Rachel’s
Super Stock
(Informational)
Slide Show
Devon
trying to
steal my
hardearned
money
My Companies
In what companies did I use my
$10,000 to initially invest?
 Red Hat, Inc.
 J. Crew Group, Inc.
 Alltel Corp.
 Honda Motor Corp.
 Sony Corp.
 United Postal Service
Red Hat, Inc.

I chose to invest in
Red Hat, Inc. because
it is a relatively new
business. I
researched it for one
of our assignments,
and found that it may
see success in the
future because of its
recent technological
advancements. New,
risky businesses are
very appealing to me.
J. Crew Group, Inc.

I love everything
about J. Crew. They
have very cute
clothes, which was
what first attracted
me. After I
researched them, I
realized they are
planning for some
major expansion in
the coming year,
promising success.
Alltel Corporation

When I researched this
company, I read that they
are encroaching on Verizon
and AT&T’s territory,
attracting new customers
because of their flexible
plans and convenience. It
also announced in May this
year that it would be going
private, which made it
more attractive, because
its stock prices were sure
to increase. The only thing
was that the date the deal
would be finalized was not
announced, and it kind of
snuck up on me.
Honda Motor Corporation

I chose to invest in
Honda Motor
Corporation because I
had read in a news
article that its
quarterly profit had
risen 63%. I thought
it would be one of my
more stable
investments with still
more opportunity to
excel.
Sony Corporation

I decided to invest in Sony
merely because their stock
prices were low. When I
bought the stocks, there
were widespread fires in
California, damaging some
of Sony’s property. This
(along with some existent
debt) led to lower prices,
so I figured it would be a
good time to buy it
because a successful
company like Sony was
bound to bounce back.
United Postal Service

The main reason I decided
to invest in the United
Postal Service is because
of the quickly approaching
holiday season. More and
more people shop online
for its convenience,
therefore increasing the
business (and income) of
shipping industries.
Increased profits will make
this corporation more
attractive to investors,
thus increasing the
demand for its stock.
Trades I Made

On November 26, 2007, I
traded 5 shares of J. Crew
stock (total value $197.60)
for 12.063 shares of Xerox
Corp. stock ($197.59).
-The only reason I decided to
make a trade at all was that
we were required to. Of
course, Mr. R decided to
change the rules as soon as
I traded, but it’s ok!
-Xerox seemed like a good
choice because they have
been growing tremendously.
The week before I invested
in Xerox Corp. they
announced their first-ever
dividend, making it an even
more appealing choice.
On December 10, 2007, I
traded all of my Alltel shares
(25 of them, for a total sale of
$1,786.50.) I used the money
from this sale to buy 36.018
more J. Crew shares, for a sale
price of $1,786.49.
-This was because the
privatization of Alltel was
finalized on November 16,
2007, thus causing it to be
removed from the NYSE. I had
no choice but to sell all the
stocks. (The price wasn’t going
up, so what would be the point
in keeping them?)
-I bought more J. Crew shares,
because in the past month,
http://www.trading-naked.com/images/NQoosTradingNaked.JPG their stock has increased more
than $10.00 in value. I suspect
the price will continue to rise,
which will allow me a greater
profit.

Company Research Used



The thing I relied most on to make my decisions
was recent news and current events. J. Crew
Group, Inc. had many positive articles published
regarding their success, so that (combined with
their plans for major expansion) encouraged me to
invest my money there.
The plans each corporation had for the future also
played a big role in how I invested. I knew Alltel
was going to go private (although I didn’t know
exactly when), which helped me make the decision
to buy their stock.
One other thing I looked at, but not as much, was
the general trends of the stocks. When I
purchased shares of Red Hat, Inc. their 3-month
graph showed a very positive trend. I was hoping
this would continue during my time as a
“shareholder,” but as it turns out, the stock actually
declined in value. This shows that just viewing
trends is usually not enough to make an informed
decision.
The Effect of Current Events



One current event that significantly affected my stock
portfolio is the extremely high prices for gasoline. Many car
companies have benefited greatly from engineering vehicles
that use less gas, and even electricity to power them.
Honda, however, has not had any great advancements in
this department, which is why I think its stocks have been
declining so much lately. Companies like Toyota, which
developed the Prius, are seeing success with their stocks,
whereas Honda (which I invested in) is not.
I think one “current event” that greatly impacted my stock
portfolio, as well as the entire stock market, is the
approaching holiday season. Businesses that sell things like
clothes and electronics have not seen as much profit lately
because people have been more careful with their money.
However, upcoming holidays are proving to dissuade this
thriftiness, increasing revenue for many corporations, and
therefore also increasing the price of their stock.
One of the current events I read about for class discussed
the scandals within Crocs, Inc. They lied about their
earnings in order to falsify their success so people would
continue to invest their money. After I read this, I recall
reading two other recent stories about similar incidents with
different companies. I think immoral behavior like this
among corporation VIPs can lead people to believe that the
stock market is fraudulent and discourage them from
investing. I think recent news like this has also negatively
affected the stock market lately.
What Have I Learned????
ABSOLUTELY
NOTHING!!!!!!!
Just Kidding, Mr. R!!!!!
(Did you already mark me down for a 0 for this project?)



I’ve actually learned a ton and can’t wait to start investing my
money for real.
I think the most important thing I’ve learned from the portfolio is
to always, always, ALWAYS research companies before investing.
I thoroughly researched each of the corporations I chose to invest
in, and overall, it paid off. Although I had some stragglers
(namely Honda Motor Corporation), I feel my in-depth research
definitely paid off.
Something else I learned is to never be completely trusting of
every business you research. There are more companies than I
thought that forge their records in order to get more money.
Although you should be generally safe when looking at company
records, I learned that it’s important to just keep in mind they
could be lying. Sometimes common sense can save you from
disaster. (For example, anyone with half a brain would realize
that nobody buys Crocs in the fall and winter. Obviously the
company would have back stock of the product, so they had to be
lying when they reported ridiculously low numbers of inventory.
Call it hindsight bias if you want…) 
http://www.littlecarotte.com/image/bindercover/Binder-SustM_2005-2.jpg
More Money!!

If given $10,000 more, I’m not sure I would do very much differently.
However, there are a few things…
-First of all, I would follow my intuition more and take more risks. I was
originally going to buy about 150 J. Crew stocks, but I didn’t want to risk being
completely burned so I cut that number almost in half, and only got 85. Had I
done what I thought would be successful, I would be nearly $1000 richer.
-I also would invest in more new, risky companies. I probably would buy more
Red Hat, Inc. stocks (although they’ve been decreasing in value) because they
have big plans for the future and are bound to be one of the leading
technology providers in America. Also, I would probably buy a bunch of
cheap-o stocks (like Devon’s beloved IMAX, for example) that have moneymaking potential.
-One thing I might NOT do as much is depend on the season or time of year to
influence my selected stocks’ prices. I chose UPS just because Christmas was
coming, and it hasn’t really paid off. At press time (of this AWESOME
PowerPoint…) my 20 UPS shares have made me a whopping $0.80.
Saving For My Kids To Go To
College………………?


Seeing as I’m never going to get married or have kids, this
probably won’t be an issue for me. I’d rather live in solitude
for the rest of my life and make other people miserable.
That said, if I were investing my money for an important longterm goal (probably to buy something cool, like a super-sized
robotic slinky), I would invest a little bit differently. Although I
am gung-ho on participating in the stock market, I think it’s
important to have some other type of security. I would more
than likely buy a vast amount of stable bonds so I would be
sure of some profit over time. I think I would also buy risky
bonds (but not depend on them) that showed some promise. I
would definitely still invest in the stock market, but I would
also use my money elsewhere.
Speaking of College….
Tiger till 2012!!
But anyways…
Game vs. Life

I noticed many differences between the game and real-life
investing:
-First of all, I wasn’t dealing with real money. I was definitely
much more willing to take risks because in reality, there was
nothing to lose.
- Second, I didn’t have to pay brokerage fees. A lot of the money
I used on stock in the game probably would have had to go to
my broker, so I would have had less profit.
-Third, there were no taxes involved in the game. (Thankfully!)
-And finally (fourth!!), we didn’t receive dividends. When Alltel
went private, shareholders received between 80 and 81 cents
per share. Because this was just a game, I didn’t get this
benefit. I would have twenty extra bucks to invest with! No fair!!
My Future As An Investor
(Are you scared yet, Mr. R? Your retirement money in the hands of people like me….)


As soon as I strike it rich as an international businesswoman, I
am definitely going to be an investor!
When I invest my money, I now know there are many factors to
consider when deciding how to do so. Time frames describe
how much time usually needed to make an effective investment.
Stocks are generally considered to be long-term investments,
about 5-18 years. Regular bonds also have long-term time
frames. If I were looking for something with a shorter time
frame, I would put my money into a savings account. Dollarbased investing would also be something to think about. If I
opted to invest this way, I could buy, say, $200 worth of selected
stock each month. This would ensure steady investments over
the long-term, and would most probably lead to profit. The
value of the dollar is also going to be important when I invest
my money. If the value of the dollar is low compared to the
Euro or Yin, I would probably invest more in the stock market, in
hopes of improving our economy. If this were the case, I would
probably steer clear of international markets. Risk factors will
also come into play. Investing in a newer, more low-key
business, such as Red Hat, Inc. has a high risk factor since it is
not a stable, firmly established corporation. Although there is
great opportunity for success in new businesses, there is also a
chance that it will fail altogether. However, a corporation such
as the United Postal Service is much more stable, so would be
considered a low-risk investment. Everyone uses shipping
industries, and that will more than likely never change. For this
reason, it is very improbable that UPS would fail as a business.
This was actually my 2007 Halloween
costume….. I dressed up as my physics
teacher! Haha
3 VERY Important Concepts
1.
2.
3.
Supply & Demand. This is what fuels the economy throughout the
entire world. If a product becomes popular, the demand increases, so
more of the product is made. If a business is unable to fully meet the
demands, consumers are willing to pay more to get what they want.
On the other hand, if a company produces too many of a product when
there is a low demand, the company will probably face economical
losses. Balancing supply and demand is vital to all levels of economy.
Stock Market Indices. Before this class, I had no idea what a “DOW”
was or meant. But now, I know that the DJIA is comprised of 30 of the
largest and most widely-held corporations on the NYSE. It is computed
by dividing the sum of all 30 stock by an adjustable divisor. It is an
important indicator of the overall trend of the stock market, though it is
important to understand that just because the DJIA moves one way,
does not necessarily mean a given stock will move the same way.
When the stock market had a mini-slump during our game, some of my
stocks actually increased in value. Other indices include: S & P 500,
Amex Composite, and Russell 1000.
Risk-Return Tradeoff. This is the idea that your potential return rises
with a riskier investment. Basically, in order to maximize your profit
you have to take a lot of risk. Investing with a low-risk corporation is
safe, but has little potential to make you rich. This is important
because investors need to know that they can’t always play it safe.
Without any risk, there would be no stock market.
Section II
Rachel’s Super
Stock Portfolio
Proportion of Shares Owned
At The End
In The Beginning…
20, 9%
15.022, 7%
12.063, 5%
Red Hat, Inc
15.022, 6%
20, 8%
46, 21%
85, 39%
46, 19%
116.018,
50%
Red Hat, Inc
29, 12%
J. Crew Group Inc.
29, 13%
Alltel Corp.
25, 11%
Honda Motor Co.
Sony Corp.
United Postal
Service
I sat here for 30 minutes trying to get them
to look the same, but it obviously wouldn’t
work. 
J. Crew
Group Inc.
Honda Motor
Co.
Sony Corp.
United Postal
Service
Xerox Corp.
Portfolio Value Over The Weeks
Value of Rachel's Super Stock Portfolio From Week 9-Week 15
$11,500.00
$11,000.00
Value
$10,500.00
$10,000.00
$9,500.00
$9,000.00
Week 9
Week 10
Week 11
Week 12
Week 13
Week 14
Week 15
Value $9,999.99 $9,930.90 $10,166.50 $10,182.75 $10,496.71 $11,282.87 $11,286.21
Week
My Three Key Companies
J.
Crew Group, Inc.
Sony

Corporation
Honda Motor Corporation
Progress of My 3 Key Stocks
Values Of J. Crew, Sony, and Honda
$60.00
Value of Stock
$50.00
$40.00
$30.00
$20.00
$10.00
$0.00
Week 9 Week 10 Week 11 Week 12 Week 13 Week 14 Week 15
J. Crew Group Inc.
$36.45
$38.32
$39.37
$39.52
$40.42
$49.60
$49.25
Sony Corp.
$48.48
$47.04
$48.72
$50.97
$54.62
$54.51
$56.11
Honda Motor Co.
$37.25
$34.79
$34.91
$33.54
$34.18
$35.09
$34.49
Week
J. Crew Group, Inc.

INFO
– CEO: Millard S. Drexler ($1.80M salary)
– Company HQ: New York, New York
– Product Line: Men’s haberdashery, Italian
cashmere collection, J. Crew’s wedding &
party dresses, Italian leather accessories
– Subsidiaries: J. Crew Operating Corporation,
J. Crew Inc., Grace Holmes Inc., H.F.D. No
55 Inc., J. Crew Virginia Inc., J. Crew
International Inc., J. Crew Intermediate Inc.,
ERL Inc., J. Crew Services, Inc.
– Employees: 7,600
– Countries: United States, Japan
– Top Competitors: Gap, Lands’ End, L.L. Bean

STATS
–
–
–
–
2005
2006
2005
2006
Net Income: $3.8M
Net Income: $77.8M
Sales: $953.1M
Sales: $1.15B
Sony Corporation


INFO
– CEO: Howard Stringer
– Company HQ: Tokyo, Japan
– Product Line: Home video game systems, digital and video cameras,
Walkman stereos, audio equipment, and semiconductors
– Subsidiaries: Aiwa Business Center, Sony Corp. of America, Sony
Ericcson Mobile Communications. 913 total.
– Employees: 163,000
– Countries: Japan, United States, England. 80 total countries worldwide.
– Top Competitors: Matsushita Electric, Philips Electronics, SANYO
STATS
–
–
–
–
2005
2006
2005
2006
Net Income: $1.09B
Net Income: $1.11B
Sales: $66.26B
Sales: $73.19B
Honda Motor Corporation

INFO
–
–
–
–
CEO: Takeo Fukui
Company HQ: Tokyo, Japan
Product Line: motorcycles, automobiles, and power products
Subsidiaries: Honda North America Inc., Cardington Yutaka
Technologies Inc., Honda Engineering Co., Ltd., Honda Trading
Corp.
– Employees: 167,231
– Countries: Japan, United States, England, Vietnam. 160 total
countries worldwide.
– Top Competitors: Ford Motor Co., General Motors Corporation,
Toyota Motor Corp.

STATS
–
–
–
–
2005
2006
2005
2006
Net Income: $5.27M
Net Income: $5.23M
Sales: $87.41M
Sales: $ 97.81M
THE END!!

References
www.finance.google.com
 www.hoovers.com
 www.youngmoney.com
 www.cbronline.com
 www.finance.yahoo.com
 www.sony.com
 www.honda.com
 The song is “Price of Gas” by Bloc Party!

One Last Reference

I would just like to
point out that
without the help of
Mr. David
Reynolds, the
production of this
PowerPoint would
not have been
possible.
The monay
masta
himself
http://www.cs.cityu.edu.hk/~hwchun/Images/PowerPoint%20Learning.png