Investing 101 – 9/23/2015

Market update – by Linh C. Nguyen:

  • Oil price dramatically declines over the past 14 months. Big companies suffered from paying revenues to interest on debt. Also many oil companies had laid off thousands of employees.
  • Based on the concern about fragile global economy, low US inflation rate, and unstable stock market, the Fed decided to hold off from raising interest rate.
  • Boeing signs massive deal to sell 300 aircraft to Chinese firm. Following is the link of this news video.

Stock Pitch-Why not Kors – by Hunter Rendleman:

  • Michael Kors Holdings Limited (KORS) was doing extremely successful overseas and at home from the end of 2013 to 2014. During 2014, KORS had significant increase in stock price. Therefore, OIG decided to start buying KORS from Dec 2013.
  • However, KORS, as a fashion company, is risky. Their supply and demand basically depends on consumers’ personal preference. They also face competition from other similar fashion brands.
  • Starting from Q1 2015, people realized that KORS was overvalued, and thus the stock price drops quickly. In Sep 2015, OIG decided to sell all the shares of KORS.

Investing 101 – by Nancy Yannan Li:

  • “Investing is the act of committing money or capital to an endeavor with the expectation of obtaining an additional income or profit.”
  • In order to make wise investment decisions, analysis is essential. There are two types of analysis: fundamental analysis (qualitative and quantitative research) and technical analysis (statistics analyzing). For fundamental analysis, there are two approaches: top-down (start from sectors or industries to specific companies) and bottom-up (start from companies and then consider micro factors).
  • Here are some useful resources: Investopedia, Yahoo! Finance, Google Finance, Wall Street Journal, Mergent Online, and Zinio Magazine Subscription.