The key players in this study are NorthPoint Group represented by Kimi Ford. Kimi is assisted by Joanne Cohen who has collected and placed together data with assumptions for Kimi’s review. Mindy Grossman will be pressing new ideas to include ‘growth opportunities in apparel and international business’ to help target higher revenue-growth targets.
Among the analysts were Lehman Brothers, UBS Warburg, and Credit Suisse First Boston (CSFB) a company that provides reporting on over 3,000 companies’ globally. NorthPoint Large Cap Fund has performed very well. Compared to the S&P 500 they have managed to earn their clients higher rates of return especially during some difficult times at the end of 2001. The funds year-to-date return at the end of 2001 in June was 6.4% while the S&P 500 was struggling at -7.3%.
Role of the analysts and investment climate:
The role of analysts at the time were on the conservative side as market performance was not the greatest. USB Warburg and CSFB were hesitant thinking that the financial targets were too aggressive. Others such as Lehman Brothers considered it a strong buy. Although not related, Lehman Brothers would file for bankruptcy. With this it can be seen that the climate of investment at the time was on the conservative side. Not too many chances were being taken. Also several investigations were underway concerning some very large firms.
Significance of ‘Diluted’ earnings:
The significance of diluted earnings is that it represents the smallest earnings per common share. This gives the representation of earnings after all warrants and stock options are paid. For exhibit 1 the significance is to show its value after such activities have been exercised. One comparison is the number of outstanding shares. It can be seen that as the number of shares decreases the value of diluted earnings increases. Outstanding shares is used to determine earnings...