Stock Markets and Stock Analysis

Day One

09.00 - 09.15 Welcome and Introduction

09.15 - 12.00 Stocks and Stock markets

• What is a stock?
• Types of stocks
• The role of stocks in corporate finance
• Stocks versus other securities
• Trading stocks - Primary marker
  - Issuing techniques (underwriting/ "book building")
• Trading stocks - Secondary market
  - Exchanges and other market forms

12.00 - 13.00 Lunch

13.00 - 16.15 Fundamental Analysis (Key-ratio analysis)

• The financial statements as basis for stock analysis
• P&L and balance sheet for analysis purposes
• P&L related key ratios
  - "Earnings per Share"
  - Growth rates
  - Book value
  - Return on equity
  - etc.
• Price related key ratios
  - Price/Earning (P/E)
  - Price/Book value
  - etc.
• Adjustments of key ratios
• Calculation of "fully diluted" key ratios
• Key ratios for liquidity and interest rate risk
• Interpretation of notes
• Examples and exercises

Day Two

09.00 - 09.15 Recap

09.15 - 12.00 Dividend Discount Models (Cash-Flow Analysis)

• Introduction to "Dividend Discount" models (DDM)
• The relationship between key ratios and DDM
• The "Total Return" concept
  - Long term stock return and "intrinsic" value
  - Holding period return
  - How is the discount rate chosen?
• "Zero Growth" and "Constant Growth" models
• A "3-Stage Dividend Growth" model
• Esteps "T-model"
• Interest rate risk in the DDM
• Examples and exercises

12.00 - 13.00 Lunch

13.00 - 16.30 Capital Asset Pricing Model (CAPM)

• Introduction to CAPM
• Systematic and unsystematic risk
• Advantages and disadvantages of CAPM
• "Alfa", "Beta" and the "Security Market Line"
• Pricing stocks with the CAPM
• Pricing stocks on a risk-adjusted basis
• Examples and exercises

Day Three

09.00 - 09.15 Recap

09.15 - 10.30 Technical Analysis

• Technical analysis vs.- fundamental analysis
• Technical analysis - underlying assumptions
• Charts
  - Bar charts
  - Point-and-figure charts
  - Candlestick charts
  - Market profile charts
• Indicators
  - Moving average
  - Advance/decline lines
  - Coppock
  - New high/low
  - Put/call ratio
• Sentiment
• Structure
• Exercises

10.30 - 10.45 Coffee

10.45 - 12.00 Shareholder Value Approach

• What is "Shareholder value"
• How is "Shareholder Value" measured?
• "Value Drivers"
• Estimating and discounting "Free Cash-Flows"
• Creating/destroying shareholder value
• Case study: Shareholder Value in "Insolventia Worldwide"
• Exercises

12.00 - 13.00 Lunch

13.00 - 15.30 Equity Trading Strategies

• The Investment Process
• Investment Policy
• Choosing a Benchmark
• Dimensions of Portfolio Management
  - Passive Management
  - Active Management
  - Security Selection
• Risk and Return
• Surplus Management

15.30 - 16.00 Quiz

16.00 - 16.15 Evaluation and Termination of the Seminar

• Diplomas, Evaluation
• Termination of the Seminar