Principlies of finance Assignment Example | Topics and Well Written Essays - 2000 words

Principlies of finance - Assignment Example The paper outlines all the strong sides of such companies as Xtrata plc., Rio Tinto plc., HSBC pl., Tesco plc. and BT plc. HSBC has services from banking to financial products. Personal financial services under the HSBC group offer current account, personal account, loan, cards and payment services. Wealth management services take care of insurance, investment and financial products. It has existence in 87 countries for global banking, capital market and commercial banking facilities; it is headquartered in London, United Kingdom. Global financial crisis has affected a lot for global banking companies. This sector is not affected for in the emerging countries but considerably impacted on developed countries. HSBC has major revenue earning from developed countries hence most of the groups underlined have reflected bad performance in 2010. The major sector indicators are in still in bad condition. Rio Tinto plc is highly diversified company with operations in finding, mining and processing mineral resources. Rio Tinto produces aluminum, copper, gold, silver, diamond and other industrial minerals. Rio Tinto is engaged in all the continents; the head quarter is in London, United Kingdom. Rio Tinto’s business includes the mines, mills, refineries, refineries and research facilities. Company has 5 major product groups like aluminum, copper, diamonds, minerals, energy, iron ore, exploration and technology & innovation; and number of subsidiaries for availing facilities of economies of scale and cost structure. But iron ore is the main contributor to its earning with 73% dominance and copper has 18% contribution in the earning. Global financial crisis has affected Rio Tinto and created a challenge; but company is able to stabilize the situations with the proper strategic steps. This year company is able to manage a whopping increase in net earning from $4.9 billion to $14.3 b illion. Basic materials sector is also witnessing demand for above average GDP growth of China, India and other emerging nations. Global economic situation is also helpful for the increasing demand in ores. Investors and fund mangers also investing in diamonds and minerals, which is another positive force for short to medium term to the Rio Tinto’s growth. Through the SWOT analysis of the Rio Tinto, I found that the company has cash risk, market volatility threat and technological challenges in near future but the competitive advantages and growth in medium term is good opportunity for the inventors. Apart from this fundamental analysis, I found that the Rio Tinto’s return is combatively better and impressive than other competitors in the same sector for medium term and at this moment the share value is in uptrend but has major resistance in 4800. Hence selling the stock at this moment before