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!