MSC FINANCE: FINANCIAL MARKETS AND INSTITUTIONS [U08423]
The purpose of this project was to hypothetically invest ·100,000 over a limited period (approximately seven weeks) in financial securities by following an active investment strategy. As a decision was made to invest in financial securities traded on the Irish Stock Exchange, the ·100,000 was converted to ¦142,000.
The decision to invest in securities traded in the Irish Stock Exchange was justified by projections and assessments of activity in the economy of Ireland (Economist, 2004a; Economist, 2004b; Financial Times, 2000). The securities selected for investment were ordinary shares in public companies. The selection of public companies was based on (a) demonstrated market performance from January 2003 through October 2004, (b) strength of sector, and (c) company prospects over the short-term (the duration of this investment project was approximately seven weeks).
A total of 14 companies were identified as potential investment targets. The 14 companies selected were traded on the Irish Stock Exchange, and each company met the other requirements stated above. The 14 companies were as follows:
Paddy Power Plc (2004): Principal activities are the provision of sports betting services through a chain of licensed betting offices, telephone betting, and on-line interactive betting services. The company provides its service in Ireland and the United Kingdom
Iaws Group Plc. (2005): Specialty foods include bread distributor Delice de France, food wholesaler Shamrock Foods, and baking units Cuisine de France and La Brea Bakery (US) which supply retailers and restaurants with partially baked specialty breads and pastries, and Irish Pride Bakeries make bread and baked goods for grocery stores; agribusiness operations include seeds, fertilizers, feed ingredients, farm supplies and pet food ingredients
Irish Life and Permanent Plc. (2005): Insurance, investment m...