Stock Market

STOCK MARKET GAME

















ÁNGEL SÁNCHEZ GARCÍA
IBEX PROGRAM 2.012
HOGESCHOOL ROTTERDAM

INDEX:

COMPETITION…………………………………3
-RULES…………….3
-MY STRATEGY………………………………………………….3
-THE MOTIVATION OF MY INVESTMENTS…………..4
-MY TRANSACTION STORY…………………………….10
CRH COMPANY………………………………….13
-IMPACT OF THE CRISIS ON THE COMPANY………………….13
-PRODUCTS……………..14-COMPETITORS, ACQUISITIONS ………..15
- ………………..15
FINANCIAL ANALISYS…………..16
- INCOME STATEMENT 31 DECEMBER 2011….16
- BALANCE SHEET……17
-STATEMENT OF CASH FLOW….18
-EPS…18
-P/E, PROFIT MARGIN, ROC, CURRENT RATIO …19
-SOLVENCY, QUICK RATIO, RISKS OF CRH….20
-CEO…22
-CONCLUSION…23
-BIBLIOGRAPHY….23
COMPETITION:
RULES:
1- We have 5 weeks to invest in the FTSE100 Index 100.000 game pounds in this website: http://www.virtualtrader.co.uk/.
2- In the first week we have to invest at least in 6 different companies.
3- At the end of the second week we have to have invested at least the 75% of our virtual money.
4- The game will end on Friday 23th of March.

MY STRATEGY:
The first week, i followed the strategy of buying shares of companies that didnot have excessive debt, which in the last 3 years are increased in value, the profitability of their dividend was higher, the EPS is positive, that the shareholders' meeting had no scandals of any kind ... but I realized that in this course and in this game, there was to speculate in shares "safe" in the long term, which had to do was speculate ups and downs of shares daily, i mean, buy at lowprices, to try to sell to high (a 2, or 3% of profit).
Therefore, from the second week, the strategy followed was bottom up, i mean, buy when the value of the share has gone down, and begins to rise.
This strategy I have kept to the end, and setting a limit order to sell each share when won around 2.5%. The result was not very good, but on Friday of last week, I had a positive balance of +2.25%,and in this last week I dropped to -0.47%.
In some occasion, i Use the Thematic investment strategy (Tullow Oil plc), because I found an article in a Spanish newspaper "El Mundo", where they said that the barrel of oil would rise by at least 7%, because producing countries oil would reduce oil production.

THE MOTIVATION OF MY INVESTMENTS:

CRH: Internacional Building Material Group.

CRHhas a Net Worth of +6.5% compared to last year.
The debt of this company is 1 third of your net worth, seeing 2,010 reduced by 8%.
Having cash on hand of more than 20% over the previous year.
The P.E.R. (Price to Earnings Ratio) in 2011 is 9%.
Considering that to value a profitable investment as we should refer to a larger time period (2-3 years), and we now have a 6 week period, I realizethese investments in reference to what the market has risen recent months, because if realizase these investments as long-term securities, would not buy CRH.
I bought on 20/02/2.012, 1,000 shares with a value of 13.55 per share = 13,580.88 with commissions.
I sold on 23/02/2.012, 1,000 shares with a value of 13.60 per share = 13,570.01 with commissions. Although I have not had any benefit, inthis case wanted to getcash to buy shares in Tesco, so I sold them at the end of the morning.
So I left a negative balance of -10.87.

InterContinental Hotels Group.
Like CRH, I rely on the progression of this company in the last 8 months, where you see an upward trend over 40%, and in the last 3 years more than 300%.Debt has decreased by more than 15% from the year 2010. The profits have increased by over 30% compared to 2,010.
I bought on 20/02/2.012, 1,300 shares with a value of 14.13 per share = 18,409.69 with commissions.
I didn´t sold this shares, so I have had a benefits of 2,04%, and 344 currency units counting...