STOCK PRICE RESEARCH

Stock Price Research

Table of contents

INTRODUCTION4

BACKGROUND4

DISCUSSION5

ASTRAZENECA5

SEVERN TRENT PLC9

CONCLUSION14

REFERENCES15

Stock Price Research

Table of contents

INTRODUCTION4

BACKGROUND4

DISCUSSION5

ASTRAZENECA5

SEVERN TRENT PLC9

CONCLUSION14

REFERENCES15

Introduction

This assignment is based on the analysis of stock price data of two companies listed on LSE. The companies are AstraZenneca and Severn Trent Plc. The stock price data have been collected from Yahoo Finance.

Background

The FTSE 100 Index is a share catalogue of the 100 most highly capitalised UK businesses recorded on the London Stock Exchange. The catalogue started on 3 January 1984 with a groundwork grade of 1000; the largest worth come to to designated day is 6950.6, on 30 December 1999. It is the most broadly utilised of the FTSE Group's indicators, and is often described (e.g. on UK report bulletins) as a assess of enterprise prosperity. (Sohl 2003)

The catalogue is sustained by the FTSE Group, an unaligned business which began as a junction project between the Financial Times and the London Stock Exchange. It is calculated in real-time and released every 15 seconds. (Treynor 2008)

FTSE 100 businesses comprise about 81% of the market capitalisation of the entire London Stock Exchange. Even though the FTSE All-Share Index is more comprehensive, the FTSE 100 is by far the most broadly utilised UK supply market indicator. Other associated indicators are the FTSE 250 Index (which registers the next biggest 250 businesses after the FTSE 100), the FTSE 350 Index (which is the aggregation of the FTSE 100 and 250), FTSE SmallCap Index and FTSE Fledgling Index. The FTSE All-Share aggregates the FTSE 100, FTSE 250 and FTSE SmallCap. As of 30 September 2008, the snare market capitalisation of FTSE 100 Index was £1,171 billion. (Rubinstein 2009)

Efficient Market Hypothesis proposes that at any granted time, charges completely contemplate all accessible data on a specific supply and/or market. Thus, as asserted by the EMH, no shareholder has an benefit in forecasting a come back on a supply price because no one has get access to to data not currently accessible to every individual else. (Ross 2009)

 

Discussion

AstraZeneca

A world-leading pharmaceutical assembly, AstraZeneca was conceived in 1999 by the amalgamation of Sweden's Astra and the UK's Zeneca, which had been demerged from chemicals assembly ICI in 1993. About half of its total sales are developed from the US, with over a third of incomes approaching pattern its gastrointestinal treatments for example Prilosec (Losec) and Nexium.

 

PRICES

Date

Open

High

Low

Close

Volume

Adj Close*

6-Nov-09

44.28

45.02

44.25

44.98

2045000.00

44.98

5-Nov-09

44.75

45.01

44.69

44.93

1308900.00

44.93

4-Nov-09

44.45

45.13

44.40

44.80

1543300.00

44.80

3-Nov-09

43.99

44.37

43.90

44.34

1232200.00

44.34

2-Nov-09

44.32

44.67

44.19

44.43

1340000.00

44.43

30-Oct-09

45.24

45.50

44.75

44.91

1565500.00

44.91

29-Oct-09

45.17

45.78

45.06

45.75

3169900.00

45.75

28-Oct-09

45.69

45.95

45.11

45.17

2106500.00

45.17

27-Oct-09

46.07

46.45

45.81

46.19

1949000.00

46.19

26-Oct-09

45.48

46.03

45.10

45.33

1063800.00

45.33

23-Oct-09

45.73

45.73

45.03

45.18

1059400.00

45.18

22-Oct-09

45.80

46.01

45.45

46.00

1155900.00

46.00

21-Oct-09

45.67

45.99

45.35

45.40

2045900.00

45.40

20-Oct-09

45.77

45.78

45.03

45.08

1735400.00

45.08

19-Oct-09

45.62

46.38

45.56

46.01

1744500.00

46.01

16-Oct-09

44.86

45.11

44.69

44.97

1274800.00

44.97

15-Oct-09

45.00

45.16

44.84

45.07

1054100.00

45.07

14-Oct-09

44.73

44.76

44.36

44.65

1296400.00

44.65

13-Oct-09

44.28

44.40

43.78

43.90

2070900.00

43.90

12-Oct-09

44.34

44.48

44.02

44.14

1519700.00

44.14

9-Oct-09

44.05

44.14

43.87

44.10

1118900.00

44.10

8-Oct-09

44.35

44.55

44.16

44.29

993400.00

44.29

7-Oct-09

43.97

44.06

43.76

44.01

1142900.00

44.01

6-Oct-09

44.22

44.50

44.18

44.27

1463400.00

44.27

5-Oct-09

44.00

44.46

43.84

44.21

1762900.00

44.21

 

 

A share cost drop of 4% in November 2009, following an broadcast of an harmful conclusion at the European Patent Office (EPO) against the matter patent for Nexium, comprises a worth of about £1.5 Billion for a lone patent.

Whilst the AstraZeneca share cost may well rally when a full investigation of the Nexium market and genuine influence of the EPO conclusion are made, for now the implication is huge.

We are often inquired how much a patent is worth and of course, short of mentioning the issue to an accountant professional in valuations, can labour to supply a satisfactory response, pointing as we might to likely income creeks from distinct mechanical parts and/or nations as being hugely influential ...