Posted: 11/10/2005 11:40:25 PM EDT
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Alright, I just got an assignment in a business class. We have to pick which of these four stocks will yield the MOST PERCENTAGE GAIN in their value from the closing bell on Nov. 14 to the closing bell on Dec. 5. The four stocks are: BAC - Bank of America F - Ford Motor Company COP - Conico Phillips MSFT - Microsoft Corporation Again we have to pick which stock will yield the most percentage gain in the given time period. (I really don't see the point of this, it just seems like a craps shoot given the short time period) But nevertheless, if I pick correctly I get 100% on the assignment. What does everyone think? |
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BAC - Bank of America F - Ford Motor Company COP - Conoco Phillips MSFT - Microsoft Corporation It's going to be hard, because these companies wont report earnings in your timeframe. In a 6 month time frame consider the overall American economic situation: Rising interest rates Overall good unemployment Moderate inflation aside from energy prices decent GDP growth (although higher energy prices may have a significant part of that). Mostly static stock market with the Dow trading between 10200-10600 about 90% of the time. So, onto the stocks: BAC - rising interest rates will hurt their business, which is primarily lending money. F - American car companies are doing terribly lately. Since most new car purchases are financed, rising interest rates will probably impact their business as well. COP - Energy prices have been falling over the last month, that will impact their next earnings report MSFT - I follow this stock, their price is erratic and doesn't show a positive trend and doesn't show much greater growth beyond what it has already realized. All your stocks are pretty weak, but if I had to choose, I would go with COP since the energy sector is in an indisbutable multiyear bull trend, static supply, growing demand from huge markets in China and India. |
But in the short term they will be showing a major loss with the introduction of the system. I read somewhere that the XBOX 1 and the 360 has put them about $1 Billion in the red for that particular part of the Microsoft organization. I do agree they will realize a profit on the system, but it won't be this year. It'll be probably within the next year and half. Hopefully this time next year they will be seeing some black. |