Essay on Stock Project

Submitted By jietracy
Words: 582
Pages: 3

Executive Summary
During November, Microsoft, Dell, Sina Corp, and Sohu Media’s common stock performance were tracked and followed. These companies were picked on individual preferences and will be compared to the S&P 500’s performance for the same time period. This was done to see if the performances of randomly picked stocks deviate far from the performance of the market as a whole. This month had two events that had substantial effect on the market, . Hurricane sandy closed the stock market for three days and the results of the election had a knee-jerk reaction that was negative on the market. Microsoft Microsoft Corporation was a public multinational corporation which was founded in Albuquerque, New Mexico, April 4, 1975. It had 25 years history till now. The founder of Microsoft Corporation was Bill Gates and Paul Allen. The Headquarter of Microsoft Corporation was located in One Microsoft Way, Redmond, Washington, United States which develops, manufactures, licenses, and supports a wide selection of products and services related to computing through its various product divisions. The main products which Microsoft had are Windows & Windows Live Division, Server and Tools, Online Services Division, Microsoft Business Division, and Entertainment and Devices Division. Microsoft Corporation was picked the stock price at the beginning of the month is selling for less than it fair market value. On October 29th, the stock price was $28.31 per share and by the fair market valuation below the stock should be selling for $45.00 per share.

This stock has a potential for an increase in value approximately 60 percent and the risk is relatively low, as the beta is 1.0. Also, Microsoft Corp. recently released Windows 8 and a new Snap Tablet. Both products sales forecasts are promising as we are entering the Christmas season. Unfortunately, it did not occur this month. With the huge natural disaster and flooding back east and the results of the presidential elections have both had a negative effect on the market and most retail goods providers. As the graphs below depict the company’s performance as it shadowed the market. It is still recommended to hold this stock. Sales through Christmas and the current price the stock is trading for is well under what is should be worth.

Sina and Sohu Corporations Sina and Sohu are two well-known Chinese online media companies that trade on the Chinese