Download Period 4 Week #1: 10/15-10/19 October 11 JNJ: In the Article

Period 4
Week #1: 10/15-10/19
October 11 JNJ: In the Article, aJohnson&Johnsonas McNeil Recalls Infant Cough and
Cold Medicines,a the McNeil Healthcare unit of Johnson & Johnson recalled certain
over-the-counter childrenas drugs that may have certain dangers regarding overdose.
Certain highly concentrated drugs were recalled in a preemptive measure to avoid
potential dangers. JNJ stocks were on the upward climb however this report did not help
to boost them any further. This issue pertains not just to Johnson & Johnson but to other
stable American companies because it provides the example that even when things go
wrong within the company, they can recover and maintain their overall stable trend-a
hallmark I look for when picking out my long term investments. These companies may
not have the highest expected return, but the money is safe and the return is moderate
(Johnson & Johnson (JNJ) Key Developments | Stocks | Reuters.com).
October 16 IBN: In the article, aICICI Bank climbs ahead of Q2 results,a IBN recently
reported results that exceeded second quarter expectations. There is a growing trend
among international stocks and funds, particularly in India, that the results have been
outperforming expected results and project trends that only indicate further growth. The
developing economy is so essential to buy into now while the prices are manageable or
even low because the numbers are set to grow at unprecedented rates that could mean
massive gains for foreign investors that are looking to growing economies to boost their
losses on the domestic front. (ICICI Bank climbs ahead of Q2 results - Sify.com).
Week #2: 10/22-10/26
October 22 IBN: aICICI Bank Profit Rises 33% As Fee, Interest Income Jumpa By: John
Satish Kumar
After an earlier slump in IBN stock prices, the recent quarterly report helped to boost the
stocks worth. A growth of 33% from the second quarter was largely unexpected and
therefore boosted morale immensely. As long as interest rates in India remain the way
they are, growth in a similar capacity is projected to become the overall trend. I think that
it is very important to keep these international stocks, especially the Indian stocks
because they are going to be the large profit stocks in the future. If the companies are
doing well now, that is fabulous, however I plan to hold on to these stocks and wait as the
developing countries build up their economies. (ICICI Bank Profit Rises 33% As Fee,
Interest Income Jump - WSJ.com).
October 22 TMA: aThornburg CEO buys 1 million shares in companya
Despite the hardships that have been plaguing the mortgage industry recently, Thornburg
Mortgage CEO Garrett Thornburg still remains confident in the company. He bought one
million shares of the companion October 19. While most might continue to be wary of
this sectors performance, stock prices did indeed rise with the CEOas purchase and
confidence might have been slightly restored. I plan to keep these stocks until they
recover more form the mortgage crisis. (Thornburg CEO buys 1 million shares in
company | Markets | Bonds News | Reuters).
October 23 (BTM): aUpdate 1- Brasil Telecom 3rd quarter net rises 135 pcta
In a article by Reuters UK on October 23, BTM reported third quarter profits, boasting
its 135% increase from the previous year. Due to the companyas expansion to mobile and
internet units, a strong profit and stock following have made BTM a stock well worth
investing in. BTM has outperformed the communications industry for the week and
continues to look strong in the upcoming weeks so it is a fairly safe investment to hold on
to. (UPDATE 1-Brasil Telecom 3rd-qrt net rises 135 pct | Reuters.co.uk).
Week #3: 10/29-11/2
November 1 BT: aBTas acquisition of I. Net suspended on appeala
British Telecomas previously planned acquisition of Italyas I.Net was halted recently
because of appeals drawn up by some minority shareholders. BT planned to acquire I.Net
in an attempt to broaden its action in Italy. Stock prices peaked and then fell with the
news of this deal. Expansion in the communications industry seems to be a major goal for
most of the large companies today and for BT a hold in Italy would have been helpful,
however there is no reason to assume that the deal wonat go through after the appeal has
been dealt with in court. It is a waiting game from now on. (BT's acquisition of I.Net
suspended on appeal | Technology, Media & Telecommunications | Reuters.co.uk).
Week #4: 11/5-11/9
I chose to sell three investments this week (OXY, IBN and BT) because they were all
doing fairly well in the stock market and despite how little it was, I made a profit. I
figures that because these three stocks were on the rise now, they would likely fall in the
near future; it was better to sell them when I was making a profit and hold on to my other
stocks. The other stocks, which are failing now, will most likely recover soon and I can
make a profit off of those as well.
November 8 (BT): An article titled aBT Net Falls 29% on Costs to Cut Jobs, Create
Units,a summarizes why shares of BT stock experienced the largest drop in price since
August 2007. The dramatic drop in price was due to the recent postings that state that
British Telecoms (Britainas biggest telephone company) had its first profit decline in six
quarters, totaling a fall of 29% due to the costs of cutting jobs and training new workers.
This drop was unexpected and fortunately had no major impact on the communications
sector as a whole. The communications industry has stayed relatively on track with the
stock market and has seen no real positive or negative strays from the baseline.
(Bloomberg.com: U.K. & Ireland). I actually decided to sell 6.27 shares of BT stock
because it hadnat changed much in price since I purchased it and I found that my other
investments were cooperating at a more accommodating rate.
Week #5: 11/12-11/16
November 14 GE: aMortgage Woes Damage a GE bond funda
In an article recently written by Andrew Bary for Barrons, a General Electric-managed
bond fund experienced damage from mortgage and asset-backed securities. GE offered
investors the chance to redeem their holdings at 96 cents on the dollar but this has raised
controversy, as the company, and many companies in the same boat like Wachovia and
Bank of America have been struggling to keep their holdings from falling bellow the $1
value per asset. Unfortunately GE stock did fall in relation to this occurrence; however I
do not see a reason to sell now while the stocks are underperforming. I prefer to wait until
the mortgage crisis gets resolved and pull the stocks out much later (Mortgage Woes
Damage a GE Bond Fund - Barron's Online).
Week #6: 11/19-11/23
November 19 EWJ: aJapan ADRs Are Mixed on Mondaya
Barronas recently reported on the current drops in Japanese stocks, especially those
invested in by Americans. EWJ along with a multitude of other Japanese ADRs
(American Depository Receipts) were down around 2% in the last week. Attempts to
explain this drop usually surrounds the speed of the Japanese economy, however reports
in this article seem to indicate a growth is on the horizon (in fact, on 11/20 stock prices
did rise). The Japanese economy is set and ready for a revamping and the dividend yields
on these stocks are said to be approaching those of Japanese government bonds. Those
reasons alone are enough to keep me in the Japanese market and the international market
as well, as most of these countries are set for their economic revivals. (Japan ADRs Are
Mixed on Monday - Barron's Online).
Week #7: 11/26-11/30 November 26 OXY: aOccidental Petroleum wins major deal with
Libyaa By: Steve Gelsi
A surprising reaction to the recent oil deal in Libya for Occidental Petroleum hit the
stock market this week. Despite the $5 billion deal with Libya to increase oil
production/trade, which in turn will likely boost gross production by 200,000 barrels per
day, stock prices fell 3.9% Confusion abounds because this deal is said to be exactly what
the oil industry needs- a cheaper and virtually unchartered oil venue. I have a hunch that
when investors realize the positive effects this deal might have on the their oil as prices
are nearing $100 a barrel, stock prices will rise and I will in turn make a profit. I simply
have to wait it out. (Occidental Petroleum wins major oil deal with Libya MarketWatch).
November 30 IFN:
The Reuters article, a3i India fund invests $101 mln in construction firma explains the
recent increase in the worth of the IFN stock price. $101 million was invested by the
India Infrastructure Fund in a construction and engineering firm. Michael Queen, a
manager of the India Fund claims that aThis second investment by the fund is a good
example of the opportunity the Indian infrastructure market affords.a I agree with this
statement in that the international market, especially India, is making great gains in the
improvement of their economies and infrastructure which could indicate massive wealth
in the long run. (3i India fund invests $101 mln in construction firm | Industries |
Financial Services & Real Estate | Reuters).
Week #8: 12/3-12/7
I decided to reinvest in Microsoft this week because it is a steady company that has
performed well for me in the past. I felt that the money would be safe but could still
provide a relatively high return (especially with the holiday season coming up).
I also decided to reinvest in The India Fund because it is a relatively risky investment
with an extremely high predicted rate of return. It has done moderately well for me in the
past and because it is in a developing country, I believe returns will only continue to
increase.
December 3 PG: aProctor and Gamble (PG) NewsBite-Cramer Likes PG on Pullbacka
Proctor and Gamble stock has been labeled a adefensivea stock in that it is a stable
investment that is safe but has a low to medium rate of return. Stock market gurus have
predicted that investors may be looking more and more toward adefensivea stocks like
Proctor & Gamble, Johnson & Johnson, General Electric and Microsoft (all stocks I own)
as the Fed only slightly reduces interest rates and unemployment rates climb. Safe
investments seem to be the way to go in this recession-like economy for the meantime
(Procter and Gamble (PG) NewsBite - Cramer Likes PG on a Pullback).
Week #9: 12/10-12/14 December 13 Oil Industry: aSenate Approves Energy Bill
Without Tax Increasea By: John M. Broder
Stock prices in the oil industry were down in last few days and an article written by the
New York Times seems to highlight an issue that has been brewing for years and may
come to a head in recent years. A bill was passed in the Senate that did increase fuelefficiency standards but did not go through with the proposed $13 billion tax increase on
the oil industry. So the oil companies just barely slid by unscathed this time but the past
days occurrence gave investors a glimpse of what the industry will undoubtedly be
experiencing in the upcoming years. Stock prices fell all across the industry and
individually affected my stocks in ConocoPhillips, Occidental Petroleum, and Exxon
Mobile (part of my Vanguard mutual fund). This issue poses serious problems in the oil
industry that has been building for years and may see its consequences under a
Democratic presidency that will favor tighter oil policy. (Senate Approves Energy Bill
Without Tax Increase - New York Times).
December 14 COP: aConocoPhillips backs away from $1 Billion in Alaska spendinga
ConocoPhillips stock plummeted today and it is most likely due to the companyas
rejection of a $1 billion deal in Alaska. COP claims they were fiscally prepared for the
deal in the fall but since oil tax rates have increased, they can no longer follow through
on the previously arranged plan. Spending less seems to be the companyas solution,
however we have yet to see plans for the 2008 budget. This article highlights the
important questions facing the oil industry and the effects a raised tax rate on oil has had
on the industryas ability to expand and remain afloat. (KTUU.com | Alaska's news and
information source | ConocoPhillips backs away from $1 billion in Alaska spending).
December 12 WB: aBank of America, Wachovia, PNC Report New Loan Lossesa By:
David Mildenberg and Hugh Son Wachovia and a few other major banks reported
recently that losses in regards to the bad debt are worse than originally expected. Not
only did this news cause these individual companies stock to fall, but it came as a bitter
reminder that the consequences of the credit problems are not resolved yet. This could
mean more bad news for the banking industry but I still plan to hold on to my stocks and
wait out the worst of the crisis. (Bloomberg: Wachovia).
December 15 COP:
An article titled, aConocoPhillips approves 2008 capital budget of $14.3 Billiona
proposes a valid reason why the price of the stock dramatically increased on December
15. The article summarizes ConocoPhillipsas position in the oil sector and with a quote
by the chairman and chief executive officer, Mulva, concludes that COP has a strong
foundation of assets that will bode well for the company and its investors in the future.
Mulvaas quote, aThis capital program will permit us to pursue a complementary financial
strategy designed to strengthen distributions to shareholders through increased dividends
and continued share repurchasesa clearly sums up the companyas goal and future
predictions of the importance of long term value. I will continue to hold on to COP stock
because it has done well and I have invested the majority of my money in an effort to
preserve it in the long term collect value later on. COP is a standard example of what it
currently occurring in the oil industry. It is becoming increasingly competitive and
therefore all the more valuable. I believe it is wise to hold on to these investments for
now. (PR-USA.net).
Week #10: 12/17-12/21
December 17 PG: aPhilips sues P&G over Pulsonic Shaversa
An article from MSN money online written on December 17 provides evidence as to
why Proctor & Gamble stock is declining in worth. Phillips Electronics Company is in
the midst of suing Proctor & Gamble in regards to afalse and misleading advertising
concerning promotion for Pulsonic electronic shavers.a PG stock shares closed at a price
66 cents less than previously. I plan on keeping this stock because in this industry
lawsuits are an everyday activity and a small one regarding electric shavers is most likely
not going to affect the stability of the stock in the long run, which is why I picked it in the
first place. (Philips Sues P&G Over Pulsonic Shavers: Associated Press Business News MSN Money).
December 18 OXY: aOccidentalas rating outlook raised to positivea
Recently, Moodyas investor service changed Occidental Petroleumas rating from stable
and raised it to positive. This change was due to Occidental Petroleumas cash flow and
strong US assets and extensive oil and gas portfolio. It is a relatively low risk investment
with a positive rate of return. I plan to keep most of my OXY stocks because I believe the
reasons for a rating change are solid and the ever increasing scarcity will only serve to
make it a more valuable asset. (Occidental's rating outlook raised to positive - Moody's).
December 18 TMA: aThornburg Mortgage names CEO, reinstates dividenda
Although the mortgage market has been doing increasingly poorly, TMA recently hired a
new CEO that reinstated the quarterly divided which boosted stock prices. A statement by
the company claiming that the company aexpects market conditions and profitability to
improve in 2008a coupled with the dividend helped the stock recover a bit from earlier
downfalls. I plan to hang on to TMA stock because it would be unwise to sell it now
while it is doing poorly; I plan to wait until the company further recovers and continues
with this new aoutlooka it proposes. (Thornburg Mortgage names CEO, reinstates
dividend: Reuters Business News - MSN Money).
December 19 BTM: aBrasil Telecom wins 3G licence with 483 mln reals bida
In Brazil this week there has been an auction taking place that awards top bidders in the
communications industry mobile licenses in particular areas. Brasil Telecom (BTM) just
purchased an area in the southern states that is said to be more prosperous than other
areas and will help boost BTM business. This gain was very important however the
auction continues to award other communications companies other prosperous areas and
crucial cities will be up for auction in the coming days. Stock prices for now have risen
with the new acquisition but that could change at any moment in relation to the outcome
of the rest of the auction (Brasil Telecom wins 3G licence with 483 mln reals bid).
Week #11: 12/24-12/28
December 28 BTM: aBrasil Telecom Gains on Telemar Merger Speculationa By: Paulo
Winterstein
Brasil Telecomas stock jumped 4.1% this week mostly in relation to the possibility that
Citigroup may sell its stake in the company to build up its own capital, leaving BTM the
opportunity to merge with Brazilas biggest phone service, Tele Norte. This could mean
big business for the company. As if it merges, the net worth of the companies will be
combined and the investors stocks could very well benefit positively. I plan to hang on to
my stock and see how the transaction goes. This issue brings up some of the international
effects, the US stock market crises are creating. Citigroup is under a lot of internal
pressure in relation to the recent mortgage and credit crunches but its effects have hurt
more than just its own company; Brasil Telecom just happens to be one of the
international companies that is feeling the effects even though at the moment they seem
to be somewhat positive. (Bloomberg.com: Latin America).
December 28 XOM (VIVAX): aExxon Given Chance to Argue Over Leasesa By: Steve
Quinn
The Alaska Department of Natural Resources recently rejected Exxon Mobileas plan to
develop a highly concentrated area for oil drilling called Point Thomson. This rejection
hurt Exxon Mobile stock prices and further contributes to the panicked search by oil
companies to find resources and venues where they can make the most of the oil crisis.
Although this natural gas pipeline that would have been installed could have generated
heat and power for a massive number of people in North America, the environmental
regulations and state authority prevented it from happening. This brings up the
environmental aspect of this issue and brings to discussion the immediacy of the
oil/environmental crisis. (Exxon Given Chance to Argue Over Leases - Forbes.com).
Week #12: 12/31-1/4 December 31 IFN: aBest Stocks for 2008: High Yield and Growth
at India Funda
The India Fund has been rated one of the best stocks for 2008 by the Stock Advisors. At
first speculation this article may seem a little biased, however it brings up some good
points about India and its economy. India is the second fastest growing economy (next to
China) and its growth per year is up to 9% which is double the US growth. Stock prices
for IFN were up. I believe it is important to invest in these stocks and funds because they
will most likely provide the highest yields. The international market is the place to invest
now as the US market is heading towards a recession. I plan to hold on to these stocks
until I feel the Indian market has maximized growth. (Best Stocks for 2008: High yield
and growth at India Fund (IFN) - BloggingStocks).
January 4 BT: BT and Microsoft Announce Partnership to Deliver Powerful, First-of
a"its-Kind Entertainmenta|a
Microsoft and British Telecom announced that they would become partners in an effort
to improve the Xbox 360 and add better movie, TV and gaming applications to the
device. This device will be the first of its kind and therefore could be a very powerful
product for both companies (I have invested in both). Stock prices increased for both
companies and with the predicted success of this device, projections look good for the
merge. (BT and Microsoft Announce Partnership to Deliver Powerful, First-of-its-Kind
Entertainment... | Reuters).
January 3 JNJ: aFDA says more action possible on J&J, Amgen drugsa by: Lisa
Richwine
Recent investigation by the FDA and speculations regarding the serious effects of
Johnson and Johnson anemia drugs on cancer patients. The recent investigation and
statement by the FDA that they make take aadditional actiona has caused stock prices to
be a bit unstable and loose a bit of value. I believe the company however will recover
form this small aroad bumpa so I see no reason to sell the stock now when it isnat at an
all-time high. (FDA says more action possible on J&J, Amgen drugs | Reuters).
Week #13: 11/7-1/11
January 8 MSFT: aMicrosoft pays $1.2B for Norwayas Fast Searcha By; Simon
Kennedy
Microsoft recently spent $1.2 billion to acquire the Norwegian software company Fast
Search & Transfer. This move has been controversial in our own stock market (MSFT
stock prices actually fell with the news of this deal), as Fast Search & Transfer performed
poorly in 2007 and admitted to serious accounting errors. Despite the lack of confidence
investors hold in this deal, Microsoft went ahead with the deal and views Fast Search &
Transfer as a valuable asset. Maybe they are seeing something we donat. Microsoft,
however, still remains a stable investment, as do many of my other well known American
stocks that may have been experiencing periodic drops. The overall trend remains stable
and that is what I follow (Microsoft Pays $1.2B for Norway's Fast Search ((FAST.OS),
Microsoft Corp. (MSFT), (NO000310), (US594918)) | SmartMoney.com)
January 8th WFC: aBaltimore sues Wells Fargo, accused of creating subprime crisisa
By: Ben Nukols
On January 8th, 2008 Wells Fargo & Co stock fell dramatically because of a series of
lawsuits that claim the bank is behind the subprime mortgage crisis through its lending
practices. In this particular article, aBaltimore sues Wells Fargo, accused of creating
subprime crisis,a the state of Baltimore is suing the company because of the
disproportionate effect the crisis is having on the cityas poorer black communities. athe
community is being destabilized." This subprime mortgage crisis has hit our economy
hard this year and it seems to be hitting the banking industry as hard as ever now. I do not
plan to sell these stocks just yet however because I have confidence that companies like
Wells Fargo will withstand the crisis and stabilize in the long run. (San Jose Mercury
News - Baltimore sues Wells Fargo, accused of creating subprime crisis).
January 10 TMA: aThornburg shares fall on stock salea
After the company announced that it would be selling 4.5 million shares of its stock,
Thornburg Mortgage company stock fell dramatically. The company says it chose to sell
the stock so that it could aissue adjustable-rate mortgage loans, pay down debt, and
strengthen its liquidity.a This is yet another example of the damage that the mortgage
lending crisis has had on the economy. The book value has fallen from around $20 per
stock to around $8 since last year. I decided to purchase this stock because it is at an alltime low and I believe that over the years it will be able to recover and if it reaches
heights as it did in 2006 ($20), I could make some wonderful gains. ( Thornburg shares
fall on stock sale: Associated Press Business News - MSN Money).
January 11 WFC: The lawsuits filed against Wells Fargo & Co continue to plague the
companyas stocks and in this particular article, aWells Fargo, BofA, others sued by city
of Cleveland over foreclosuresa the city of Cleveland brings the suits up against many
banks, not just Wells Fargo about the recent and ever present subprime mortgage crisis.
Luckily I only invested in Wells Fargo and Wachovia and Wachovia has yet to be sued in
the manor Wells Fargo is (at least by the same cities). I plan to keep these stocks and wait
for them to withstand the crisis and build up some more value before I sell. (Wells Fargo,
BofA, others sued by city of Cleveland over foreclosures - San Francisco Business
Times:).
January 11 Bond: The article, aUS recession: the wolf is at the door,a describes the
current state of the economy and explains why my T-Note bond did not gain any money
since I purchased it in October. The article states, aIf America isnat in recession, it
probably soon will be.a Reasons for this recession include the housing and credit crises,
increased unemployment, and the massive debt increase. The Fedas cut in interest rates
didnat effect the value of my bond and the amount of money that I will receive after
selling my bond will only be the amount of inflation originally determined(4.5%).( US
recession: the wolf is at the door - Money Week).