Investment Assignment Report Essay Example | Topics and Well Written Essays - 2500 words

Investment Assignment Report - Essay Example There are a set of rule governing how trades and investors choose the varying available security options in the stock market. Our strategy is exemplified in this paper because of the decision to apply the gainer part. For the momentum strategy, my choice was Voltari Corp. Applying the first trading principle, â€Å"avoid dealing in stocks reporting above or within the 52 week high†, the decision to invest in APC indicates that this trading principle was correctly followed. Purchasing stocks of Voltari Corp. in its 52-week high stood at $3.60. The second trading principle-choose stocks recording a minimum of 1,000,000 shares in the daily trade volumes, in addition to avoiding stocks recording daily volumes of trade below 100,000 shares-the decision to buy Voltari Corp. stocks comply with the second trading principle. Voltari Corp. stocks recorded 3 million shares in its average 3-month trading volume. The third trading principle illustrates the need to avoid mid-and-cap stocks (stocks recording values less than $5 billion). This principle does not conform well to Voltari Corp.; its stock falls in small-cap stock category with $16.91 million in market capitalization value. Finally, the fourt h trading principle indicates that an individual should choose stocks signified by analysts opinions rated closer to or above one (1). This is an indication of better performance in the future compared to opinions that are above or within the range of Five (5). The fourth rules also states that stocks recording negative trends or without significant changes in weekly consensus figures also need to be avoided. The â€Å"snapshot† tool available in Market Watch do not show the average recommendation from the analysts for Voltari Corp. generally, most stocks in the financial market have an average recommendation of ‘buy’. Consequently, the trend is projected to move towards the lower facet of the statistical ranking, with twenty-three