Term 5, 2014-15
Case: Strategic_Capital_Management
Due on November 12, 2014 at noon
Questions to be considered for case analysis:
1. What is the current stock market valuation (market capitalization) of Creative Computers and of Ubid based on the stock prices as of December 9? Analyse these valuations with respect to the assets and liabilities of each of these firms. Are the stocks undervalued, overvalued, correctly valued?
2. Based on the analysis in part 1, what should Elena do? Buy Creative Computers? Buy Ubid?
Buy both Creative Computers and Ubid? Is there some other investment strategy involving
Creative Computers and Ubid that you would suggest? Be specific about size of the positions in each of stock.
3. How long