Aaa Stock Analysis

INDIVIDUAL ASSIGNMENT

Subject: Corporate Finance

IEMBA SBF.02

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Topic:         

Choose one Vietnamese listed stock (one student has to choose one different stock): explain the reasons why the stock attracts your attention.

• Analyze the stock’s risk and return: comment on the total risks and systematic risk in relationship with the return of the stock.
• Calculate the correlation between the stock return and the market return: comment on the result.
• Give some advises to investors about the stock.

1. Contents

I.        INTRODUCTION        2

II.        REASONS TO INVEST IN THE STOCK OF AAA        2

1.                2

2.        Promising profitability        8

3.        Tolerable investment risk        10

4.        Competent leadership        10

5.        Appealing evaluation        11

III.        ANALYSIS OF AAA STOCK'S RETURN AND RISK        12

IV.                16

V.        RECOMMENDATIONS FOR INVESTORS        17

1. INTRODUCTION

Vietnam stock market  has experienced a stunning growth and achieved a remarkable transformation and development over the past ten years driven by the strengthening economy, sales of stakes in state-owned enterprises and constantly growing company listings. The VN index currently records at 970 and is forecasted to rise up to the 10 year-high of 1000 by the end of 2017. During  this period, investors have had lots of attractive investment opportunities. Still, as the nature of investment,  every opportunity carries some risk. Thus, among thousands of stock to choose, this paper will concentrate on examining the stock of An Phat Plastic and Green Environment JSC (Sticker: AAA) which, according to the author, is an attractive stock with promising growth potential. Also, the paper will attempt to investigate the correlation between the stock return and the market return, and to propose some recommendations to investors about the stock.