Start Week 4

Stocks did pretty well this Monday, except for AEM which has been given a new, lowered target price for this quarter, dropping from $56 to $46, and as low as $39 according to experts. More information here. Other than that, no other big news has had an effect on my holds.

April 29 totals:

• Agnico-Eagle Mines (AEM)- Open $30.97 Close $30.87
• Total for 50 shares: $1,543.50 ($5 loss)

• BioDelivery Sciences International (BDSI)- Open $5.40 Close $5.43
• Total for 230 shares: $1,248.90 ($6.90 Gain)

• MetroPCS (PCS)- Open $11.89 Close $11.95
• Total for 51 shares: $609.45 ($3.06 gain)

• Netflix (NFLX)- Open $215.55 Close $215.01
• Total for 5 shares: $1,075.05 ($2.7 Loss)

• Rambus Inc. (RMBS)- Open $6.59 Close $6.82
• Total for 150 shares: $1,023 ($34.50 gain)

Again, the only hold bothering me is AEM. I may sell MetroPCS if the stock grows above $12 as well as Rambus if it reaches $7. I am meeting with my mentor, Patrick Cross on Thursday to get his input on my holds. Till then, it's business as usual.

Third Week End Results

Newsworthy topics that may benefit my gains are on the rise. BioDelivery Sciences recently appointed Tom D'Alonzo to their Board of Directors. Tom has over 30 years of experience in pharmaceutical and biotechnology companies, so this could take BDSI in a new direction. Netflix may also see incoming growth, if the opinions expressed in this article come to fruition. Apple investment in Netflix could mean easy profit growth if iPad sales go up, assuming the company includes a Netflix app with the bundle. These additional funds could in turn be reinvested in more original programs and copyrights, therefoe drawing in more customers.

Totals for April 26:

• Agnico-Eagle Mines (AEM)- Open $32.96 Close $30.97
• Total for 50 shares: $1,548.50 ($99.50 loss)

• BioDelivery Sciences International (BDSI)- Open $5.46 Close $5.40
• Total for 230 shares: $1,242 ($16.10 loss)

• Netflix (NFLX)- Open $214.8 Close $215.55
• Total for 15 shares: $3,233.25 ($27 gain)
• Money earned from sale of 10 shares: $2,155.55
• Total holds (5 shares): $1,077.75

• MetroPCS (PCS)- Open $11.90 Close $11.89
• Total for 51 shares: $606.39 ($3.06 loss)

• Rambus Inc. (RMBS)- Open $6.43 Close $6.59
• Total for 150 shares: $988.50 ($36 gain)

AEM has been underperforming, but I will make a hold/sell decision based on the next 2-3 days and the results of its Kootenay Silver holds. I decided to sel 10 shares of Netflix because I feel the tide could turn against the company at any moment, a typical buy low, sell high move. Total losses were %55.66, but agian, this is negligible if the right moves are made on Monday.

Simple Numbers

April 25 Totals:

• Agnico-Eagle Mines (AEM)- Open $33.75 Close $32.96
• Total for 50 shares: $1,648 ($14.50 loss)

• BioDelivery Sciences International (BDSI)- Open $5.41 Close $5.47 
• Total for 230 shares: $1,258.10 ($13.80 gain)

• Netflix (NFLX)- Open $216.72 Close $213.75
• Total for 15 shares: $3,206.25 ($44.55 loss)

• MetroPCS (PCS)- Open $11.80 Close $11.95
• Total for 51 shares: $609.45 ($9.18 loss)

• Rambus Inc. (RMBS)- Open $6.10 Close $6.35
• Total for 150 shares: $952.50 ($27 gain)

Since any major loss was covered up by considerable gain in other sectors, holding on to stocks until week end results may be the best strategy at this point. Overall losses for Thursday were $27.43 so there doesn't seem to be much to worry about. I was unable to meet with my mentor this week to get his input and analysis on my performance, as he had a last-minute trip to New York so I have mainly online tools and reports to base my opinions on. According to insidermonkey.com's article, MetroPCS, although under performing, is one of the highest rated stocks by several investment groups, so it seems worth holding on to. As for Netflix, weekend results simply seem more useful to follow, as entertainment is most oft sought at the end of the work week. There has not been much more news to go on to my knowledge. 

In the News

As of Tuesday, April 23, one of my holds, Agnico-Eagle Mines (AEM) has become an investor in a developing company, Kootenay Silver Inc. which mines in Mexico and Canada. Due to this capital investment, the company now has access to new resources that could potentially increase their presence in the mining industry, leading to consistent/sustainable growth for both companies. More here. Meanwhile, MetroPCS shareholders held a vote that resulted in favor of a merger with the 4th largest phone carrier in the U.S., T-Mobile. Details

April 24 totals:

• Agnico-Eagle Mines (AEM)- Open $32.57 Close $33.25
• Total for 50 shares: $1,662.50 ($34 gain)

• BioDelivery Sciences International (BDSI)- Open $5.29 Close $5.41
• Total for 230 shares: $1,244.30 ($27.60 gain)

• Netflix (NFLX)- Open $216.99 Close $216.72
• Total for 15 shares: $3,250.80 ($4.05 loss)

• MetroPCS (PCS)- Open $11.69 Close $11.77
• Total for 51 shares: $600.27 ($4.08 gain)

• Rambus Inc. (RMBS)- Open $6.04 Close $6.17
• Total for 150 shares: $925.50 ($19.50 gain)

I believe the numbers speak for themselves as they gave me a $81.13 net gain on Wednesday. I decided however, that if Netflix value drops more than $2, it may be the sign of a downtrend, in which case I will sell 2/3 of my holds. Nothing left to say now as I await Thursday results.

Week 3, Day 2: "The House of Cards"

Netflix has been an amazing performed recently as its most recent earnings report revealed an 11% increase in subscriptions (about 3 million more) and now claims to have more subscribers than HBO as detailed in this article. The article suggests that the surge in customer activity is due to the company's increase in original programming, including their show, "House of Cards," for which they invested hefty sums of money to hire quality cast and crews. My opinion remains that people flocked in to see their old CartoonNetwork favorites. Nevertheless, this was a wise investment for the time being, but "House of Cards"does carry mmultiple meanings in this situation.

 April 23 totals:

• Agnico-Eagle Mines (AEM)- Open $32.79 Close $32.03 After Hours: $32.57
• Total for 50 shares: $1,628.50 ($9 loss)

• BioDelivery Sciences International- Open $5.09 Close $5.29
• Total for 230 shares: $1,216.70 ($158.70 loss)

• Netflix (NFLX)- Open $214.03 Close $216.99 After Hours $217.65
• Total for 15 shares: $3,264.75 ($54.30 gain)

• MetroPCS (PCS)- Open $11.42 Close $11.69
• Total for 51 shares: $596.19 ($13.77 gain)

• Rambus Inc. (RMBS)- Open $5.98 Close $6.04
• Total for 150 shares: $906 ($9 gain)

Despite a net loss of $92.33, I feel confident that positive trends are on the way. Just like a house of cards, if I'm not careful, my entire system could collapse on me so if Netflix performs under expectations on Wednesday, I will sell a majority of the stock (not all, just in case there's another big growth) and still exit with a huge gain as it has already surpassed it's 52 week high by a long shot. At this point I only hope to break even with my other stocks as this project starts to wind down in the coming weeks. I will surely watch for moreaarticles indicating trends so that I can make the smoothest exit possible, if necessary.

Start Week 3

After "talking with my financial advisor," we concluded that Netflix was a good purchase after all. I "purchased" it at its closing price of $174.37 on April 22 and it saw after hours gain of just over 23%, now valued at $214.03. Of course this transaction will include financial advice costs, but a minimal loss if the stocks perform well. This surge in activity may be due to more incoming customers after having added a nostalgic CartoonNetwork lineup to the service.

April 22 totals:

• Agnico-Eagle Mines (AEM)- Open $33.01 Close $32.79
• Total for 50 shares: $1,639.50 ($11 loss)

• BioDelivery Sciences International- Open $4.98 Close $5.98
• Total for 230 shares: $1,375.40 ($230 gain)

• Netflix (NFLX) Close $174.37 After hours $214.03
• Initial investment 15 shares: $2,615.55 After hours: Gain$3,210.45 ($594.90 Gain)

• MetroPCS (PCS)- Open $11.11 Close $11.42
• Total for 51 shares: $582.42 (15.81 Gain)

• Rambus Inc. (RMBS)- Open $6.06 Close $5.98
• Total for 150 shares: $897 ($12 loss)

Having purchased some stock in Netflix, my pocket money is now diminished from $2,898.78 to $283.23 and only $83.23 after advisor fees. As I said, after the worst week of 2013 last week, there really was nowhere to go but up as the first day of the week gave me a net gain of $817.71. A good investor knows to quit when they're ahead, so as long as I'm at least $200 above breaking even, I will hold on to all my current stock. It is probably for the best that I had few funds to begin the week because otherwise, I believe I would have taken an unnecessary risk with some purchases, including overindulgence in Netflix. However, the numbers are looking good and I'm making money, so there's nothing to complain about now.

2nd Week End Results: Bounce Back from Losses

Last Friday was a bit more generous to the market as a whole, as not many companies saw the amount of loss that had been witnessed earlier in the week. April 15 through April 19 has officially been deemed the worst week of 2013 in terms of stock performance. knowing this, I feel confident that the market as a whole, has nowhere to go but up. Hopefully, earnings reports from major corporations such as Haliburton will pull others out of the mud, as international earnings, such as China's, have caused market slumps as well. I now feel good enough to purchase some new stocks, although "buy low, sell high" is not a priority as long as positive trends are noticeable.

2nd week totals:

• Agnico-Eagle Mines (AEM)- Open $32.31  Close $33.01
• Total for 50 shares: $1,650.50 ($35 gain)

• BioDelivery Sciences International Inc. (BDSI)- Open $4.80 Close $4.98
• Total for 230 shares: $1,145.40 ($41.40 gain)

• MetroPCS (PCS)- Open $11.19 Close $11.11
• Total for 51 shares: $566.61 ($4.08 loss)

• Rambus (RMBS)- Open $6.75 Close $6.06
• Total for 150 shares: $909 ($103.50 loss)

April 19 saw an overall loss of $31.18 thanks to Rambus Inc which I will sell if prices fall below current levels. If that happens, I will sell approximately half of my holds in case performance improves later on. I am also thinking of purchasing stock in the entertainment sector such as Netflix which has a $30 range between its current price and 52 week high. Monday's close will give me all the information I need.

Knowing When to Run

Apparently, three of my email trading lessons had a delayed time of reception to my Gmail account. One lesson that I wish I had received earlier is the Average Directional Index. This tool, based on computer analysis and statistics is great indicator of the end of a trend, be it positive or negative. I will refer to this lesson on more than one occasion in the future.(Link here- ADX)

Although today's stocks did relatively well in comparison to the past two days, I am still wary of purchasing before a more positive trend in the general economy arises.

Totals for April 18, 2013:

• Agnico-Eagle Mines (AEM)- Open $31.31 Close $32.31
• Total for 50 shares: $1,615.50 ($64.50 gain)

• BioDelivery Sciences International Inc. (BDSI)- Open $4.86 Close $4.80
• Total for 230 shares: $1,104 ($4.60 loss) *sell if falls below $4.50

• MetroPCS (PCS)- Open $11.05 Close $11.19
• Total for 51 shares: $570.69 (8.67 gain)

• Rambus Inc. (RMBS)- Open $6.82 Close $6.75
• Total for 150 shares: $1,012.50 ($10.50 loss)

• Treasury Bond: $2,000 

April 18th saw a total gain of $58.07. My pocket money remains unchanged at $2,898.78, but any sign of positive movement in the coming days could easily change that. For the time being, all I have to do is be patient with my current holds and sell only if I am in danger of substantial loss such as with Walter Energy. Fortune favors those who wait, but I'd like to make my money back ASAP.

Consequences of Procrastination

As seen on the "Breaking News" ticker on most televised news broadcasts today, the global economy is in a rut and the stocks are slumping as a result. Senioritis hit me a bit hard yesterday and I neglected to keep a watchful eye on my investments, many of which are now tanking and as a result, I'm losing money. This experience is negative, but positive in that I can now discuss with first-hand accounts, the dangers of passive investing, even if just one day is spent away from the charts. There's not much else to say other than I will be selling stock in my worst performer, Walter Energy (WLT) and will await economic stimulation and/or big insider moves before making another purchase.

April 17 Totals:

• Agnico-Eagle Mines (AEM)- Open $32.70 Close $31.02
• Total for 50 shares: $1551 ($69 loss) *sell if falls below $1350 total

• BioDelivery Sciences International Inc. (BDSI)- Open $4.99 Close $4.82
• Total for 230 shares: $1,108.60 ($4.60 gain since 4/15/13)

• MetroPCS (PCS)- Open $11.10 Close $11.02
• Total for 51 shares $562.02 ($1.53 loss since 4/15)

• Rambus Inc. (RMBS)- Open $7.20 Close $6.82
• Total for 150 shares: $1,023 ($49.50 loss)

• Walter Energy, Inc. (WLT)- Open $20.00 Close $18.54
• Total after selling 50 shares: $927 ($103 loss since 4/15, $259.50 loss since initial investment)

• Treasury Bond- $2,000 

• Financial Adviser cost: $200 loss

Having not paid attention to my assets for one day, the result was a $218.43 total loss in the market and changes in my pocket money from $2,171.78 to $2,898.78, accounting for the financial adviser costs and recovered money from Walter Energy. Today was largely directed toward saving some funds more so than seeking growth, and loss prevention may be the strategy for a few more days. As a whole, I have lost $400 to advisory costs and $259.50 that I won't see from Walter Energy again, but will hopefully be recovered elsewhere. 

Begin Week Two

On April 15th, 2013, the work at hand now deals less with making purchases and keeping an eye on trends. I don't want to sell a "bad" stock too soon as it may recover, but I also don't want to hold on to a bad egg long enough for it to rot in my hands. Stocks have not been doing as hot as I expected, but that is normal and I must take the good with the bad, with risk always being a factor. Both online (marketbuzz.com) and in person (mentor and relatives), I have been given advice to simply cut my losses when they become too great. I will give my stocks a small margin for error in the coming days, which, if exceeded will result in selling at a lower price than anticipated and moving on to another, better performing stock.

April 15th totals:

• Agnico-Eagle Mines (AEM)- Open $33.35 Close $32.40 Previous Close $35.65
• Total for 50 shares: $1,620 ($162.50 loss)

• BioDelivery Sciences International Inc. (BDSI)- Open $4.78 Close $4.80 Previous Close $4.82
• Total for 230 shares: $1,104 ($4.60 loss)

• MetroPCS (PCS)- Open $11.07 Close $11.05 Previous Close $11.52
• Total for 51 shares: $563.55 ($23.97 loss)

• Rambus Inc. (RMBS)- Open $6.87 Close $7.15 Previous Close $6.93
• Total for 150 shares: $1,072.50 ($33 gain)

• Walter Energy, Inc. (WLT)- Open $23.33 Close $20.60 Previous Close $24.11
• Total for 50 shares: $1,030 ($175.50 loss)

• Treasury Bond- $2,000 

The week begins dismally with total losses of approximately $333.57 coming mostly from the basic materials sector (AEM) and the energy sector (WLT). After the April 16th close, if these stocks present more bad news on the charts or internally, I will have to take the loss and hope that another moneymaker is out there. My net losses are up to approximately $438.17, but I still have $2,171.78 in possible investments and a total of $5,390.05 in market circulation, not including the $2,000 treasury bond.

1st Week End Results

Lesson five of MarketClub's email support introduced me to moving averages, which measures the number of consecutive stock prices and the average price at 4-day intervals. This average will help me to understand when prices begin moving in a consistent direction. By adding the prices of the last 4 closures and dividing by four, an average can be found; the same formula can be used over longer periods of time.

As for results and purchases, I have decided to invest in MetroPCS (PCS) as phone technologies are ever improving and contract bills are skyrocketing. According to a report done by insidermonkey.com, a proposed bid by T-Mobile to purchase the company late last year, may go through, due to and resulting in some restructuring and expanding its markets. After seeing bigger losses than expected this week, maybe buying large amounts of lower priced stock would be more beneficial for high growth with less risk, depending on the amount invested.

Week 1 Totals:

• Agnico-Eagle Mines (AEM)- Open: $37.56 Close: $35.65
• Total for 50 shares: $1,782.50 ($154.50 loss)
• Keep a watchful eye, sell if 4-day average is below initial investment

• BioDelivery Sciences International Inc. (BDSI)- Open: $4.78 Close: $4.82
• Total for 230 shares: $1,108.60 ($6.90 gain)

• MetroPCS (PCS)- Open: $11.30 Close: $11.52
• Intital investment: 51 shares at $11.52= $587.52

• Rambus Inc. (RMBS)- Open: $6.78 Close: $6.93
• Total for 150 shares: $1,039.50 ($19.50 gain)

• Walter Energy, Inc. (WLT)- Open: $25.94 Close: $24.11
• Total for 50 shares: $1205.50 ($76 loss)

• Treasury bond: $2,000

On the last day of the week of April 8th-12th, I suffered a total loss of $204.10 and purchased an additional $587.52 worth of stock, leaving me with $2,171.78 left to invest and $7,723.62 in total circulating assets. Since beginning this project, the result is currently a net loss of approximately $104.60 give or take a few cents. Hopefully the coming week treats me better.

1st Day Results, 2nd Day Purchases.

Today, I received lesson 3 from an online group, the MarketClub, which sends interested investors helpful tips on how to invest wisely. This lesson covered market gaps, which simply explained, are areas on a price chart in which no trades were made. Gaps can be positive or negative and occur most often on daily charts after the market closes. These gaps can be triggered by events such as new earnings reports which could increase or lower the value of stock before the next day's opening. For example, one of my purchased stocks, WLT, had an after hours price increase of 1.52% possibly due to recent positive news regarding one of five prospective candidates to become a member on the Board of Directors. Hopefully more good news will come before the April 25th stockholders meeting.

As for new investments, I decided to purchase in Rambus Inc. (RMBS), which issues technology licenses, as their stock has been seeing a steady increase in the days leading up to the release of their 1st quarter earnings report. Though it is currently near its 52 week high, the stock is relatively cheap and I'm confident that purchasing now will have large dividends if the report goes well. In the health sector, a pharmaceutical company known as BioDelivery Sciences International Inc. (BDSI) looks promising after opening the day with a positive gap of 13 cents per share. This gap could be the beginning of a rising trend.

Today's market shifts and totals:

• Agnico-Eagle Mines (AEM)- Open: $38.73 Close: $38.74
• Total for 50 shares: $1,937 ($4.50 gain)
• BioDelivery Sciences International Inc. (BDSI)- Open: $4.67 Close: $4.79
• Initial purchase: 230 shares
• Total investment: $1,101.70
• Rambus Inc. (RMBS)- Open: $6.35 Close: $6.80
• Initial purchase: 150 shares
• Total investment: $1,020
• Walter Energy, Inc. (WLT)- Open: $23.65 Close: $24.12 [After Hours]- $25.64
• After hours total for 50 shares: $1,282 ($95.50 gain)
• Treasury bond- $2,000

After 2 days of research and investment, I have made a total of $100 profit on my initial investments and have a sum of $7,340.70 in investment assets, with $2,759.30 left to invest. The markets look favorable.

Deciding What to Purchase... and How

Today, as I scrolled across Google finance, I found a couple of interesting tools to begin my investment experiment. First, one of the articles I was reading on a possible stock purchase of mine provided a link to marketbuzzreport.com and described it as "an investment community with a special focus on updating investors with recent news on the U.S. stock market." I have since signed up for their newsletter and alerts to enhance my ability to buy and sell appropriately by using immediate knowledge of big events and market shifts to shape my decisions. On the site there was also a newsletter to "teach" market skills which I will test for a few days and use as a tool based on pending results.

Based on week ending closures, here is a list of stocks I will purchase with my $10,000 along with the amount and reasons for doing so. I will attempt to make final calculations at the end of the list that include totals for stock price, adviser fees (which, to prevent errors, I shall use an average of $200 per hourly "visit") and the Security and Exchange Commission's $0.0042 fee per transaction. The SEC fee may be negligible until a later date as it is intended to hit heaviest in millions of dollars.

• Agnico-Eagle Mines (AEM)- Gold producer. April 5th close: $38.05 One-year low/high: $31.92/$57.35
• Gold is classified under the sector, "basic materials" and as of 2010, AEM has paid a dividend for 29 consecutive years
• With it's highest price being almost $20 more valuable than the current price and possible rise on the way, I feel confident that this is a money maker.
• Price has risen to $38.65 since the April 5th closing
• I will purchase 50 shares which will be a total investment of $1,932.50
• Walter Energy, Inc. (WLT)- Coal Producer. April 5th close: $23.67 One-year low/high: $22.72/$69.41
• Walter Energy, as indicated by it's name is in the energy sector of the market
• Really my main reason for buying this stock is the extremely low price as compared to its high on April 17 of last year.
• Several reports have been filed criticizing the investment techniques of the company's financial board, including one on businesswire.com. With such poor performance, I doubt it can get any worse, especially when investors start raising questions.
• Price has risen to $22.73 since April 5th
• Again, I will purchase 50 shares, resulting in a total of $1,186.50
• My last investment for the day, as recommended by my mentor, will be a $2,000 federal treasury bond, 20% of my total investments. This is the safest investment, guaranteeing growth, however, the pay off will come in 30 years, but the benefit is the lack of risk involved.

My total investment expenses for the day result in $5,119. After fees and commission costs, the grand total amounts to $5,319. Being my first "purchase," I will keep an eye on the daily rise or slump of each stock as well as buying or selling when necessary. For more effective strategies and tips, I will meet with my mentor, Patrick Cross.

Initial Investment

After reviewing and reconsidering my original plan for a physical project, I concluded that a lot of the work I would be doing was to be tedious and not really reflect my growth and acquired knowledge. Having discussed the course of my project with several trusted individuals, I decided that rather than creating portfolios for a number of fictional characters, it would be more beneficial to create my own hypothetical investment portfolio to learn the skills and know-how of individual investments.

To begin with, I will hypothetically inherit $10,000. Assuming I don't spend any of it, many young adults may  do otherwise, I will look for investment opportunities in a variety of domestic and international markets to hopefully turn this small fortune into accrued wealth. I will be using a guidance report given to me by my mentor the day of our first meeting in order to understand risk and the focus of my investment portfolio, which in this case is high risk with growth focus. This is determined by the amount of time I have for potential investment between today and late retirement years. It is known among investors that investing early leaves more room for risk as there will will be plenty of time to make up for losses before retirement becomes a factor.

It was made evident to me from various sources, such as econ. class, teachers, and online research that the best way to grow a portfolio is to spread the wealth across a wide spectrum of sectors such as energy, services, healthcare, etc. By making observations in trends, or rising/slumping performance in a given sector, it becomes a matter of timing and price to estimate the appropriate time to invest or sell. For example, if there are more burglaries in a certain given month than any other, I would look to purchase stock in security services while the price is low in the months leading up to that heightened average and hopefully, according to trends, more security will be purchased later on, increasing the value of my stock, now making it appropriate to sell. Of course, I would consult a financial adviser before making such decisions, so I hope to meet with my mentor in the coming weeks to seek direction for my portfolio, for which I will research at least an hour a day with trend tools as well as business, financial and everyday news sites.