Stock Markets and Stock Analysis

Agenda Program
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Prague, NH Hotel Prague
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Stocks and Stock Markets
The Role of Stocks in Corporate Finance
Hybrid Equity Instruments
Key-Ratio Analysis
Dividend Discount Models
Capital Asset Pricing Model
Timing and Technical Analysis
Shareholder Value Approach
The objectives of this course are to give the participants a good understanding of stocks, stock markets and stock analysis. Firstly, we shall discuss the role of stocks in corporate finance and explain how stocks are traded in the primary and secondary international markets. We shall also discuss the impacts on the stocks markets of the single European currency. We shall then give a detailed explanation of a number of methods for valuing stocks. These methods include fundamental analysis, cash flow analysis and technical analysis. Further, we explain how stocks can be valued on a risk-adjusted basis (using the CAPM model), and how stocks and stock portfolios should be selected within a risk-return framework. Finally, we give an introduction to the "Shareholder value" approach to valu-ing stocks, based upon an analysis of the company's "Free Cash-flows".

Program of the seminar: Stock Markets and Stock Analysis

The seminar timetable follows Central European Time (CET).

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

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

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

Training catalogue in PDF
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