6-8 pages stock report

Stock-Trak Portfolio

11/20/2016

The portfolio which includes BABA, FB, AAL and XEL has shrunk because the percentage return from the portfolio is negative and the value of the portfolio is less than the buying power of the portfolio. This indicates that the portfolio is not performing well in the market. The trades made or allowed are few in the market as indicated by the information of the performance of the portfolio. FB which is one of the stocks in my portfolio is not performing well as it is trading below the price that I bought with.

The portfolio has shrunk because of the various stocks in the portfolio. For instance, Facebook which is one of the stocks is not performing well in the market as the market price is decreasing compared to the time that I bought it. The stock is now trading at $ 117 which lower compared to the price of $ 120 in which I bought it.

BABA is not performing well in the market which is another reason for my portfolio not to perform well in the market. The stock price of Xcel Inc is lower compared to the price in which I bought it with making the return from the stock to below hence not reaching my expectations. This is the same case for the BABA stock which is trading at $ 91 which is lower compared to $ 101 which was the price of the stock when I bought it.

The stocks are not performing well in the market because of the changes in the industry in which they are operating. When the competitors who are the peers of the stocks in the market perform well in the market, it makes the stock not to perform well as their market share decrease.

Considering the strategies that I used to invest to the portfolio I considered the profitability of the stocks in which I wanted to invest in. this made me choose the stocks considering their return on assets, earnings per share, current Ratio and asset turnover. All these ratios show if the company is performing well or the company is not performing well.

The strategy of meeting with suppliers, competitors, customers and employees will enable me to know all the information that I need to know about the stock. All these strategies made me make a well-informed decision concerning my investment which made me invest in the four stocks. By the increase of the stock market, I will continue to invest in the stocks like BABA and Excel as they are not performing badly because the stock market will improve after Donald Trump has implemented its reforms. This will make the stocks in the portfolio to perform well.

I decided to sell AAL due to its poor performance, and this made me not to continue losing from the investments. From my experience, I will analyze well the performance of the stock considering both the internal and external factors that may influence the price of the stock. It is good to diversify my portfolio so as to reduce the risk of investing in one industry which may fail me. So as to make the portfolio to perform well, I have made some stocks to be income-oriented for instance; AAL is short term purchase so as to make it possible to get the income within a short period. My plan is to sell BABA so as to make sure that am not losing so as to ensure that my portfolio is not shrinking. I will focus on the stock that gives me a higher return, for instance, the energy stocks.

I sold BABA so as to stop losing from the stock as it is not performing well in the market. I sold it at a loss because I bought it with $101.86 but I sold it at $93.88. Instead of continuing to a loss in the market, I preferred to sell it. In the stock market, it is good to sell the stock when you realize that you are losing in the market so as to avoid more losses. It is good to analyze the market and know the trends so as you know what to do with the stocks in the market.

Professor’s feedback:

Feedback to Learner11/26/16 11:56 AM

You did a proficient job on your Mid-term assignment. You addressed most of the required elements of the assignment including a discussion on the performance of your portfolio including whether or not it has grown or shrunk over time, what changes you made to your portfolio and how it impacted the performance of your portfolio. Please remember to ensure you incorporate key concepts from the course such as diversification and investing style (top down or bottoms up) when discussing the performance of your portfolio.

References

Burke, Q. L., & Eaton, T. V. (2016). Alibaba Group Initial Public Offering: A Case Study of Financial Reporting Issues. Issues in Accounting Education, 31(4), 449-460. doi:10.2308/iace-51430

Eiden, P., Rathsam, T., & Schottler, D. (2010). Xcel Energy Riverside Repowering Project. ASME 2010 Power Conference. doi:10.1115/power2010-27330