BY: AUTHOR. Business Finance. Stock Analysis. Stock inv

B Y: A U T H O R
Business Finance

Stock Analysis
Stock investigation is one of the most significant
choices.
 Created by the financial specialist so as to make
certain of the assets put resources into the
business.
Trading along with the different companies in
the open market provides the opportunities
Three companies that have been selected for the
stock analysis are Key tone Dairy Production,
Bellamy’s Corporation and Merchant
International House Limited.

Overview of Companies
Name of the
company
Keystone Bellamy’s Merchant
House
International
Limited
Location New Zealand Australia Hong Kong
Founded 2011 2014 1978
Ticker name KTD BAL MHI
Subsidiaries Key tone
Enterprises
Bellamy/s
Organic
Loretta Lee
limited,
Footwear
industries of
Tennessee Inc.
Primary
Activities
dairy items
portion of the
quick moving
customer
merchandise
industry.
food and the
beverage
company,
largest
producers in
Australia to
produce the
infant formula
planner, maker
and advertiser
of cowhide
boots and
shoes, home
and regular
beautifying
things, and
home material

Investment in the company
Particulars KEYSTONE
DAIRY
CORPORATION
Bellamy's
AUSTRALIA
LIMITED
MERCHANT HOUSE
INTERNATIONAL
LIMITED
Total Assets 14153 280812 69390
Total liabilities 587 73454 20101
Number of shares 750000 99679 9426
Market capitalisation 83.25 101.4 8.484

Investment on the basis of Relative Valuation
KEYTONE DAIRY
CORPORATION
Bellamy's
AUSTRALIA
LIMITED
MERCHANT
HOUSE
INTERNATIONAL
LIMITED
Book value 13566474 207379 49289
Number of shares at
the end 750000 99679 9426
Market value 0.55 8.95 0.09
Shares * price 412500 892127.05 848.34
Makret value to book
value 0.03 4.30 0.02
Return on Equity
Net income -3290 43267 -2504
Shareholder's equity 13566474 207379 49289
-0.02% 20.86% -5.08%
Intrinsic value per
share 171842 244619 37007

Under the present scenario, the highest market to
book value ratio is of Bellamy’s Corporation at 4.30
Currently the return on equity in case of the
Bellamy’s is 20.86% which is highest in comparison
to the Key tone dairy corporation and Merchant
House International Limited
The intrinsic value is greatest in case of the Bellamy’s
Corporation at $244619 in comparison to Keystone
Corporation at $171842 and $37007 in case of
Merchant House International Limited.
Bellamy’s Corporation proved to be fruitful in case of
all the parameters

Monthly Average Returns
6/1/2018
7/1/2018
8/1/2018
9/1/2018
10/1/2018
11/1/2018
12/1/2018
1/1/2019
2/1/2019
3/1/2019
4/1/2019
5/1/2019
6/1/2019
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
KEYSTONE DAIRY
CORPORATION
S&P/ASX 200

Bellamy’s Yearly Average Return
1/1/2014 1/1/2015 1/1/2016 1/1/2017 1/1/2018 1/1/2019
-100%
-50%
0%
50%
100%
150%
200%
250%
300%
350%
BELLAMY'S YEARLY AVERAGE RETURNS
BELLAMY'S

Analysis
As per the analysis of the average yearly
returns and the monthly returns, the keystone
Dairy Corporation is performing better with
respect to the S&P ASX 200 index.
In case of Bellamy’s Corporation the returns
are parallel to each other.
In case of the Merchant House International
Limited the index is behind the return of the
company
Bellamy is the right choice.

Systematic Unsystematic Risk
Systematic Risk is a sort of hazard is an inherent hazard,
 It is related to existing current financial exchange.
This hazard is appropriate to each division yet they are
controllable.
Systematic risks are quite difficult to be eliminated as
these risks are inherent and it cannot be regulated by the
group and individual
Example: Mr Donald has the portfolio consists of 200
shares, 100 bonds, and 200 government bonds.
Prescribed a Beta of portfolio is nearly two. It is seen that
portfolio returns will be fluctuating 2 times more as
compared to the market returns.

Unsystematic Risk
Unsystematic risk, Non-systematic risk, residual risks,
specific risk, and diversifiable risk in relation to the
investment portfolio.
It is seen that unsystematic risks can be further reduced
with the help of diversification.
Unsystematic risks is associated with specific risks for the
company`s stock
Example: Mr Rock invests nearly $50,000 in a diversified
portfolio where it invests half of the stock of the Automobile
organization, one-fifth in IT stocks and remaining balance
has been invested in the Airline Company. In 2017, the worth
of portfolio has been enhanced to nearly $60000 whereby it
brings annual growth of 15 percent [$60000-$50000*100].

References
"Yahoo Is Now A Part Of Oath", Ca.Finance.Yahoo.Com (Webpage, 2019)
https://ca.finance.yahoo.com/quote/KTD.AX?p=KTD.AX
"Yahoo Is Now Part Of Oath", Finance.Yahoo.Com (Webpage, 2019)
https://finance.yahoo.com/quote/BAL.AX?p=BAL.AX
"Yahoo Is Now Part Of Oath", Finance.Yahoo.Com (Webpage, 2019)
https://finance.yahoo.com/quote/MHI.AX?p=MHI.AX
Abraham, Rebecca, Judith Harris and Joel Auerbach, "Earnings Yield As A
Predictor Of Return On Assets, Return On Equity, Economic Value Added And The
Equity Multiplier" (2017) 08(01) Modern Economy
Pertiwi, Dina Bakti and Novrys Suhardianto, "Relevansi Nilai Selisih Loans Book
Value Dan Loans Fair Value, Book Value Per Share, Earnings Per Share Dan
Ukuran Perusahaan" (2016) 17(2) Jurnal Akuntansi dan Keuangan
Scholtz, Hellmut D., "Is Systematic Risk Diversifiable? Presentation Of A Portfolio
Model That Eliminates Systematic Risk" [2014] SSRN Electronic Journal
Vaidya, Dheeraj, "Systematic Risk Vs Unsystematic Risk | Top 7 Differences
(Infographics)", Wallstreetmojo.Com (Webpage, 2019)
https://www.wallstreetmojo.com/systematic-risk-vs-unsystematic-risk/