Stocksare shares in the ownership of a company’s assets and earnings.With $10000, an individual can invest in any company or corporationof choice. I chose to invest in the following five corporationsbecause of the good financial performance, record of accomplishment,and dividend history (Roze & Roze 2016). Resolute EnergyCorporation deals with exploration, exploitation, and development inthe fields of oil and gas. Energy Recovery Incorporated designs,develops, and sells devices for energy upturn the gadgets transformuntapped power into reusable one. Coupa Software Incorporatedprovides cloud-based financial applications. Coeur MiningIncorporated develops mining of silver and gold, and Five9Incorporated develops cloud software for contact centers. This paperfocuses on recording a follow-up to the investments in the period ofOctober to mid-September 2016 and comparing them with other stockmarket indexes.
Duringthe tracking period, Resolute Energy Corporation acquired theFirewall Energy LLC the new wells produce an estimate of 12000barrels in a day. The acquisition agreement also includes Firewall’sinterests in the earn-out agreement with Caprock Incorporated,meaning that Resolute received 100% of all payments from Caprock (LaMonica, 2016). Production of oil in the second quarter of 2016 roseby 115%, the deal is supposed to increase the manufacture from thesecond quarter by 90%. The stock prices during the period rose from$2.97 to $26.06 in September 2016. Coupa Software recent IPO got themarket predicting a down round however, the stock opened at $35 ashare and rose to $41.61 before finishing the day at $33.28. Coeurmining stock prices fell attributing to the decline of the goldprices. Five9 Incorporated stock volatility was high and outshone theS & P 500 index. The stock prices of the investments exceeded theS&P 500 index in terms of prices and market capitalization. TheDow Jones industrial average fell by 400 points this is the biggestfall from late June 2016. Sectors in the S & P 500 were also inthe red zone, the situation attributed to the oil prices rising andthat of gold falling (Fernando 2016). In the third quarter of 2016,small-cap stocks are gaining strength, the Russell 2000 value indexis up by 12.5 %.
Insummation, I made investments in five corporations, in the period offour weeks the investments showed a rise in stock prices. Theacquisition of Resolute Energy influenced the rise in production andconsequently the good stock prices. The recent IPO by Coupa alsoinfluenced a rise in stock prices despite a downturn predicted byfinancial analysts. The investments outshone the sectors under the S& P index 500, which have been experiencing problems in therecent past. The Dow Jones and the S & P 500 experienced declinein stock prices while the Russell 2000 index for small caps gainedstrength.
Fernando,S. L. (2016). June2016, Fernando Stock Newsletter: NewYork:CreateSpace Independent Publishing Platform
LaMonica, R. P. (2016).www.cablenews network.com
Roze,N. G. and Roze, D. G. (2016).Tensile Trading: The 10 Essential Stagesof Stock Market Mastery: New York: John Wiley & Sons