Parkman Picks: April 2016 Analysis

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For the month of April in 2016, the editors of the Parkman Post put together a short list of stocks we believed were bullish. Here we will analyze their performance during the month, and leave notes about their potential future performance. Just because we have taken them off the list for the next month does not mean our position on them changes, as we will explain as well.

 

SUNEQ – SunEdison Inc

April 1 – 0.43

April 29 – 0.24

Max – April 14 – 0.75

Monthly Change: -44%

SUNE graph pre-bankruptcy.

SUNE graph pre-bankruptcy.

SUNEQ was not called SUNEQ at the start of April. SUNE was a rollercoaster of a stock for the first half of April, reaching a max of 0.75 and gaining a reputation as a penny stock where one could double their profit in a day. But they filed bankruptcy on April 21, launching them downwards, and leaving absolutely no potential. While we were right to identify SUNE as a stock that had potential, we failed to see that there was no long term future in the stock, and all it was ultimately was a day trader’s toy for a few months.

 

EBAY – eBay Inc

April 1 – 24.37

April 29 – 24.43

Max – April 27 – 26.21

Monthly Change: +0.2%

ebaygraph

EBAY had a mostly flat month, with three notable peaks where profit could have been made. It was mostly in the 23-25 range. It was a fine stock to be holding during the month of April, and still remains a strong stock to hold given its direction and proven consistency.

 

GLOB – Globant S.A.

April 1 – 30.68

April 29 – 35.49

Max – April 22 – 35.91

Monthly Change: +15.67%

globgraph

GLOB had a great month. It was upgraded by many analysts and showed steady upwards growth. It was likely also propelled up by expectations of a positive earnings, which were confirmed on May 9. It had a particularly high day of volume on April 22, where it rose to its monthly max of 35.91.

 

XOM – Exxon Mobil Corporation

April 1 – 82.40

April 29 – 88.49

Max – April 29 – 89.78

Monthly Change: +7.39%

xomgraph

XOM had a good month, topped off with a very strong earnings on April 29 that gave it a cherry on top. Oil mostly performed well during the month of April, rebounding from an awful start to the year, so it is no surprised that XOM was bound to start climbing again. With renewable energy companies like SUNE crashing hard, investors are bound to put their confidence in oil to stay as a safe investment, and it shows with a 7% increase for Exxon.

 

LULU – Lululemon Athletica Inc

April 1 – 66.97

April 29 – 65.55

Max – April 2 – 69.73

Monthly Change: -2.12%

lulugraph

LULU had an up and down month. It is a stock that was, for a long time, plagued with poor management and a business model that uses high prices and a brand name to sell. The issue Lululemon has is that its competitors, namely UA (Under Armor) and NKE (Nike) are selling cheaper forms of their athletic wear, and more of it. Still, Lululemon has been reporting steady revenue gains and strong sales. We initially picked LULU because it held a unique niche in the market and certainly outperformed its competitors in its share of the athletic wear market, but its competitors are starting to catch up and LULU just is not moving fast enough.

 

VZ – Verizon Communications Inc.

April 1 – 53.32

April 29 – 50.94

Max – April 5-  54.49

Monthly Change: -4.46%

vzgraph

VZ saw two drops in their stock. One was on April 7, and was caused by a rumor of Verizon’s potential bidding for Yahoo. Perhaps many investors saw this potential move as a bad idea, and decided to back out, or perhaps because the rumors did not amount to anything. Their second, larger drop came on the 21st, where their earnings were mixed. Their profits did not go down, but they did not exactly go up either. The month was mostly flat, though, because the Yahoo bid never resulted in anything. A three dollar change is mostly negligible, but is still a decrease nonetheless. VZ remains a safe to hold stock.

About the author

Harry Kuperstein is 17 years old, hails from Southborough, MA and is a VI Former at St. Mark's School. He will be attending Johns Hopkins University as a member of the Class of 2021, majoring in Neuroscience. He is a captain of the school's boys JV soccer team and robotics team. He is interested in investment strategies, and all things science and writing. Unsure of the future, but motivated and driven, he aims for nothing but success, whatever “success” means.

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