Financial Analysis of Bluescope Steel Ltd and Onesteel Ltd Australia Research Paper

Financial Analysis of Bluescope Steel Ltd and Onesteel Ltd Australia - Research Paper ExampleToday, millions of shares are traded all day on the worlds memory board markets. (Penman, 2003). Most often, investors see valuation as the first step toward intelligent investing. It has been argued (e.g. Penman 2003) that an investor can prevail informed decisions approximately where to invest once the value of shares are determine based upon the fundamentals. This is so because, without this value investors can either buy high or sell scummy Investors who trade on these stocks are often forced to ask themselves whether they are buying or selling at the right outlay. (Penman, 2003).In the face of this military position and their quest for an alternate answer, investors turn to various media including internet chat rooms, printed press, and talking heads on television and financial networks, who often voice opinions on what they feel the stock prices should be. (Penman, 2003). In addi tion, investors consult investment analysts who provide an almost endless stream of information and recommendations to sort out. There are often claims that some shares are undervalued and wickedness versa. (Penman, 2003).Faced with in like manner much information, Investors at times get confused with no clear indication of what the true prices of stocks should be. (Penman, 2003). Under such circumstances, the investor either make decision based on his or her instinct, such investors according to Penman (2003) are intuitive investors while others who make their decision based on cap market efficiency are referred to as hands-off investors.Penman, (2003) further argues that in making their decision, passive investors assumed that the market price is a fair price of the shares quoted. These investment mechanisms appear to be very simple, as they do not require much effort. (Penman, 2003 pp 3). How ever that is not the case as neither passive nor intuitive investor turn to be bette r off in the face of their decision. This is so because these sets of investors can either pay to high or sell too low.Having said that, in the sections that follow, I will discuss analysis and valuation of Bluescope Steel Limited and One steel Limited in Australia including their products, employees, management, and corporate governance. I have also highlighted in a passing the methodology used in valuating the company. In the last section, I will make a completion and recommendation to prospective investors.1.1BlueScope Steel LimitedAccording to the Company 2008 report, BlueScope Steel