations (PowerPoint due by noon)


                                Ch 5:      Investment Policy Statements and Asset Allocation Issues

Day  #27               5-11        Tuesday                Stock-Trak Final Report due, Discussion of Stock-Trak performance

Day  #28               5-13        Thursday               In-Class  EXAM (Location—CC23)  


 

Note:  No class on March 18 or April 15 (exams in testing center)