Some fifth grade students are participating in the Stock Market Game. In this activity, you control an investment portfolio individually, or with a partner. Recently, all students were encouraged by Mrs. Astion to enter in the “Investwrite” competition. The main task was to write an essay about a stock, bond, or mutual fund that would benefit the community, and improve your portfolio. Students had to think about companies that impacted their daily lives. During this process, students strived for success and perfection until they accomplished their goal. Their effort paid off when the majority of their essays got accepted in the competition. These are just 3 of the many amazing essays that students persevered to write.
TESLA (TSLA) by Julian Beadell
Is Tesla a good investment for our community? I think so. I am an investor who invests in companies which will benefit other people. I chose Tesla Motor Company because I wanted to invest in a company that does not just benefit my community but the world. Tesla is developing an all electric, environmentally friendly, zero CO2 producing car that does not rely on finite natural resources. Tesla was founded in 2003 by Elon Musk, with the mission to accelerate the advance of sustainable transportation, and to bring sustainable engine development to the masses.
His first goal was to build a car that was not reliant on a non-sustainable natural resource such as fossil fuel. To do so he needed to invent a battery that would store enough energy to run a car for 240 miles. He also had to invent a way to make the car lighter. The reason why he did this was because the battery was so heavy he needed to offset the battery weight with the weight of the car body. He did this by building the car out of aluminium, a very light metal. He also used his engineering knowledge from the Space X program to incorporate other weight saving materials.
The first car he built was the Tesla Roadster in 2009, which was the most expensive model with a base price of $109,000.00. Since 2008 Tesla has sold more than 2,400 Roadsters in 31 countries, up to September 2012 when they stopped production, because the cost of making the car was too high and the profit was too low.
The second car he produced was the model S, a fully electric luxury sedan, which came into production in 2012 and has a base price of $69,900.00 and has a driving range of up to 270 miles. Total global sales passed 90,000 units by October 2015. Generating approximately $2 billion per year in gross revenue.The third car in production is the model X, a sport utility vehicle that comes standard with all-wheel drive and a 90 kWh battery providing 250 mile range. The base price is $80,000.00. The model X is the safest SUV on the market, with a five-star rating in all categories (6.5% chance of injury). The estimated delivery is in latter half of 2016.
One of his long term goals is to produce an electric distribution grid for recharging his cars. One of the benefits of owning a Tesla is free electricity from one of the many charging stations in the US. To support this, Elon Musk started Solar City (SCTY) with the mission to redesign how electricity is created. He did this by manufacturing low cost solar panels and selling or leasing them to the public. Now one can have solar panels on their home for very little up front costs and additional power can either be sold to back to the grid or stored in one of Elon Musk wall battery packs.
As far as my Stock Market Game profile my investment partners and I were trying to invest in stocks that would maximize short term return. Our game span is only seven months (September - April). When we started, Tesla stock was at $262.25 and by 11/27/2015 it is at $231.61. Looking at Tesla's financial statement I was able to find out that their costs were increasing and gross revenues are decreasing. In addition their research and development costs are increasing, with a total $667,222 between 2014-Q4 and 2015-Q3. Leading to a total net income loss of $675,895.00 for the last 52 weeks . At this point in in time it is not a good short term investment as the share price appears to include all the long term goals of the company and not where the company is today.
Tesla is a good long term investment for our community. Today most transportation is reliant on fossil fuel. We know that is not a sustainable resource. So eventually when the supply of gasoline diminishes and demand increases, the price will become so high that electric cars will become everyday transportation. In order for Tesla to become more successful as a company, it needs to develop a less expensive car. Currently, the average price of a new car is $33,543. The Tesla Model S is $69,900. In 2017 Tesla is planning on introducing a car which will have a base price of $35,000 with range of 200 miles. More people will be able to choose Tesla instead of a traditional gasoline car. It is my opinion, that Tesla is more than just a financial investment, it is an investment in our future.
Google by Lili Sprague
The stock I have selected to write about is Alphabet Inc. (Ticker: GOOG), also known as the company “Google”. Google’s trading value as of November 23, 2015 was $755.98. This is the value (amount of money) for one share of the company. The trading value determines how much money you are spending when you buy shares of a company to improve your portfolio, or to expand it. At the beginning of 2015, Google’s trading value was $524.81 per share. This shows that Google has gained over $200 since the start of the year.
Google has benefited our lives in many ways. This company produces technology. Google’s technology products and innovations provide information, entertainment, education, self-driving cars and more. Their technology facilitates access to education and communication. Google’s technology also allows people to communicate from 5 people to 5 million people. The educational component of this kind of communication is accessed by using the “Google Classroom” app. Google’s technology products have been developed over many years. They have invented not just everyday things like computers, but innovations such as delivery robots that will carry packages to your own front door. Google has shown success with their current products, but are also developing new and interesting products to that should keep them successful in the future.
Google also does a lot for the community. From 2010 to the present time, Google has invested $40 million to expand school coding programs. They have also donated technology products and resources to make access to education easier. Another example of Google contributing money towards a good cause is when they offered technology to children and adults living in Africa through the “One Laptop Per Child” program. Through this program, Google is helping to give children in Africa hope and a better future with communication and education.
I have included Google in my portfolio because this company produces technology that is used worldwide. Their technology is used for business, health, and education. Google’s technology has inspired others to invent and innovate in many new ways. Google is a unique and widely known company. Google has become so well-known, people even use the phrase “Googling” or “Google that” when searching something on the internet. Overall, Google is a worldwide company always looking to the future for possibilities held in the depth of technology.
Considering all stocks can sometimes be volatile, it might even be risky buying shares of Google, but I still think it’s worth it. If your portfolio isn’t diversified, or if you haven’t invested in the technology market, Google is a great stock in which to invest your money. This company is good for a long-term investment. As of December 7, 2015 Google has gained an estimated amount of $2,000 for my portfolio over the months I have owned it. Although Google is close to one of its highest trading values, which is currently $755.98 per share, it’s unlikely for the price to immediately plummet. The company’s value has steadily gone up over time. I think investing your money in the technology sector, or better yet, purchasing Google, is a great decision and will be good for investments and good for the global and local community.
The Stock Market Game by Tyler Sprague
One stock that I would advise investing in is Apple (AAPL). As of 4pm on 11/30/15, it’s Nasdaq real time price and trading value was 118.30. It’s 52wk range was 92.00-134.54. It’s volume is 30,586,579. Apple is currently in my Stock Market portfolio and it has been a somewhat volatile stock. It has been kind of risky since we have about 1/3 of our portfolio invested in Apple, but we are in it for the long run and we have been willing to take risks. So far it has helped us increase the value of our portfolio, and I hope it will continue to do the same. Apple was one of the first stocks our team selected. I know it is a great company that is very capable of making money. I also selected it because it is a trustworthy company and it designs really cool, fascinating and desirable electronics. Also, it is a successful forward thinking company that as of January 2015, has sold over one billion iOS devices around the world.
Apple benefits our community in many ways. Recently Apple donated $50 million to California for Stanford’s hospitals. With that money they are building a new main building and a new children’s hospital. Apple has been a very involved industry in our community and our growth in the world. This is something that ethical, community minded investors are interested in. The fact that it also makes money is a win-win and gets me one step closer to winning in the financial market.
If Apple did not exist we would be much poorer in terms of technology and communication. Sure, we would still have devices like Blackberrys and Androids, but Apple takes it to a different level. Apple has given us the ability to call faster, text easier, play a huge variety of games, and it helps you with everyday things too like the Calculator, Stopwatch, Notes & Reminders. If we did not have modern technology, we would have a lot less access to things like productivity tools, apps and global information like the weather that we have today. Apple has changed and improved so many everyday things in the world that have really strongly improved the world as a unit.
For my investing team and I , trust and believe that Apple will be a great stock and will continue making us money. Apple was incorporated on January 3, 1977. Their founder, Steve Jobs and his partners have been working very hard with improving technology from 1977 to present time today. In 2001 Apple made the iPod music player which turned out to be very successful. In 2003 they came out with the iTunes music store which gave people the ability to listen downloaded music on their phone for free. Apple’s market cap,(a market cap is the total market value of the shares outstanding of a publicly traded company; it is equal to the share price times the number of shares outstanding) is larger than Google’s and Microsoft’s market cap combined. Every time an investor decides to invest in Apple, it brings my partners and me a little closer to winning the Stock Market Game. It has been a lot of fun doing the Stock Market game and it has taught me many things that I hope never to forget. When I am older, I will put some real money into the Stock Market. When I do, I am confident that Apple will still be highly competitive and as successful as a company that they are today because I will definitely be looking for a great stock like this one.
April and May updates: