Thursday, September 29, 2011

Week 2(:

Dividends: Company profits paid in a fixed proportion, either in cash or more shares.
Stocks that have dividends should be investments, not trades.
Earnings:  Money earned through paid employment, as profit, or from investments.
One of the most important thing to look at is your earnings and whether or not your stock is letting your money work for you.
Private companies VS. public companies: private companies are inaccessible and public companies are open to the public.
New Balance and Puma are private companies while Nike and Adidas are public companies.
Growth Stock: Stock in a company that is growing fast and reinvesting its profits rather than paying high dividends.
If you are someone who likes risk, growth stocks are where you would possibly like to invest.
Transaction: I bought NKE(Nike) at $88.95 because it's 52W range is $69.43-$94.23. So when I bought NKE it was close to the middle of it's range, resulting in the fact that is has a fair amount to grow. Looking at this stock today, the price is $87.99. I have lost $42.75 since the time of my purchase. Even though NKE has gone down, I have reasons to believe that it will get out of it's rut and go up. I know this because it's main competitor, Adidas, has a much lower 52W range and it has gone down much more than NKE. I also believe NKE will go up since it is getting closer to Christmas and people will start buying more apparel and such things for the upcoming holiday. I believe that NKE will go up and hit $93 in the next month. If this is not true, I may have to reevaluate my stock and possibly bye more at it's low price. I bought NKE because it's 52W range and it's stock value was much higher than it's competitors such as Adidas.
2nd Transaction: I bought WMT(Walmart) today for $51.93. Walmart's 52W range is $48.31-$57.90, so when i bought it, it was pretty close to the middle. I bought Walmart because it's max was fairly steady. I believe Walmart will go up to $54 in the next couple of weeks. I bought Walmart because it's competitor, Target, has a much lower trade of $50.23 and it is not very stable. I believe Walmart will go up because as the holiday season approaches, Christmas shopping will begin.

4 comments:

  1. Your predictions are not only based on numbers but also on your own knowledge which is great like the rest of your blog (:

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  3. I really liked all the information you gave on your stocks competitors. It really seemed liked you knew what you were talking about and had confidence in your stocks. That was very cool.

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