As a additional benefit for his 30-year occupancy as a motorist with The Brink's Company (BCO), BCO had given Kevin with stock options. BCO was a leader in supplying armoured car transportation, ATM servicing, currency and coin processing and other value-added services to retailers, banks and other government and commercial agencies around the globe. Upon receipt of these options, Kevin had begun to follow BCO's ticker quite carefully and after noticing a 13.9 per cent increase in the share price in a span of three months, Kevin wanted an educated guess about the future of this stock.
He turned to his son Robbie for guidance, who had recently graduated with a business degree and had completed coursework in value investing and had earned top marks. Robbie knew Kevin was an obstinate risk-taker who'd indicated he desired to place a considerable sum of savings into this stock; Robbie also knew that if the stock plummeted, he would need to foot the bill for the retirement of his father. Robbie realized he had to provide a well thought out valuation of BCO in clear, rational terms as they related to value investing, using coherent language to present his arguments in order to prepare his daddy with a comprehensive evaluation upon which Kevin could make a considered choice.
The Brink's Company case study solution
PUBLICATION DATE: July 09, 2010 PRODUCT #: 910N16-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING