Mid Term Stock Presentation Comments-Total 12 Presentations
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ST-M-LeahWhite1.pptx
StockTrak Portfolio: 1
Leah White
Masters of Business Administration, St. Ambrose University
MBA:675
Dr. Xiaowei Liu, PhD
November 14, 2022
This presentation will provide an overview of my activity thus far in the StockTrak tool. I will provide an overview of my activity thus far, my positions currently held, as well as how market conditions have impacted this portfolio. I will also share ideas of what I may do differently in the second half of this exercise based on the materials learned thus far. First, let’s take a look at my activity to date.
1
Activity to date
| Market-Buy | # of transactions | Qty | Price |
| Equities | 36 | 8350 | ($450,158.00) |
| Bonds | 6 | 140 | ($144,840.67) |
| Mutual Funds | 6 | 1359.463 | ($46,000.00) |
| Spots | 1 | 100,000 | 0 |
| Market-Sell | # of transactions | Qty | Price |
| Equities | 1 | 100 | $22,802.00 |
| Dividends | # of transactions | Qty | Price |
| Equities | 3 | 260 | $162.20 |
So far, I have had 53 transactions. 68% of my activity has been buying stocks, and 11% purchasing mutual funds, 11% buying bonds. I have made only one sale after I got fed up with Microsoft’s poor continued performance.
The first week, I had a lot of paralysis by analysis. I added a bunch of stocks to my watch list, and I found these in a variety of ways. I picked local stocks like John Deere, Arconic and even my husband’s employer, Trane. Then I picked brands I have affinity for and are well known, brands like Kellogg, Apple, Target, Walmart, Disney and Verizon. For my mutual funds and bonds, I tried to select a variety of time horizons and different options. The ETFs were all based on research I did to try to find those considered high potential. My results were as haphazard as my approach.
I’m finding it easy to buy but hard to discern when to sell and how to proceed. That’s why my trading has been a bit limited thus far.
2
Portfolio performance vs S&P500 ETF
When I compare my results with the S&P500 ETF over the past 30 days, we once again see how weak the performance of my portfolio has been. I need to diversify more, and I need to generate a lot more activity.
3
Current positions
The next several slides break down my current positions, as well as a brief overview of their performance. Here’s a brief overview of each holding.
My first is Kellogg. While it’s performed well at points, it’s bid/ask price are below what I paid. This is one I will watch more closely and will sell when it goes back up.
Ford is my next, and it’s been a solid performer for me. My timing was good, and overall, it’s performed nicely. If the car market starts to cool, this will be one to sell before the price comes down.
XHB is an ETF I came across in my research. It’s had more highs and lows than some of my others, but it’s still performing decently.
Verizon was another affinity buy for me. It’s held steady and been less volatile than a few others.
E is Eni SRA and a technology company. It’s avoided some of the slump other tech stocks have had.
Pioneer was one of the more expensive stocks I purchased, and it hasn’t performed well. I plan to ditch it if the price comes up a bit more.
Deere was another nod to a local company, as well as another expensive buy. It’s been worth it and performed steadily.
Disney was a brand I like but which I haven’t liked the returns on. Their quarterly earnings were less than expected which led to their stock price decreasing as well.
Pepsi has been stable as well, but my big winner is Honeywell International. Up almost 14% since I purchased it, it continues to perform well. Devon Energy has been another dud, down 5%. Republic Services is one of the companies in our group project, so I had to purchase shares of it. It’s not performed well.
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Current positions
Apple has been a stock has stayed stable but hasn’t done anything great. Coke is down slightly, but I only bought a few shares because of how expensive it is. Starbucks has been another strong performer for me, one of the few affinity buys that worked in my favor!
Target has been consistent and is another personal favorite of mine. Stericycle, another from my group project has performed the best of the three in our team. It’s up nearly 15%! Waste Management, the company I was assigned for pre-work, has been consistent but hasn’t performed as well as Stericycle. Winnebago, another Iowa brand has done well.
My husband works for Trane Technologies, which is why I purchased it. It’s done fairly well. Wayfai. On the other hand, was my first attempt at a short. It didn’t go well. It’s down 28%. SCHG, another ETF has been sluggish. Tesla was plugging along really well, until Elon Musk announced he sold a whole bunch of shares, and then the price took a dive. REMX, a precious metals ETF is another one of my great performers. This was a pick in an attempt to diversity, and it paid off.
5
Current positions
ALTM, Altus Midstream has a new ticker symbol and thus no data. It’s another one of my energy buys that hasn’t performed as well as I had hoped. GYLD is a global ETF, and it’s done very well up more than six and a half percent. ARKQ, Ark Autonomous is a tech and robotics company that has done well. Bandwidth Inc is another tech performer that was a relatively inexpensive buy that’s done well.
Arconic, a Quad Cities brand hasn’t performed well. This is concerning, given the impact it has in the local economy. IFRA is a US infrastructure ETF that is also performing quite well.
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Current positions
Another ETF that’s been a solid performer is GERM, an ETF for treatments and testing. It’s just shy of 10% at this point. On the flip side, PFIX, and interest rate hedge ETF hasn’t faired so well, perhaps due to the rising interest rate environment. GGLS is another I purchased quite a bit of, but that hasn’t performed well. If it rebounds, I will be getting rid of it. MSOX, is an AdvisorShares ETF, and it has been another solid performer for me.
Overall, some of my diversification through ETFs resulted in favorable returns thus far. My affinity purchases are a mixed bag, as well as my local purchases too.
7
Market conditions
Continued inflation
Fed rate hikes
Elections
International instability
CPI results released for October
There were many things affecting market performance during this time. Continued inflation and talks of a looming recession have been a constant pressure. In order to control inflation, the Feds continue to declare 75 basis point rate hikes. The market historically responds in a positive manner with these rate hikes, and this was no exception. The housing market has shown signs of slowing down, but prices for consumer goods continues to climb. Midterm elections were also something that were being watched closely. The results were a bit of a surprise, and the market seemed to respond favorably. International instability in Europe continues to create volatility in the global markets.
Quarterly earnings results were also announced during the last 30 days, and this had an impact both positively and negatively on several stocks. In addition, there were quirky things too. Elon Musk completed his purchase of Twitter, and shortly after announced he had sold quite a bit of Tesla stock as well. Technology stocks like Microsoft and Apple continue to struggle.
The most recent announcement, the results for the October CPI showed signs inflation might be slowing. The market also responded positively to this nice surprise as well. While it’s too early to know if the trend will continue, it’s something to take note and watch closely.
8
Market Results – Past 30 days
When we look at the results for the major indexes for the past 30 days, it highlights the lackluster performance of my own portfolio. The Dow Jones Industrial Average is up 11%, the Nasdaq is up 4.87% and the S&P 500 is up 7.59%. My portfolio is flat underperforming due to my own paralysis by analysis.
9
Next steps
PORTFOLIO VALUE $1,022,417.86
RETURN PERCENTAGE 2.24
CASH BALANCE $384,114.53
BUYING POWER $1,587,147.22
When we look at my portfolio stats above, there are many take-aways for me to consider for the second half of this assignment. First, I need more activity. I need to sell off and buy new securities. When we look at where I have done well, my ETFs seem to be a big opportunity for me.
In terms of our group project learnings, the company whose financials and ratio analysis was the weakest has been performing the best. It is a lot more to gain by taking a chance on some of these that seem more questionable than some of what seem to be the safer picks.
I am halfway through my StockTrak assignments as well, so I need to continue to plug away at this. I find the platform to be a bit overwhelming, so time spent in the assignments will only help me in my activity moving forward.
I also need a lot more activity. I am spending too much time agonizing and not enough time making decisions. I have cash and buying power available, so I am under leveraged and need to correct that.
10
Onto week 5!
Onto week 5! I will continue to work to take good risks and use the variety of tools to help me. I need to buy a derivative, an option and a future. There’s a lot left for me to explore and try my hand at, and I will be working hard to make sure to give it my best attempt.
In closing, it’s clear why financial analysts are so important. They consume a lot data to professionally manage portfolios, and there is definite skill and knowledge needed to do it well.
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