Analysis of Common Wealth Bank, Wools Worth Group, Crop Logic, Air New Zealand

This document provides a detailed analysis of Common Wealth Bank, Wools Worth Group, Crop Logic, and Air New Zealand. It includes information about their business segments, market capitalization, stock prices, and performance. The analysis also covers the performance of the portfolio and the correlation between foreign stock prices and the Australian market.

Introduction
The companies that have been chosen for analysis encompass the following:
(a) Common Wealth Bank;
(b) Wools Worth Group Limited;
(c) Crop Logic Limited;
(d) Air New Zealand
Among the above 4 entities, two are Australian MNC and other two companies are foreign
entities listed on Australia Stock Exchange and trade through ADRs.
About Companies
Common Wealth Bank
The Banking company is a premier organisation in Australia and is engaged in providing
financial services in Australia and other countries across globe including retail, institutional,
funds management, broking services etc. The Bank is engaged in diversified services
including global wealth management and has a market capitalisation of $133 Billion with a
Beta of 1.10 and last traded price on stock Exchange dated 07-05-2019 is 74.61 AUD.
Wools Worth Group Limited
Wools Worth Group Limited is engaged in the business of retail operations. The company
has following business segments (a) Food and Petrol, (b) Supermarkets (c) Drinks Group and
Hotel business. The company is also engaged in providing hospitality services and has
presence pan globe. The company has a market capitalisation of $33 Billion with a Beta
of .96 and last traded price on stock Exchange dated 07-05-2019 is 32.35 AUD.
CropLogic Limited
The company is engaged in the business of food research which provides specialised
agronomy services to growers using technology. The company also forecasts yield
optimisation and has specific research cell in this field. CropLogic Limited also processes
data for weather, soil etc. The company has presence in many countries and has a market
capitalisation of $10.72 Million and last traded price on stock Exchange dated 07-05-2019 is
0.03 AUD.
Air New Zealand Limited
The company is engaged in the business of transportation of passengers and cargo on an
integrated network of airlines from and within New Zealand. The company is also engaged in
aircraft leasing. The company has presence in many countries and has a market capitalisation
of $3.97 Billion and last traded price on stock Exchange dated 07-05-2019 is 2.74 NZD.
Brief Snapshot of the Portfolio
Australia based MNC
Sl
No
Name of the
Company
Ticker
Symbol
Amount of
Investment
Purchase Share Price at 22
March, 2019
1
Commonwealth
Bank CBA.AX 10000 71.43
2
Wools Worth Group
Limited WOW.AX 10000 30.51
Foreign Stock ADRs
Sl
No
Name of the
Company
Ticker
Symbol
Amount of
Investment
Purchase Share Price at 22
March, 2019
1 Crop logic CLI.AX 10000 0.028

Limited
2 Air New Zealand AIZ.AX 10000 2.25
Sl
No Date
Commonwealth
Bank
Wools Worth Group
Limited
CropLogic
Limited
Air New
Zealand
1
22-03-
2019 71.43 30.51 0.028 2.25
2
29-03-
2019 70.64 30.48 0.025 2.43
3
05-04-
2019 70.89 30.4 0.033 2.57
4
12-04-
2019 71.63 31 0.04 2.6
5
18-04-
2019 73.41 31.22 0.04 2.59
6
26-04-
2019 75.45 31.99 0.043 2.6
7
03-05-
2019 74.98 32.84 0.036 2.65
Answer 1(a)
Week
1
Name of The
company
Stock Price at
the end of
Week
% Change in
the Stock
Price Primary Reason
1
Commonwealth
Bank 70.64 -1% Negative news
2
Wools Worth
Group Limited 30.48 0%
Negative News and
customer complaints
3 CropLogic Limited 0.025 -11%
Negative news
And weak financials along
with lower cash
4 Air New Zealand 2.43 8%
Cut of Costs and positive
market anticipation

Wee
k 2
Name of the
company
Stock Price at
the end of
Week
% Change in the
Stock Price Primary Reason
1
Commonwealth
Bank 70.89 0%
Negative News and customer
complaints
2
WoolWorths
Group Limited 30.4 0%
Negative News and customer
complaints
3
CropLogic
Limited 0.033 32%
Cut of Costs and positive
market anticipation
4
Air New
Zealand 2.57 6%
Cut of Costs and positive
market anticipation
Wee
k 3
Name of the
company
Stock Price at the
end of Week
% Change in the
Stock Price Primary Reason
1
Commonwealth
Bank 71.63 1%
Cut of Costs and positive
market anticipation
2
WoolWorths
Group Limited 31 2%
Cost cut and positive investors
and market
3
CropLogic
Limited 0.04 21% Positive market
4 Air New Zealand 2.6 1% Favourable market
Wee
k 4
Name of the
company
Stock Price at the
end of Week
% Change in the
Stock Price Primary Reason
1
Commonwealt
h Bank 73.41 2% Positive market
2
WoolWorths
Group Limited 31.22 1%
Cost cut and favourable
market
3
CropLogic
Limited 0.04 0%
Negative news and customer
complaint
4
Air New
Zealand 2.59 0%
Negative news about the
company

Wee
k 5
Name of the
company
Stock Price at the
end of Week
% Change in the
Stock Price Primary Reason
1
Commonwealth
Bank 75.45 3% Positive market
2
WoolWorths
Group Limited 31.99 2%
Cost cut and favourable
market
3 CropLogic Limited 0.043 7%
Cost cut and positive
investors and market
4 Air New Zealand 2.6 0% Negative news
Wee
k 6
Name of the
company
Stock Price at the
end of Week
% Change in the
Stock Price Primary Reason
1
Commonwealth
Bank 74.98 -1% Negative news
2
WoolWorths
Group Limited 32.84 3% Positive investors
3 CropLogic Limited 0.036 -16% Negative news
4 Air New Zealand 2.65 2%
Favourable and
positive investors
Answer 1(b)
Computation of Portfolio
Performance
Sl No Name of the company
Amount
Invested
Amount Closing
Value
1 Commonwealth Bank 10000 10496.99006
2
WoolWorths Group
Limited 10000 10763.68404
3 CropLogic Limited 10000 12857.14286
4 Air New Zealand 10000 11777.77778
40000 45895.59473
The overall performance of the portfolio seems good and it is because of the few times
favourable market condition and condition of the market.
Answer 2:
Sl
No Name of the Company
Ticker
Symbol Performance
1 Commonwealth Bank CBA.AX
Is not driven by the
market
2
Wools Worth Group
Limited WOW.AX
Is not driven by the
market

Answer 3(a):
Sl
No
Name of the
Company
Ticker
Symbol Performance
1 Crop logic Limited CLI.AX
Not driven by the market
factors
2 Air New Zealand AIZ.AX
Not driven by the market
factors

Answer 3(b)
From the above graph it can be analysed that the foreign stock prices of both the company are
not correlated to each other and the price movements are completely random.
Answer 3(c)
The foreign stock performance in case of company Crop logic Limited is not driven through
the performance of the Australian market and both the movements are completely random.

The foreign stock performance in case of company Air New Zealand is not driven through
the performance of the Australian market and both the movements seems to be negatively
correlated to each other.
Question 4(a)
Graph showing the exchange rate movement
Australia based MNC do most of their business in USD.The movement of USD against AUD
has been depicted in the graph above, The Australia based MNC Commonwealth bank do
most of the foreign transaction in USD.The market is volatile in terms of movement of USD
against AUD.

Graph showing the stock movement
The Australia based MNC Commonwealth bank stock is not influenced by the movement in
the currency,
Question 4(b)
Graph showing the exchange rate movement
Australia based MNC do most of their business in USD.The movement of USD against AUD
has been depicted in the graph above, The Australia based MNC Wools worth bank limited
do most of the foreign transaction in USD.The market is volatile in terms of movement of
USD against AUD.

Graph showing the stock movement
The Australia based MNC Wools worth Bank limited stock is not influenced by the
movement in the currency,
Question 5(a)
Graph showing the exchange rate movement
The stock performance of foreign company Croplogic limited is not influenced by the
movement in the currency, As the local currency movement has not got any correlation with
the movement in the stock price.
Question 5(b)

The stock performance of foreign company Air New Zealand limited is not influenced by the
movement in the currency, As the local currency movement has not got any correlation with
the movement in the stock price.