Record the current price of the stock for each company you selected in Week 3’s Stock Journal. You may use any price during this week (e.g., day one price, the opening, the low, the high, the close, or any price you find when you check it during the day). Using MS Excel spreadsheet or MS Word document, put your Week 3 and Week 8 stock prices side-by-side, to show your comparison.
Determine the current value of your total investment. Do not make any changes to your investment at this time. Calculate your total based on the number of shares and the new price per share, for each company.
Provide your opinion / assessment of your investments. Evaluate the results of your current investment. Are you happy with the result and the trend? Are you upset because you’re investment is worth less than $25,000. Feel free to speculate / guess at why you believe the stock increased, decreased, or remained static.
Select one (1) U.S. publicly traded company and review its most recent Annual Report. (You may use one (1) of the three (3) companies you selected for your Stock Journal assignment.)
Use the Income Statement and Balance Sheet to determine the changes in:
assets, liabilities, and equity
total revenue and net income
Briefly describe the change from the current and prior years in each of these key areas and determine if the changes would be positive or negative from an investor / stockholder’s view.
STOCK JOURNAL For Exon Mobil Corporation (XOM),FedEx (FDX) &Microsoft Corporation (MSFT)
Week 3 and Week 8 Comparison of Share Prices
|Company||Week 3 ($)||Week 8 ($)|
|Exon Mobil Corporation (XOM)||85.77||87.04|
|Microsoft Corporation (MSFT)||59.8||59.25|
Total Investment in Week 8
|Company||Week 8||No. of Shares||Total Value ($)|
|Exon Mobil Corporation (XOM)||87.04||150||13,056|
|Microsoft Corporation (MSFT)||59.25||150||8887.5|
|Total Investment Value||25799.5|
The investment from the three companies was not a bad idea. The share price of Exon Mobil Corporation has increased from 87.04 to 85.77. FedEx share price has also increased from 192.8 to 158.225. However, the price of Microsoft Corporation has decreased slightly from 59.8 to 59.25. The amount invested in week 3 is $25,000. In week 3, the total investment value is $25,799.5. This shows that there is an increase of about $799.5 for the investment.
The reason why the share price of Microsoft Corporation would have reduced slightly is due to the global competition in the software and hardware market. In the hardware market, the competition is heightened by companies such as Dell and Acer that have consumed the share market that was once dominated by HP that is a product of Microsoft. Software market is competitive due to the dominant android application. Exon Mobil Corporation shares have increased as a result of the stability in the oil market. For FedEx, the big difference is as a result of the growth in digital and social media platforms that has enabled the company to expand their market for their goods.
However, I still regret my decision of buying 20 shares from FedEx and 150 shares in both Exon Mobil Corporation and Microsoft Corporation. I could have invested more number of shares in FedEx and the investment would have realized a high return. Nonetheless, the fact that I have made a profit from my investment in few weeks of trading guarantees better returns in the future.
U.S. public Traded Company – Microsoft Corporation (MSFT)
Change in assets, liabilities, equity, total revenue, and net income for 2015 and 2016 is computed below:
The asset of the company has increased from 174,472,000 in 2015 to 193,694,000 in 2016. This is an increase of 19,222,000. The change is positive for an investor as this can be as a result of growth or expansion of the business which increases the strength of a company in a given company.
The liability of the company has increased from 94,389,000 in 2015 to 121,697,000 in 2016. This is an increase of 27,308,000. This change is negative to an investor as it shows that the company is not able to pay their creditors on time.
The equity of the company has decreased from 68,465,000 in 2015 to 68,178,000 in 2016. This is a decrease of (287,000). This shows that the value of shares has reduced over a year. This can be a negative issue in the side of an investor.
The total revenue of the company has decreased from 93,580,000 in 2015 to 85,320,000 in 2016. This is a decrease of (8,260,000). This is an indication that the profit will reduce if all the other factors remain constant. The reduction will result to reduction in profit and that lowers the dividends and retains earnings, which is a negative issue for an investor.
The net income of the company has increased from 12,193,000 in 2015 to 16,798,000 in 2016. This is an increase of 4,605,000. The increase in net income is positive to an investor as it increases their dividends.