As a member of the OBUCSIF, one of your responsibilities is to select a stock to recommend for purchase by the fund.  Since in this course we have studied financial institutions, the firm you recommend must be a financial institution.  Also, because recommendations are needed on a variety of types of financial institutions, notify the professor once you have determined the firm that you would like to recommend.  Preferably, the firm will be covered by the Value Line Investment Survey, and be a member of any of the following Value Line industry classifications: bank, bank (midwest), financial services, life insurance, property/casualty insurance, securities brokerage, thrift, and REIT.  However, if you find a firm that looks really good which is not covered by Value Line, you are certainly welcome to recommend it.

Please take the process of choosing a stock for your recommendation very seriously.  After all, you and the other members of the OBUCSIF will be spending the hard earned money of donors who were willing to make their resources available so that you could have the opportunity to gain experience in investing by managing an actual portfolio rather than just a fictitious one as you did in the Marketocracy simulation.  The donors did not stipulate that any certain return had to be earned on their money, but it's obvious the higher the return earned, the greater their satisfaction with the decision to donate. 

Spend some time investigating two to four firms.  Compare the firms by completing the Financial Institutions Stock Recommendation Tables.  Try to choose the stock that looks the most undervalued--the one that is likely to offer the OBUCSIF the best return on its investment over a period of five or more years.  Stocks that have the potential to double over the next five years would be most appealing.  Avoid stocks which are selling near the top of their 52 week price range.  Also, avoid stocks selling for over $40 a share so that at least 50 to100 shares of the stock can be purchased.  Stocks rated "5" for safety should not be recommended.
 
Written Portion:  (40 points)  All parts of the written report should be typed except for #1.  All direct quotes from sources utilized should be enclosed in quotation marks.  The written portion should be given to the instructor on the day you make your oral presentation.

1. Fundamental Analysis.  Include your completed Financial Institutions Stock Recommendation Tables, indicating which stock you are recommending.   Please print clearly and legibly.  (20 points)
2. Industry Outlook and Company News. 
   • Research the outlook for the industry in which your firm is involved and write a summary paragraph.  Indicate the name and date of your source(s).  (3 points)  Below are some sites which offer industry snapshots and profiles:   

Value Line:  Click on Logon, Value Line Investment Survey:  Standard Edition, Lookup Industry, and then the logo for Industry Commentary 

                    The Industry Handbook at the Investopedia website  

• Go to the Yahoo Finance or some other Web site providing company news, and write a brief summary of any significant news concerning the company.  Do more than just copy headlines.  (3 points)

1. Risk.  Explain any significant risks faced by the firm, such as interest rate risk, liquidity risk, default risk, etc.    Some of the information you gathered in the Financial Institutions Stock Recommendation Tables may  be helpful.  (6 points)
2. Suitability for the Student Investment Fund.  In light of Article 2 of the Bylaws of the OBU Capital Student Investment Fund, explain why you think the company is suitable for purchase by the fund.  (2 points)
3. Overview of the stock as an investment.  Review the reasons that you feel the stock would be a good investment.  Mention at least three major reasons.  (6 points)

Now that you have completed the written portion of your report, prepare an overview of your recommendation for distribution to the class by providing the information requested on the Summary of Stock Recommendation Form.  I will be glad to print 22 copies of the Summary Form to save you some money.

The oral portion of your report should last at least four but no more than five minutes.  Professional attire should be worn; men should wear a suit and tie, women should wear a dress or pant suit appropriate for a business setting.  A PowerPoint presentation should be used.  Some information from each of the five parts of the written report should be included in your oral report.  Over reliance on notes and the PowerPoint presentation should be avoided; you should know the material well enough that you can maintain eye contact with the class.

Your presentation will be graded on the following characteristics:  professional attire--2 points, PowerPoint Presentation--2 points, content--2 points, delivery and poise--2 points, and length of presentation--2 points.

Up to ten bonus points will be given to those who make their presentations before the New Century Investment Club.