Why Did We Buy The Stocks We Selected?
Being a fan of the music industry, our group decided to roll the die with one of the heavier music producers. We decided to choose Apple because of the recent success and popularity we have seen in the iPod as well as the new G5. We simply thought that the recent success of these two items would propel the stock in a positive direction. We chose HOT because we thought that the holiday season would bring in many travelers. Hotels would naturally have better business as more people travel across the world. Having ties to Sheraton and many other major luxury hotels we figured that HOT may have a chance to raise in value as the holiday season continues.
What Actually Did Happen To Our Stocks?
What happened to the stocks was pretty close to our predictions. AAPL gained a good amount as it went up 6.3%.
Heavy demand for the iPod during holiday season and the G5 definitely boosted the value of AAPL. As stated in our forces summary the two items managed to help AAPL in the positive direction. HOT also saw a bit of an increase as it went up 2.93%. The small gain may have been influenced by the increased demand for hotels during the Christmas season. As we know for both cases an increase of demand at the same supply level equals higher level of price.
How Right Or Wrong Were We?
We were relatively right in our predictions. AAPL was definitely rising due to the iPod because of the holiday season. HOT did not increase as much as we would have liked because the loss of the US dollar for international travel as well as its high price could have influenced the small gain. We...