investment analysis stock project

Stock, Commodity and Mutual Fund Project

FNCE 360.01 Investment AnalysisLingyu Zhao

Two Stocks

Operates an online professional network worldwide. Allows members to create, manage, and share their

professional information online. The company provides premium subscription services that are

designed for general professionals to manage their professional identity, grow their networks

LinkedIn Corporation was founded in 2002 in Mountain View, California.

1. LinkedIn Corporation (LNKD)

Historical Summary and Technical Analysis

LNKD Comparative Valuations

Evaluation and Recommendation

Losing Money per share Increase competition from FB Lower unemployment may lead less active users 3 day moving average recently crossed 5 day, but it does not seem

convincing.

Recommendation: sell

2. Ford Motor Co. (F)• Ford Motor Company manufactures and distributes

automobiles worldwide. • Operates through two sectors, Automotive and Financial

Services. • The Automotive sector develops, manufactures, distributes,

and services vehicles, parts, and accessories. • The Financial Services sector offers different kinds of

automotive financing products through automotive dealers. • The company was founded in 1903 and is based in Dearborn,

Michigan.

Historical Summary and Technical Analysis

Ford Motor Co. (F) Comparative Valuations

Evaluation and Recommendation Price earnings ratio is lower than the GM. U.S. Auto sales are near historic highs (18 million annually) Dividend is about 4%. Company exposed to China, Brazil, and Europe (negative)

Recommendation: Buy

Two Futures1. Gold

• There are a few different gold contracts traded on U.S. exchanges.

• One at COMEX and two on eCBOT.

Historical Summary and Technical Analysis

Gold Summary/Recommendation Gold does not receive interests or dividends. If U.S. raises interest rates, than this makes Gold less attractive. China slowdown, hurts demand for Gold. Recent down trend.

Recommendation: Sell

Silver Future Silver is traded in dollars and cents per ounce

like gold. For example, if silver is trading at $10 per

ounce, the "big" contract has a value of $50,000 (5,000 ounces x $10 per ounce), while the mini would be $10,000 (1,000 ounces x $10 per ounce).

Historical Summary and Technical Analysis

Silver Summary/Recommendation Silver does not receive interests or dividends. If U.S. raises interest rates, than this makes Silver less attractive. China slowdown, hurts demand for Silver. Low inflation is bad for silver, it does not really perform. Recent down trend.

Recommendation: Sell

Two Mutual Funds

JPMorgan China Region A (JCHAX)

Eaton Vance Real Estate A (EAREX)

Historical Summary and Technical Analysis

JPMorgan China Region A (JCHAX)Summary/Recommendation

High annual fee of 1.85% Recently pull back with China down turn. Good long-term investment for China.

Recommendation: Hold

Historical Summary and Technical Analysis

Eaton Vance Real Estate A (EAREX) Summary/Recommendation Interest rates go up, may hurt demand. Increased consumers’ spending could be focused on house. Annual fee is about average at 1.25%.

Recommendation: Hold