Date of Award
Master of Business Administration (MBA)
Elroy C. McDermott
Increasing attention is drawn to the stock market as the number of shares traded continues to reach new highs . The purchase of common stock as an effective hedge against inflation is also broadly discussed . Obviously, not all stock presently offered for sale will yield a favorable return on investment . The use of comprehensive financial analysis has proven to be essential in effective investment management . It is the purpose of this report to thoroughly analyze the Boise Cascade Corporation to determine whether or not the purchase of its common stock would he a profitable long-term investment.
Financial data used in this paper are generally developed from year-end figures with comparisons and evaluation made through the year 1966 . In addition, some information is presented for the 1967 operating year.
The first section of this analysis covers a review of the background and history of Boise Cascade . Major events and acquisitions since the merger of the Boise Payette and Cascade Lumber Companies are covered and important changes in philosophy and product lines arc treated . Comment is made regarding the industries within which Boise Cascade competes and historical data and trends are presented.
In the second section, the company organization and management is discussed with considerable attention given to the company president and his views. Company procedures in budgeting, personnel management, etc., is reviewed.
The third section includes an extensive analysis of the financial results of company operations. Various ratios are developed and evaluated, and important trends are singled out. Current (1966) balance sheet and income statements are included for closer examination.
A fourth section considers the extent of present operations, breaking down the assets and presenting timber holdings, etc. Capacities and production statistics are presented for the various major product lines. International operations and research and development activities are discussed.
IN the fifth section, the growth for company earnings is determined and intrinsic value of the stock is developed from this rate.
The sixth section is a summary of the factors affecting the profitability of the common stock. Recommendations are made concerning the stock.
Anderson, Lynne A., "An Analysis of Boise Cascade Corporation For Long-Term Investment Purposes" (1968). All Graduate Plan B and other Reports. 593.