David V: What stocks to buy for a stock game in school?
Hi, I’m doing a stock simulation game in my Economics class in high school. We have $ 100,000 to spend and we can have $ 20,000 to $ 70,000 of one stock. We can’t go under or over. I think we need at least three stocks. The stock game will last about 6-8 weeks I think and I can only have Nasdaq, AMEX, and NYSE stocks. Right now I have LEAP Wireless International (LEAP), Sony (SNE), and LAM Research Corporation (LRCX). Can you tell me if these stocks will be good for a quick growth and recommend me ones that will grow quickly?
Answers and Views:
Answer by Dave W
One that I think could go way up or way down is Atherogenics (AGIX). They will soon be announcing the results of a key clinical trial for a potential new heart disease drug. If the results are good, the drug could be a blockbuster and the stock will probably skyrocket. On the other hand, if the results are not good, the stock will probably drop like a rock. Highly risky if you’re using real money, but for a game, it might be an interesting choice.
6-8 weeks of stocks is basically a coinflipping game. There is a lot of noise in stock prices over such a short time period, and frankly this is a terrible way to teach you about investing.
If this is a game where the winner gets a prize and there’s no real risk in losing, then you should heavily bet on a single sector, sort of like you’ve done. I probably would target smaller companies, which are far more volatile, but more likely to hit a home run and win the thing.
On the other hand, if there’s an incentive not to be at the bottom (i.e. points awarded depending on how you do, not just win/lose), you might want to look at a safer portfolio.
Personally, I’m not thrilled with the short term prospects for tech, but as I said, it’s very tough to predict such a short timeframe, so your picks are probably as good as any.
Answer by jduck1979For stock ideas, I recommend checking out https://caps.fool.com
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Personally, I kinda like the look of “Bolt Technology” (BTJ)
Answer by Katherine WPersonally, I love Exxon. Be sure to include dividends when you calculate if you’ve won or not.Answer by ZORCH
CF, PCP. Don’t ask me the names of the companies or their business. That is not what it is all about. You can confuse yourself if you get into thinking about the companies. Just get the stocks. And, for the record, an Economics class is the last place I would study the stock market. Try Psychology. It is a better fit to the topic. An economist will try to tell you that the price of the stock is somehow related to the value of the company and that there is some way to determine that value. Traders know that the price of the stock is determined by the current public opinion of the value of the STOCK. And that has to do with psychology. Just an opinion.Answer by jebediabartlett
If your contest is 6 to 8 weeks, consider getting into at least one “refiner” ( the companies that turn oil into gasoline)…this is normally the time of year that gasoline prices go up…and it seems to be happening again this year….
Check TSO or FTO… two companies that have been moving up just lately
.Another angle could be AMX…Mexican phone company…took a hit during the market’s ” slide” last few weeks…it will climb back to a normal price soon ( Very different from the U.S. …there is almost no competition there..
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