Shoprite Holdings Ltd: Equity research

A Work Project, presented as part of the requirements for the Award of a Masters Degree in Finance from the NOVA – School of Business and Economics

Earnings overseas and cash holdings

I investigate the impact of foreign pre-tax income on the total amount of cash held by companies and on the amount of cash that is held in companies’ foreign subsidiaries. I also investigate the impact of the existence and amount of cash held on companies’ foreign subsidiaries in the composition of cash holdings in terms of risk and liquidity. Using a sample of 100 largest U.S. non-financial and non-utilities companies I find that companies with higher earnings overseas present higher cash reserves and invest a higher fraction of their cash in risky assets. My evidence suggests that companies have a different optimization strategy for cash overseas, in which precautionary motives are not the main driver for holding cash.

Amadeus IT holdings information technology

Equity research report

Ryanair Holdings PLC

Equity research report

A diabetes: principais parâmetros para o controlo da diabetes

RESUMO: A Diabetes Mellitus é uma doença metabólica crónica, com deficiência a nível do metabolismo dos hidratos de carbono, lípidos e proteínas, resultante de deficiências na secreção ou ação da insulina, ou de ambas, que quando não tratada antecipadamente e de modo conveniente, pode ter consequências muito graves. Dado a incidência a nível mundial da Diabetes Mellitus, torna-se de elevada importância avaliar toda a sua envolvência e estudar bem quais os critérios a ter em consideração. Este trabalho propõe-se estudar para além dos parâmetros bioquímicos relacionados com a doença - Glicose e Hemoglobina Glicada A1c (HbA1c), analisar os resultados dos últimos cinco anos (2008-2012) dos ensaios interlaboratoriais do PNAEQ, do Departamento de Epidemiologia, do Instituto Nacional de Saúde Dr. Ricardo Jorge. Foram também analisadas as metodologias utilizadas e as variações interlaboratoriais, de forma a entender qual ou quais são os parâmetros mais adequados para o seu diagnóstico e controlo. Este estudo utilizou a população de laboratórios portugueses, públicos e privados, de Portugal Continental e Ilhas, um laboratório de Angola e outro de Macau que se inscreveram no PNAEQ nestes cinco anos, sendo a amostra composta pelo n.º de participações. No programa de Química Clinica foram distribuídas 38 amostras e no programa de HbA1c foram distribuídas 22 amostras. Para a glicose, o nível de desempenho nos ensaios é na globalidade das amostras de Excelente, no entanto verifica-se que sempre que a concentração da amostra é de nível patológico, que a maioria dos ensaios o desempenho foi inferior – Bom. O método de eleição e com CV% mais baixos foi o método da hexoquinase. Para a HbA1c, o nível de desempenho nos ensaios é na globalidade das amostras de Excelente. O método de eleição e com CV% mais baixos foi o método de HPLC. O CV% para a glicose ronda desde 2010 a 2012, os 3% e para a HbA1c foi de aproximadamente 4,0% em 2012. A HbA1c tem mostrado ser uma ferramenta muito útil, importante e robusta na monitorização da Diabetes, sendo hoje em dia quase sempre requisitada em análises de rotina a diabéticos de modo a prevenir complicações que possam vir a acorrer. No futuro poderá ser um importante, senão o parâmetro de futuro, para o diagnóstico da Diabetes, no entanto, mesmo já tendo sido muito trabalhada a sua padronização, ainda existem questões por responder como quais são na realidade todos os seus interferentes, qual a verdadeira relação da HbA1c com a glicose média estimada, em todas as populações e com estudos epidemiológicos. Também a própria educação do diabético e clínico deve ser aprimorada, pelo que neste momento as PTGO e os doseamentos de glicose em jejum devem ser utilizados e encontrando-se a Norma da DGS N.º 033/2011 de acordo com as necessidades e com o estado da arte deste parâmetro. A implementação da glicose média estimada será uma mais-valia na monitorização dos diabéticos pelo que deverá ser uma das prioridades a ter em conta no futuro desta padronização, uniformizando a decisão clinica baseada nela e minimizando a dificuldade de interpretação de resultados de laboratório para laboratório. --------------ABSTRACT: Diabetes Mellitus is a chronic metabolic disease, with a deficit in the metabolism of carbohydrates, lipids and proteins, resulting from deficiencies in insulin secretion or action, or both, which if, when not early treated in a proper way, may result in very serious consequences. Given the worldwide incidence of diabetes mellitus, it is highly important to evaluate all its background and study specifically all the criteria to take into consideration. The aim of this thesis is to study and evaluate beyond the biochemical parameters related to the disease - Glucose and Glycated Haemoglobin A1c (HbA1c), analyze the results of the last five years (2008-2012) of the PNAEQ interlaboratorial tests, in the Department of Epidemiology of National Institute of Health Dr. Ricardo Jorge. It is also intended to analyze the methodologies used and the interlaboratorial variations, in order to understand the most suitable parameters for the diagnosis and control. This study was based in a population of Portuguese laboratories, public and private, of Portugal mainland and islands, a laboratory of Angola and other from Macau, who enrolled in PNAEQ in these five years, and the sample was composed by the n. º of holdings. In the Clinical Chemistry Program there were distributed 38 samples and in the program HbA1c were distributed 22 samples. For glucose, the level of performance in the total nº of the samples was Excellent; however, it was found that when the concentration level of the sample was pathological, in most of the tests the performance was Good. The most preferred method with the lowest CV% is the hexokinase method. For the HbA1c, as a whole, the samples’ tests were Excellent, at the level of performance. The method of election with the lower CV% was the HPLC. The CV% for glucose was around 3%, from 2010 to 2012 and the HbA1c was approximately 4.0% in 2012. The HbA1c method has demonstrated to be a very useful tool, important and robust for monitoring diabetes, being nowadays, almost always required in routine analysis to prevent future complications. In the future it may be an important parameter, if not the most important, for the diagnosis of diabetes. However, despite it has already been standardized, there are still some questions that need to be answered, such as, which are in fact all their interferences, which is the true connection of HbA1c, when compared with the estimated average glucose, in all populations and epidemiological studies. Moreover, the education of the patient and the doctor concerning diabetes should be improved. Nowadays, the Oral Glucose Tolerance Test (OGTT) and fasting glucose determinations should be used and, the needs and the state of the art of this parameter, should be in accordance with the Standard DGS N. º 033/2011. The Implementation of the estimated average glucose will be an added value in monitoring diabetics and, therefore, should be a priority to consider in its future standardization and clinical decision based on it, will be uniform and the difficulty of interpreting results from laboratory to laboratory will be minimal.

The impact of banks dimension on profitability, sustainability and efficiency: An analysis for the Iberian financial system

A Work Project, presented as part of the requirements for the Award of a Masters Degree in Management from the NOVA – School of Business and Economics

Individual and aggregate money demands

I construct a model in which money and bond holdings are consistent with individual decisions and aggregate variables such as production and interest rates. The agents are infinitely-lived, have constant-elasticity preferences, and receive a fraction of their income in money. Each agent solves a Baumol-Tobin money management problem. Markets are segmented because financial frictions make agents trade bonds for money at different times. Trading frequency, consumption, government decisions and prices are mutually consistent. An increase in inflation, for example, implies higher trading frequency, more bonds sold to account for seigniorage, and lower real balances.

Measuring the impact of short and lending practices using the DGTW benchmarks

Mutual fund managers increasingly lend their holdings and/or use short sales to generate higher returns for their funds. This project presents a first look into the impact these practices on performance using the performance measures: i) Characteristic Selectivity (CS), the ability of the fund's managers to choose stocks that outperform their benchmarks; ii) Characteristic Timing (CT), the ability of the manager to time the market; iii) and Average Style (AS), the returns from funds systematically holding stocks with certain characteristics. These returns are computed through the DGTW benchmarks. The effect of other variables that have also been shown to impact fund’s returns – total net assets under management, investment styles, turnover and expense ratios – will also be analyzed. I find that managers who use short-sales do not exhibit better stock picking abilities than those who do not, while mutual funds that lend do present higher CS returns. In addition, while lending is not significant for the total performance of a fund, the employment of short-sales and of both short-sales and lending has a negative impact on the fund’s performance.

Espírito Santo Saúde: The bidding war

This case study describes the current situation of Espírito Santo Saúde, which involved an eventful takeover process. The company initially went public on February 2014 and later that year, due to the financial situation of its holdings it had to be sold. The bidding war began in August 2014, after Ángeles announced the first offer. Other participants who also pitched bids include José de Mello Saúde, UnitedHealth and Fosun. Furthermore, the potential projects Espírito Santo Saúde was considering implementing prior to the sale and the current situation of the healthcare industry in Portugal, will also be analysed.

Rating corporate groups a modelling experience

This paper aims to provide a model that allows BPI to measure the credit risk, through its rating scale, of the subsidiaries included in the corporate groups who are their clients. This model should be simple enough to be applied in practice, accurate, and must give consistent results in comparison to what have been the ratings given by the bank. The model proposed includes operational, strategic, and financial factors and ends up giving one of three results: no support, partial support, or full support from the holding to the subsidiary, and each of them translates in adjustments in each subsidiary’s credit rating. As it would be expectable, most of the subsidiaries should have the same credit rating of its parent company.