Question

Explain which companies to invest in


A client, Manuel Rodriguez, has just inherited some money and has decided to invest it in stock. He is not interested in mutual funds because he prefers to have personal control over his stock investments. He currently has a diversified portfolio of stock to which this new investment will be added. Your client wants to invest about $500,000, but in keeping with his conservative investing strategy, he wishes to keep his risk as low as possible.


Mr. Rodriguez has asked you to evaluate the most recent annual reports of several corporations as possible investment options. Choose three corporations whose stock is listed on the NYSE or the NASDAQ and whose annual reports you can study. Compare the information found in these reports and then write a report for Mr. Rodriguez that explains which of the companies is likely to be his best investment. Explain your conclusions thoroughly, quoting from the annual reports as necessary.

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