Can someone please help me with my stock market investing project?
This is want I have to do for my high school economics class:
Write a report analyzing the process of investing in two stocks of your choice.
Using the Internet, local newspapers, or other research materials, write a five paragraph report on investing. Your paper is based upon your choice of investing in any two of the following stocks:
Pepsi Cola ( Pepisco Inc)
Proctor & Gamble
Include the following in your report:
* Explain why you chose those two companies.
* What made them better then the others?
* According to the stock market, how did the companies stock perform last quarter?
What might some of the risks be investing in this company?
* This is what I have to do. Now, I am asking for only help to START my project. Are there any helpful websites or any information that would help me start my project?
- 9 years agoFavorite Answer
Here's a potentially simple method to get you started. This is only one way of many and is not the only way:
First you need to choose two of the companies. One way you can do this is to conduct a quick and easy general "Relative Strength Analysis". This simply means to compare the performance of each stock to the rest. Popular time frames used are 3 months and 6 months, both of which are provided and displayed on www.google.com/finance. Once you've assessed which of the two stocks performed the best overall, you can pick them and proceed with the project.
So where it says "Explain why you chose those two companies" you could simply respond with "I conducted a generalized relative strength analysis and found that these two companies were the most appealing based on performance".
This assessment would also answer the question "What made them better then the others?"
Stocks that perform better than others may be attracting more investors, less volatility, and are usually delivering higher earnings per share to their investors. There is of course many other factors that I won't get into for simplicity's sake
You could also compare their dividend yields and use that to support your case of selecting which stocks that you did.
To answer the next question "How did the companies perform last quarter". You can pull up the quarterly income statement of each stock and compare it to the previous quarter. If the current quarter's EPS (earnings per share) is higher than the previous quarter then you could reasonably say the company performed well. If it's a negative figure, then you could say it was a poor quarter. Another method would be to change the chart dates to mimic the last quarter (i.e. Q4 2010- 10.01.2010 to 12.31.2010) and record the stock's performance.
To figure out the risks associated with each company is the easiest step of all. You can simply find out how each company makes it's money and then think of things that can hurt that process, for example:
KO- Coca Cola
Decline in consumption of carbonated beverages and company related products.
Competitor gaining advantage.
Making a bad acquisition.
ETC, ETC, ETC
JSource(s): www.google.com/finance Tikka Tiwari- Relative Strength Analysis Justin Nichols- Stock Analysis
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