A global company is growing because of strategic acquisitions. The director of the operations of flight is faced with several issues in this regard. Several human resources issues arise which include the pay system, training, and the acquisition of new technology. This case is developed from an amalgamation of various real-life situations.
1. You are an analyst in Aikens Co., your portfolio manager says “ I am fascinated by the US’s abundance of natural gas and there are many different ways to play this sector, I want look at two different plays Clean Energy Fuels Corp. (CLNE) a small cap company in its early stage of development and Apache (APA) an industry behemoth which may be safer but may have less upside. Please advise whether we should invest in either or which firm offers the best long term value opportunity for our fund.
2. Another portfolio manager approaches you with a request for a recommendation. I have $100mm to invest and there are two very different firms for you to thoroughly analyze and suggest how I should allocate these funds. You may recommend no allocation to either firm, a specific allocation to each firm or 100 % allocation to one firm.The firms are Polaris Industries (PII)and 3D SystemsCorp (DDD). These firms are not comparables and present very different risk/return profiles, so that after you have clearlyidentified each profile, you must clearly state why you are selecting one over the other if you do . On the other hand if you find neither profile attractive you must clearly define why the risk/return profiles are unacceptable.
3. At this same firm, another portfolio manager assigns you the task of making a recommendation on the drug store industry. She asks you for a recommendation on investing in either CVS (CVS) or Walgreen’s (WAG). She asks you to thoroughly analyze the industry, its competitive position versus other retailers such as Wal-Mart and Amazon and after you have a view of the industry dynamics, please decide if either company is better positioned for the next 4 yearsor whether we should avoid this industry segment.