We purchased this stock in hopes that people will realize that 64bit based systems are the future of desktop computing. That didn't work out so great; most consumers do not know much about computers. As for why the price went down, I have no idea. I think this past holiday season was just dry for the computer industry in a whole. I do have to admit, my computer is a 64bit based AMD system. Caterpillar is a company which manufactures construction equipment. When purchasing this stock, we were not interested in what the company actually does, but rather the impact of other countries on the company. This past December, the value of the dollar went down. The world is in a state were other countries want to prosper and make more buildings. To make more buildings, construction equipment is needed. Other countries might find it favorable to purchase equipment from the U.S. since the dollar is down and it would be cheaper. CAT did go up, but not enough for us to have some cushion. Had we pulled out in time, we would have made a decent profit. But we got greedy. Amazon is an online products vendor.
The reason we purchased it was the same reason for the credit card companies. People just didn't want to buy online this holiday season. Yamana Gold Inc. is a gold mining company. I saw a video online (theStreet.com) in which the CEO of Yamana claims that in the year 2008, the price to produce of gold will be negative. So this company is super efficient at mining gold; something everyone wants. We were making a good profit, but it ended up going down, but not too low. This is because gold has gone down, so the company has to cover its other expenses. Basically, this stock is a one hit wonder. By the time we purchased all this stock, we were dead last in rankings. So in a final atempt to regain our lost money and status, we invested all of our money in a blue-chip company; enter Microsoft. We spent the bulk of our money on Microsoft. That was the best move we've made. Within the first couple of days, Microsoft proved its worth and pulled us about $300 richer.
Published by Ali Gadelhak
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