team m: statistics & financial markets participants: vanay joynes, lankenau high school fanta...

Team M: Statistics & Financial Markets

Participants:Vanay Joynes, Lankenau High SchoolFanta Love, Girard Academic Music ProgramOshane O’Meally, MLK Jr. High SchoolSiaisha Sherman, William Penn High School

Contents

Objectives/Goals Background Procedure Results Conclusion

Objectives/Goals

We were aiming to … Learn how to develop investment

portfolios Learn how stock exchanges work Learn how successful investors think

Background: For your information

The stock market is a “place” where stocks are bought and sold

A portfolio is a collection of stocks one chooses Stock price = Market price Intrinsic (or true) value Return on capital – the profit a company’s stores

or factories earn relative to the cost to build them Earnings yield - the profit a company earns

relative to the stock price

Background (continued): What Started It All Stock markets trace back 600 years 1790, the first U.S. stock exchange was formed in

Philadelphia 1792, the New York Stock and Exchange Board was

formed by twenty four male merchants Stock markets today exist internationally The NYSE is located on Wall Street Prominent Wall Street investors: Benjamin Graham,

Warren Buffett, Hetty Greene, Shelby Davis, Laura Choate, and Martin Whitman

Procedures

Criteria applied to develop individual portfolios: Large, nationally known companies Stock price has been almost unchanged for the

past two to five years High return on capital High earnings yield High profits per employee Stock is being purchased by well-known investors

Procedures (continued)

After creating our portfolios we found the stock price of each company on June 19, 2007 and on July 18, 2007.

From that information we obtained the percentage change in the prices.

We then obtained the average percentage change in

each portfolio in order to find the highest average percentage return.

This finding determined the best performing investment

portfolio during this period.

Results

Student name

Name of company

Stock price on June 19, 2007

Stock price on July 18, 2007

Percentage change in stock price

Vanay Sony Corp. $54.18 $51.54 -5%

Target Corp. $63.51 $68.02 7%

McDonald’s Corp.

$52.48 $52.20 0%

Sprint Nextel Corp.

$22.29 $21.16 -5%

Student Name

Name of company




Oshane Wal-Mart Stores, Inc.

$48.81 $48.05 -2%

Verizon Communica-tions Inc.

$43.07 $41.97 -3%

Sprint Nextel Corp.

$22.29 $21.16 -5%

Toyota Motor Corp.

$125.20 $122.49 -2%

Student name

Name of company




Fanta Intel Corp. $24.10 $25.06 4%

American Power Corp.

$45.57 $46.28 2%

Bank of America

$50.55 $49.36 -2%

21st Century Insurance Group

$21.79 $21.83 0%

Student name

Name of company




Siaisha Wal-Mart Stores, Inc.

$48.81 $48.04 -2%

Comcast Corp.

$28.10 $25.46 -9%

Home Depot, Inc.

$38.27 $40.04 5%

Johnson & Johnson

$62.42 $62.20 0%

Students Average percentage change in portfolio

Vanay -0.75%

Oshane -3%

Fanta 1%

Siaisha -1.5%

Conclusion We created portfolios with four strong, well managed

companies, and we analyzed graphs to follow the status of these companies.

We simulated the Financial Trading System, a stock exchange game that gave us first-hand experience of real-time stock market trading.

We calculated the average percentage change in the stock prices in each portfolio.

We found that Fanta’s portfolio had the highest average

percentage change, making her portfolio the one that performed best over that one-month period.

Acknowledgments

Dean Daniel Larson Prof. Donald Richards Prof. David Haushalter Ms. Skyra Blanchard Mr. Eric Speight Siaisha Sherman UBMS Faculty and Staff Our Parents

Questions?

team m: statistics & financial markets participants: vanay joynes, lankenau high school fanta...

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