Manuel Saez
Mrs. Snider
FIN 323
20 November 2014

Investment Project

Introduction

All around the world every time somebody hears the word “finance” the first thing that comes to mind is stock, shares, and investment. Therefore, this project was one of the best ways to learn about this class. Close to September 9th Mrs. Snider gives an assignment, find 10 companies and assume that you have $1000 to invest in each one of this, including an IPO that we were asked to look for earlier in the class. Also, we need to calculate how many shares can we purchase according to the closing price of stocks in September 9th. There were not restriction on what kind of companies we could invest in, so I decided to look for companies of different industries and get 2 of each to have an idea how every industry moves too. I looked for companies related to the industry of restaurants, oil, medicine, and others. To be more specific I picked Apple (APPL), Southwest Airlines Co. (LUV), Imperial Oil Ltd (IMO), Total S.A. (TOT), Texas Roadhouse Inc. (TXRH), Cheesecake Factory Inc. (CAKE), Lantronix Inc.(LTRX), Nike Inc.(NKE), Carbo Ceramics Inc. (CRR), Cantel Medical Corp. (CMN), and my IPO that was Westlake Chemical Partners (WLKP). I looked for a wide range of prices with the highest price being $102.08 (Carbo Ceramics Inc.) and the lowest one $1.77 (Lantronix Inc.), this also give me a wide difference in the number of stock that a get in each company having only 9.80 shares in Carbo Ceramics and 564.97 in Lantronix (we will see how this affect to the gain or loss related to the change in the price). Now, lets take a look on the project itself. On the following pages you will find how every company increased or decreased its price and how the movement of the price was related to the Dow Jones Industrial Average. If you need more detailed information you can look at the last pages an see how the price moved every Tuesday and Friday, how much gain or loss this movement created, and the percentage of variation of the DJIA and the gain/loss.
Apple Inc. (AAPL)

Apple Incorporations was one of the companies that produce gain in this investment with a gain of $16,19 per stock, which will bring a total gain of $165,30 (10,21 shares). As you can see in the graphic, this stock moved most of the time with the DJIA.

Dow Jones Comparison

Apple’s Beta is 1.26, which is why the proportion of movement of the stock (blue line) is bigger than the Dow Jones (red line).
IPO: Westlake Chemical Partners (WLKP)

Westlake was a company that made me lose money, I lost $4.25 for each stock, which bring me a total loss of $131.17. The fact that I had a big amount of stocks made me lose a lot of money with a little change on the price. There is not a clear relationship with the Dow Jones.

Dow Jones Comparison
Westlake Chemical Partners is my IPO; therefore it does not have a beta available yet.

Southwest Airlines Co. (LUV)

Southwest Airlines created profit in this investment, if we just look at the graphic we could get confused between saying that it moved with the Dow Jones or that showed no relationship, but taking a look the numbers it is clear that it moved with the Dow Jones. Earning $6.04 per share and a total gain of $183.56.

Dow Jones Comparison

This company´s Beta is 0.59.
Imperial Oil Ltd.

Imperial Oil was one of my losing companies. Moving with the Dow Jones, this company made me lose $2.99 per share resulting in a total loss of $58.63.

Dow Jones Comparison

Imperial Oil has a beta equal to 1.35, this can be reflected in the big decrease that this stock had at the same time the Dow Jones went down, but the stock decreasing in a bigger proportion that the average market.
Total S.A.
Definitely Oil companies were not a good decision, Total S.A. also decreased in price creating a loss per share of $7.98 and a total loss equal to $122.25. This company also moved with the Dow Jones.

Dow Jones Comparison

Total S.A. has a beta of