Our Insights

Call #6


Tonight I hosted the 5th official call on our series of conference calls.  We had 7 students on the line tonight.  From our previous call, I asked them to research an “internet of thing” stock. We decided to buy Google stock.  From that call until today, one of the students texted me several ideas on cyber security stocks that appeared very compelling.  I explained to the students that I made an executive decision for the group and bought CyberArk Software & Zscaler to compliment Google.  These two stocks had greater growth potential because they had smaller market capitalization. They captured what I considered the greatest risk in the growth of the “internet of things”:  security.

Economic activity was light for the week, so we jumped right into our stocks.  We agreed to hold all of our current long positions, but the students agreed to cover our short on Target stock.  We recorded about a $450 loss on the trade. The stock had reached $80 per share since their earnings announcement.

On our previous call, I asked students to research the best stock for a QUAD 3 economy.   The students offered three compelling ideas that focused on energy and utilities.0 BP, Valero Energy and Next-Era Energy.  We agreed to buy all three in smaller amounts for greater diversification.

For our economic indicator we reviewed Real GDP (Real gross domestic product). Real GDP is an inflation-adjusted measure that reflects the value of all goods and services produced by an economy in a given year, expressed in base-year prices.  Unlike nominal GDP, real GDP can account for changes in price level and provide a more accurate figure of economic growth.

For our next call, I asked them to find a stock that they felt would benefit the most from the growing E-Sport audience.