Stock track project Danone group

Résumé du document

DANONE Group is a producer of fresh dairy products, packaged water, biscuits and cereal products. The Danone group is the worldwide leader in water and fresh dairy products and ranks second in biscuits.
Over the years, Danone has taken strategic steps to achieve a worldwide presence and focus on three business lines: dairy products, biscuits and water. The Company's portfolio of brands and products includes national and international brands such as Danone (Dannon in the United States), a brand of fresh dairy products; Evian, a brand of bottled still water; Volvic, an international brand of bottled still water; LU, a biscuits brand.
As of December 31, 2002, the Company share capital amounts to 137,335,122 euros divided 137,335,122 outstanding shares with a nominal value of 1 euro per share .
It listed in Euronext (Paris, Amsterdam, and Brussels), Zurich, London and New-York (NYSE in the form of American Depositary Share).
On December 31, 2002, The Danone Group had sales totalling more than U.S $14,500 billion and employed a worldwide workforce of more than 95,000. The turnover for 2002 is 13,555 million of Euro.

My study will focus on the stock evolution on the Paris exchange, with the CAC40 index...

Extraits

[...] Week 2 (09/28 10/04) On October, 3rd, the decision of the agency Moody's (rating's agency) to lower the prospect on the long-term note of Danone group has repercussions on the price of the stock because the Danone stock is currently registered in fall of under powerful the CAC40 index which shows a profit of In fact, we can see than the lowest price for this week was 128.30 on October, 3rd. Week 3 (10/05 10/11) Danone manages to preserve the threshold of the which corresponds almost at the initial level of January Week 4 (10/12 10/18) Danone revealed Thursday morning a sales turnover of 10.109 billion euros for the first nine months of the year 2003, slightly higher than waiting of the analysts. This news carries the stock in rise from to euros. At the same time CAC40 index yields 0,07% to 3372,56 points. [...]

[...] Stock track project Danone Group Introduction DANONE Group is a producer of fresh dairy products, packaged water, biscuits and cereal products. The Danone group is the worldwide leader in water and fresh dairy products and ranks second in biscuits. Over the years, Danone has taken strategic steps to achieve a worldwide presence and focus on three business lines: dairy products, biscuits and water. The Company's portfolio of brands and products includes national and international brands such as Danone (Dannon in the United States), a brand of fresh dairy products; Evian, a brand of bottled still water; Volvic, an international brand of bottled still water; LU, a biscuits brand. [...]

[...] The Paris Bourse should be supported by a new series of positive American economic indicators the next week, even if the return of the euro to its higher level versus the dollar could limit its potential of rise. On the second graph, we can see the same changes and in addition, we can see the American and Japanese index. On this graph, we can see than all of the index and the Danone stock follow almost the same way. In fact, they are all influenced by the economics conditions. Conclusion As we have seen in this report, the stock Danone fluctuate a lot but only in a small range. [...]

[...] Week 8 (11/09 11/15) Danone is in a bad posture, having exceeded the 128.50 in the short-term and almost to cross the threshold of the 128€. Week 9 (11/16 11/22) The stock continues to fall, it thus passed from 128.93 of weekly average to 127.62 and fell on November, 20th to 126€. Week 10 (11/23 11/29) The Danone group said in an official statement that it has interrupted the negotiations with the shareholders of Wimm Bill Dann, the number one of the fresh dairy products in Russia. This news does not have a big impact on the group. [...]

[...] As we can see the stock begins again to grow up. Analyze Figures on November, 28th Beta = 0.52 It means that if the index goes up or goes down from the stock will go up or go down from Alpha = -O.001 A negative alpha indicates that it moves less good than envisaged. But, we have to moderate our meanings, because the alpha is almost equal to zero. Correlation = 0.63 As the correlation is close to the stock and the CAC40 index evolve almost in the same direction and the same proportions. [...]