The idea of using IT technology to help us in analyzing the financial market is not new. The difference now is that with the wide availability of personal-use software and the wide spread of internet helped to maintain all the data needed quicker and without the need to special skills or expensive programs. In this report It will be demonstrated how with the help of the internet and an office program suite, e.g. Microsoft Office keep the track on the data obtained and visualize it for future analysis and record them in a data base. Fundamental analysis is used most widely by financial professionals as it looks at the all aspects of the company. This was previously difficult as the information available was difficult to compile because of the sheer volumes. With the assistance of computers, much of the relevant information can be gathered quickly and easily. There is an Appendix at the end of the paper which describes the work of the Access data base form to record the information.
We have the company “Roper Industries, Inc.”, founded in the late 1800s by George D. Roper, the company’s main interest was home appliances, pumps and other industrial products. In 2001, the company began transforming its holding company business model into an operating company model
On the other hand we have the company “Perkinelmer Inc.”, a technology corporation, focused in the business areas of: Life and Analytical Sciences, Optoelectronics, and Fluid Sciences. The corporation in its present form occurred as a result of a merger between EG&G Inc. (formerly NYSE: EGG) of Wellesley, Massachusetts and Perkin-Elmer (formerly NYSE: PKN) of Norwalk, Connecticut.
The prices of the two companies share were monitored and recorded for a period of the last five month on a weekly basis, starting from the 7th of December 2007 and until the 25th of April 2008. The records were entered in an entry form in Microsoft Access and by the end of the five month period were extracted as report and transformed to a Microsoft Excel diagram graph that is going to be demonstrated in this report. The following graph (1) we can see the share price performance of Roper Inc.:
And the next is the diagram obtained from reading the share records for PerkinElmer, Inc and shown in graph (2):
At last for a better view of the picture the last diagram is combining the records for a detail view if both of the companies’ performance shown in graph (3) and table (1):
Table (1).
In conducting fundamental analysis to examine the financial information provided by each company, as well as the industry and the economy overall we can see, all factors which have an impact on the company. And to provide a sound picture of the performance of the company to value the company, and to compare with the price in the share market we looked at the pre-history of the mentioned companies.
We see that Roper Industries, Inc., for the past five years completed acquisitions that account for more than half of its revenues, and established the Company in such global growth markets as water, radio frequency and research/medical applications. In the process, the company has enhanced its long-term prospects and rewarded investors with steadily increasing dividends and a rising stock price.
When Looking at Perkinelmer Inc., we see that the Company designs, manufactures, markets and services components, systems and products in two segments: Life and Analytical Sciences, and Optoelectronics. The health sciences markets include all of the businesses in the Company’s Life and Analytical Sciences segment and the medical imaging business, as well as elements of the medical sensors and lighting businesses in its Optoelectronics segment. The Company markets its products and services in more than 150 countries. In November 2007, PerkinElmer acquired ViaCell, Inc. In February 2008, the Company completed the acquisition of the newborn metabolic screening business of Pediatrix Medical Group, Inc. In March 2008, the Company announced the acquisition of LabMetrix Technologies.
When conducting technical analysis we make judgments about the performance of a share based solely on its historic and current price behavior and without reference to the underlying business, the sector the company is in, or the economy as a whole. This was done by tracking and charting the company’s stock price weekly and analyzing the data gathered.
From the table (1) we can see that the Roper Inc. shares started to drop their prices from the first day of tracking the prices and recording the maximal price through that period at the same day. At the same time it apparent that there was a drop in there for the price that was recorded minimal for that price in that period. After that the prices of the shares started to rise though not reaching the starting point of the record.
From the same table in the Perkinelmer Inc. column we can see that that the share prices in general stayed neutral with minor changes in the process, in addition we can notice a solid drop in March though the prices started to rise again and recording maximal price for the shares at the last day of monitoring through the whole period.
From analyzing the data technically and fundamentally we come to a conclusion that considering the drop of prices through the experimental period of monitoring Roper Ink. shares to a minimal which was about 22% of the started price comparing to approximately 12% in Perkinelmer case which reached a maximal value at the last day of the term, I would recommend to invest the money in Perkinelmer Inc which seem to be financially stable looking to the background of the company and considering their future investments.
Works Cited
Wikipedia contributors. PerkinElmer. Wikipedia, The Free Encyclopedia. Web.
Stock information on Roper Ink. Web.
Stock information on Perkin Elmer Ink. Web.
Appendix I
In collecting and analyzing the shares of the selected companies, Microsoft Access has been used. A form for the data base input was developed which consisted from the fields shown in the picture (1).
It has to be mentioned that the selection of the company was done from another table in the data base which contains the description and the contacts of the companies. In case we have to monitor another company, it has to be added in table called companies in the same data base book Picture(2).
At the end of the reading term a report was formed in the book which was exported to Microsoft Excel to form a diagram.