It is essential to consider the financial stability of an organization to manage and sustain successful operations. Managing a company involves supervising employee performance and facilitating the production of goods or services. Most of the times managers and entrepreneurs fail to consider the management of stock. Stock performance determines the potential of the company in attracting investors. Therefore, high stock performance increases the company’s growth and sustainability in the industry. The previous assignment focused on the following corporations Wal-Mart, Netflix, Amazon, NUGL, and Americas Silver Company. The retail sector is competitive, and it is vital to establish the stock performance of the five companies.
Guidelines for Making Stock Decisions
The first action in making sound investment decisions is establishing goals and risks. The company can recruit financial professionals to identify the risks. Consequently, the corporation can develop business strategies and communicate the risks to the employees. The investor can diversify the stock options to avoid industry losses. Also, diversifying stocks reduces financial losses. In case the value of a stock decreases, the entrepreneur can make losses, but another asset in a different category can increase the returns. Secondly, investors should increase the savings to acquire finance in case of losses. The entrepreneurs should ensure that they save finances that can last for six months. An investor should not spend all the funds on purchasing stock to optimize profits. Investors can increase the shares after some time to avoid financial constraints. Lastly, businesspersons should not use leverage to establish a stock market plan. The use of borrowed funds in implementing the stock strategy can increase the speculations on price changes. The investors can use leverages to make decisions. Businesspersons should reduce risks to ensure they earn profits in the long-term.
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Investment Objective of Each Stock
The first investment goal is income. The income goal focuses on the increase in the portfolio. The stocks can provide the lowest yield, but they are safe. It is possible that the investor will receive the returns throughout the year. The investment can be an additional income or an option of liquidity. The stocks have a ready market because the buyers can purchase within two days. The second objective is capital growth. The purpose is to increase the rates of return due to the rise in the stock value. The investor does not expect continuous investment returns but focuses on the long-term growth of the shares.
| Stock | Objective |
| Netflix | Income and Liquidity |
| Wal-Mart | Growth Capital |
| Amazon | Growth Capital |
| NUGL Inc. | Income and Liquidity |
| Americas Silver Corp. | Income and Liquidity |
Initial and Actual Prediction after Four Weeks
The initial predictions indicate that Netflix Corporation would have the highest stock value. Wal-Mart ad NUGL Corporation could have the second highest stock price. The third company could be Amazon. Finally, the stock value for Americas Silver Corporation could be the lowest. However, the initial predictions are different from the actual stock performance.
| Stock | Rank |
| Netflix | 1 |
| Wal-Mart | 2 |
| NUGL Inc. | 2 |
| Amazon | 4 |
| Americas Silver Corporation | 5 |
The final results indicate that Amazon has the highest stock value. The second company is Netflix, and the third is Wal-Mart. NUGL Corporation is the fourth company regarding stock value. Finally, Americas Silver Company has the lowest stock value.
| Stock | Rank |
| Amazon | 1 |
| Netflix | 2 |
| Wal-Mart | 3 |
| NUGL Inc | 4 |
| Americas Silver Corporation | 5 |
Summary of the Performance of each Stock
Netflix Company
The stock value for the first day was $10, 127.70 but it increased to $ 10,195.50. The cost was highest on the final day. However, the price rose slightly on the fourth day to $ 10,173. After twelve days the stock value decreased to $ 10, 079.70 which is the lowest price in the assessment.
Reasons for the Four-week Performance
The stock value slightly increased within the four days due to a significant increase in the demand for shares. The prices reduced after twelve days because the stock demand decreased in the market. Subsequently, the stock performance increased on the final day because the number of investors increased in the industry.
Predictions for Future Performance
There is a possibility that the stock price can increase after some time. The stock value might be stable in the long-term because the shares are not volatile to the market changes.
Wal-Mart Corporation
The stock value for the company has reduced. For instance, the first value was $2,845.20, but the closing price was $ 2,815.80. The cost increased within the four days to $ 2,931.90 but decreased to $ 2,865.90 after twelve days. The stock performance of the company indicates slight variations that could be caused by external or internal factors.
Reason for the Four-Week Performance
The stock price increased due to a reduction in competition in the industry. Thus, there were few sellers as compared to the number of buyers. Alternatively, the stock price reduced due to an increase in competition in the retail sector.
Predictions for Future Performance
It is possible that the stock values of Wal-Mart Corporation might be stable. There are slight changes regarding the stocks. The investor can receive returns throughout the year.
Amazon Company
The first stock value is higher than the final price. The price has decreased from $ 49, 216.80 to $ 48, 726.90. After four days the stock value increased to $ 50, 886, but reduced to $ 49, 200. The changes indicate volatility of the company’s stock to market fluctuations.
Reason for the Four-week Performance
The change in the stock prices is due to the reduction in shares demand in the market. Therefore, the demand for stocks had increased in the first four days. The demand for the shares reduced in the last period which affected the prices.
Prediction for Future Performance
It is possible that stock prices can increase in the future, but the volatility rates might rise. The stock value can increase to $ 75, 000 for 30 shares in the next two years.
NUGL Corporation
The stock value of the company has increased from $ 4,710 to $ 6,450. The cost was highest during the third period at $ 7,080. After four days, the stock value increased to $ 5, 430. Market changes cause the fluctuation in stock prices.
Reason for the Four-week Performance
The stock prices are changing due to the fluctuations in competition. The value has been increasing due to a reduction in competition. The prices slightly decreased in the final period after the competition increased.
Prediction for Future Performance
The stock prices might increase in the future because the shares are not prone to external changes. Thus, NUGL Corporation can increase its stock value to $ 10,000 for 3000 shares in the next two years.
Americas Silver Corporation
The stock performance has increased from $ 5,040 to $ 5250. The highest stock value was on 30 th January at $ 6,660. However, the stock value was similar in the first two periods. It is an indication that the shares can gain stability in the future.
Reason for the Four-week Performance
The shares of Americas Silver Corporation vary due to the changes in competition levels. During the first two periods, the competition in the stock industry was high. Subsequently, the competition reduced in the last two periods.
Predictions for Future Performance
The stock performance might be stable in the future. The company might attain a stock value of $ 9,000 for 3,000 shares after two years.
