Investment Analysis Proposal
Order Description
Objective Outline how you would (and will) use publicly available data and economic analysis to determine
under what circumstances it is worthwhile to invest in Wind Mobile.
Writing Assignment 3: Investment Analysis Proposal
Objective
Outline how you would (and will) use publicly avail
able data and economic analysis to determine
under what circumstances it is worthwhile to invest
in Wind Mobile.
Detailed Introduction
In the final assignment for this class you will be
asked to advise an investment firm as to
whether or not – or under what circumstances – to i
nvest into Wind Mobile. You will have to support yo
ur
recommendation with an argument based on economic r
easoning and data. In this assignment you are asked
to
write a proposal that wins you the consulting contr
act from the investment firm.
To give you specific set-up, imagine you graduated
from the commerce program five years ago. During on
e of
the meet-&-greets at Rotman you met Mr. Liu van Han
ebanker, the founder of the Vancouver-based investm
ent
firm WaiiftLR (which some happy clients claim stand
s for “we are in it for the long run”). Somehow the
re was a
personal connection between you and Mr. van Haneban
ker and he became a mentor of sorts and a friend. T
his
past summer you had lunch with him in Vancouver whi
le you were on a business trip there. You had an en
gaging
conversation about the Canadian Economy in general,
the mis-use of economic analysis, over-emphasis on
past
performance in the financial investment industry, a
nd the long-run implications of data being availabl
e at almost
zero marginal cost for the demand for the analytica
l skills to interpret the data. Since the lunch you
have been
on the phone more frequently, and you conversation
has turned regularly to the Canadian wireless indus
try.
It’s been about two weeks since your last phone cal
l and on Monday evening you receive the following e
mail
from Mr. van Hanebanker
Dear friend,
When we last talked I predicted a change in Wind Mo
bile’s top dog. You probably saw it in the paper la
st week – Pietro Cordova is the new CEO. Anthony is
still chairman and the main investor. As you know,
he led the buy-out last months, which I think was a
smart move. In any case, Anthony has asked me to
come on board and invest in Wind Mobile. Anthony an
d I go back a long time, but still I don’t want to
jump into something I don’t understand and I would
have no trouble backing out altogether. On the othe
r hand, I understand that Wind Mobile might represe
nt a unique opportunity.
I want to keep this under the radar for now and don
’t want to officially hand it to one of our analyst
s. Can you help me? I need a full-blown report abou
t the
perspective of Wind Mobile. Is there a chance of pr
ofitability in the middle-range future? How would R
oger’s and Bell react to that? What will the regula
tors
do and does anyone have any sense of how Canadian d
emand is likely to behave over the next few years?
The all-critical spectrum auction is coming up
next April. Wind needs cash before then so Anthony
wants us on-board no later than the end of March, m
aybe earlier. But first I need to convince my
partners that investing in Wind Mobile is even some
thing we should be looking into. On Dec 2
nd
, we are meeting off-site, so that would be the per
fect
opportunity for me to discuss it with them. Can you
put together a preliminary report and a proposal f
or a full investment analysis by, say, Nov 27
th
? Tout your
own horn a little bit, too – you know to get the pa
rtners to buy in to bring in an “outsider” (sorry)
but mostly lay out why it might be profitable and w
hat sort of
data and analysis we need to look at to figure out
whether it will be. The more you can convince them
that it is straightforward and just a matter of you
putting in the hours, the better – since we are und
er a deadline to make the decision.
Sorry for jumping this on you. I wanted to call, bu
t there hasn’t been a quiet moment around here for
days. If you cannot do it, I understand – just let
me
know.
I hope this email finds you well as always.
Yours,
Liu
You are incredible busy, of course. But you feel ho
nored by the trust Mr.
Hanebanker has put in your analytical skills, and y
ou don’t want to disappoint your
friend and mentor. A quick search through last week
’s business news confirms the
news of Wind Mobile’s change in CEO and you respond
to Mr. Hanebanker to
confirm that you will get him a preliminary report
and proposal by November 27
th
.
Instructions
The final document should
–
Exceed no more than three pages plus an executive s
ummary.
–
Motivate why the wireless industry may be an intere
sting industry to
invest.
–
Outline which questions need to be answered to dete
rmine whether Wind
Mobile might be a good investment choice, and
–
Explain how, going forward, these questions can be
answered with publicly
available data.
–
State briefly why you are qualified to complete thi
s analysis.
The writing should be comprehensive, i.e., all majo
r economic aspects you can think of as relevant sho
uld be
covered. It should also be concise, precise, and sp
ecific. For example, use “whether” instead of “whet
her or
not”, use “equals” instead of “is equal to”, and so
forth. Instead of “using data on how usage varies
with income
I will …” or “building on data from the Communicati
ons Monitoring Report I will …” say “using usage da
ta by
income from the CRTC’s Communications Monitoring Re
port I will …”
Be aware that it takes time and several sittings to
complete this assignment. Distinguish between writ
ing (no
evaluation, no judgment) and revising/ rewriting. P
lan to start this coming weekend. Don’t try to writ
e down the
final product in the first sitting. Achieving this
would be impossible even for the most experienced w
riters. Give
yourself time to reflect and to revise.
In the past, students have made good experience wit
h explicitly working through the following stages.
1.
Collecting thoughts and ideas through one or more
unconstrained writing
bursts on main components
of the proposal. Doing so gets you writing without
judgment, evaluation or premeditation. You then hav
e words
on paper or file you can start working with.
2.
Once you have something – anything – written, you c
an sort through your brainstorming, pick
interesting points, and get a preliminary general s
tructure in place. Doing so gives you a general out
line – a
pre-
draft
version of the proposal. At this point you can als
o determine which gaps need to be filled, and which
points in your argument need to be strengthened; ag
ain use an unconstrained writing exercise to figure
out
what you may want to say on these points.
3.
Now that you have a general outline and now which p
oints you want to make, you can work toward you
first complete version, your first
draft
. Try to set aside evaluating your own writing once
more and just get all
points spelt out in a somewhat reasonable order.
4.
With a draft in hand you have for the most part fig
ured out which points you want to make them and
how you want to support them. Next you need to figu
re out how to argue it well. To do so question the
structure, question the content of paragraphs, ques
tion your argument. Instead of “is this complete?”
ask
Source: Toronto
Star, Tuesday
October 28
th
, 2014
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