Equity research - Lockheed Martin Corporation

Mestrado em FinançasEste projeto representa uma avaliação detalhada da Lockheed Martin Corporation, obedecendo à estrutura de Trabalho Final de Mestrado, neste caso projeto, do Mestrado de Finanças do ISEG. Este, foi escrito com base nas instruções dadas pelo CFA Institute. Escolher a LMT baseou-se, primeiramente no meu interesse pessoal sobre a indústria aeroespacial & defesa, que atualmente está a ganhar cada vez mais relevância, devido ao aumento das tensões geopolíticas, e segundamente, devido à LMT ser a maior empresa de defesa norte americana, e ao meu desejo de melhor entender como a empresa se organiza. Este relatório contempla informação disponível até 14 de outubro de 2020, e qualquer informação posterior não será refletida nesta avaliação. O preço alvo foi calculado usando o método de avaliação absoluta, o Discount Cash Flow Method (DCF), e sustentado pelo Dividend Discount Model (DDM), Adjusted Present Value (APV) e por métodos de avaliação relativa. É expectável para o fim de 2021 que o preço alvo seja $480,05, representando um potencial de 23$390,72. Os maiores riscos associados à LMT são a elevada dependência do Governo, o impacto do Covid-19 e a disrupção da cadeia de abastecimento. Portanto, tendo em conta este potencial de subida como de médio risco, a nossa recomendação é no sentido de compra.This project represents a detailed valuation of Lockheed Martin Corporation, guided by the structure of ISEG?s Master of Finance final work project. It also was written following the recommendations of the CFA Institute. The reason behind choosing LMT lies on, primarily, to my personnel interest on the Aerospace & Defense industry, which is becoming more and more relevant nowadays, due to the increasing geopolitical tensions, and secondly due to LMT being the biggest defense player in the USA, and my desire to better understand the organization. This report contemplates only the information available until October 14, 2020, any information or event after this specific date will not be reflected on this valuation. The price target was calculated using the absolute valuation method, the Discounted Cash Flow Method (DCF), and was supplement by the Dividend Discount Method (DDM), Adjusted Present Model (APV) and relative valuation method. It is expected that at the end of 2021 the target price will be $480,05/sh, representing a potential upside of 23$390,72/sh. The main risks associated with LMT's operations are the Governance dependence, Covid-19 impact, and Supply Chain disruption. Thus, taking this upside potential in consideration as a medium risk associated with this company, our recommendation is to buy.info:eu-repo/semantics/publishedVersio

Relativistically into finance

The change of information near the light speed, advances in high-speed trading, spatial arbitrage strategies and foreseen space exploration, suggest the need to consider the effects of the theory of relativity into finance models. Time and space, under certain circumstances, are not dissociated and no longer can be interpreted as Euclidean. This paper provides an overview of research made on this field, while formally defining the key notions of spacetime and proper time. Further progression in this field does require a common ground of concepts and an understanding of how time dilation impacts financial models. For illustration purposes, we compute relativistic effects for option prices when viewed from the viewpoint of two distinct reference frames, based upon the classical Balck-Scholes model. We show relativistic effects are non-negligible and illustrate how they depend on option characteristics such as maturity of the contract and volatility of the underlying.info:eu-repo/semantics/publishedVersio

On path–dependency of constant proportion portfolio insurance strategies

This paper evaluates the path–dependency/independency of most widespread Portfolio Insurance strategies. In particular, we look at Constant Proportion Portfolio Insurance (CPPI) structures and compare them to both the classical Option Based Portfolio Insurance (OBPI) and naive strategies such as Stop-loss Portfolio Insurance (SLPI) or a CPPI with a multiplier of one. The paper is based upon conditional Monte Carlo simulations and we show that CPPI strategies with a multiplier higher than 1 are extremely path-dependent and that they can easily get cash-locked, even in scenarios when the underlying at maturity can be worth much more than initially. The likelihood of being cash-locked increases with the size of the multiplier and the maturity of the CPPI, as well as with properties of the risky underlying’s dynamics. To emphasize the path dependency of CPPIs, we show that even in scenarios where the investor correctly “guesses” a higher future value for the underlying, CPPIs can get cash locked, losing the linkage to the risky asset. This cash-lock problem is specific of CPPIs, it goes against its European-style nature of traded CPPIs, and it introduces into the strategy a risks not related to the underlying risky asset – a design risk. Design risk does not occur for path-independent portfolio insurance strategies, like the classical case of OBPI strategies, nor in naive strategies. This study contributes to reinforce the idea that CPPI strategies suffer from a serious design problem.info:eu-repo/semantics/publishedVersio

Cyberbullying and bullying: Impact on psychological symptoms and well-being

Related, but with different impacts on psychological symptoms and well-being, bullying and cyberbullying have been the subject of numerous studies. The present study analysed the associations between cyberbullying and bullying, specifically: 1) gender, school grade and age associations with cyberbullying and bullying; 2) the impact of cyberbullying and bullying on psychological, social and contextual symptoms and well-being according to cyberbullying involvement, and 3) a combined bullying context was compared to single bullying contexts and to non-involvement for psychological, social and contextual factors, and well-being, among a cross-sectional and randomly assigned sample based on the 2014 Health Behaviour in School-aged Children Portuguese Study, a World Health Organization collaborative study (HBSC/ WHO). Composed by 6026 adolescents (47.7% male), aged between 10 and 19.92 years old (M=13.77;SD=1.68), in the 6th, 8th,and 10th grades, results showed that 10.9% of the participants reported being involved in cyberbullying, as cybervictims, cyberbullies or cyberbully-victims, and 47.9% in bullying. Most of the cybervictims reported being involved as victims and bully-victims in bullying; cyberbullies as bully-victims in bullying, and most of the cyberbully-victims reported having the same role in bullying. Frequently, cybervictims were females and most of the cyberbullies and cyberbully-victims were males. No significant associations were found for age and for Body Mass Index. Comparisons between groups, based on the participants’ role in cyberbullying, showed significant differences for substances use, emotional symptoms, school context, fights and friends. Further comparisons (according to participant’s role, not involved, or involved in single or combined bullying) evidenced the cumulative effect of combined bullying. In conclusion, given the different characteristics and impact of cyberbullying on cybervictims, cyberbullies and cyberbully-victims, is crucial to consider the interrelations between the groups and focus on a more engaging perspective, based on an ecological intervention model. Results will be discussed from a public policy perspective.info:eu-repo/semantics/publishedVersio

Bullies, Victims and Provocative Victims in Context: Discriminant Factors in a Portuguese Adolescent Sample

Context: With strong and serious impacts on health and individual well-being, bullying presents itself as one of the most traumatic experiences at school age. Objective: analyse the differences between bullies, victims and provocative-victims for individual, relational, school and contextual factors. Design: cross-sectional study based on the 2014 Health Behaviour in School-aged Children study. Results: Bullies reported consuming more tobacco and drugs, but less alcohol, when compared to victims and provocative-victims. Bullies also reported being more involved and having more security feelings at school, better relationships with their peers, being better accepted by the peers, and more positive attitudes, compared to victims and provocative-victims; which reported more fear, sadness, rejection feelings, and also, more withdrawal at school. Group differences were also found in the time spent with friends in everyday life, nigh outs and well-being, with bullies presenting the higher odds. Provocative-victims reported involving more in fights than victims. Otherwise, bullies reported making friends more easily and spending more time with friends after school. Conclusions: Given the different characteristics and impacts of bullying on victims, bullies and provocative-victims, it is essential to consider the interrelations of groups and focus on a more engaging perspective, based on an ecological intervention model. A strong argument is also made related to the need to include young people participation in the definition of public policies to prevent peer related violence, as well as a need to focus not only in the prevention of peer related violence, but also to focus on violence-free, positive relationship

Ethical and scientific pitfalls concerning laboratory research with non-human primates, and possible solutions

Basic and applied laboratory research, whenever intrusive or invasive, presents substantial ethical challenges for ethical committees, be it with human beings or with non-human animals. In this paper we discuss the use of non-human primates (NHPs), mostly as animal models, in laboratory based research. We examine the two ethical frameworks that support current legislation and guidelines: deontology and utilitarianism. While human based research is regulated under deontological principles, guidelines for laboratory animal research rely on utilitarianism. We argue that the utilitarian framework is inadequate for this purpose: on the one hand, it is almost impossible to accurately predict the benefits of a study for all potential stakeholders; and on the other hand, harm inflicted on NHPs (and other animals) used in laboratory research is extensive despite the increasing efforts of ethics committees and the research community to address this. Although deontology and utilitarianism are both valid ethical frameworks, we advocate that a deontological approach is more suitable, since we arguably have moral duties to NHPs. We provide suggestions on how to ensure that research currently conducted in laboratory settings shifts towards approaches that abide by deontological principles. We assert that this would not impede reasonable scientific research.info:eu-repo/semantics/publishedVersio

Healthy social network use and well-being during adolescence: a biopsychosocial approach

© 2023 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (https://creativecommons.org/licenses/by/4.0/).Screen time and the use of social networks is the most frequent form of leisure time occupation and socializing for adolescents. The present study is aimed at understanding and characterizing, from an ecological perspective, what distinguishes healthy and less healthy or even dependent use of social media in young people and the influence on adolescents' well-being. This paper is based on the Health Behaviour in School-aged Children (HBSC) from 2022, a survey carried out every 4 years, in collaboration with the World Health Organisation (WHO), following an international protocol. A total of 7643 students from the 6th, 8th, 10th, and 12th school grades responded, of which 53.9% were female, with an average age of 15.05 (SD = 2.36). The sample is representative of the school grades under study. The results allow us to study and identify similarities and differences between three groups related to the level of healthiness in the use of social networks and its relations to well-being from an ecological perspective. What distinguishes adolescents with less healthy use of social networks is that they are more often female, older, have more self-injurious behaviour, higher alcohol consumption, and a worse relationship with teachers. The adolescents with the highest level of dependence on social networks are those who have a higher perception of lack of safety at school and in their area of residence, as well as a higher use of screen time as a leisure activity. The well-being of adolescents using social media in a healthy way is explained by fewer psychological symptoms, better stress management strategies, better body awareness, more physical activity, less time online with friends, and better relationships with family and teachers. Technologies and social networks are important for the well-being of adolescents; it is essential to promote a healthy, critical and balanced use with other "screen-free" activities and to promote socio-emotional skills, a lack of which seems to be one of the biggest risk factors associated with the healthy use of technologies.This work is framed within project UIDB/05380/2020 under support of FCT—Fundação para a Ciência e a Tecnologia, I.P.info:eu-repo/semantics/publishedVersio

Dynamic modelling of refrigerated truck chambers

A refrigerated truck chamber is always under variable conditions. Not only weather changes but also loading and unloading processes can make the chamber behaviour dependent on time. A prediction of relevant properties distributions (velocity, temperature and relative humidity) in refrigerated chambers requires the simultaneous solution, by an iteration process, of the three-dimensional non-linear differential equations for the momentum and heat/mass transport. Basically, these two transport phenomena are coupled by the buoyancy force due to natural convection. However, especially for non-steady state thermal conditions, the high computations times become unattractive the simultaneous integration. For the majority of refrigerated truck chambers, in which the air flow is mainly dominated by forced convection, the equations can be decoupled and the two transport phenomena can be treated separately. Therefore, in the case of dynamic (transient) simulation, this strategy makes the problem much simpler and can strongly reduce the computation time. In this study the simulation method described here was applied in a case study modelling (steady and transient) and was validated by measurements taken from an experimental reduced-scale model.info:eu-repo/semantics/publishedVersio

Metabolic relationships between macro- and micronutrients, and the eicosapentaenoic acid and docosahexaenoic acid contents of Pavlova Lutheri

The use of specific microalgae as sources of polyunsaturated fatty acids (PUFA), for incorporation in either aquaculture or human diets, has been receiving increasing interest. The fatty acid profile of intracellular fats in a given species can, within certain limits, be modulated via manipulation of the culture growth conditions, namely nutrient availability. In attempts to shed further light on the effects of chemical parameters upon microalgal metabolism, correlations between the components of a medium and the resulting biomass yield, as well as the eicosapentaenoic acid (EPA) and docosahexaenoic acid (DHA) contents are presented, using Pavlova lutheri as model system. Although several studies of individual nutrients have been published previously, the effects of variation of all medium components upon fatty acid production are systematically presented here, apparently for the first time. The optimum formulation to optimise EPA and DHA contents should consider the buffering agent, since some of them are toxic to the cells; P. lutheri was able to use several nitrogen sources, yielding equivalent amounts of EPA and DHA; synthesis of EPA was induced in culture media under low salinity, whereas a trend could be noticed between decreasing yields of EPA and increasing concentrations of N, at 0.15 g L−1 of P. Regarding the micronutrient composition, a culture medium lacking sulphur was unable to sustain cellular growth, whereas cultures deprived of either calcium, iron or manganese revealed a statistically significant decrease in cellular yields relative to those possessing such minerals; conversely, those cultures without boron produced higher cell numbers than those containing this element. Media deprived of boron, molybdenum or copper led to increases of the relative amounts of both EPA and DHA, whereas calcium deficiency decreased the levels of those PUFA