It aint over till the cow says MOO!

Week #8

In the final week of the game, we decided to hold onto the stocks we acquired during the prior week, until Friday when our portfolios needed to be liquidated. As it turns out, we should have liquidated earlier in the week. As the week went on, the stock prices continued to drop, but in hopes that the markets may turn around in time, we continued to hold onto the stocks.

We had our ups and downs throughout the course of this game, good decisions, bad decisions, once accidently short selling and another time choosing the wrong stock to short sell. We held a few stocks too long, and sold a few stocks too soon. We had a few hesitations when it came to buying, which lead to us to not make all of the money we potentially could have.  A major shift in our strategy at the end of week five which, if only momentarily, did turn the game around for us and showed us the effects of volatile markets. 

The results of our decisions lead us to rank place 9th in the US market with $106,140.90 and 22nd in the Canadian markets with $99,767.54. We are happy with our results in the US market however we are not pleased with the results in the Canadian market, but hey, this was our first try at beating the markets. It was a learning experience.  We now have a better understanding of what our “strategy” was, and how we will apply ourselves next semester.

Focusing on an economic event affecting the stock markets we looked at the United States investigation of President Obama.  There has been a great deal of speculation that the President has been on a spending spree and is pushing the US to bankruptcy.  The US midterm election indicates that their people are up in arms about the state of their economy, their jobs, their lives, and their future.  This has been felt in the markets as the nation is losing faith in the economy’s ability to recover. Many Americans remain optimistic regarding economic recovery, as they understand these things do not happen overnight.

http://www.youtube.com/watch?v=nRiAlESWJ8E

These foresights have caused the US market to fluctuate rapidly, which for a buy sell strategy is good. Understanding how the US market would react on a day to day basis was the main obstacle we faced. In hindsight the US was not the best place to be. The Canadian markets were more stable, as our economy has been recovering at a steady pace. Canadians have faith in its recovery, and this reflects the behaviour of the market. Bottom line the game is over and we rolled the dice. We milked the market and our best efforts were not felt

Terms:

Cowboy Marketing

What Does Cowboy Marketing Mean?
A slang term to describe a situation in which a company is unaware that a marketer hired to produce legitimate opted-in email campaigns is actually using mass spam emails to promote the company's stock. This is a very unethical practice because marketers are often compensated with stock options, allowing them to capitalize on the unfounded demand they create for the stock they are promoting.

Investopedia explains Cowboy Marketing
This situation occurs when the marketer values its own interest over those of its client. Smart investors should not pay attention to spam emails and/or the stocks they promote. Buying these stocks will more often than not result in losing money because once the stock's price rises, the unscrupulous parties involved will cash out, causing it to plummet and leaving legitimate investors with losses.

Doomsday Call

What Does Doomsday Call Mean?
A call provision added to fixed income securities that allows for early redemption by the issuer if certain conditions are favorable.

Investopedia explains Doomsday Call
Also known as Canada calls, these provisions are typically found on corporate debt issues made by Canadian corporations. With a doomsday call provision, issuers are able to redeem at either par value upon maturity of the fixed income security or at a predetermined rate which is usually a benchmark +/- basis points

Moofer

What Does Moofer Mean?
An employee working outside of typical office settings. The word "moofer" stands for "mobile out of office worker," and this type of worker is becoming more common as communication technology continues to improve. Moofers can generally work anywhere where there is access to a wi-fi connection.

Investopedia explains Moofer
Some examples of moofers include Internet entrepreneurs that can work from a laptop, bloggers, columnists, etc. It can also refer to people that have to be mobile as part of their job, like consultants, reporters or business people that frequently have to go out to make deals or meet clients.

Out With The Old In With The Moooooooo!

Week #7

After one week of the Moo Cows switching their leadership from the “male mind” over to the “female mind”, the rankings each day have clearly begun to show when the shift occurred. That the change was very much needed, however it may be too late for the Moo Cows to make a run for the top spot this late in the game.

By the time Friday rolled around, and the team had gone a full week under the new leadership, we had managed to move ourselves out of the bottom 3 slots in the rankings, and are now sitting in 7^th and 11^th in the US and Canadian markets, respectively.

The new game plan that we devised, since there is only a little over a week to go, was to spend the remaining money in our accounts in order to hopefully make as much money as we could before having to liquidate our accounts. Wednesday was the day we decided to put our plan into action, and went a little crazy, making 11 buys. Our Canadian portfolio was the one that we felt needed the most attention. So far, so good.

We also had decided to attempt another short sell a week ago… on purpose this time. We bought Newmont Mining Corp. and almost immediately began to see the stock price rise. Not what we wanted to see. We were beginning to think that we may never see the stock back in the green and may have failed to make a profitable short sell once again. So, when to our surprise, we checked our portfolio to discover it had fallen below the price we had bought at, we made no hesitation and covered it. Even if that meant we still lost money after the commission costs.

We are happy with the results we’ve managed to achieve in the past week and hope to continue moving in the same direction during the last week of the game.

Week #6

Holy cow! Over the weekend Equinox announced their takeover of Austrian company citadel mines. Based on previous observations of companies stock performance prior to takeover announcements, we think EQN.TO will go up.

First short stock of the game for us is Newmont Mining Corporation. We have been watching their stock price for the past month and it shows declining trend which we intent to capitalize on.

Sold Evertz Technologies and cut our losses. Unfortunately we do not have time to wait for bad investment decisions to turn good. We need to allocate our cash where it will grow now. This is becoming increasingly important as the end of the game draws near.

Sold American Potash company CF Industry Holdings for which grew by $2 since we purchased it last week. Also sold Potash One Corporation, which was looking like the worst decision we have made yet, made a massive gain of 18% in one day. That brought our Canadian account back into the green in one day. We are really pleased with this as it was looking like we were going to take a BIG loss on the sale of KCL.TO.

Based on this: http://www.financialpost.com/Barrick+shines+with+record+earnings/3739604/story.html

We bought Barrick for $47.39/share and sold for $49.02/share the next day. Moo.

Looking to re build our Canadian portfolio and bring ourselves out of 25^th place in the rankings we have been on a selling spree. XGD.TO, not doing anything = time to go SELL. EQN.TO, take over boosting performance = mistake SELL.

Taking on a different approach, we decided to look into everyday businesses. Our pride is Mexican Wal Mart. With the Canadian government redecorating their cabinet and the US looking at President Obama under a microscope, Mexico looks to have the only stable government in North America. We also purchased Western Energy which happens to be owned by my landlord. This company was just purchased and is under renovation so were holding on to this for as long as we can. Thinking of Christmas season we also purchased shares in Sears to get the holiday cheer!

MOOOOOOO

Mad Cows!!

Week #5

Which cut of meat is your favorite? Because the moo cows have been taken to the butchers!

Our strategy to buy potash companies with the understanding that there is a higher demand for potash fertilizer due to poor soil conditions in the US may have been implemented to soon. Consider the fact that we are nearing the end of the harvest season across the northern hemisphere and that this time of year potash itself is not in demand. Potash companies may not have been the best choice at this point in time, however five months from now when farmers are planting and fertilizing crops again the demand for potash will be higher, and the stock will likely be worth more. So we have decided to quit POT and cut our losses.

Fool me once shame on you, fool me twice shame on me. Or shame on me both times?

Did we mention that it was not until Thursday and Friday rolled around that this theory about why potash companies are doing poorly occurred to us. Unfortunately we made the unwise decision to buy Potash One Incorporated which has not been doing very well. Thinking about it now we should have shorted KCL.TO and done more research into the agriculture industry and potash companies. It is interesting that CF Holdings, is doing well and our POT.TO and KCL.TO are losing more and more every day.

GDX share price fell $1.30 while we held it and with the end of the game fast approaching we needed out of losers and into some more winners.

This week we have come down with a case of...

An Apple a day keeps the doctor away! Apple is good, very good. On Wednesday when their stock price went down, we decided to wrangle up another heard of Apple shares. YEEHAW!!!

Moo.

How Now Moo Cow?

Week #4

Dancing between first and second place in the US market our focus needs to shift to the Canadian market heading into week four.  Our gold ETF’s and silver ETF have been good in terms of long term value and growth. Based on their performance, and reports that the price of gold will continue to increase we have selected another Gold ETF. Horizon Betapro Comex Gold ETF, HUG.TO.

GO GO GOLD!!!  Along with HUG.TO we bought 1000 shares of iShares S&P/TSX Global Gold Index ETF, GDX.TO. With two gold ETF’s in our Canadian portfolio we predict performance to reflect the success we have had with commodities ETF’s in our US account.

Everything Apple produces is basically gold. From the smallest iPod to their most powerful computers they constantly innovate and dominate the market. With the introduction of the iPad personal tablet we predict that going into the Christmas season Apple is a winner.

Week four marks the half way point in the stock game. We have seen profits thus far and believe that at this point we can handle taking loses to get out of “bearish” markets. 

mOOPS!!

Accidently shorted BWC.TO at $8.25, was a mistake during some buying on Tuesday… lost the commission fee of shorting and covering but nothing else.

Sold Research In Motion in the US and CAN markets at high prices making decent return on investment considering our strategy there was simply in and out, buy low sell high.

Speaking of highhhhhh… we bought some POT this week ;).

Corn shortages caused by dry unfavorable soil conditions in the United States made corn prices rise on the commodity exchange. The supply of corn was falling causing demand for corn to rise.  “But mister, what does corn have to do with pot?” Well Farmers rely on potash fertilizer for when fertilizing corn crops across Canada and the US. So we can say that potash fertilizer will be in higher demand to combat the dry conditions of soil.We looked at several potash companies in Canada and the US markets. Bought Potash Corporation of Saskatchewan (POT.TO) in our Canadian account. 

POT.TO one month chart.

In our USD account we bought CF Industries Holdings, which is a Potash fertilizer producer operating within the US. We will be holding Holdings.

Moo.




Definitions:

Pac-Man Defense

What Does Pac-Man Defense Mean?
A defensive tactic used by a targeted firm in a hostile takeover situation. In a Pac-Man defense, the target firm turns around and tries to acquire the other company that has made the hostile takeover attempt. This term has been accredited to Bruce Wasserstein, chairman of Wasserstein & Co.

Investopedia explains Pac-Man Defense

This term comes from the Pac-Man video game. In the game, once Pac-Man eats a power pellet he is able to turn around and eat the ghosts that are chasing after him in the maze. 

When one company makes an unsolicited and aggressive bid on another publicly traded company, the takeover attempt may not be welcomed by the targeted firm. In an attempt to scare off the would-be acquirers, the takeover target may use any method in an attempt to acquire the other company, including dipping into its war chest for cash to purchase the other company's stock.

Tunneling

What Does Tunneling Mean?

An illegal business practice in which a majority shareholder or high-level company insider directs company assets or future business to themselves for personal gain. Actions such as excessive executive compensation, dilutive share measures, asset sales and personal loan guarantees can all be considered tunneling. The common thread is the loss to the minority shareholders, whose ownership is lessened or otherwise devalued through inappropriate actions that harm the overall value of the business.

Investopedia explains Tunneling

This risk is especially prevalent for investors in emerging markets, where government and regulatory controls may not be sufficient to stop the practice from occurring, often under legal guises. The practice is not reserved to moderately advanced economies; many instances can be found in advanced economies, especially those under systems of "civil law". The U.S. legal system is rooted in "common law", which provides broad enforceable laws with simple maxims like "fairness" and "for the common good". Under civil law, the letter of the law is the most respected measure, so would-be tunnelers can pass an act of tunneling off under certain technicalities, which often hold up in court.

Yuppie

What Does Yuppie Mean?

A slang term denoting the market segment of young urban professionals. A yuppie is often characterized by youth, affluence and business success.

Investopedia explains Yuppie

Coined in the 1980s, the term yuppie was used as a derogatory title for young business people who were considered arrogant, undeservedly wealthy and obnoxious. Yuppies were often associated with wearing high fashion clothing, driving BMWs and gloating about their successes. The term has become less of a stereotype and now promotes the image of an affluent professional.

Economic Article:
In regards to our Potash interests.
http://www.financialpost.com/Global+woes+boost+Potash/3411948/story.html

bull says "MOO!!!"

Week #3

Week three=testing week in most of our subjects=less time spent reading the financial post and more time spent reading our text books. Key word, “less” meaning this game aint over yet folks!

After two weeks we are beginning to see differences in company’s performance and have been able to categorize them accordingly. Imperial oil is a good example of what we call a “Steady Eddie”. IMOoooooo gained $420.00 on our original investment after two weeks IMO stocks present value to shareholders and less risk than other companies stocks, which translates to less potential for massive short term gains.

This week we’re going to sell some of our profitable investments which will increase our cash reserve. One of the first companies we bought was PAL at $3.89/share, we have seen 11.57% gains on our original investment. The decision to sell PAL and bank our earnings is part of our strategy to sell when prices are high before they drop down again.

Sold BCE and made $545.02 which over the past two weeks we have categorized as a steady eddy. Another step we have taken towards shifting our focus slowly from high value to high risk high return.

Bought 2200 shares of BWC.TO at $8.52/share for $18,763.99 CAN, based on technical analysis we’re betting on Bridgewater Systems Corp going into week four.

Wednesday we watched RIM.TO and RIMM take a hit and drop by about $3.00 in the CAN and US markets. This has happened twice in the last two week and both times they have bounced back. BUY BUY BUY!!!! We currently own 1000 shares of RIM.TO and 1000 shares of RIMM. This will be our first massive buy at what we consider a low trading price. Based on the past two weeks performance we predict RIM.TO and RIMM prices to rise up to around $50.00/share during week four, in which case we will sell.

Happy Thanksgiving to everyone!


Definition:
Bull Markets occur when Investors are optimistic about the state of that stock market and economy. Bulls are Investors who observe upward trend and invest according to their confidence that the markets are Bullish.

Week #2 Learning and Earning

Mooooooo its week twooooooo!!!!

During the weekend we decided to replace SPDR gold trust for iShares Gold Trust at $12.71/share USD and $13.00/share CAD. This should provide us with high rate of return as the price of gold continues to rise.

Apple’s Ipad has dominated the personal tablet computer market since its release. With Research In Motion introducing its new tablet we purchased 700 shares of RIM.TO for $49.81/share. The Play Book will be the first tablet alternative for non-Mac users on the market since the Ipad was released.

After two weeks of the game the market has had two rough days, September 23 and 28. We watched our stocks drop across the board. Nervous about what could happen to the markets we changed our strategy. Hold reserve funds in our accounts that we can invest when the market drops… BUY LOW SELL HIGH.

Sour cream! More like sour choice…

 PDL.TO was not doing as well as PAL in our USD account so we decided to get rid of it and CP rail as a way of freeing up funds that we plan on investing when the market falls.

 Cow cat needs to cheer up cause we're just getting started!