This is the second of three stock journal assignments that you will complete during this course. For this assignment, you will add your work for Week 8 to your previous work from Week 3, following the instructions below. Two templates have been provided for your use. In one template, you will enter your chosen companies, the share prices, and the number of shares you will be purchasing given your budget of $25K. The other template is where you will write your rationale/summary. Please download both templates, then complete, save, and submit both templates to Blackboard.
For this week’s portion of the assignment, complete the following:
Record the current price of the stock for each company you selected in Week 3’s Stock Journal.
You may use any price during this week (e.g., day one price, the opening, the low, the high, the close, or any price you find when you check it during the day).
Use the MS Excel spreadsheet or MS Word document to put your Week 3 and Week 8 stock prices side-by-side, to show your comparison.
Determine the current value of your total investment.
Do not make any changes to your investment at this time.
Calculate your total based on the number of shares and the new price per share, for each company.
Evaluate the results of your current investment to provide your opinion/assessment of your investments.
Consider the following questions as you provide your opinion:
Why do you believe the stock increased, decreased, or remained static?
Are you upset because your investment is worth less than $25,000?
Are you happy with the result and the trend?
Use at least two quality references. Consider using the sources of information ideas above or searching and locating resources from the Strayer University Library. Note: Wikipedia and other websites do not qualify as academic resources.
Week3 Stock Journal
By Jean Baptiste
Fin100: Principles of finance
April 26, 2020
Choice of Companies to Invest In
The analysis was done on top food companies in the USA, which comprises of PepsiCo, Tyson Foods, and Nestle food. The reasons for carrying out a study on the food company were several. Firstly, the three companies have had a steady growth in the New York Stock Exchange. According to Santosa(2019), the companies have recorded an average of steady growth at 23.7 % annually over the past three years. Also, research conducted by the London School of Business in 2016 on leading food selling companies globally found that all three companies were leading in food production in the whole world. Such positive results highlighted or based on several studies proved that the companies were well structured to maintain their position on the market and attracted various employees to work with them.
Statistics from the World Bank indicate that the companies have offered employment to majority of jobless youth in the United States. Besides, the company has encouraged the employees and customers to buys the company’s shares. Thus, considering that food is a basic need for human consumption in their daily running of activities and that other institutions had studied the company, it is prudent to use the companies in this analysis of stock exchange based on the view that people frequently interact with the companies and are encouraged to buy the company’s shares.
Evaluating the Current investment Result
The investment amounts that I had located to invest in the three companies were a whopping sum of $25,000, which each company was allocated a different amount. The ratio of the distribution of the amount is $10,000 for PepsiCo, $10,000 allocated to Tyson Food Company and Nestle food was allocated only $5000. I decided to invest in the PepsiCo Company because from the analysis done, it had so many people who had invested with the company, and the company’s capital trend over the years has been on a steady rise. Thus,I saw it wise to invest in a PepsiCo food Company.
Evaluation of my result indicates that the stock of the company is increasing. According to the Washington Post of 22nd December 2019, for the previous two weeks, the company shares have been rising with double digits from 34 to 43 and now at 66, which is a positive move, and I am impressed with the trend since I invested when it was at 34. The steady increase of the PepsiCo shares in the New York Stock Exchange is attributed to the reduced political temperature, increased rate of employment, and a favorable environment. The factors have enabled people to work harder in investing or buying more shares in the company due to their increased and stable income.
I monitor the PepsiCo Food Companydaily, and thus I have observed that the stock shares of the company have been on a steady rise. Secondly, the Tyson food company’s reports posted on their website, it is clear that it was topping the other two companies at 67 based on the increased number of their customer base. This factor has influenced the stock value of its product. The Nestle food company analysis shows that its stock market amount has remained stagnant and has not either movednor reduced because it has maintained its customers without the intention of adding more customers.
From the evaluation of the stock market trend, it is clear that the investment I ventured resulted in profiting except for the Nestle food company where the amount of money remained the same due to the flat curve on the. Through the analysis, I bought the shares of PepsiCo Food Company at 34 shares at $10,000, and now the shares are at 66 points, meaning that if I happen to sell the PepsiCo Food shares, currently I will make a profit of $320000 which is remarkable profit. From the study, I have learned that the stock market investment is profoundly affected by political stability, employment factors, and the weather. Thus, such factors need to be considered before investing in a particular company.
Company update Calculation of Profit Shares
PepsiCo Company 1,121 shares = to $20,000 one share bought at a value of $17.84
Tyson Food Company 24 shares = to $5000 one share bought at a value of$202.55
Nestle Food Company 153 shares = to $5000 one share bought at a value of 33.52
Janser, A. F. (2019). The Chick Chorioallantoic Membrane (CAM) Assay as a Three-dimensional Model to Study Autophagy in Cancer Cells. Bio-protocol, 9(13).
Santosa, P. W. (2019). Corporate Fundamentals, Bi Rate, And Systematic Risk: Evidence From Indonesia Stock Exchange. JurnalManajemen, 23(1), 40-53.
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