TDFA - Trading Digital & Financial Assets

TDFA – Trading Digital & Financial Assets

Preface

Assignments criteria:

To successfully complete these assignments, follow these criteria:

1. Understanding of Fundamental Analysis 

. Demonstrates a solid understanding of fundamental analysis principles, concepts, and tools applicable to the specific industry (traditional company or blockchain/cryptocurrency).

. Accurately applies relevant financial ratios, technological analysis(if applicable), market position assessment, and sentiment analysis to evaluate the company's performance or in the case of a blockchain/cryptocurrency company it’s potential.

2. Quality of Analysis 

. Conducts a comprehensive and well-structured analysis of the company's financial health (in the case of a traditional company) or the blockchain/cryptocurrency company's technological advancements, partnerships, market position, and industry trends (in the case of a blockchain/cryptocurrency company).

. Provides in-depth insights into the strengths, weaknesses, opportunities, and potential risks associated with the selected company.

3. Investment Recommendation 

. Formulates a well-founded investment recommendation (Buy, Hold, or Sell) based on the analysis of financials, industry trends, technological advancements, market position, and sentiment analysis (if applicable).

. Supports the recommendation with strong justifications and clear references to the findings from the analysis.

4. Originality and Critical Thinking 

. Demonstrates original thinking and creativity in the analysis of the selected company.

. Applies critical thinking skills to assess potential risks, opportunities, and challenges in the company's performance and future prospects.

5. Clarity and Presentation 

. Delivers a clear, well-structured, and engaging presentation (for the company or blockchain/cryptocurrency company) with coherent communication of ideas and findings.

. Provides a well-written report with detailed explanations, tables, graphs, and visuals (if appropriate) to support the analysis and investment recommendation.

. Address all components of the assignments.

 

 

 

 

 

 

 

 

Referencing: We expect you to support your statements using references throughout your work. You must use referencing to support claims that are not your personal opinions or thoughts. 

· Note that your references must be in either APA style or Harvard referencing style. 

· Do not use Chat GPT as a source. 

· Cite the sources in-text and include the sources in a bibliography.

1: Fundamental Analysis of a Traditional Company: Identifying Value and Investment Opportunities

In this assignment, you will conduct a fundamental analysis of a single publicly-traded company of your choice. You will evaluate the company's financial performance, growth prospects, and overall health using various fundamental analysis tools and techniques. Additionally, you will assess the company's competitive position within its industry and recommend an investment decision based on your findings.

Instructions:

Step 1: Company selection

1. Choose a publicly-traded company that interests you and has sufficient financial data available for analysis. You may select a company from any industry or sector.

2. Ensure the chosen company's financial statements, including Income Statement, Balance Sheet, and Cash Flow Statement, are publicly available for at least three years.

Step 2: Data collection

1. Collect the company's financial statements for the past three years.

2. Obtain any relevant news or industry-specific information that could impact the company's performance.

Step 3: Fundamental analysis

1. Conduct a comprehensive analysis of the company's financial statements. Calculate key financial ratios, including but not limited to: 

a. Profitability Ratios (e.g., ROE, ROA, Gross Profit Margin)

b. Liquidity Ratios (e.g., Current Ratio, Quick Ratio)

c. Solvency Ratios (e.g., Debt-to-Equity Ratio, Interest Coverage Ratio)

d. Efficiency Ratios (e.g., Inventory Turnover, Receivables Turnover)

e. Growth Ratios (e.g., EPS Growth, Sales Growth)

0. Analyse the results of the financial ratios to understand the company's financial performance and overall health.

1. Identify any potential risks or areas for improvement based on the analysis.

Step 4: Industry and sentiment analysis

1. Conduct a brief analysis of the industry in which the selected company operates.

2. Evaluate how the industry's performance could affect the company.

3. Perform sentiment analysis on the company's online presence, including social media mentions, news articles, and discussions on relevant forums.

4. Analyse the sentiment trends to understand public perception and sentiment towards the company.

5. Evaluate whether the sentiment aligns with the company's financial performance and prospects.

Step 5: Investment recommendation

1. Based on the fundamental analysis, sentiment analysis and industry outlook, make an investment recommendation for the company: Buy, Hold, or Sell.

2. Provide a clear rationale for your recommendation, citing specific financial metrics and industry trends to support your decision.

Step 6: Conclusion and presentation

1. Summarise the key findings of your analysis and your investment recommendation.

2. Make a short video presentation (5 – 10 min) to share your analysis and recommendation with us.

3. Your presentation should be accompanied by a written report that includes detailed explanations, tables, and graphs to support your analysis.

2: Fundamental Analysis of a Blockchain/Cryptocurrency Company: Identifying Value and Investment Opportunities

In this assignment, you will conduct a fundamental analysis of a single blockchain or cryptocurrency company of your choice. You will evaluate the company's technological innovations, market position, partnerships, and overall potential in the industry. Additionally, you will assess its competitive advantage and recommend an investment decision based on your findings.

Instructions:

Step 1: Company selection

1. Choose a blockchain or cryptocurrency company that interests you. You may select a company involved in blockchain technology development, cryptocurrency exchanges, decentralized finance (DeFi) platforms, or other relevant areas.

2. Gather relevant information about the company, including whitepapers, announcements, and public reports.

Step 2: Technological analysis

1. Analyse the technological innovations and advancements made by the company.

2. Assess the potential applications of their technology in the blockchain or cryptocurrency industry.

3. Evaluate the company's competitive advantage in terms of technology.

Step 3: Market position and partnerships

1. Evaluate the company's market position within the blockchain or cryptocurrency industry.

2. Investigate its partnerships with other companies or blockchain projects and how these partnerships may impact its growth.

Step 4: Financial performance (if applicable)

1. If financial data is available, analyse the company's financial performance, growth trends, and profitability (e.g., revenue, expenses, profit margins).

2. Consider any financial metrics that may be relevant for the company's evaluation.

Step 5: Sentiment analysis

1. Perform sentiment analysis on the company's online presence within the blockchain and cryptocurrency community, including social media mentions, news articles, and discussions on relevant forums.

2. Analyse the sentiment trends to understand public perception and sentiment towards the company.

3. Evaluate whether the sentiment aligns with the company's technological advancements, market position, and overall potential.

 

 

Step 6: Investment recommendation

1. Based on the fundamental analysis and industry outlook, make an investment recommendation for the company: Buy, Hold, or Sell (if applicable).

2. Provide a clear rationale for your recommendation, citing specific factors, such as technological advancements, market position, partnerships, or financial performance, to support your decision.

Step 7: Conclusion and presentation

1. Summarise the key findings of your fundamental analysis, sentiment analysis, and your investment recommendation.

2. Make a short video presentation (5 – 10 min) to share your analysis and recommendation with us.

3. Your presentation should be accompanied by a written report that includes detailed explanations, tables, and graphs to support your analysis.