Medtronic plc Case Solution
CASE: 1
Introduction
The Land Securities Group PLC was founded in 1944 by Harold Samuel with an objective to make the right space available to clients. Harold Samuel founded the company with the purchase of three houses in Kensington. The founder also purchased some of the government stock in order to support the newly founded company. The company has made several investments out of the United Kingdom to globally spread the company and expand the investments in order to diversify the risk.
Later on, the company assumed that the concentration to United Kingdom will be in favor of the company and sold all its assets and investments outside the United Kingdom in order to solely concentrate on the United Kingdom market. The operations of the company are reserved solely to the United Kingdom. The Company owns and manages more than 2.4 million square meter of the commercial property.
Company Portfolio
The Land Securities Group PLC diversified its commercial property into several shopping malls, shops, offices, and out of town parks. The Company has divided its portfolio into two major sections. The first section is known as the London Portfolio and the second is the retail portfolio.
According to the website of the Land Securities Group PLC, the London Portfolio is accounted for the 7.1 million square feet that consists of offices and retail accommodation. The London Portfolio has a total of 1 million square feet of the land,whicis in development phase and has about 28 thousand of the acres of the land assets that is being prepared for the renewal.
The other portfolio that is retail portfolio, has 19 million of the square feet of retail accommodation. The retail portfolio has approximately 17 retail parks that are observed as the out of town retail parks with 14 shopping centers or malls and about 19 leisure destinations. Furthermore,the data provided by the Company’s website was valid until 30 September 2015.(Land Securities)
Stock Analysis
According to the Yahoo finance,Land Securities Group PLC has a market capital of 9.04 billion Great Britain Pounds with a earning per share of GBP 168.8 and a price to earnings ratio of GBP 6.79. The latest trends from the site has7 recommendations for the strong buy. 10 recommendations for the Buy call and 6 recommendations for the Hold. According to the site, the Company has a strong share price and will perform better in the future that can be observed form the expert opinions as there is no Under perform and sell call for the Current Month. (Yahoo Finance)
Daily Returns Graphs and Analysis:
The company is operated in the FTSE-100 index. The returns from the share price of the Land Securities Group PLCare calculated by taking the close share price of the company. The formula used for the calculation is also given in the case that is (P1-P0)/P0. According to the formula,P1 refers to the present value of the close market share and the P0 refers to the previous close price of stock of the Land Securities Group PLC.
The sample size of the close share price consists of 253 observations that is from the 1st January 2015 to the 31st December 2015. Simultaneously, the returns for the FTSE-100 are also calculated the same way. The FTSE-100 also has the 253 observations that are adjusted accordingly with the stock returns of Land Securities Group PLC. The FTSE-100 stock returns are taken in order to compare the stock returns of the Land Securities Group PLC with the market returns,which is FTSE-100.............
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