Matching Items (3)
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Stock Price Performance in the Covid-19 Era: A Five-Phase Analysis

Description

The Covid-19 pandemic has made a significant impact on both the stock market and the<br/>global economy. The resulting volatility in stock prices has provided an opportunity to examine<br/>the Efficient Market Hypothesis. This study aims to gain insights into the efficiency of markets<br/>based on stock price performance in the Covid era.…

The Covid-19 pandemic has made a significant impact on both the stock market and the<br/>global economy. The resulting volatility in stock prices has provided an opportunity to examine<br/>the Efficient Market Hypothesis. This study aims to gain insights into the efficiency of markets<br/>based on stock price performance in the Covid era. Specifically, it investigates the market’s<br/>ability to anticipate significant events during the Covid-19 timeline beginning November 1, 2019<br/><br/>and ending March 31, 2021. To examine the efficiency of markets, our team created a Stay-at-<br/>Home Portfolio, experiencing economic tailwinds from the Covid lockdowns, and a Pandemic<br/><br/>Loser Portfolio, experiencing economic headwinds from the Covid lockdowns. Cumulative<br/>returns of each portfolio are benchmarked to the cumulative returns of the S&P 500. The results<br/>showed that the Efficient Market Hypothesis is likely to be valid, although a definitive<br/>conclusion cannot be made based on the scope of the analysis. There are recommendations for<br/>further research surrounding key events that may be able to draw a more direct conclusion.
ContributorsBeneduce, Trevor Paul (Co-author) / Craig, Nicko (Co-author) / Brock, Matt (Co-author) / Hertzel, Michael (Thesis director) / Mindlin, Jeff (Committee member) / Department of Information Systems (Contributor) / Department of Finance (Contributor) / Barrett, The Honors College (Contributor)
Created2021-05

Stock Price Performance in the Covid-19 Era: A Five-Phase Analysis

Description

The Covid-19 pandemic has made a significant impact on both the stock market and the<br/>global economy. The resulting volatility in stock prices has provided an opportunity to examine<br/>the Efficient Market Hypothesis. This study aims to gain insights into the efficiency of markets<br/>based on stock price performance in the Covid era.…

The Covid-19 pandemic has made a significant impact on both the stock market and the<br/>global economy. The resulting volatility in stock prices has provided an opportunity to examine<br/>the Efficient Market Hypothesis. This study aims to gain insights into the efficiency of markets<br/>based on stock price performance in the Covid era. Specifically, it investigates the market’s<br/>ability to anticipate significant events during the Covid-19 timeline beginning November 1, 2019<br/><br/>and ending March 31, 2021. To examine the efficiency of markets, our team created a Stay-at-<br/>Home Portfolio, experiencing economic tailwinds from the Covid lockdowns, and a Pandemic<br/><br/>Loser Portfolio, experiencing economic headwinds from the Covid lockdowns. Cumulative<br/>returns of each portfolio are benchmarked to the cumulative returns of the S&P 500. The results<br/>showed that the Efficient Market Hypothesis is likely to be valid, although a definitive<br/>conclusion cannot be made based on the scope of the analysis. There are recommendations for<br/>further research surrounding key events that may be able to draw a more direct conclusion.
ContributorsBrock, Matt Ian (Co-author) / Beneduce, Trevor (Co-author) / Craig, Nicko (Co-author) / Hertzel, Michael (Thesis director) / Mindlin, Jeff (Committee member) / Department of Finance (Contributor) / Economics Program in CLAS (Contributor) / WPC Graduate Programs (Contributor) / Barrett, The Honors College (Contributor)
Created2021-05
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Leveraged Buyout Analysis of Blackstone's Acquisition of Team Health Holdings and Industry Implications

Description
Our project examines The Blackstone Group’s $6.1 billion leveraged buyout of TeamHealth in 2016 in detail, as well as the broader implications of the transaction on the healthcare industry. The transaction was preceded by Blackstone’s initial acquisition of the company in 2005, followed by the company’s subsequent IPO in 2009.…

Our project examines The Blackstone Group’s $6.1 billion leveraged buyout of TeamHealth in 2016 in detail, as well as the broader implications of the transaction on the healthcare industry. The transaction was preceded by Blackstone’s initial acquisition of the company in 2005, followed by the company’s subsequent IPO in 2009. Our project first covers the history of the target company and profiles key subsidiaries, with an emphasis on the 2015 $1.6B acquisition of IPC by TeamHealth. We then detail the sources and uses of the transaction and explore Blackstone’s stated transaction rationale. We construct a base case financial model that explores Blackstone’s potential projected internal rate of return based on organic growth and potential synergies with IPC alone and without any further tuck-in acquisitions, as well as an acquisition case model that incorporates several future tuck-in acquisitions. Both cases include a detailed buildout of revenue projections, key income statement and balance sheet drivers (including an analysis of changes in healthcare economics and their impact on our revenue build), and forward-looking assumptions on various items including capital expenditures for the target company. Discounted cash flow analysis and leveraged buyout analysis outputs are detailed and discussed for both the base case and acquisition case. We examine the risks and mitigants associated with the transaction and how they may exacerbate issues in a downside case, namely leverage and public markets-related risks that may affect Blackstone’s strategy. Lastly, we investigate the impact the transaction may have on the broader industry from the patient, payor, and physician perspective.
ContributorsBamford, Maxwell Blake (Co-author) / Jha, Neil (Co-author) / Doughty, Alexander (Co-author) / Leibovit-Reiben, Zachary (Co-author) / Mindlin, Jeff (Thesis director) / Stein, Luke (Committee member) / Department of Finance (Contributor) / Barrett, The Honors College (Contributor)
Created2020-05