Investment Portfolio Analysis
This paper will Identify and explain the major factors driving the market during this week. It will also identify and explain causes of changes in the market and the index. As well as developed investment objectives and defined risk tolerance levels. I will also include a snap shot of my investments and an explanation of why I choose those particular companies.
The trends that I noticed that were going on with my investments this week were:
Apple – Apple has asked Foxconn to tighten quality control measures while manufacturing the iPhone 5 after complaints of scratches on the device’s body, and that has worsened its supply shortfall. Stricter benchmarks are affecting production of the anodized aluminum housing used in the device, delaying orders for the phone, Bloomberg said. Apple consumers started complaining of nicks and scrapes to the body of the new phone soon after its launch last month, with some saying there were scratches even before the device was unpacked.
While the company said in response to the complaints that it was “normal” for an aluminum product to “scratch or chip with use, exposing its natural silver color,” internally, it expressed its displeasure to Foxconn. (Rathee, 2012)
Microsoft – Microsoft is reportedly bringing its flagship product, Microsoft Office to both Apple and Google’s Android-based devices. This comes from Microsoft’s Czech Republic Team, and Petr Bobek, a Microsoft Office productivity manager.
Microsoft has been hesitant in the past to bring its software outside of the Windows ecosystem, with the noted exception of haphazard versions of Microsoft Office being available for Mac. Bringing Office to iOS and Android, the two dominant mobile operating systems, would be a change in philosophy for Microsoft. (Ciaccia, 2012)
Johnson & Johnson – The delay for Eliquis is perhaps not unexpected given the size of the trial and the mass of data collected. No matter, it is widely believed to be more efficacious and safer than its Johnson & Johnson’s Xarelto and Boehringer Ingelheim’s Pradaxa.
If approved, it will likely see strong sales growth. The delay will no doubt please JNJ shareholders whose rival drug Xarelto is only just establishing sales. Its partner Bayer has been forecasting peak sales of over Euro 2 billion for Xarelto even after the FDA refused to expand its indications. If these sorts of numbers are baked into JNJ’ forecasts and Eliquis (if approved) starts to grab market share then this will be a blow. (Samaha, 2012)
Pfizer – Pfizer had four major events expected. It had one success (Inlyta), one failure (bapineuzumab) and two delays.
As ever with pharma the patience of a Saint is needed. The two biggest drugs (Eliquis and Tofacitinib) saw potential approvals delayed until November and March next year respectively. Both are expected to be blockbusters. (Samaha, 2012)
Nike – Corporate Responsibility Magazine has named Nike one of its top corporate citizens. The magazine ranked the Top 10 Best Corporate Citizens in categories including consumer items, consumer stables, energy and health care. Nike topped the consumer items list, sharing the honor with Mattel and Gap.
The rankings were determined using public data related to companies’ responses to climate change, employee relations, environment, governance and human rights, among other variables. [ (Journal, 2012) ]
Sprint – Sprint Nextel Corp. ’s Chief Executive Officer Dan Hesse, who took over in December 2007, has worked to fix the mess he was handed after Sprint’s $36 billion acquisition of Nextel in 2005 failed, causing 3. 1 million subscribers to leave the carrier. Now he says that Sprint is on track to return to the black in 2014. Wall Street has shown increasing faith.
Sprint shares are up more than 122% this year, but Hesse is quick to qualify his optimism. I tell the team here, “You’re not going to see any mission accomplished signs anywhere on this campus. ”? Bloomberg Business Week reported, that this is a long process. (Marin, 2012)
Verizon – Earlier in the year, wireless carrier Verizon said it was planning on expanding its 4G LTE coverage to p over 400 markets by year’s end. That was an aggressive goal considering it started the year with only about 190, meaning it was looking to more than double that figure in just one year.
Turns out that Big Red wasn’t just being overly ambitious, and is actually reaching that goal ahead of time. Speaking at MobileCon, a conference all about mobile IT, Verizon CTO Nicola Palmer said the carrier is launching LTE in a handful of markets on Oct. 18, bringing its total tally up to a whopping 417, further extending its LTE lead against rivals AT;T and Sprint Nextel. (Evan Niu, 2012)
Target – Radio Shack’s partnership with Target Corp. to place its employees in Target electronics departments is a money-losing deal that Radio Shack should consider ending.
The deal, signed in 2009 and expanded upon in 2011, hasn’t replaced the revenue generated by an earlier agreement Radio Shack had to run kiosks in Wal-Mart Stores Inc. Radio Shack’s Target business lost $17 million more than it did in 2010, Chai said. But the two companies are apparently working to improve things. Radio Shack’s kiosks now get placement in Target circulars, and Radio Shack is boosting training of its staff. [ (Journal S. P. , 2012) ]
Wal-Mart – Wal-Mart Stores Inc. , the world’s largest retailer, rose to the highest ever after the company’s U.
S. merchandising head said the back-to-school season was “very strong. ” The shares climbed 3. 3 percent to $76. 59 at 12:46 p. m. in New York after earlier reaching $76. 73, the highest intraday price since its initial public offering in 1970. The stock also gained after Costco Wholesale Corp. posted fiscal fourth-quarter profit that topped analysts’ estimates. Costco rose 3. 5 percent to $103. 08. (Townsend, 2012)
Toyota – Toyota is issuing a safety recall for 7. 43 million vehicles across the globe. The Japanese car manufacturer said 2. million of the vehicles with potential window problems are in the U. S. The issue involves the power window master switches of some of the company’s most well-known brands, including Camry and Corolla sedans and RAV4 sport utility vehicles, built between 2005 and 2010. Toyota said in a press release that commercial lubricating agents applied to a “sticky” window switch could potentially melt the switch or even cause a fire. The above chart is a snap-shot of my portfolio for the week of October 17th as you can see I made a 0. 80% increase or $7,944. 81 cash profit since my initial investment, which is a $ 7069. 02 positive difference and a huge increase from last week’s profits.
Works Cited
- Carroll, D. (2012, October 10). Toyota Recalls 7. 43 Million Vehicles. Retrieved October 10, 2012, from The Mootley Fool: http://www. fool. com/investing/general/2012/10/10/toyota-recalls-743-million-vehicles-globally. spx Ciaccia, C. (2012, October 10). Here’s Microsoft’s Most Bullish Move in Years.
- Retrieved October 10, 2012, from The Street: http://www. thestreet. com/story/11733394/1/heres-microsofts-most-bullish-move-in-years. html? puc=yahoo;cm_ven=YAHOO Evan Niu, C. (2012, October 10).
- Verizon’s Big Red Footprint Gets Bigger. Retrieved October 10, 2012, from The Mootley Fool: http://www. fool. com/investing/general/2012/10/10/verizons-big-red-footprint-gets-bigger. aspx Journal, P. B. (2012, October 9). Nike on ‘Best Corporate
