Any investment decision is a rational choice that involves the valuation of risk and the return trade-offs. The secret to a good stock decision is having all the information about the company. Therefore, in the investment assignment, we did a thorough background check of the companies to identify their performance indicators, earnings, stability, price-to-earnings ratio, and market trends. These factors guided our timing for either buying or selling their stocks. Another significant pointer was majoring on a mix of investments with returns that rise and drop differently within the market conditions to cushion against significant losses. As it is the norm in any business venture, we looked to survive and make profits, and this was the running slogan all along.
Below are the investment decision and the reasons for each:
|SYMBOL||TRANSACTIONS||TIME||QUANTITY||PRICE||COMM||ACC AMOUNT||EXP AMMOUNT||PROFIT||LOSS|
Coinbase provided a wonderful financial performance in Q1 of the financial year. There was a growth in both revenue and income compared to the fourth quarter of the year 2020. It, therefore, provided an opportunity for the growth of the stocks.
Walmart shares were on a steady rising trend since March 3 after a large fall at the end of February (Walmart Inc (WMT: NYSE) Stock Price & News – Google Finance, 2021). It, therefore, offered good prospects for s stock that would bring good income if the trend kept true.
FTSE offered a prospective stock because it has maintained a good balance since November 2019 (FTSE 100 Index Price, Real-time Quote & News – Google Finance, 2021). With such a trend, it would mean that while the prospects of a profit won’t be high, also that of a loss wouldn’t be high.
MacDonald’s corporation launched its new product Crispy Chicken sandwich, in late February, which has ensured a spike in sales growth, and therefore the stock performance was incredible (Graham, 2021).
The value of the cryptocurrency in the world and was a risk factor for me. We, therefore, saw it fit to sell the stock while still early. It also came with a gain of $70.
After March 12, the stock price of Walmart started to plunge exponentially before the disbursement of dividends on March 18 (Walmart Inc. (WMT) Stock Historical Prices & Data – Yahoo Finance. (n.d.).) Our stock was low and wouldn’t fetch much with the dividends percentages; therefore, we sold it to profit through the discount.
MacDonald’s stock price had increased from 211,86 when I had purchased it on 3/10/2021 to 223. 00 on 3/22/2021. The increase meant that selling it would fetch a substantial profit, and with the addition of the bonus, still retain the account value.
Tesla Inc stock had dipped significantly in February and March; it was therefore not a good investment. When it took a rising trend as from March 29, it was good to sell it and gain the $300 profit.
Adobe Inc stock has been unstable and had dipped to 420 on March 8. By March 31, it had improved its price and was due for sale to profit from as much as $240. Selling it would secure the profit before the prices plunged again.
Any business venture aims at making a maximum profit while reducing the expenditure costs. Selling the Danaos stock would be a good decision because it would fetch a $1000 profit based on the commissions.
Aerocenrtury stock price had dropped to an all-year low of $3.85 on March 30. What followed is a great spike in the new month. The great price increase to $9.85 was the best place to sell the stock because the company has poor performance (AeroCentury Corp. (ACY: NYSEAMERICAN) Stock Price & News – Google Finance. (n.d)
The performance of AMRA had been deteriorating, and I needed to decrease its share capital to $17,382 but still secure a disposal gain. The decision would secure this capital from higher magnitude loss.
Micron Technology stock has had a wonderful performance with a price increase from $50.34 in November 2020 to $93.75 on April 5 ( Micron Technology, Inc. (MU: NASDAQ) Stock Price & News – Google Finance. (n.d). The prediction is that the performance will maintain; I, therefore, bought their stock to secure a profit in the future.
Amazon stock has had a good performance since March 30. As of April 6, the new piece provided a good profit margin, and therefore I sold it to get a profit.
Selling the Danaos Corporation stock would fetch a good profit because of its $4 price increase and the margin profit ($1000) that it would also fetch. I, therefore, sold it for the profits.
The performance of FTSE in April has been poor, something that translated into their stock price. I sold the stock at a loss of $0.17 before the price dipped further. The sale also came with a margin profit of $80 from the commission.
The price of ACY had improved from $9.40 in the initial purchase to $14.86. It, therefore, translated to a profit of $1911 over the period in addition to that of $3500 in terms of commission.
Micron Technology has not yet been able to beat its all-time high share price of $97.50. In April, it came close to, but the management accredited this to the chip shortage in the world (Datta& Nellis, 2021). After the chip shortage, the price would reduce. I, therefore, sold the stock because it would take an inevitable dip.
- Comprehensive profit and loss account
|Gain on Sales||$7200|
|Gain on Purchases||$4840|
Datta, N., & Nellis, S.. (2021, March 31). Micron outlook beats expectations as memory chip prices rise. Reuters. https://www.reuters.com/article/us-micron-tech-results-idUSKBN2BN39F
FTSE 100 Index Price, Real-time Quote & News – Google Finance. (2021). Www.google.com. https://www.google.com/finance/quote/UKX:INDEXFTSE
Graham, J. (2021, January 4). McDonald’s will launch three chicken sandwiches next month as it doubles down on chicken. CNBC. https://www.cnbc.com/2021/01/04/mcdonalds-will-launch-3-chicken-sandwiches-on-feb-24.html
Walmart Inc (WMT: NYSE) Stock Price & News – Google Finance. (2021). Www.google.com. https://www.google.com/finance/quote/WMT:NYSE
Walmart Inc. (WMT) Stock Historical Prices & Data – Yahoo Finance. (n.d.). Finance.yahoo.com. Retrieved April 25, 2021, from https://finance.yahoo.com/quote/wmt/history/