FIN 4990/5990- Problems in Finance
Spring 2006 - Syllabus
TVA INVESTMENT CHALLENGE: Approximately twenty four universities in the
TVA service region are participating in the investment of several million dollars. Each
school has invested approximately $450,000 and is now overseeing their portfolios.
Under the guidance of a faculty member(s), students have designed a long-term
management strategy, are actively managing the funds, and periodically provide
performance reports to TVA.
Faculty Sponsor: Dr. Doug Timmons
Office: BAS N326 ///// office hours- 3-5pm prior to class
Tel: (615) 898-5750 Fax: (615) 898-5596
Web Page: http://www.mtsu.edu/~mtsutva
TVA Portfolio: http://quote.yahoo.com
Student Analyst's Duties Include:
1. Continuous monitoring and management of the MTSU/TVA portfolio
A. Evaluation of the current and forecasted economic and market
B. Evaluation of the 10 S & P sectors.
C. Ongoing evaluation of stocks included in the portfolio
D. Analysis and recommendations (written and oral) of stocks
meriting inclusion in the portfolio
E. Improving the process by which the portfolio is managed
F. Developing/refining an investment philosophy for the portfolio
2. Studying various security analysis and portfolio management theories---
Stock Investing for Everyone, by Khan and Zuberi (SIFE)
Fire Your Stock Analyst! , by Harry Domash (FYSA)
3. The following styles of Investing will be studied:
4. Familiarize yourself with Internet investment sources
Assignments (9) 90%
Overall Effort/Contribution/Attendance/Quizzes/Homework 10%
* Graduate students will also be responsible for a semester project to be announced.
This project will count 10% of your final grade (other assignments will count 80%).
Assignments: (1-3 typed pages with source citations)
1. Many Internet sites provide useful free information about the economy, industries
and individual stocks. The first part of your assignment is to visit minimally 3
sites that provide industry and stock analysis. Print a hard copy of what is
available at these sites and briefly summarize what you found. I am more
interested in the information that can be found at the site rather than the specifics
for this company/industry. The second part of the assignment is to get the
Value Line Investment Survey (can be found in the reference section of the
library) page for the companies listed below , print hard copies, and highlight
on the VL sheet the ten items you find most important to understanding the
stock’s investment appeal.
The companies you are to research are:
Home Depot (HD) and Best Buy (BBY)
2. American Association of Individual Investors has profiled several successful
investor styles. Your instructor will provide each of you with a profile printout, or
they can be found at the aaii.com site (see side bar—stock screens). Choose one of
the strategies, develop a written summary, and be prepared to present the idea to
the class. ( www.aaii.com, ID: tva, Password: 12345)
3.Refer to chapter 3 in (FYSA) and chapters 14 and 15 (STFE). Use the MSN or
advanced Yahoo site screener. Follow the steps outlined, and build a stock- screening
model. Print a hardcopy of your results and briefly describe the criteria you used
to create your screen. Choose one of the stocks selected by your screen and print its
Yahoo Profile and earnings estimates reports. Briefly write a few comments on the
4.You will be assigned one or more of the 10 S & P sectors. It will be your duty to
analyze and provide a summary report on the investment merits of one of the
industries in the sector. Minimally cover: Industry life cycle, component sub-industries
competition, historical performance, government regulation, business cycle analysis, and
industry prospects. These sources might be helpful: S & P Industry Survey and Value
Line Investment Survey (these sources can be found in the reference section of the
library); www.wallstreetcity.com; www.hoovers.com; www.dowjones.com;
www.industryinvestingreports.com; www.yardeni.com, www.finance.yahoo.com (has
5. You will be assigned at least one stock from the current portfolio. Analyze the stock(s)
and prepare a written report (minimally use the TVA Stock Sheet format found on our
web site), and present your findings in class. Morningstar.com might have financial
ratios. Make sure you use the proper form!!! If your stock(s) are covered by Value Line
Investment Survey, please include their report(s).
6. Develop stock-screens for two of the following three investment strategies:
momentum, growth, or value. Print a hard copy of the stock list developed by each
screen, and describe the criteria you used to choose these stocks. Choose a highly
ranked stock from each screen and printout the Yahoo Profiles and earnings estimate
reports. Do you think the two stocks you selected have good prospects? Why?
7. Find a new stock (any sector) that you believe should be considered for inclusion in the
portfolio. Prepare a "TVA stock sheet" report (minimally) and class presentation
(be sure to use the right form). Include a Value Line Report if they cover your
8. Use the Stock Profile Form to evaluate the stocks you cover in the portfolio. Also
get the Value Line sheet on your stocks if they are covered. Write a brief summary on
each stock’s investment appeal. Should the stock be retained or sold?
9. Submit a brief written summary of what you think of our current portfolio and its
implied investment strategy. Indicate the stocks you like, and those you feel should be
deleted from the portfolio. Be sure to give reasons for the suggestions you have made.
Additionally, you are to give specific recommendations for changes you would like to
see made to the portfolio. What stocks should be sold? Why? What new stocks should be
added and how much money would you invest? Why?
This portion of your grade is based primarily on your participation in
discussions on the management of the portfolio. You must familiarize
yourself with our Website, Internet sources, and most importantly with the
stocks that makeup our current portfolio. You should be prepared to
discuss current news about your assigned stock(s) at each meeting.
Additionally, your discussion of the book we will review in class is
Graduate Students: MBA students will be expected to perform at a higher level.
Additionally, they will be assigned a semester project that will be outlined by your
instructor during the first two weeks of class.
JAN 19 Introduction to TVA
26 Read (FYSA-1-3, SIFE-1,2,19), Lecture on investment approaches
FEB 2 Assignment 1; read (FYSA- 4-5, SIFE-3)
9 Read (FYSA- 6-7, SIFE-4 and 5); Be prepared to critique the portfolio
16 Assignment 2; (handouts provided), read (FYSA-8-9, SIFE-6)
23 Assignment 3; read (FYSA-10, SIFE-14,15)
MAR 2 Read (FYSA-11,SIFE-7,8,9,10)
9 Spring Break
16 Assignment 4; (handouts provided) ; real (FYSA-12-14)
23 Read (SIFE-11,12,13); Assignment 5
30 Assignment 6; read (FYSA-15-16, SIFE-16)
APR 6 Read (FYSA-17, SIFE-17); portfolio review
13 Assignment 7
20 Assignment 8; Portfolio review---Socks to sell??? Develop list of stocks to
to consider buying
27 THIS DAY IS SCHEDULED AS A STUDY DAY, therefore the class will
have to agree to meet, or we will meet the following week during the
regularly scheduled final. Assignment 8 and portfolio changes.
MAY 4 TBA, this night is scheduled for the final, we won’t meet if the class decides
to meet on the 27th. If we meet, Assignment 8 and portfolio changes.
Undergraduate Students Graduate Students
A >90 A >92.5
B+ 87.5-89.9 A- 90-92.5
B 82.5-87.49 Other grades as indicated
B- 80-82.49 on the left.
Books: Option 1---The books can be purchased for $25. I will buy back SIFE for $7,
and FYSA for $13.
Option 2---You can rent the books for $10.
Option 3---Buy your own books.