Mid Term Stock Presentation Comments-Total 12 Presentations
narranitin9
ST-M-BenMallon.pptxStockTrak
Week 1 - Week 4
Ben Mallon
*See slide notes for commentary on presented information
Technology Sector
Nvidia
25 Nvidia: $120.81 / $163.27
FIrst up will be all equity purchased in the Technology sector. Each tech stock is listed with the number of shares, the initial purchase price, and the price as of 11/11/22. The first trade I made was for Nvidia. The motivation behind this purchase was that I am familiar with the company, and knew they were in the process of releasing new graphics cards. This has been my most profitable stock so far, gaining over $40 per share. I plan on purchasing more Nvidia stock in the near future should the price fall below $150.
AMD
100 AMD: $60.83 / $72.35
Continuing with the Graphics card industry, I purchased an Nvidia competitor, AMD. This purchase was made on Nov. 2nd, with an initial purchase price of $60.83. Because I purchased Nvidia, I wanted to see how its main competitor would perform next to the leader in the industry. They have seen a significant rise recently, likely due to the announcement of new products in early November.
50 Google: $87.85 / $96.77
I purchased 50 shares of Google on Nov. 2nd as well. I saw Google as a safe investment, that would paint a good picture of overall market conditions. The initial purchase price was $87.85, and it has risen to $96.77 in the short time I’ve been invested. While I dont expect major changes, this stock typically rises and falls with general market conditions. The in early November is likely due to the release of earnings reports that were less than expected. The recent rise is due to the reaction of the market to more positive outlooks on inflation from the October economics reports. I do not expect to sell this until it reaches at least $105, as it is a good indicator for other stocks.
Rivian
50 Rivian: $32.45 / $34.90
Rivian is an investment that I chose with the hopes of a long term profit. With the initial purchase price of $32.45 made on Nov. 2nd, I expect this stock to bounce back with the Tesla decline. Because they are both eclectic car brands, I see Rivian being a favorable stock based on the volatility of Tesla. Amazon has purchased new electric delivery trucks from Rivan, giving another reason that I expect a bounce back over the next month or so. Though there has only been a subtle rise to $34.90 so far, I am keeping a close eye on this investment.
IBM
50 IBM: $138.64 / $143.17
My final technology sector stock is IBM. I purchased this stock due to the recommendation from a friend who is familiar with the business. Since the initial purchase on Nov. 2nd, the price has risen from $138.64 to $143.17. I was recommended the stock due to its constant rising over the past month. The most recent rise is likely due to the positive inflation outlook based on the October economic data. I expect to hold this position for the coming weeks, as the stock is currently showing no signs of losing steam.
Recreational Products Sector
Thor Industries
12 Thor: $81.19 / $90.52
All recreational products industry stocks were purchased as a part of the group project. My company is Thor Industries, so I purchased $1000 worth of shares. The initial purchase price was $81.19, with a rise to $90.52 as of late. Their recent increase is likely due to the inflation outlooks as well, as Thor’s RVs are a luxury to most people. The recent surge has been a nice boost, though I do not expect a significant profit on this stock.
Polaris Inc.
20 Polaris Inc: $101.42 / $116.62
I purchased the 20 shares of Polaris at $101.42 to track a group members company stock alongside mine. Polaris has seen a slight rise since the purchase I made on Oct. 26, though there has been some volatility in between. I believe the recent rise to be a result of the inflation outcome, as many other stocks have seen as well. The sharp drop in early November was likely due to the interest rate rise by the Fed, however, it has bounced back since then. Much like Thor, I do not expect this stock to remain a higher profit for me, but I do not plan to sell until the group project is finished.
Winnebago
20 Winnebago: $59.17 / $63.65
Winnebago is the final recreational product stock purchased as a result of the group project. This stock is the worst performing out of the 3, as it has seen much volatility but little change since the Oct. 26 purchase date. Though the company is relatively stable, their stock has not been a great performer. I will not be selling this stock until the group project is finished, but I do not see this stock being a profit for me.
Retail Sector
Walmart
20 Walmart: $141.90 / $142.58
This purchase was made to diversify my portfolio further. On Nov. 2nd the purchase price was $141.90 and it has risen a minimal 142.58. This is not looking as promising as I thought when I purchased, but this seems to be more of a stable stock than profit stock. I may try to short this stock in the future, as the recent trends have been negative.
Amazon
30 Amazon: $94.03 / $100.79
Amazon was another major player stock that I bought to diversify into other industries. The initial purchase price was $94.03 on Nov. 2nd, and it has risen to 100.79 since then. I do expect this stock to fall significantly over the next few days however, as Amazon has stated it plans to lay off around 10,000 employees. I bought low expecting a rebound, but am less confident now. The drop that I purchased during was the earnings report fall, as the report was less ideal for investors. It has since seen a slight rebound, but could fall in the coming weeks due to the layoffs. For this reason, I plan on selling off 20 of my shares at the Monday, Nov. 14th open to prepare.
Nike
50 Nike: $92.41 / $106.09
I purchased Nike on the recommendation of a friend who informed me of a recent drop that could bounce back. The drop was due to a large number of shoes being returned as resellers were not able to profit off of the shoes. These shoes were set to be re-dropped by Nike, which could have caused the rebound. I purchased these shares on Nov. 2nd at $92.41, but have seen a nice gain as the price rose to $106.09 by Nov. 11. I am planning to sell off 25 shares at the open on Monday, Nov. 14 as the current trend is showing another decline.
Miscellaneous Stocks
Pfizer
24 Pfizer: $45.33 / $47.58
I purchased 24 shares of Pfizer at $45.33 on Nov. 2nd in hopes that the rolling out of the new Covid booster shot would boost the value of the stock. While there has been a marginal increase to $47.58 by Nov. 11th, this is not the increase that I expected. I plan to hold on to the stock for another week or so, then try to sell around $50 per share if it reaches that mark.
AT&T
50 AT&T: $17.48 / $19.04
50 shares of AT&T were purchased on Oct. 24th at $17.48 in response to the news that a federal lawsuit had been filed against them in Illinois. Unfortunately, I was a little late to the news and did not take advantage of the rebound in the weeks after the news dropped. Although the price has risen to $19.04 as of Nov. 11th, a purchase made a week earlier would have netted a much larger return. I expect to sell off my shares in the coming week, as the rebound appears to be over.
Cryptocurrency
Ethereum
.3821 Ethereum: $1308.71 / $1258.59
Ethereum was the only cryptocurrency I invested in from the recommendation of a friend who is involved in crypto. While I am a crypto skeptic, I wanted to use the simulation as a real look into the market. I purchased .3821 of an Ethereum on Oct. 18th at 1,308.71 and initially saw a rise. Unfortunately, the past couple of weeks have seen a major fall in the crypto market. It has since dropped to $1258.59 with signs that it could keep falling. This experiment has shown that the crypto market is extremely reactive to social media and trends. The most recent major fall was likely due to the major crypto exchange company, FTX, going bankrupt and facing major criticism. With crypto having no backing and being a very recent development, this investment does not seem safe. As this is a simulation, I will be holding to see if there is another rebound in value.
Shorting Positions
Apple
-10 Apple: $149.51 / $149.55
To kick off my shorted positions, I chose Apple. I saw they had been on a steady decline in the past month, and wanted to see how a major company would perform in the shorting realm. I was expecting a 3rd quarter earnings report to cause a drop, as technology sector companies were consistently underperforming. This did not cause any significant movement unfortunately. Since the Nov. 2nd purchase date, the price has not changed much. I plan to continue holding on to this short until a price decrease of at least $5 to come out of this with some profit.
Beyond Meat
-50 Beyond Meat: $15.35 / $15.22
The second short I am attempting is Beyond Meat. This was the recommendation of a financial expert via social media, so I figured I would try and get in on the experiment. Since the Nov. 2nd purchase at $15.35, there has been little change. I am planning on waiting 2 more weeks to see if there is any significant fall, then looking to sell if there continues to be little movement.
Bed Bath & Beyond
-15 Bed Bath & Beyond: $4.30 / $3.95
My final shorted position is Bed Bath & Beyond. This move was another recommendation of a financial expert, as shorting stocks was a newer activity for me. I purchased these shorted shares at $4.30 on Nov. 2nd, and have seen a drop since then. I am planning on waiting another week before making any decisions about what to do with this position. There has been some signs that the price could be falling.
Mutual Funds
Vanguard Total International Stock Index Fund
3.2895 VGTSX: $15.20 / $16.73
Mutual Funds were a new investment type for me, so I used financial expert recommendations for guidance. On Nov. 2nd I bought in to the Vanguard Total International Stock Index Fund at $15.20 per share. It has since seen a rice to $16.73, likely due to the positive inflation outlook of the past week. As it appears that this fund could continue to rise, I am planning on staying invested for the long run.
American Funds The Income Fund of America Class A
.8850 AMECX: $22.60 / $23.48
This mutual fund was another recommendation from a financial expert’s website. From the initial purchase of .8850 of a share at $22.60 on Nov. 8th, it has seen a very slight rise to $23.48. This has followed the same trend of my other mutual funds, as it appears to be on the rise due to the outlook on inflation. I also plan on holding this position as I expect more of a rise in the future.
BlackRock National Muni A
2.6233 MDNLX: $9.53 / $9.67
This mutual fund was another recommendation from a financial expert’s website. The purchase was made on Nov. 2nd at $9.53 per share. This has been the least profitable fund for me this far, causing me to consider selling off my shares. Normally, this would be a more long term investment, but the 8 week limit on the simulation will cause me to make quicker decisions.
Morningstar U.S. Equity Fund
4.7438 MSTQX: $10.54 / $11.22
This mutual fund was another recommendation from a financial expert’s website. The 4.7438 shares were purchased on Nov. 2nd for $10.54 per share. As of Nov. 11th, the price was $11.22. While this is another fund with little change from when I purchased, these are typically longer term investments. I plan to hold on to these shares, as the value has shown a rising trend over the past couple days. This could be due to the inflation outlook, but there is no major tell.
Schwab U.S. Treasury Money Fund Investor Shares
20 SNSXX: $1.00 / $1.00
The final mutual fund I am invested in is Schwab U.S. Treasury Money Fund Investor Shares. This is a mutual fund that purchases low risk government securities, which could explain the no change from the purchase on Nov. 2nd. As I am new to mutual funds, I wanted to get involved in a government securities mutual fund to diversify my mutual funds portfolio. As these tend to be longer term investments, I do not expect to see significant change throughout the 8 weeks of the simulation.
Market Impacts on Portfolio
3rd quarter earnings reports for tech sector
Most were worse than expected by investors
Increase of fed fund interest rate
Warnings of 15 year high interest rate
Positive inflation outlook from October report
Could be disinflation in the coming months
The main factors that impacted the market and my portfolio were as follows. The 3rd quarter earnings reports for tech sector companies started rolling out in late October, with many being lower than expected. This caused a sudden drop in some tech companies, like Google. Though these drops were soon compounded with the announcement of another fed fund interest rate increase from the Federal Reserve. The rates rose another .75% to 3.75% to 4%. The chairman of the Federal Reserve, Jerome Powell announced that the rates could settle higher than expected, causing panic in the market following the news. Investors quickly sold off shares with the fear of a potential recession in the future. However, in early November this drop saw a rebound. The economic data for October showed that inflation is slowing down. The current outlook is that there could even be disinflation based on signs from October. This caused the market to rise sharply, with an upward trend in the weeks since the news. All of these combined to deliver the most significant changes to my portfolio.
Future Plans
Researching valuation ratios on potential investments
Price to book and price to earnings
Look more in to Bonds as an investment
Find companies that are in the process of diversifying
Examine how the market reacts in the short term
The first plan I have is to examine the a few valuation ratios like, price to book ratios and price to earnings ratio. These would help show if the stock is undervalued, and could be a good candidate for a rise in the future. My next plan is to look further into bonds as an investment. After going through module two, I feel more comfortable finding bonds to invest in. I can use the topics discussed in the 2nd half of module two to find bonds that will provide more a return in the future. My final plan is to find a company or two that is in the process of diversifying to see how that affects its stock price in the short-term. Though the profits may be hard to come by, it would be good to see how the market reacts.
Portfolio Link
https://www.stocktrak.com/account/openpositions
