Ryan Evans
Finance 331
12/5/14
Stock Track Final Report
1.) My strategy was to have diversified portfolio that contained stocks from several
different sectors with relatively low volatility. I did not want to have a portfolio that was
chasing prices but instead invest in solid companies. Therefore I planned to invest in
companies that are known for providing positive earnings reports, have successful
management teams, and companies that could produce positive returns for a long period
of time. Thus I invested in large cap stocks that were proven to be successful in the past
and had a vision forward to continue to provide profit for the shareholders such as a
company like Apple. I also tried to invest in companies that were down instead of
investing in companies that were at an all time high, this hopefully would enable my
portfolio to gather the largest returns. This strategy that I formulated gave me the
confidence I needed to invest a large portion of money into my portfolio.
Start Date: 8/23/2014 End Date: 12/5/2014
# of
Shares
purchased
Value of
Stock AS
OF
12/6/14
18.37%
200
$21,580
9/26/14
15.92%
300
$34,500
$42,400
11/4/14
11.59%
400
$47,552
Technology
$33,690
9/26/14
7.06%
1000
$36,490
Entertainment
$26,982
10/30/14
4.25%
300
$28,128
Company
Name
Symbol
Industry
Amount
Invested
Purchased Percentage
Dates
Return
Alibaba
BABA
E-Commerce
$18,446
10/22/14
Apple
AAPL
Technology
$29,889
Palto Alto
Networks
PANW
Technology
Micron
MU
Disney
DIS
Chipotle
CMG
Food
$59,333
9/26/14
0.20%
90
59,451.30
Tesla
TSLA
Automotive
$5,233.19
10/13/14
0.33%
23
$5,145.33
Go Pro
GPRO
$32,820
10/22/14
-12.27%
400
$28,872
Technology
Total Return for Stock Portfolio = 261,292.95– 248,793.19 / 248,793.19 x 100 =5.02%
3.) Alibaba (BABA)
Alibaba was added to my portfolio because of its rapidly growing market and
capitalization in China’s fast growing e-commerce industry by connecting small mom
and pop shops in China with consumers all over the world Alibaba is doing what Amazon
does but globally. Alibaba also continues to acquire stakes in several companies such as
shop runner, which has name brands such as Calvin Klein and Tommy Hilfiger. I feel
that there room for growth is unlimited and will continue to add good return to my
portfolio.
Go Pro (GPRO)
Go Pro’s addition to my portfolio was more of a personal one; I have always followed Go
Pro since it was started in 2002. I got the very first Go Pro and have been keeping up with
the new ones ever since. I enjoy watching and participating in extreme sports and no one
gets you the up-close and personal experience like a Go Pro. Through the years I have
witnessed its growth and popularity grow throughout the entertainment, military, and
filming industries.
Apple (AAPL)
I invested in Apple because I feel like they have a strong management structure and are
continuously growing, never regressing. There products are superior to their competitors,
being an iPhone and Mac user I can say this from personal experience. Also with the
upcoming holidays and Apple’s release of its new iPhone 6 I expect strong 4th quarter
earnings.
Micron (MU)
I invested in Micron because it outperformed their consensus-earning estimate of $0.80
by $0.02 reporting $.82 earnings per share. Micron is a top supplier and manufacturer of
memory chips that are used in computers and other electronic devices. Although the
competition is fierce, Microns sale volatility is steady due to the diversified portfolio of
memory products using DRAM, NAND flash, and NOR flash technologies.
Tesla (TSLA)
I invested in Tesla because I like the direction that the company is headed and the vision
from Elon Musk of where he thinks Tesla can reach. Tesla is the leader in the movement
of power cars using electricity rather than gas. Tesla hasn’t reached the middle class
market with there high end cars but they recently released there next generation car that
will be priced lower attracting a new target market.
Palo Alto Networks (PANW)
I invested in Palto Alto Networks because they are leaders in the security software group
with a 106% surge this year. I also invested in them because at my internship this
summer I worked at Raymond James for one of the top financial advisors in the country
and he recommended this stock to me.
Chipotle (CMG)
I invested in chipotle because they are satisfying a consumer want of good, healthy fast
casual food. They are leading the restaurant industry and continue to show that their
company is healthy and growing. Chipotle recently opened another chain called shop
house that is the same structure of Chipotle but with Indian food.
Disney (DIS)
I invested in Disney because I wanted one stock with a dividend in case of a market
decline leading up to fourth quarter earning reports.
4.)
Portfolio Weight by Industry
(Retail Industry)
2%
13%
(Electronic Industry)
7%
12%
(Communication
Industry)
(Semi Conductor
Indsutry)
24%
17%
(Entertainment
Industry)
(Food Industry)
(Automotive Industry)
11%
14%
(Photographic
Industry)
My portfolio diversification covered several different industries as indicated above,
although I had more stocks in technology I still wanted to have a lot of diversification in
my portfolio incase a sector showed signs of a bear market my total return for my
portfolio would not tank.
5.) 5.02=2.75 + (5 – 2.75)  BETA = 1.0089
My portfolio contained a beta of 1.0089, which represents a portfolio with relatively low
risk when compared to the market beta of 1. According to my strategy explained in
question 1 this is exactly where I was looking to be in accordance with the market.
6.) I felt like my strategy ended up being pretty successful when compared to my
portfolio. I wanted to have a portfolio with low volatility that provided solid returns. My
beta was 1.0089 and my rate of return for my portfolio was 5.02%, hitting both my goals
stated in my strategy. Six out of my eight stocks that I invested in had a return of 4.25%
or higher with three of those stocks reeling in a return of 12.15%, 15.43%, and 16.99%
rate of return. The one investment I regretted only because of the timing the investment
occurred was my purchase of Go Pro, I invested in it when it was at its 52 week high,
obviously it wasn’t going to stay there, my return ended up being -12.03%
7.) If I could go back and do this assignment again I would change a few things such as
purchasing more stock in energy along with another mid and small cap to give my
portfolio more diversification. I also would have executed more trades throughout the
semester to try and produce a larger portfolio return along with buying stocks when they
were down.