The Street's Advice

I agree with The Street's assessment that Hewlett Packard is a good investment. Rebecca and I invested in the company over two weeks ago, and have lost money. The company is headed toward it's lowest low. However, since prices are so cheap, it is a good time to buy. Many analysts predicted that HP would not have as high a revenue as it does, and I see that as a good sign. Buying 100 shares of HP would cost little, meaning the losses won't be large even if the stock goes down. Also, HP was just upgraded by analysts, "Upgrades and coverage initiations are typically good for stocks because they show that analysts either believe that the stock is going to perform better in the future or that the stock is worth covering and providing analysis on." (learningmarkets.com).

New Blog

We were considering again investing in Apple Inc stock (AAPl) but after research we will not invest in this stock. It is at 250.04 down 3.09 but Hewlett-Packard (HPQ) is at 49.10. Although selling at a much lower price then apples, HP presently has an advantage over Apple. A previous problem with the Ipad is that it is missing a USB. The HP is releasing a new Slate that will have a built-in camera, video-recording capability, USB port, an SD card reader and support for Adobe Flash. All these features are absent in Apple's device. (TimesNewsline.com) In addition during this time, incoming college students are looking to but new computers for school. With an HP computer being more affordable then Apple, HP stock is likely to go up.

What's Going on!

My partner, Rebecca, and I will be buying more stock in Cinemark. Since the stock has recently decreased in value, and is now $18.7500, while I bought it at $18.9210, one might view this as risky inverstment. However, according to the Wall Street Journal, "RealD, the licensor of 3D technology used in standard-sized screens, filed for a potential $200 million IPO." With this new technology, and IMAX becoming more and more popular each year, I expect stock prices to go way up. In this case, the best time to buy would be now, when prices are low.

It is important to keep track of our investments because if one of our stocks go down significantly, we may want to sell while we can still make either more of a profit, or before we lose more money. On the other hand, we may want to buy more shares if one of our stocks is doing well.

Jenna Weinblatt

What's going on?

I will sell all my Panera Bread stock (PNRA) because we lost $1,295.50. We bought it at $84.76 and it is now selling at $79.58, a loss of $5.18 per stock. Although there is no direct reason for this decline in stock price, success for its competitors is a logical cause. According to MSN.com, "McDonald's, which is stealing share from other fast-food chains and turning up the heat on Starbucks with drinks like its frappes, said its new breakfast Dollar Menu and coffee sales helped drive the quarterly earnings gains." McDonald's is now up $0.12 with an increasing trend with the reasons mentioned above.

We should keep up to date with our investments because changes in stock occur everyday. Events with the invested company and their competitors are unpredictable. We should thus look out for news regarding our stock in order to make sure we don't unnecessarily loose money.

Rebecca Kern

Mutual Fund

We will invest in Reynolds Blue Chip Growth (RBCGX). The mutual fund is currently selling at 50.08, and has increased $1,064 in value over the last year (for a $10,000 investment). We will also be investing because Blue Chip Growth is a very diverse mutual fund, inevesting in large corperations such as Apple, Google, Disney, Best Buy, OfiiceMax, Rordstrom, and McDonalds. Stocks that it invested in that are doing extremely well are Finisar Corporation, Massey Energy Company, and JDS Uniphase Corporation.

Group Decision

Our group has decided to buy stocks in Panera Bread (PNRA). The stock is at an extreme high of 82.99, which is almost double the price it was last year. It has a steadily increasing pattern, and has received high praise among the fast food chain lists. ABC.com even said that Panera Bread has the healthiest choices of salads among fast food restaurants (Katie Cwayna). Since America is in a health food craze, there is a promising future for this already successful chain. It can be supported as "Panera Bread has seen its shares outperform every major restaurant stock over the last 10 years." Though as explained, it is in such a high circumstance and differs from other fast food chain because "it operates in a niche between fast-food and casual dining, which can likely accommodate more capacity." (John Jannarone Wall Street Journal) Reaching out to more peoples food preferences, we predict that this stock will increase and remain high. As such, we will but this stock.


Rebecca Kern & Jenna Weinblatt

Deutsche Telekom (DT) or T-mobile (Cell Phone Blog)

My partner and I will not be investing in T-Mobile. Over the last year, the company has only risen 1.3, and since we're only playing the game for two more months, it makes no sense to invest if there's no good chance at making money over the two month span. According to Douglas A. McIntyre "The firm lost 77,000 subscribers in the third quarter. Most analysts blame the attrition on a poor lineup of handset products and tremendous competition from Verizon Wireless (VZ) and AT&T (T)." Many analysts feel that it would be wise of T-mobile to become part of Sprint, just so that they can be viable again.

With such high competition, like Verizon Wireless with their Droid phones, and AT&T with their iPhones, it is no wonder T-Mobile is falling behind. Even a star actress like Catherine Zeta Jones can't help them now.

by Jenna Weinblatt

Apple Inc. (Spring Break Blog)

My partner and I will be investing in Apple, Inc. Over the past few weeks, there has been huge speculation about the popular iPhone which has sold only through AT&T from the time it was first released (2007) coming to Verizon Wireless. With Apple's stocks already increasing from 124 to 241 over the last year, we feel that this new deal with Verizon will send Apple stocks way above the already high price it is selling at. "If sales of iPhones on Verizon have minimal cannibalization of AT&T iPhone sales, then Apple's global mobile phone market share could increase to 5.9% rather than the expected 4.4% in 2011" (Trefis).

While the phone sales of the iPhone plays a big role in our decision to invest, we are also looking closely at the sales of the recently released iPad, which sold over 300,000 in it's first day. While this is only average compared to the iPhone 3G sales, Apple is already planning on new apps and updates to make the iPad even better. In addition, within the few days it has been out, the iPad has already affected the prices of netbooks "Reitzes links the dipping netbook prices to the iPad's April 3 debut...the iPad costs more than the average netbook, but packs features like a large touch-screen and integration with Apple's iTunes and new iBooks application that could sway consumers away from typical netbooks" (Elizabeth Woyke.)

With it's possible plan with Verizon, and release of the iPad, we feel that Apple sales will increase, and therefore raise stock prices. Many people who have Verizon and don't want to switch plans just to get the iPhone will be overjoyed by this new plan, and even my mother wants to buy an iPad! In addition, I saw 3 people on the train today with iPads!

by Jenna Weinblatt

Spring Break

I will buy Cinemark Holding Inc (CNK) stock because it has great potential. Although the stock is currently selling at a moderate 18.47, it has dramatically increased over the year and shows an increasing pattern. The plan is to buy this stock at its low price and sell it for a much higher price. The reason I expect the price to go up is because of the new popular type of movies being released, 3-D movies. You can wait for those movies to come out on DVD to watch at home but you will not get the 3-D effect; it is a trap that takes advatage of the movie demand. According to MSN.com " The success of 3-D mega hits like Avatar and Alice in Wonderland have basically given theaters the green light to charge a few dollars more per ticket" and "effective last weekend, many theater operators will charge up to 26% more per ticket to see the latest film releases." Though, to put Cinemark out of competition with Regal Entertainment Group, Cinemark has opened three new extreme cinema digital auditoriums that offer a complete entertainment environment (MSN.com). My hope is that they will continue to open up new theaters like this one. Also I'm evoked to buy this stock because people never stop watching movies. Even during the worst part of the recession people were still flocking to the movie theater because it is still a cheaper form of entertainment than others such as a Broadway show. Considering the stock a moderate risk, I'm greatly investing in it as I expect it to dramatically increase over the years.

Rebecca Kern

Automotive: Daimler AG (DAI)

My partner and I will not buy a stock in Daimler. Because of the recent speculation about Daimler bribing overseas officials in at least 22 countries (Andie Tse), I do not think it is the right time to invest. Because of the recession, less Mercedes are being bought-I even know someone who sold their Mercedes for half the price they paid. With this new speculation about bribery, stock prices are likely to drop even more. Daimler stock is already down 2.5% at $45.70 in pre-market trading. It is my belief that once Daimler is forced to pay their $185 million dollar fine, stock sales will rapidly begin to decrease. People aren't going to want to support Daimler's fine because they made a bad decision, and bribed officials. Also, people are likely to lose money if they keep their stocks in the company. In a time where money is particularly scarce, I would not, and definitely would not expect others, to invest in a company that sells cars at such a high price, and in addition now has to pay almost 200 million dollars in fines. I would be much more likely to invest in a family-friendly car which is more affordable, and safer whether it be through buying the car, or even investing in their stocks.

by Jenna Weinblatt

I will buy Honda stock (HMC) because the stock is currently selling at 35.53 with a trend generally increasing. Current news brings hope for the stock with regards to a new car that fits 8 comfortably. With increase in average family size, such a car is in demand, and so is a safe car. Also this car the Pilot, according to Honda Newsroom, "emphasizes safety, versatile cargo areas and comfortable space for adults and children, while also providing a smart balance between all-weather capabilities, refined driving dynamics and overall fuel efficiency." In addition saving the environment has been a major political and individual goal. It's new hybrid has already sold over 10,000 cars. Not only are hybrids better for the environment it save people money on gas. When comparing Honda to its competitors, the Wall Street Journal informs that "Toyota has recalled more than eight million vehicles world-wide, denting consumer confidence in its brand in the U.S., its biggest market." As a result people are more likely to buy Hondas. I believe by investing in this stock I will make a lot of money. People cannot afford luxury cars and Honda has a reasonable price. It is a trusty company offering new cars. In the personal aspect, as a Honda owner, I consider it cars good. Also in the last year 10 people bought new Hondas in my neighborhood. This moderate risk stock is bound to dramatically increase in its value very soon.

Rebecca Kern

I will not buy Verizon Wireless stock because it does not seem to be a good investment. Although its stock is selling at a high 30.41 in comparison to AT&T's 26.24, its yearly low is 28.31. As a phone company it is reported that "Verizon Wireless 4G LTE network is being built to ultimately have the broadest geographic coverage and to leverage the deepest spectrum capabilities." Although this seems as it would boost Verizon, most people do not care about a 4G network when shopping for a service. Thus, it does not offer hope of a rise in stock price. Personally, as a user of Verizon Wireless service, i would not buy Verizon stocks because despite the good service, most of the phones are undesirable.

Citation:
Ridge, Basking. "Verizon Wireless Focuses on Efforts to Ensure That Its LTE Network Will Be the Largest 4G Network in the Nation." http://news.moneycentral.msn.com/ticker/article.aspx?Feed=PR&Date=20100319&ID=11288571&Symbol=VZ.


Rebecca Kern

Blue Chips

My group and I will buy Intel corporation stock as an investment with conservative risk. Intel is an important contributor to technology, especially computers; with an increased demand of technology and Intel's contribution to technological success, it is a promising investment. Statistics show that the previous closing price was 22.24, not a significantly high price, but with the earnings growth of this year of 40.88%. It's competitor AMD doesn't even pose a threat with its stock at 9.67 (comparable very low). Statistics also shows that the corporation is steadily improving and the stock is increasing. Intel promises growth for the future especially as Melly Alarzraki informs that "Google Inc is working with Intel Corp and Sony Corp to develop a new class of internet-enabled televisions and set top boxes."

Intel corp has a promising future and is a good long term investment. With Intel paying dividends of 2.84% we have the choice to hold the stock. I can predict that after realeasing its new technology the stock will go up and remain up. Though, i do not expect there to be a dramatic change in stock price but rather keep a steady pace. Therefore, this investment will serve a place in our plan for SMG. We planned to invest 40% of our money in conservative stocks like this; one in which stocks will remain high and are trustworthy.

Rebecca Kern

Boeing Co (BA)

My partner and I plan on buying stocks in BA, or the Boeing Company. This stock looks promising because although there are some price peeks and valley's, they are not steep, and the companies price has been increasing on average the whole year. The price in stock has gone up from 33 to 69 in the last year, with it's highest price being 70, and it's lowest being 40. There is no way I could have lost money if I invested at the beginning of the year.


I expect the stock's price to increase, because in an article published today by Thomson Reuters, it is stated that Irag plans on buying 55 new planes from Boeing, along with training programs for their new pilots. The deal will rake in $30 million to the Boeing Co.


This purchase fits our plan because as a group we decided to spend 40% of our money on conservative risk stocks. Since this stock is on the Dow Jones list, it is considered conservative, and as far as conservative risks go, this one seems like it might be beneficial to our cause because of the new of new planes for Iraq.

By Jenna Weinblatt

by Jenna Weinblatt

Our Investment Plans

As a partnership of Frugal Stockers, we plan on investing our money with moderate risk. Because we need to pay for college, we are not willing to take the risk of losing all of our money, but as we have some money set aside, and no one else to support, we are willing to risk some money. Our goal is to complete our savings for college.

Our strategy for winning SMG is to put 40% of our money into conservative risk stocks, such as big corporations like coca-cola, 40% into moderate risk stocks, such as fairly new food companies with potential, and 20% into speculative risk stocks such as medicine or diet pills. We will make these decisions as a partnership, not splitting up the money, but sharing the dividends. Every decision we make will be unanimous; two heads are better than one!