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Hey, my class is doing a game where you buy and sell stocks and I have mixed feelings on everything. What stocks do you own and/or think will succeed in the near future? Thanks.

What kind of stocks are you looking at? Specific companies, markets in general? Regions?

Don't really have a great deal of knowledge of stock dealing - I just hand my money to the bank, tell them the kinds of markets I want to invest it in and they do it all for me

But there are certainly different types of investing - short, mid and long term, safe and risky, etc.

Dayvuni wrote:Hey, my class is doing a game where you buy and sell stocks and I have mixed feelings on everything. What stocks do you own and/or think will succeed in the near future? Thanks.

"We recommend canned goods and shotguns"

So I would pursue stock in weapons manufacturers and doomsday prepper companies. Both are growing industries.

I just want to say one word to you. Just one word.

Are you listening?

Plastics.

Not really specific companies, and ones that should be on the high in 40 days, mainly safe but one or two risky recomendations.

kronk wrote:I just want to say one word to you. Just one word.

Are you listening?

Plastics.

I think you mean finecast

But more seriously - are you looking for US companies only, or global? Since you have 40 days, I take it you want short term investments with good returns, which probably means you want something risky to make the most money in 40 days?

Unless you are wanting to maybe just have some kind of long term growth prospects or something? What are the goals by which you will be assessed?

Also, do you have a fixed amount of "money" you can invest?

I have $60,000 to invest, I want mainly U.S. companies. Short term is what I'm looking for and I don't know what we are being assessed by but I assume not buying ALL of one stock and being smart about when to trade and such.

Edit: I am competing with upper classmates who take his higher level classes so for us I think it's to raise awareness about stocks.

Dayvuni wrote:I have $60,000 to invest, I want mainly U.S. companies.

Shame, was going to suggest anywhere outside of the West

Buy Apple. It's recouped about 50% of its recent "down leg" (which is an important fibonacci retracement level) which means that if you maintain this upward momentum, you go back to 640 and probably to a 660 kind of level (versus 612 currently).

If you really want to blow your teacher's mind, trade in ag commodities. Go long a hog-cattle spread (owning 1 unit of LHM2 versus 1 unit of LCM2) betting on the seasonality of cattle supply outpacing hog supply. Spread is currently trading about $27.70 after retracing from $22. You're banking on it retracing to $22.

A big advantaged to commodities is that they are highly, highly leveraged, which means that in these classroom environments, catching a modest 5% move in flat price means that you could easily double your money, something much more difficult to do in the non-leveraged equities.


Automatically Appended Next Post:
Oh, and for a truly short-term play, you can sell options. Selling options puts money in your pocket right now, although you still have flat price exposure. You could go sell 620 Apple puts for $12.50 right now. This means that somebody has the option to sell you Apple stock at 620 at expiration of the option (which I think is in June).

So you will immediately get $60,000 (you doubled your money) if you sell 4800 620 Puts in Apple, but you have the potential to LOSE $96,000 if Apple trades down to 600.

Which would be HILARIOUS.

When my class tried that game when I took economics we won the challenge, make $1,000 profit from a $10,000 starting point, in a week on a penny stock: Harvard Industries. No idea what it is at now, but we bought a thousand stocks for 3 cents and sold at 8 cents per a week later.

Whether that is viable or not is up for question, but its how we did it.

Luco wrote:When my class tried that game when I took economics we won the challenge, make $1,000 profit from a $10,000 starting point, in a week on a penny stock: Harvard Industries. No idea what it is at now, but we bought a thousand stocks for 3 cents and sold at 8 cents per a week later.

Whether that is viable or not is up for question, but its how we did it.

I would do that but according the rules the stocks can be no smaller than 25 cents and no bigger than 500,000 dollars. Thanks though.

Luco wrote:When my class tried that game when I took economics we won the challenge, make $1,000 profit from a $10,000 starting point, in a week on a penny stock: Harvard Industries. No idea what it is at now, but we bought a thousand stocks for 3 cents and sold at 8 cents per a week later.

Whether that is viable or not is up for question, but its how we did it.

If you're that good, sell everything you have and invest.
Seriously, do it.

Dayvuni wrote:I have $60,000 to invest, I want mainly U.S. companies. Short term is what I'm looking for and I don't know what we are being assessed by but I assume not buying ALL of one stock and being smart about when to trade and such.

You might struggle.

I would suggest areas that are enjoying quicker growth, to be honest. BRICS countries might be a good bet, particularly India, and particularly companies that offer micro-credit. I hear that's pretty big. Also, companies that deal in rare earths. Watch the news, read the Economist, think about, and study, global issues.

Can't really be more specific than that, as I don't have enough knowledge on the subject. Sourclams seems to know his stuff though. Listen to him!

Hey, I remember doing that assignment awhile ago! I invented in Google and Apple and made lots of moneyz, but a third company I invested in lost lots of moneyz so I barely made a profit!

Testify wrote:

Luco wrote:When my class tried that game when I took economics we won the challenge, make $1,000 profit from a $10,000 starting point, in a week on a penny stock: Harvard Industries. No idea what it is at now, but we bought a thousand stocks for 3 cents and sold at 8 cents per a week later.

Whether that is viable or not is up for question, but its how we did it.

If you're that good, sell everything you have and invest.
Seriously, do it.

Lol, it's tempting but I'm not much of a gambler. Maybe one day when I have a steady income I'll try it with spare money.

Sorry you can't use the idea.

Buy oil stock, the prices have no where to go but up!

Buying oil is a bit risky right now. It is quite high from Iran talking smack so much earlier in the year and panicing speculators. I'd say oil futures are likely to come down a bit over the short term... Unless Iran starts talking smack again. Then oil will jump up again very quickly. I'd keep an eye on the news if you want to 'invest' in oil and buy at the first sign of a press statement from Iran.

Luco wrote:

Sorry you can't use the idea.

Yea, it's still valid IRL

Here might be a quick few dollars in your portfolio.

Ticker Symbol: HOGS
Currently at $9.69

Zhongpin forms committee to evaluate CEO's offer
9:33 am ET 04/13/2012 - Associated Press, The
NEW YORK -- Chinese pork and produce processor Zhongpin Inc. said Friday that it has created a special committee to evaluate a preliminary offer from the company's CEO to buy out shareholders and take Zhongpin private.

Its stock added 32 cents, or 3.3 percent, to $9.81 in morning trading.

CEO Xianfu Zhu submitted a nonbinding proposal to buy all of the company's outstanding shares for $13.50 each in cash, Zhongpin said in late March. Zhu already owned about 17.5 percent of the company's stock, Zhongpin said.

Based on the number of shares outstanding, the deal is worth about $418 million.

Zhongpin said that the special committee is made up of three independent directors, and it has hired law firm Akin Gump Strauss Hauer & Feld LLP as its legal adviser. The committee also intends to hire independent financial advisers.

The group has not made any decision with respect to the company's response to Zhu's offer, Zhongpin said.

Zhongpin sells pork products, vegetables and fruits in China. Its distribution network in China included about 3,400 retail outlets as of the end of last year.

The company also exports to Europe and other Asian countries.

Not sure how quickly the CEO is looking to move on this, or how soon the Committee will make it's evaluation. Seems it should happen in the next couple months though if it is going to happen.