StockAsset Report

Use this page as a format for your regular asset journal reports. Make sure to remember the difference between paper profit and liquid assets. What Does Paper Profit (Paper Loss) Mean? Unrealized capital gain (or capital loss) in an investment. It is calculated by comparing the market price of a security to the original purchase price. Gains or losses only become realized when the security is sold. Make sure remember that your grade is 95% based on these writeups. You are required to be diversified. This means that you will have stocks of differentclassifications, in different sectors, bonds, and a significant chunk in ETFs or Mutual Funds

Group Members:______Name of Stock Login:______

Stock Login Password:______Email:______

Security / Purchase Price / Reason For Purchase / Future Plans / Current Value / Loss or Gain / Interest & Dividends / Total Paper Profit Amt
Savings / 1:1 / 3 months of reserves / Keep it / 14,147.60 / +5 / None yet / 14,147.60
ARDEX / / Solid mutual fund @good price pays dividends / Keep it long term / 9.90 / +22 / None yet / 1980
COP / 100@65 / Big oil producer with good dividends / Look to sell after 15% gain / 63.32 / -168 / None yet / 6332
DHY / / High Yield bonds monthly dividends / Keep long term / 2.95 / +70 / 25$ / 2950+25
PFE / / Defensive Stock (Health Care) / Keep it, good dividends low PE / 2652 / +45 / None Yet / 2652
Security / Purchase Price / Reason For Purchase / Future Plans / Current Value / Loss or Gain / Interest & Dividends / Total Paper Profit

Daily Stock Tracking

Ticker Symbol / Purchase
Price / Day 1 Close / Day 2 Close / Day 3 Close / Day 4 Close / Day 5 Close / Day 6 Close / Fees / Total +/-

Total Liquid Assets (Money in cash):______

Total Paper Value:______

Davey/Economics

What Drives the Stock Prices?

Obviously, stocks with high growth potential will demand a high price tag. The most common factor to measure this relationship is P/E ratio, short for price-to-earnings ratio, meaning share price divided by earnings per share in the last four quarters. For example, IBM is selling at $100 and has earned $4 per share in the last four quarters. IBM’s P/E is 25 ( 100 divided by 4).

A P/E ratio alone doesn’t tell the whole story. We see Yahoo’s P/E raise as high as 2,000 and Southern California Edison’s P/E drop below 8. It is fair to say that a stock with a high PE means investors’ expectations of earnings growth are high. Most low P/E stocks usually means that their earnings are slowing down or growith is slowing down. Of course if a stock with a high PE ratio disappoints investors...look out below.

1. Extreme earnings surprises can move the stock price up or down considerably. Complete the following table and make observation about the share price movement leading to and after the announcement of the earnings surprises. Find companies that reported earnings surprises under Research in Yahoo! Finance finance.yahoo.com


Company Name Symbol Earn per share %Surprises Change of share prices


Upside surprisesDownside surprises

2..Go to Choose one sector and find companies in the area of your choice which are between 5-50 dollars per share and haave a P.E. Ratio less than 20 . Write them down and circle the most attractive for your portfolio. Explain why.

3. AP Only You and your partner should then put together a one slide presentation on the stock which you feel has the best chance for performance growth over the next 8 months. Post the page to facebook over the next week. Your presentation should include what the company does, how its financial and stock market performance have been over the past 52 weeks, where the stock is now, who is running the company and his/her reputation and why you thinkthe stock is poised for growth.