Security Analysis Report of Kellogg (stock ticker K) Research Paper - 1

earnest Analysis Report of Kellogg (stock ticker K) - Research Paper ExampleThe most common deciding factors apply in the market to attempt to anticipate future tense stock pricing are recent value history and patterns, current price relative to past price levels or other stocks, beliefs about future price movement, and a fourth area that can be described generally as heedless optimism (Thomsett 1). 2. Discussion of background of the company. Kellogg is a leading producer and distributor of cereals, which was founded in the year 1906. From the year 1906 Kellogg had been expanding chiefly by creating its own new brands of cereals, cornflakes, and other cereal related food products. The financial statement from 2006 to 2010 contains 5 years, which require to be inspected to recognize the stock activities in Kellogg. It is listed on the Dow Jones well-worn Exchange and New York Stock Exchange. Kelloggs had expanded over the years and has a good market share. Its stocks and share prices showed a really positive path and investors were on a rush to invest in Kellogg stocks. Due to economic recession of 2007 like other companies kellogs socks also took a stagnat approach. So this paper investigates whether an investigator should invest in Kelloggs shares by buying, or he should be holding his decision or in fact the investor should be selling Kelloggs shares in the stock market. ... A stock is considered as best or stark(a) only when all the dimensions are perfect and project a future fruit for its investors. An expanding business has ontogeny and healthy revenue. The stock movements are a projection of a business and past results are no guarantee yet the past stock records of a firm influence its present and future movements to a certain extent. A firm which has high gross revenue does not mean it is earning high profits. High sales do not measure a stocks performance, whereas the profits of a firm forthwith affect the stock movements. From the income statement of Kellogg, it is understood that the net sales from the year 2006 to 2008 show an increasing trend while the year 2009 and 2010 point out to a decreasing movement in net sales as compared to the previous year. From 2006 to 2008 there was an increase in net sales by around 18%. While in the year 2009 there was a drastic downfall by around 2%, similarly, the year 2010s net sales also showed a decrease by 1.41% A amalgamate average from the year 2006 to the year 2010 with respect to the net sales of the firm shows that Kellogg has experienced a growth of 13.66%. Comparing the net earnings of Kellogg there is an increase of 24%. In such a case, Kellogg stocks feel to be brought. Comparing the net earnings of the years 2009 and 2010, there is a decrease of 2.9%. The profits of a firm are understood from its payment of dividends. A firm with a strong balance planing machine does not have to worry about its debt. The return on equity helps to measure how well a firm is conve rting its resources into profitable business endeavors for expansion purpose. If the five-year annual revenue growth is more