FINA313-03B KIWI CAP Investmen

The project began at July 24, 2003 and ended at October 2, 2003. During the last two months, our group invested up to NZ$100,000 in 12 stocks in NZ Stock Market and we did transactions frequently for the purpose of timing the market. The goals of our investment is to make profits and try to get more money than just depositing in the bank or investing in risk-free instruments, such as T-bills. Therefore, we maintain and increase the total amount of our principal through an active management approach by which we pay more attention to analysis some companies¡¯ historical charts and performances and then choose some potential shares to invest through the NZ stock market. Moreover, we bought diverse shares so as to minimize the risk. And we also considered some financial ratios, such as P/E ratio and dividend yield etc when we bought stocks. At the same time, we noticed important information that spreads in public, such as company announcement, news and policy, which will influence the share price of company. We have leant a great deal from this investment game. This virtual investment process gave us some experiences about share markets: how they work and how

On the other hand, we are concerned about the dividend. Obviously, the company from which gained the dividend in the future is preferred. Therefore, we made a decision that invested money in TEL (5.0c, 12/09/03) WAM and LPC (7.25c, 17/10/03). Moreover, after we gained dividend of 5.0c per share from TEL in 12, September 2003, we sold them.

In general, a high P/E means high projected earnings in the future. The P/E ratio actually is a reflection of the market¡¯s optimism concerning a firm¡¯s growth prospects. The P/E ratio of TEL was 26.8 when we bought it on 1 August 2003, and we bought 6000 shares of TEL again on 4 August. Lastly, we gained $550.2 NZ dollar when we sold all the share of TEL on 23 September.

In addition, some significance business activities have been done by the company influenced my investment scenario. For example, WAM purchased three small waste businesses in Australia, to establish a base for future expansion. (Waste Management NZ Ltd, 9/30/2003) We consider it is an exciting new development for this company. Therefore, in 7, August 2003, we bought WAM stocks.

Some topics in this essay:
Ltd Zealand¡¯s, DBN Shares, Stock Market, PRG Company, WAM LPC, ITC Secondly, NZ Ltd, August Lastly, Market Theory, Final Report, nz dollar, p/e ratio, september 2003, 24 september, 24 september 2003, investment game, stock market, dividend yield, share price, p/e ratio dividend, share tel, diverse shares minimize, bought diverse, bought diverse shares, ratio dividend yield,