Global Business Management

Individual Project: A stock

Manav Mehta

300923585

International Banking and Finance

Section 003

Professor: Andrea Thompson-Facey

Date: 10th October 2017

Introduction

The company on which I am doing research about the share prices in the previous 3 months is Magna International. Magna is leading supplier for automotive parts with 327 manufacturing operations and around 100 product development, sales and engineering centers in 30 countries. They have more than 161,000 employees who are making sure that products and services provided by the company are of good quality because of their innovative process and world-class manufacturing of products. (Magna Inc., 2017). Company’s market capitalization is over 25 Billion Dollar, sales or revenue is 48.40 Billion Dollar and increases in sales in a year is 17.42 percent. The current price of one share of this company is 67.68 Canadian dollar as seen on 9th October 2017. The one-day range of share is 67.54 to 68.69 cad. The 52-week range is 49.44 to 68.69 cad since 11th November 2016 to 9th October 2017. There are few things included in this project like share price of Magna International and its changes over the period of 3 months, exchange risk and factors, company’s revenue and sales, cash flow per share and some other factors as well.

Overview of the share prices from 1st July to 1st October:

The data we are looking for the share prices of Magna International Inc. is from July 4th 2017to 2nd October 2017. On July 4th the opening price of one share was 60.50 cad with high and low 60.69 cad and 59.20 cad respectively. Closing on that day was 59.90 cad. On 2nd October 2017, the price of one share was 66.88 cad with high and low 67.64 and 66.79 respectively. Closing on that day was 67.29 cad. (Finance Google, 2017). The percentage increase in opening price from 4th July to 2nd October was 10.55% and percentage increase in closing price from 4th July to 2nd October was 12.34%.

Graphical presentation of percentage increase in share price:

[pic 1]

 Reason for a stock price fluctuation is demand and supply or other reason can be the increase in the value of the company’s assets. The main reason for this company’s stock price increase as demand and supply fluctuate. Magna is an automotive company and there are around 88 million cars sold every year this reason is enough to explain that why their stock prices increased. It is not official but rumor is that Magna is going to manufacture the new Apple Car and its production will hit the market in next 2 years. This will also increase the value of the company and eventually share prices will increase as well.