Equity Valuation and Analysis Lundholm & Sloan Chapter 1 Information Collection Company Data Most significant step

ep in the information collection process SEC filings (complete list on page 19) Filing/ Form
10-K 10-Q 8-K

Description

Annual Report Quarterly Report for 1st, 2nd, and 3rd quarters Current Events Report Some examples: Entry into a Material Definitive Agreement, Material Impairments, Changes in Registrant's Certifying Accountant, Amendments to Articles of Incorporation or Bylaws, Change in Fiscal Year Proxy (DEF Notification of matters to be voted on at the annual 14A) shareholders meeting (also often contains other information including executive compensation) S-1,2, & 3 Registration Statements Prospectus Information made for investors in a new security offering

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10-K Contents Item Description

1 2 3 4 5 6 7 7A 8 9 9A Description of the Business Properties Legal Proceedings Submission of Matters to Vote Market for Common Stock Selected Financial Data Managements Discussion and Analysis Results of Operations, Liquidity, Capital Resources, Off-Balance Sheet Arrangements, and Contractual Obligations Disclosures about Market Risk Financial Statements and Supplementary Data (BS-2yr, IS,SCH-3yr) Changes in and Disagreements with Accountants Controls and Procedures

10-Q Contents o Unaudited and Condensed Quarterly Financial Statements o Abbreviated MD&A Proxy (DEF 14A) o Notice of annual shareholders meeting o Items to be voted on with Boards recommendation on each matter o Often includes additional information related to: Executive Compensation Corporate Governance

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Sources for SEC Filings o SEC: http://www.sec.gov/edgar/searchedgar/companys earch.html o The EDGARSCAN service mentioned in the chapter does not appear to exist any longer o Google: http://finance.google.com you can search by company name and/or ticker includes links to filings o EDGAR Online - http://www.edgaronline.com/ - fee based service o 10KWizard - http://www.10kwizard.com/ - fee based services has free trial

Company websites o Look around for either Investor Information on home page or a link inside the About Us or Corporate Information link from the home page In most cases will include .pdf copies of filings o Descriptions of products and new initiatives o Press releases o Archived conference calls with analysts (REG FD)

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Financial Press o Wall Street Journal: http://online.wsj.com o Online Financial Websites: Google: http://finance.google.com/ Yahoo: http://finance.yahoo.com/ MSN: http://moneycentral.msn.com The Motley Fool: http://www.fool.com/ CNN: http://money.cnn.com/ Analysts Reports o Sell-side vs. Buy-side o Source for Sell-side (and independent reports) Investext UNC Charlotte Subscribes (I think) you can enter this service as long as you are using a computer on campus via this link:
http://library.uncc.edu/electronic/display.php?query= Business&resource=321&rtype=d&dept=library

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Macroeconomic and Industry Data In addition to their own unique strategy, many businesses will rise and fall more based on the economy and their industry A picture:
Global Economy Domestic Economy Economy Sector Industry Domestic Economy Economy Sector Industry Domestic Economy Economy Sector Industry

Company

Company

Company

Sources of data on the U.S. Economy o Dr. Ed Yardenis Economic Network is no longer free o Moodys Economy site (includes FreeLunch): http://www.economy.com o Economagic: http://www.economagic.com/ o FedStats: http://www.fedstats.gov/ o White House Economic Statistics Briefing Room: http://www.whitehouse.gov/fsbr/esbr.html o Bureau of Economic Analysis: http://www.bea.gov/ o Bureau of Labor Statistics: http://www.bls.gov/ o The Federal Reserve: http://www.federalreserve.gov/ o Forecasts: Conference Board: http://www.conference-board.org/ Congressional Budget Office: http://www.cbo.gov/

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Sectors and Industries o Sector a group of industries that engage in related activities o Industry firms that have similar goods and services o Example The Technology Sector includes the following Industries (in the Hemscott system See Appendix B): Computer Hardware Computer Software and Services Electronics Telecommunications Internet o There are many different ways to classify Sectors and Industries including: North American Industry Classification System (NAICS) Standard and Poors Global Industry Classification Standard (GICS)

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