Questions and Answers for Phase 1 and News Items for Phase 2

8/14/2019 Questions and Answers for Phase 1 and News Items for Phase 2

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APPENDIX

1. QUESTIONS & ANSWERS FOR PHASE 2

2. NEWS ITEMS FOR PHASE 1


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Question and Answer with Hints

I. Questions

1. What does IPO stands for ?

a) Initial Public Offering

b) Independent Public Office

c) I place offer

d) Initial Public Ordering

2. Why do the companies need to raise funds ?

a) Business expansion

b) Cope with higher costs

c) Liquidity needs

d) All of the above

3. What do Venture Capitalists do?

a) Sell shares to investors

b) Provide advise to clients

c) Cheat people of their money

d) None of the above

4.Why companies prefer to issue bonds than issue shares ?

a) To reduce gearing ratio

b) Bonds raise more money

c) Bonds are nonperishable but shares are

d) Bonds are more favoured by the public than shares


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5.Why does the controlling shareholders prefer a rights issue to a private placement ?

a) So as not to dilute their shareholdings

b) They have dun want to give up their voting rights

c) They still want to have their rights

d) Private placement is costly and do not benefit the company

6.Which best describe a bond ?

a) A security that has a limited life and pays coupon over its lifetime

b) A security that has perpetual life and pays dividends

c) A legal contract between the company and its suppliers

d) The closeness of the company employees

7.Why do investors prefer shares as compared to bonds ?

a) Higher potential gain

b) Fixed income for the life of the security

c) Shares are much safer

d) Share values goes up and up

8.When do shares most likely need to go for a private placement?

a) Under bearish market condition

b) Under bullish market condition

c) Under all conditions

d) Under consolidation market condition

9.What does SGX stand for and what is it about?

a) Singapore Great Exchange. It deals in foreign currency exchange only.

b) Some Good Exercise. It is a training program on keeping fit.

c) Singapore Exchange. It offers trading facilities, products and educational


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materials on investment.

d) Singapore Generic Exchange. It is a comprehensive site offering investors a place to buy

and sell their shares.

10.Which of the following one company is listed on SGX?

a) OSIM Pte Ltd

b) Giordano Clothing Company

c) Ah Heng Chicken Rice shop

d) Mac Donalds

11.What is a rights issue?

a) A rights issue gives the person the right to freedom of speech and action in Singapore

b) Issuance of the rights to buy the share at a particular price usually at a

discount to market price

c) The issuing of rights to participate in the IPO

d) The company issuing the rights to the dividends

12.Whats does bear market s signal ?

a) Pessimism in the markets; downward trend in stocks

b) A big run up in stock prices

c) Markets are acting crazy with violent ups and downs like a mad bear

d) Markets are trending sideways like a drunken bear

13.What does a lead manager do ?

a) Lead the company towards greater heights

b) In charge of setting the offering price of an IPO and allocation of shares to other underwriters

c) In charge of AGMs

d) In charge of the directors of the company


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14.If the current shares is $2, and how much do I need to spend to qualify for

1000 rights shares with a ratio of 1:4 at $1.50 per share.

a) $9500

b) $8000

c) $6000

d) $4000

15.Can retail investors bid for shares up for private placement ?

a) Yes

b) No

16.Why do companies go for share placement ?

a) Relative unknown company

b) Bearish market conditions

c) Minimize cost and time in the raise of funds

d) All of the above

17.Which document must the issuer produce for listing under SESDAQ ?

a) Prospectus

b) Share Memorandum

c) Share Registrar

d) None of the Above

18.Company X wants to go for listing under Catalist, is it necessary to find

sponsors ?

a) Yes

b) No


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19.What separate the ordinary shareholders from the preference shareholders ?

a) Ordinary shareholders voting rights

b) Ordinary shareholders are higher up in the share registrar

c) Ordinary shareholders can attend AGM

d) Ordinary shareholders have first right to dividends

20.Which one of the instruments is most likely to enjoy capital gains alongside giving regular income ?

a) Convertible preference shares

b) Warrants

c) Tech Stocks

d) Blue Chip Stocks

21.How long is the moratorium on the disposal of shares ?

a) 3 months

b) 5 months

c) 6 months

d) 12 months

22.Company Y intends to go for listing. Currently, the premises is rented from the

landlord who is also the Director. Can the company for go IPO ?

a) Yes. The company needs only to notify in SGX

b) No. There is a conflict of interest

c) It depends. The Judge will decide

d) Yes. It doesnt matter

23.If a subsidiary seeks IPO listing, can the holding company also go for listing ?

a) No

b) Yes


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24.Do Catalist companies need a track record to be listed ?

a) Yes

b) No

25.What is the difference between a merger and an acquisition?

a) There is no difference, both mean exactly the same

b) A merger is to buyover

another company while an acquisition means to sell to another customer

c) A merger involves the merging of companies, while an acquisition is to acquire another company d)

A merger is a different name for an acquisition

26.What is the advantage of having a merger?

a) The company increases in market share and dominance in the market. It also

decreases their level of competition

b) A merger is an act of friendship and reduces hostility among the merging firms

c) There is no advantage of merger

d) Merger allows the colluding companies to boast market power and bully smaller firms

27.What does the term Corporate Financing and Advisory Services mean to

you?

a) It is a customer service centre for people who need financial advise regarding their companies.

b) It is an organization that gives financial advice as well as provide corporate

financing to companies.

c) It is a set of regulations pertaining to corporate financing as well as the

provision of advisory services to anyone who is interested.

d) It is a new bank


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28.You have just established your own company dealing in the production of textbooks. Which of the

following describes the funds you need in order to set up this company?

a) Initial capital

b) Startup capital

c) Excess funds

d) Startup fundings

29.If you needed investment advice on which shares to trade, which of the

following personnel is the best to approach?

a) Your Investment teacher

b) Your Insurance agent

c) Stockbroker

d) A medium

30. Which of the popular saying is more applicable to ordinary shares traded on

the stock markets ?

a) . on the longer run, the stock market is like a weighing machine

b) strike it while the iron is hot

c) Buy when the bears come hunting

d) Buy low and sell high

31. Strong market will always discount in the news True/False

32. Companies call back their bonds because they can refinance at a cheaper

rate True/False

33. Companies going for IPO on the SGX Mainboard do not need to have a track record True/False

34. Companies seek secondary listing to raise more funds True/False

35. Investors seeking to cash out on IPO can do so through vendor sales True/False

36. In a reverse takeover, the company that launches the takeover gets taken

over instead True/False


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37. In a takeover, the shares of both companies are cancelled and a new company is formed

True/False

38. When a shareholder hold1% stake, he must compulsorily acquire the rest of the company

True/False

39. Before issuing new shares, the shareholders need to give

a general mandate to the directors True/False

40. 30% stake in the shareholding is effective control of the company True/False

II. ANSWER

1. A

2. D

3. A

4. A

5. A

6. A

7. A

8. A

9. C

10. A

11. B

12. A

13. B

14. A

15. B

16. D

17. A

18. A


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19. A

20. A

21. D

22. B

23. A

24. B

25. C

26. A

27. B

28. B

29. C

30. D

31. True

32. True

33. False

34. False

35. True

36. True

37. False

38. False

39. True

40. True


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NEWS ITEMS

A. The Triumph Organization. CEO Don Triumph. Specialize in real state investment, hotels and casinos.

1. The Triumph Organizations second quarter earnings report is less than forecast

in a Bloomberg survey, share price of Triumph Organization dropped by $2.

2. Slowdown in residential property market affected

Triumph Organizations Chicago residential properties. The companys share price dropped by $5.

3. Gambling revenue in Las Vegas resorts helped Triumph Organization first quarter net

profit jump by 60%. The companys share price thus increased by $3.

4. Don Triumphs plan to build a fivestar resort in Aberdeenshire, Scotland is approved by Scotland

Council. This project will boost Triumph Organizations reputation and revenue

significantly. Thus its share price jumped by $4.

5. Triumph Organization lost its bid Triumph Organization build Philadelphia casino Triumph

Organization MGM. As a result the companys share price dropped by $2.

6. Triumph Organization was awarded permission to build Bali golf course in Bali, Indonesia. This will

help Triumph Organization expand its base Triumph Organization Asia Pacific. The companys shares

price increased by $6.

7. Triumphs biggest rival, Lower Manhattan development filed bankruptcy after being unable to pay

its $3 billion debt. Investors responded to the news with optimism, Triumphs share price jumped by $5.

8. Triumphs construction project in Chevy Chase, US was stopped as cost of financing increasedunexpectedly. The companys share price dropped by $2.

9. Chase Manhattan Bank realized its collateral by forcing Triumph Organization to sell Triumph Tower

in New York. The companys share price dropped by $2.

10. Shares of Triumph Hotels and Casino Resorts increased by $3 as Credit Suisse upgraded the share

from HOLD to BUY.

11. Jim Roger replaced Don Triumph as the CEO in Triumph Las Vegas resort after the company

filed bankruptcy for Triumph Hotels and Casino Resorts. The companys share price increased by $5

as investors hope that Mr. Roger can help it recover.

12. Triumphs casinos in Hong Kong see the revenue of the first half year of 2008 increased by $6.

This increase is more than that of MGM Hong Kong, Triumphs main competitor. The

companys share price increased by $5.

13. Despite recent turmoil in financial market, Triumphs construction project in Dubai, Palm Jumeirah

Centerpiece got financing at a cost lower than prime rate. Thus the companys share price jumped by $4.


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14. Revenue of Triumph Organizations merchandise arm was unhurt by weak consumer

Confidence, increasing by 13% in the second quarter. The companys share price also increased by $3.

15. Despite the slowdown in US property market, JPMorgan still granted loans for Triumphs high

end residence project in California. The companys share price jumped by $4.

16. Triumph Organizations mortgage finance division as not affected by the subprime problem.

Its share price increased by $5 as the division posted profit in 2007 and the first half of 2008.

17. Pritzker award winner Zaha Hadid has agreed to be Triumph Organizations exclusive architect

within 5 years. This would give the company competitive advantage in its designing and construction

business. The companys share price advanced by $4.

18. Triumph Organizations newly constructed luxury condominium was fully occupied within 2

months. The companys share price increased by $6 upon the news release.

19. Triumph Organizations venture into fine dining was rewarded with profitable accounts of two

luxury restaurants in New York. The companys share price increased by $4.

20. Triumph Organizations share price jumped by $3 overnight after it won the bid to build the

new World Trade Centre in Manhattan, New York.

B. City Development Ltd. A conglomerate that develops real estate projects in Asia Pacific and

America. One of the companys signature building is the famous Twin Tower in Japan.

1. City Development golf course project in Scotland golf course was postponed due to angry

protests from the locals. The companys share price decreased by $3.

2. City Development and Citibank ventured in Dubai to develop the largest ever resident project

in Saudi Arabia. City Developments share surged by $5 as investors are very

optimistic about this projects outcome.

3. City Development was given permission to build a casino in Shenzhen,

China. Investors expect this project to be the first step if the companys venture into China

Chinas entertainment market. Its share price increased by $5.

4. City Developments CEO recovered quickly after the airplane accident and continues to manage the

company. Investors are optimistic about the companys prospect, thus its share price increased by $2.

5. City Developments occupancy rate of residential properties has just surged $4 this month as demand

for new homes is rising rapidly. The companys share price increased by $6.

6. City Development lost its bid to build Bangkok casino to Las Vegas Sands. As a result the companys

share price dropped by $7.


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7. City Development was awarded permission to build a golf course in Phuket, Thailand. This will help

the company expand its base in Asia Pacific. The companys share price increased by $7.

8. City Development is now the biggest property development in Philadelphia as its rival, Capital

Development was made bankrupt. Investors responded to the news with optimism, the

companys share price jumped by $5.

9. City Developments construction project in New Jersey, US was stopped as cost of financing increased

unexpectedly. The companys share price dropped by $3.

10.Dresden Bank withdraws the second half of its loan as City Development cannot meet interest

payments. The companys share price dropped by $2.

11.The City Developments second quarter earnings report is more than forecast in a Bloomberg

survey, share price of City Development increased by $5.

12.Red hot residential property market helps City Development sell all of its Chicago

residential properties. The companys share price jumped by $6.

13.Revenue from its Macau casinos helped City Developments first quarter

net profit jump by 60%. The companys share price thus increased by $6.

14.City Developments plan to build a fivestar resort in Brighton, U.K. is approved by Brighton

Council. This project will boost City Developments reputation and revenue significantly. Thus its share

price jumped by $3.

15.City Development lost its bid to build a Phuket resort to Wynn Casino and Resort. As a result the

companys share price dropped by $5.

16.City Development was awarded permission to build a golf course in Sentosa, Singapore. This will help

City Development expand its base in South East Asia. The companys share price increased by $6.

17. City Development was granted a syndicated loan from five US banks for its mega projects in Qatar,

Saudi Arabia. The companys share price increased by $3.

18.City Developments share price increased by $6 after it won the bid to build residential condominium

in Sentosa Cove of Singapore.

19.City Developments Palas Renaissance, a fashion hotspot along Orchard Road has broughtOrchard Road has brought the company $4 of its profit in the first half of 2007. Share price of the compa

ny rose by $4 after the release of semiannual reports.

20.City Developments stock increased slightly by $2 as Deustche bank upgrade the stock from SELL to

HOLD.


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enterprise in Columbia of using paramilitary group to intimidate labor organizers. Concern over labor

rights violation made the share price dropped by $3.

15. Coca Colas outsourcing strategy proved to be good as its expense is reduced by onethird in the

first half year. Wiltshire Hathaways share price climbed by $5.

16. Wiltshire Hathaway shareholders wanted to replace the CEO as there are disagreements over

his strategies. The companys share price dropped by $1.

17. Wiltshire Hathaway agreed to increase its stake in a supermarket venture in Funan, China to

70 percent from 45 percent, its Chinese partner reported. The companys share price rose

by $2 as investors hope that emerging markets will bring more profits to Wiltshire Hathaway.

18. US biggest retailer Wiltshire Hathaway said operating profit will increase at about the same pace as

sales this year, six weeks after saying earnings by that measure would exceed the pace of

revenue growth. The company share price increased by $4

19. Wiltshire Hathaway sales increased 3 % in July, more than 2 times as much as economist forecast,

as declining fuel and food prices strengthened consumer spending. Its share price jumped by $3.

20. Wiltshire Hathaway sold its store properties for USD16 billion. The cashflow is expected to meet the

companys interest payment and improve liquidity, thus its share price increased by $5.

D. Carrfour Inc. A giant retailer in Europe, Carrfour is a major rival to Wiltshire Hathaway

1. Venturing into beauty treatment service brings Carrefours USD$50 million of revenue in the

first half of the year. The companys share price increased by $6.

2. Carrefours gained $4 market in India market in only 2 years. The companys share price increased by

$5.

3. Carrefours cheap products helped it gain $4 share in China retail market. Thus its share price jumped

by $4.

4. Carrefours share price increased by $3 as Coca Cola wins the rights to be come the officinal

official drink in Beijing Olympics.

5. Carrefour enjoys a three year waive of rental for two shopping malls in Chicago.

Its share price jumped by $2.

6. Carrfours CEO plans to build more hyperstores in China as this retail market has been yielding 90%

profit for the company in the last 2 years. Its share price increased by $5 as investors bet on

the companys rapid growth in China.


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7. Carrfours expansion plan to India proved to be successful as profits from India increased

in 3 consecutive years. The companys share price surged by $5.

8. Carrfour raised its forecast for third quarter revenue by 7% as European Central Bank said inflation

is likely to ease in the second half of the year. Its share price increased by $2.

9. Disputes over working hours led to strikes in Carrfours factories in India, disrupting the supply

chain. The companys share price dropped by $3.

10. Carrfours earnings for July report came out 5% higher than analyst forecast in a Bloomberg survey

despite the threat of a recession. Its share price jumped by $3.

11. Carrfours Pepsico revenue in second quarter increased as the soft drinks bottlers absorb the rising

cost. Its share price increased by $3.

12. Pepsicos subsidiary in Philippines can reduce rental fees and labor wage,

thus its profit surged by $4. The companys share price increased by $5 as well.

13. US Union has accuses Pepsico in Brazil of violating workers rights. Investors concern over legal

issues made the share price dropped by $7.

14. Pepsicos outsourcing strategy proved to be good as its expense is reduced by onequarter

in the first half of the year. Carrfours share price climbed by $2.

15. Carrfour shareholders wanted to replace the board of directors as there are disagreements over

their leadership strategies. The companys share price dropped by $1.

16. Carrfour agreed to increase its stake in a supermarket venture in Shenzhen, China to 60 percentfrom 20 percent. The companys share price rose by $5 as investors hope that this new market will

bring more profits to Carrfour.

17. Europe biggest retailer Carrfour said operating profit will rise at about

the same pace as revenue this year. The share price increased by $3 as investors think that consumer

sentiment will improve in August.

18. Carrfours sales increased $5 in July, more than three times as much

as economists forecast, as declining commodity prices built up consumer spending.

19. Carrfour sold its store properties for USD26 billion. The cash flow is expected to

improve the companys liquidity, thus its share price increased by $3.

20. Carrfours proposal to open a hypermarket in Thailand was declined by the countrys authority. Its

share price declined by $4.


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E. Company Macrosoft: CEO Bill Gates. Business nature: software production

1. Earnings in second quarter increased by 5%, which is higher than

analyst forecast of 3%. Macrosoft share price increased by $5 as investors are assured by stable

demand for software products.

2. Macrosoft said sales of Windows Vista for PCs in June fell lower than

its projection. The companys share price decreased by $4.

3. Macrosofts share price jumped by $6 as sales of Macrosoft Office program exceeds the companys

goals for a third straight quarter.

4. Demand for Microsoft Xbox 360 rose unexpectedly last month, pushing up the second quarter

revenue by $3. The companys share price jumped by $7.

5. Better than forecast PC sales helped Microsofts revenue surpass predictions for the

first quarter. Net income raised to 50 cents a share, more than the estimated 45 % average in

a Bloomberg survey. The companys share price increased by $3.

6. Bloomberg survey among analysts shows that Google has lost out to Macrosoft in online advertising

market. Upon the survey release Macrosofts share price increased by $4.

7. Macrosoft Corp. was fined with $368 million after federal jury found it infringed two patents owned

by Alcatel Lucent. Its share price dropped by $3 upon the news release.

8. Bloombergs survey shows that US consumers prefer Microsoft Office than IBMs document

program, Lotus Symphony. Macrosofts share price increased by $2 upon the survey release.

9. IBM's CIO Kevin Johnson, is joining Macrosoft this month. The companys share increased by $5

as Mr. Johnsons expertise is expected to help Macrosoft improve its software products.

10. Macrosofts shareholders are very optimistic that new CEO Steve Ballmer would be able to break

Google Inc.'s dominance in Internet advertising. The companys share price increased by $3.

11. Microsofts Office applications release had positive response in Asia: sales revenue from the region

increased by $4 in June. Thus its share price jumped by $7.

12. UBS's Heather Bellini sees 5% growth in Macrosofts US clients division in the third quarter.

The companys share price increased by $5.

13. Federal judge Thomas Jackson ruled that Macrosoft does not hold a monopoly in computer

operating systems and it does not have to split into two companies. the companys share price

increased by $4 upon the judges decision.

14. The application for ISO of Macrosofts Office Open XML was approved by the ISO organization.


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The companys share price increased by $3.

15. Bill Gates says piracy in China is good for Macrosoft's long term strategy as that increases the

overall number of Microsoft software users. Macrosofts share price increased slightly

by $1 upon his remark.

16. UBS upgraded Macrosofts stock from HOLD to BUY. Investors acted on this report and pushed

share price up by $2.

17. Macrosofts venture into game design was met with enthusiastic response from

young players. Its share price increased by $3 as analysts forecast that game design is a very

promising segment for Macrosoft.

18. Macrosofts liquidity and gearing ratios in the second quarter were improved as the companys

replaced its Chief Financial Officer. The companys share price increased by $4 as investors are pleased

with its financial control.

19. Macrosoft win the bid to upgrade the computer system for the hotels in Triumph Organizations

portfolio. The companys share price increased by $4.

20. Macrosofts will release a new Window Operating System in September, which experts said to

be a significant improvement for the Office suite. Macrosofts share price rose by $5.

F. Applet Inc. A software producer who successfully ventured into game development and

manufacturing PCs for graphic designers.

1. Applets CEO was seriously injured in a car accident. Applets share price dropped by $4 as investors

were worried about the companys future. Share price dropped by $4 as investors were worried about

the companys future.

2. Applet minority shareholders dispute with the CEO over decision to takeover Yahoo. The companys

share price decreased slightly by $5.

3. IBM has to pay Applet USD$3 billion for copyright infringement. Applets share price increased by $2.

4. Applet surpassed Lotus Development Corporation as the leading software vendor thanks to

record sales in 2007. Its share price increased by $3.

5. Applets campus in Brooklyn was badly damaged by Katrina hurricane. The companys share

price decreased by $2.

6. Applets earnings in second quarter increased by 6%, which is higher than analyst forecast of 4%.

Applet share price increased by $3 as investors are assured by stable demand for

computerrelated products.


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7. Applet said sales of iPhone in June fell lower than its projection. The companys share price decreased

by $1.

8. Applets share price jumped by $3 as sales of new Mac laptops exceeded the companys goals for

a third straight quarter.

9. Demand for Applet Zbox 100 rose unexpectedly last month, pushing up the second quarter

revenue by $3. The companys share price jumped by $3.

10. Better than forecast Mac PC sales helped Applets revenue surpass predictions for the first

quarter. Net income raised to 50 cents a share, more than the estimated 46cent average in

a Bloomberg survey. The companys share price increased by $3.

11. Bloomberg survey among analysts shows that Acer has lost out to Applet in sales revenue

in Asia. Upon the survey release Applets share price increased by $5.

12. Applet Corp. was fined with $368 million after federal jury found it infringed two patents owned by

Jay Technology. Its share price dropped by $4 upon the news release.

13. Bloombergs survey shows that US consumers prefer Applets Mac Office than IBMs document

program, Lotus Symphony. Applets share price increased by $3 upon the survey release.

14. IBM's CIO Marvin Trevor, is joining Applet this month. The companys share increased by $3

as Mr. Trevors expertise is expected to help Applet improve its software products.

15. Applets shareholders are very optimistic that new CEO Stephen Branson would be able to break

Google Inc.'s dominance in Internet advertising. The companys share price increased by $5.

16. Applets document applications release had positive response in Asia: sales revenue from

the region increased by 7% in June. Thus its share price jumped by $4.

17. The application for ISO of Applets Office HML was rejected by the International Organization for

Standardization (ISO). The companys share price dropped by $4.

18. Applets CEO says sales of PCs in China have increased significantly in the second quarter.

Macrosofts share price increased slightlt by $2 upon his remark.

19. UBS upgraded Macrosofts stock from HOLD to BUY. Investors acted on this report and pushed

share price up by $1.

20. A gender discrimination lawsuit by a former female employee against Applet was finally dropped.

Upon the news release Hathaways share price increased by $4.


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G. Company Mike, CEO: Mr. Alkinson, Business nature: Sportswear manufacture

1. Inflation easing in China helps lower Mikes labour cost in China. The companys share price increased

by $3.

2. Mikes net profit in the first half year was $3 higher than forecast. Mikes share price jumped by $4.

3. Mike won its case of trademark infringement against ShoeSource and received $100 million for

damage. Its share price increased slightly by $2.

4. Mike reported a 63% jump in second quarter profit thanks to declining in prices of imported raw

materials. Its share price increased by $4.

5. Floridas authority lifted a ban on Mikes kangaroo leather sporting. Florida is Mikes biggest market in

the US. The companys share price increased by $2.

6. The manager of the sales division which accounted for $4 of first half year sales left for Adidas after

disputes over pay. Mikes share price decreased by $1.

7. Mike may face bankruptcy as analysts say its estimated profit cannot cover the $3 billion debts

due next year. The companys share price dropped by $2..

8. Mike will keep the right to supply uniforms for Spain's national soccer team until the end of 2014,

prolonging a more than 20yearold partnership. Thus the companys share price increased by $3.

9. Mike increased its profit forecast in the third quarter, thanks to the takeover of Reebok

International Ltd. It share price increased by $3 as investors think that the takeover is a wise decision.

10. Secondquarter orders for Mikebrand products gained 12 percent in euro terms, spurred by a 15percent increase in orders for clothing. The companys share price increased by $3.

11. Investors expected Mikes sales in third quarter to benefit much from Beijing

Olympics. Its share price increased by $4.

12. Experts say Mikes marketing strategies are on the right track to capture Chinas retail market. The

companys share price jumped by $3 upon this news.

13. Mr. Alkinson says Mike will ``clearly exceed'' its full year sales target for soccer accelerated and gain

share in all major markets. Thus its share price increased by $3.

14. Analysts say rising inflation in Europe may affect Mikes revenue in the third quarter as consumer

sentiment index in June has halved compared to last year. Investors are pessimistic about the

company, thus its share price decreased by 5%.

15. Mike has won the right to sponsor Germanys national soccer team from its major competitor, Nike.

The companys share price increased by $3 as investors think that Mike is gaining more market

share in Europe than Nike.


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16. The International Labour Right Foundation reported that Mike honour workers right in all of its

factories, while Nike and Jordano were warned for maltreatment of their workers in China and

Nigeria. Mikes share price advanced by a slight $1.

17. Mikes operating expenses in the second quarter decreased due to the decline of oil price. The

companys share price rose by $3 on the news release.

18. Mikes apparel division continue to earn profits in the second quarter. Thus investors continue to

purchase Mikes shares, raising the price by $4.

19. Cyclones in Indonesia destroyed Mikes factories, pausing damage of USD$100 million.

Mikes share price dropped by $1

20. Mikes share price advanced by $1 after Merrill Lynch upgraded its share from SELL to HOLD.

H. Addidas. Inc. A Germanybased sportswear manufacturer. Addidas Inc. is the second largest firm in

its industry after Mike Inc.

1. Germany Sports Council agreed to let Addidas advertise at its sports events for

free in five years. As this will reduce Addidass marketing costs a lot, its share price increased by $4.

2. Violent cyclones in Indonesia have disrupted Addidass distribution

chain in Asia, causing loss of about USD$200 million. The companys share price decreased by $1.

3. Addidass application for a term loan to finance R&D was approved

with lower than market interest rate. The companys profit is likely to

increase thanks to lower interest expense. Thus, the companys share prince increased by $3.

4. Addidass release of an environmentfriendly type of jerseys is expected to increase its revenue. The

companys share price increased by $4.

5. Addidass R&D department came up with a new method to produce sneakers at 1/3 of the current

costs. Thus Addidass share price jumped by $3.

6. Addidass net profit in the first half year was 15% higher than forecast. Addidass share price jumped

by $4.

7. Addidas lost its case of trademark infringement against ShoeSource and has to pay $100 million for

damage. Its share price decreased slightly by $2.

8. Addidas reported a 50% jump in second quarter profit thanks to declining in prices of imported raw

materials. Its share price increased by $3.

9. Australias authority lifted a ban on Addidas using kangaroo hide to produce sportshoes. Austrialia is

Mikes biggest market in Asia Pacific. The companys share price increased by $3.


22/24

10. The manager of the sales division which accounted for 40% of first half year sales left for Jordano.

Addidass share price decreased by $1.

11. Addidas share price dropped by $3 as analysts say its whole year estimated profit cannot cover the

$4 billion debts due next year.

12. Addidas will keep the right to supply uniforms for France's national soccer team until the end of

2014, prolonging a more than 20 yearold partnership. Thus the companys share price increased

by $4.

13. Addidas increased its profit forecast in the third quarter, thanks to the takeover of

Hang Tene International Ltd. It share price increased by $4 as investors think that the takeover

is a wise decision.

14. Second quarter orders for Addidas branded products gained 15 % in Europe. The companys share


15. Investors expected Addidass sales in third quarter to benefit much from Beijing Olympics. Its share


16. Experts say Addidass marketing strategies are on the right track to capture

capture Chinas retail market. The companys share price jumped by $2 upon this news.

17. Addidass CEO is optimistic that its full year sales will meet target for soccer related goods and gain

share in all major market. Thus its share price increased by $3.

18. Analysts say rising inflation in Europe may affect Addidass revenue in the third quarter

as consumer sentiment index in July has plummeted compared to last year. Investors are pessimistic

about the company, thus its share price decreased by $2.

19. Addidas has won the right to sponsor U.K.s national soccer team from its major competitor,

Jordano. The companys share price increased by $3 as investors think that Addidas is ganing more

market share in Europe than Jordano.

20. Chinese Union reported that Addidas honors workers right in all of its factories in China, while Nike

and Jordano were warned for maltreatment of their workers.

I. Mixed news items that affect many companies share price.

1. Triumph Organization, Macrosoft, Mike, Wilshire Hathaway share price all increased by $4 after

Feds unexpected interest rate cut.

2. As the US consumer confidence index began to climb up, share prices of companies like Mike,

Macrosoft and Addidas increased by $3.


23/24

However, Triumph Organization and City Developments share price dropped as property market is still

sluggish.

3. Trump Organizations CEO Don Triumph and City Development owner Adam Fisher announced their

latest real estate release: Spa Pavilion at Trump Resort. Triumphs share price increased

by $5 while City Development increased by $3.

4. Share price of Addidas, Macrosoft, Apple and Mike increased by $3 as inflation has

dropped 1% last month, signaling stronger purchasing power.

5. Citibanks analysts forecast that US economy will recover quickly. Thus all eight companies share price

jumped by $4.

6. Wiltshire Hathaway and Addidas team up to build a sportswear superstore in Ontario, Canada

were met with unanimous approval from shareholders. The share prices of two companies increased

by $3 and $4 respectively

7. Wiltshire Hathaways revenue increased thanks to the revenue of Macrosoft Xbox.

Both companies share prices increased by $2.

8. Wiltshire Hathaways revenue was affected after Apple stopped selling iPhone to

US. Wiltshire Hathaways share price dropped by $1 while Apple share price increased by $3.

9. Earthquake in Sichuan destroyed many us factories including those of Witlshire Hathaway, Addidas

and Mike. Their share price all plummeted by $3.

10. Wiltshire Hathaways sales revenue rose in the first half year compared to last year despite

a slowdown in US economy. Its share price increased by $4 as investors are optimistic about the

companys prospect.

11. The introduction of Macrosofts iPod in Addidass sportswear branched was so welcomed by

Addidass customers that Macrosoft and Addidass revenue climbed up by $4 each.

12. Yahoo rejected Microsoft and Apples offers saying that the prices proposed

were too low. Both Apple and Macrosofts share price decreased by $1.

13. Some experts said that Macrosofts charge for building Wiltshire Hathaways

ecommerce site is beyond the market price.

Macrosofts share price increased by $2 while Wiltshires share decreased by $3.

14. Beijing government has stepped up in cracking software piracy and branded goods

counterfeits. Share prices of companies venturing into China such as Macrsoft, Addidas, and

Mike went up by $1.


24/24

15. Macrosoft unveiled plans to weave Live Search in to the Apples social networking

site. This expected to make Macrosoft marketing strategies more efficient.

Share price of Macrosoft and Apple increased by $3 each.

16. Mike and Adiddas customers orders increased suddenly before Beijing Olympics, making their July

revenues increased by around $4 each. Thus the share price of Mike and Adiddas increased by $3 and$4 each.

17. Many US companies such as Mike, Addida, Macrosoft, Apple will start selling goods online in the

China this year and already has put shoes and apparel on the Internet to tap into the increasingly

popular trend of online shopping. Investors are optimistic that this effort will yield good profits.

Thus these companies share prices increase by $4.

18. ECBs interest rate hike of 25bp made Mikes borrowing cost higher,thus likely to affect third

quarter net profit. The companys share decreased by $3.

19. Mike has won the right from to become the main sponsor for Germanys mational soccer teamfrom Adiddas for the next 5 years.

Mikes share increased by $3 while Addidas decreased by $2.

20. The federal judge of California ruled that Wiltshire Hathaway has to pay Mike USD$30 million from

for selling counterfeits of Mikes trainers.

Mikes share price increased by $5 while Hathaways share dropped by $3 in value.

Date post:	30-May-2018
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