Virtual stock exchange presentation - Essay Example

The key to selling short in any way, shape, or form is to know when to buy into the market. In order to design and implement a strategy at the beginning of the semester, what will had to be taken into account was doing charting of what the market would look like in the semester ahead. Imagining we were able to tell the future, we could plot out when would be the best time to buy property based on the fact if the market was running high or low. If the market was running especially low, it would probably be a good time to buy in.

One wants to buy in for a period of 18 months where it is mostly going to be seen as being low. This increases the chances that we, as the investor, would most likely be able to pick up a lot of properties using the $10,000,000-dollar cushion. It’s very possible that one will buy in at the right moment. After all, in this case the right moment has already practically been delineated for us. So, let us say that perhaps one buys in at the right moment. The next step is to amass as much property as possible while the values are still low.

The same principle which holds true for selling stock on the stock market also holds true for real estate. Buy low, sell high. Now, the reason that companies not doing so well is good for other types of businesses is simple. When stock values are low, it is a good time to buy into those stocks because when stock prices rise, they will be worth more in value. Similarly, if one buys a lot of properties, but perhaps let us say that they are not particularly worth much at the time they are bought—it is untowardly possible, albeit untowardly, that the properties bought may escalate in value.

When and if that happens, the investor seeks to make a profit. While values are low in stocks and in real estate, this is the investor’s dream. According to the article “Short Selling Stocks” (2010), “[One] can buy stocks and real estate relatively cheaply, since many people are in a bad state of affairs financially, [and] will later reap the financial rewards of having taken advantage of the low prices. Investors will short stocks when [prices decline]” (pp. 1). One of the stocks which I should have made more money on was DreamWorks Animation.

But, since I bought into the stock when it was at a high point, I made a mistake. According to Garcia (2011), “While the animated feature [“How To Train Your Dragon”] did capture the number one box office spot, ticket sales were below projections negatively impacting stock value”…making [DreamWorks] lose about 9.2% of its stock value (pghs. 1, 4). Now, in the stock market, many times you may have heard buy low, sell high. So buying too high was my first mistake. Hopefully DWA stock will go up with the advent of the new Kung Fu Panda movie.

I chose certain stocks for a reason at the beginning of the semester. My main four choices were DWA and NPSP (a pharmaceutical company), along with NFLX and HQP. I thought DreamWorks Animation would naturally do well because of its many hits at the movie box offices, and I thought the pharmaceutical company NPSP—NPS Pharmaceuticals—would do really well because of the fact that prescription drugs cost so much and are making these pharmaceutical companies millions. NFLX is Netflix, the company that has a mail-in DVD movie system, which I thought might be wildly popular due to the slow and timely death of Blockbuster.

Health Quality Partners, or HQP, was a stock I thought would do well due to the