Stock Investment

1

STOCK INVESTMENT

StockInvestment

Atthe close of the week, the current values of the three stocksselected were as indicated below.

Company

Current price

No. of shares

Current Value

Wholefoods

$ 31.64

238

$ 7,530.32

Walmart

$ 66.54

136

$ 9,049.44

Cisco Inc

$ 26.47

176

$ 4,658.72

Totalinvestment = $7,530.32+$9,049.44+$4,658.72=$21,238.48

Fromthe current prices of the three stocks, it is clear that totalinvestment has dropped from $24,992.92 to $21,238.48. In real terms,there is a loss of $3,754.44.

Fromthe figures above it is clear that all the three stocks performeddismally. All the stock prices dropped during the week leading to aloss. This is not a good trend because it is possible that the stockswill continue declining in future thus leading to more losses.

Cisco’sperformance could be because of the announcement of the 2015 fiscalyear results that probably was below investor’s expectations. Thiswill probably change in future depending on the strategies thecompany will be adopting to segment its new market.

Onthe other hand, the declining stock price for Whole Foods Marketcould be because of dipping world food prices. In addition, internalconstraints could also be a reason because there have been asignificant drop in shop sales in most of its stores.

TheWalmart drop is attributable to two factors. One is the fact that theprices have been on a downward spiral for most part of the year.Secondly, the company announced disappointing quarterly resultsearlier on Wednesday.

However,I hope that there will be some changes in the coming weeks asinvestors weigh in their investments.