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Name: Tran Ly

Report Number: 2

1. Market Report:
The Fed finally decided not to raise interest rate in September. However, Fed Chair Janet
Yellen implied that an October or December hike is still an option, as the Fed still looks to raise
rate within this year. Closing this week, U.S. stocks fell but pared their steepest declines, as worries
over slowing global growth lingered. Stocks remained low following a late-August selloff, and
Feds decision to keep rates near zero affirmed investor fears that growth had hit a rough patch.
Data from jobless reports, US GDP Q2 2015 revision to 3.9%, and stumbling emerging markets
continue sending mixed signals. As the dollar continues appreciating, the real and peso
significantly depreciated. Caterpillar reported a big earnings loss, emphasize a weak outlook
amidst unstable commodity, energy, and construction market and declining global economy,
particularly demand from China. Finally, the biggest scandal of the automobile industry sends
Volkswagen stock downhill (down over 50%), as the auto maker admitted cheating on the diesel
engine emission tests.
2. Trading & Portfolio Report
2.1 Trading History & Decisions
Ticker

Name

Shares Traded

Trade

GILD

Gilead Sciences

548

Long

FPT

FPT Vietnam

2541

Long

ABBV

Abbvie

841

Long

FCX

Freeport-McMoran

2685

Long

BIDU

Baidu

189

Closed

PANW

Palo Alto Networks

396

Long

Baidu: I decided to sell because the stock is the worst performer in my portfolio for 1 month.
It will continue the plunge due to instability in Chinese market.

Gilead Sciences: General pullback in the biotech sector leads to lower prices; long term growth
due to its dominance in HIV/HCV drug markets; low P/E ratio, growing revenue. The company
listed a $10B debt offerings, despite it abundant cash flow, signaling a potential acquisition.
This is a good sign for long-term growth and positive earnings.

Palo Alto Networks: Offer network security platform, very important for todays high-tech
security landscape. The company reported earnings that beat revenue and ESP estimates. This
is a growth stock (P/E = 106x). It continues gaining market share through
partnerships/acquisitions, and innovative technology.

FPT Vietnam: My second attempt in the emerging market. FPT is a giant technology enterprise
in Vietnam. Solid revenue and growing dividends. Lower P/E (8.4x) compared to peers
(average 13.5x).

Freeport-McMoran: I followed Carl Icahn and purchased FCX, believing the stock is
undervalued. However the copper miner is still struggling with stumbling commodity prices.

Abbvie: Significantly lower P/E compared to peers (11.6x vs. 17.6x Industry average). Strong
growth in Revenue, net income, and EPS. 74% Buy/Outperform in Analysts Sentiment.

2.2 Portfolio Performance


Ticker

Name

Return

Profit & Loss

Best Stock

FB

Facebook

2.45

3,185

Worst Stock

NFLX

Netflix

-11.63

-7,993

-3.41

34,131

Overall Portfolio

2. Learning Experience:
I decided to hold onto Netflix stocks, which has performed a bit better the past two weeks.
However, I have not gotten over my loss aversion bias, and have been holding onto my losing
stocks, hoping they could go up. This leads to even worse performance of my portfolio, even
though some new stocks that I purchased such as Palo Alto is doing well. I also purchased two
biopharmaceutical stocks (Abbvie and Gilead) amidst a big sell-off in the health care sector, as the
index enters the correction period. Thats why they havent performed as well as in the summer.
However, I still believed that the two stocks that I chose are significantly undervalued compared
to their peers, and have very strong outlook for sustainable growth. I will consider investing in an
ETF or corporate bonds in the next two weeks to stabilize my portfolio.

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