Stocktrak Sample Assignment

Part 1

I really enjoyed using StockTrak this semester, and I actually thought it was a lot of fun. I didn’t do incredibly well, but I didn’t do terribly either. My initial strategy was to have a widely diversified portfolio, and invest in many different sectors, and take some risks. I tried to look at sectors that I thought had the most potential for improvement, along with some riskier stocks that had high dividends. The sectors I believed would see improvement were Internet media, airline and transportation, and renewable energy. My first stock purchase was Facebook in the Internet media sector. I believed it was a relatively safe stock with a potential to grow in a growing sector. It was one of my most rewarding stocks. As the process went on, my decision to invest in renewable energy didn’t work out. I still believe it has the potential to grow, it just didn’t grow rapidly in the time we worked with StockTrak. My one major takeaway I got from StockTrak was is to be patient with your stocks. Just because one isn’t performing great right now doesn’t mean it wont in the future.

Part 2

Portfolio Value: $1,019,507.04

className Ranking: 25

Portfolio % Return: +1.95%

Available Cash: 384.73

Part 3

Company name: Facebook

Ticker: FB

# of shares: 536

Profit: (expressed as a $ amount and a holding period return %) 13.34 %+ +6,651.76

Reason for Success: (4-5 sentences) Why did you initially invest in this stock? Why do you think it performed well while you had it as part of your portfolio? Do you think the success will continue in the future?

I initially invested in this stock because it seemed relatively safe. Facebook has been a rapidly growing stock from the first time it entered the market. I also invested because I believe the sector of internet media is continuing to grow. I believe it did well because the sector is growing rapidly.

Company name: Delta Airlines

Ticker: DAL

# of shares: 1059

Profit: (expressed as a $ amount and a holding period return %) +$3907.71 +7.75%

I initially purchased this stock because of the sector it is in. I knew I wanted to invest in an airline company because I believe the industry is growing rapidly. More and more people are flying today. I think it performed well because of those reasons; the airline industry is growing rapidly because more people are using it. I think the stock will only continue to grow.

Company name: Apple

Ticker: AAPL

# of shares: 446

Profit: (expressed as a $ amount and a holding period return %) $+1685.88 +3.36%

I initially invested in Apple for the same reason I invested in Facebook. They are both at the top of their respective sectors, in growing industries. Apple also has begun to show interest in other sectors, and I thought that would make it a good stock to invest in. I think it performed well because Apple is growing rapidly, and their products are becoming more and more popular. They were a very safe purchase. I couldn’t imagine them not being successful in the future.

Part 4

Company name: One Liberty Properties

Ticker: OLP

# of shares: 2169

Profit/Loss: (expressed as a $ amount and a holding period return %) -$2,819.70 -5.62%

Reason for Poor Result: (4-5 sentences) Why did you initially invest in this stock? Why do you think this investment did not work out? Do you think it will do better in the future?

I initially invested in this stock because in className we learned that the real estate market is very risky but has large rewards. I wanted to pick one REIT, and see if I could get lucky. Sadly it didn’t work out. I think it struggled because of the market it is in. It is a volatile market, and you never know what might happen in real estate. I expect the stock to make a full recovery eventually.

Company name: Sony Coorperation

Ticker: SNE

# of shares: 1879

Profit/Loss: (expressed as a $ amount and a holding period return %)

-$3,927.11 and -7.82%

Reason for Poor Result: (4-5 sentences) Why did you initially invest in this stock? Why do you think this investment did not work out? Do you think it will do better in the future?

I initially invested in Sony because they are a leader in the electronic and technology market. They seemed to me like a rather safe stock that has been around for a while that would generate solid return. I think competition may have taken the upper hand while we did StockTrak and I was just a bit unlucky. I’m not totally sure why they struggled. I expect them to make a full turn around.

Company name: International Business Machines Corp

Ticker: IBM

# of shares: 393

Profit/Loss: (expressed as a $ amount and a holding period return %)

-$5,094.74 and -8.66%

Reason for Poor Result: (4-5 sentences) Why did you initially invest in this stock? Why do you think this investment did not work out? Do you think it will do better in the future?

I initially invested in IBM because of research I did into the business industry. I looked at the top 10 safest investments for the upcoming month and IBM was towards the top. I thought this would be a solid stock to invest in. I think they must’ve just hit a down patch in their production or sales, I expect them to turn it around and generate good returns again.