The team investment project comprises two exercises, The exercises will be undertaken by the same teams as those assigned for the Investment Game. The purpose of the project is to give students an opportunity to gain some experience with equity research in a real world setting. The main purpose of equity research is to provide investors with detailed financial analysis and recommendations on whether to buy, hold or sell a particular investment. There is a wealth on information available online about public companies, but you will have to do some digging. 3FB3 Fall 2020, page 6 of 11 degroote.mcmaster.ca The investment will be a common stock of the students’ choosing. The stock must be listed on a Canadian or US stock exchange. Listed investment trusts (eg. REITs) and American Depositary Receipts (ADRs) for individual offshore companies are permitted as well. Securities based on a portfolio of stocks (eg. ETFs) are not eligible for this project as the purpose is to analyze a particular industry and stock. Student teams will choose an industry and, then, the common stock of a company within the industry (no preferred shares please).

The first step will be to analyze the industry. This will involve investigating industry trends and competition. You should ensure that all of the dynamics of the industry have been investigated, including the impact of political factors, the state and future of the economy, social trends and technological change. Short to medium-term factors, such as the current Covid-19 crisis, should be considered as well. The industry report (approx. 15 pages plus any supporting tables, graphs, computations and projections, etc in appendices). All writing must be your own original work. Tables and figures from other sources may be included in the appendices, but the sources should be acknowledged. Do avoid the temptation to cut and paste or otherwise incorporate material from other sources as any evidence of having done so will result in a grade of zero on the assignment. All references used should be cited in a bibliography.

The central question is: What are the prospects for this industry from the vantage point of an investor