The assumption was that Boise Cascade's heavy emphasis on paper and wood products operations were keeping down its potentially considerable stock value and potential. Hedging its bets, even after acquiring OfficeMax, Boise Cascade also invested in upgrading wood products and paper production facilities. But it admitted that "reinvesting in a market that is not growing, it is difficult to make a return on capital," in other words that such a move was not likely to happen again in the near or far future (Boise Cascade-OfficeMax deal seen as strategic repositioning, Idaho Business Review, 2003). Branding and gaining a lock on a distribution 'arm' and creating a face for the company was deemed the way to go.
Initially, despite its substantial name recognition, OfficeMax had many problems attracting shoppers, perhaps one reason it lagged behind rival Staples. "OfficeMax, an Illinois-based office supply chain, employed a warehouse style design for years: White, beige and blue color schemes; rows upon rows heaped with computer and office equipment. It was no-nonsense and professional, and according to some shoppers, uninviting and hard to navigate" (Middleton.2006). The problem was that many people would come to the store in a very functional fashion, to simply replace a printer cartridge and leave, without lingering and impulse-shopping. This consumer spending is really the bread and butter of any market retailer. In short, the functionality and lack of name recognition that plagued Boise Cascade also was true, to a lesser extent of OfficeMax as a retailer. But to be faceless to consumers for a retail company, specifically acquired for its name, was potentially deadly.
However, with the magic marketing gurus, the OfficeMax image problem proved to be quite fixable, just as Boise Cascade's acquisition rehabilitated its name for investors. In one Florida location, the new and improve OfficeMax...
("Stock Portfolio," 2011) What stocks performed the best and worst? The stocks that performed the best include: EFX, MCD, AAPL, SBUX, PETM and GMRN. The positions that were underperforming the others include: MSFT, AXP, TIF and JPM. Stocks for given portfolio were selected randomly what would you've done differently? There would have been a focus on having firms that pay higher dividends and growth. This is when the total returns in the portfolio
Microsoft Corporation 2. Toyota Motor Corp. 3. The Coca-Cola Company The data in the Table 2 reveals the Coca Cola has recorded a decline in its stock price within the last 3 months making investors to record a loss within the last three months. However, the company recorded a moderate increase in the stock returns between 1 and 5 years. Similarly, Microsoft Corporation records a decline in the stock price within the
This helps managers to make informed decisions about possible reactions based upon systematic events. (Estrada, 2002) Moreover, Brown (2010) determined that different approaches must be utilized under the CAPM model to account for risk. This is because the markets are constantly shifting and new events will take place which change the thinking of economists, analysts, fund managers and investors. To stay on top of what is happening, requires utilizing contrasting
Using a Technical analysis is equally ineffective since this analysis would not necessarily focus on the financial statements of the company, but rely on trends in the economy, price trends and overall market tendencies to predict where a particular type of stock will go. While this strategy is risk aversive in general, the point becomes moot again as the overarching quality of all stock in this economy rise and
Stock Portfolio Management Project Selected 10 companies Company Symbol purchase date purchase price Apple, Inc. APPL Industry/Sector: Technology/Personal Computer -- Investment Style: Large Growth Brocade BRCD Communications Systems Inc. Industry/Sector: Technology/Data Storage -- Investment Style: Small Growth Joy Global Inc. JOYG Industry/Sector: Farm/Const/Mach -- Investment Style: Large Growth Ctrip.com CTRP Industry/Sector: Consumer Services -- Investment Style: International Gerdau SA GGB Industry/Sector: Steal & Iron -- Investment Style: International Gol Linhas GOL Aereas Inteligentes SA Industry/Sector: Regional Airline -- Investment Style: International Green Mountain GMCR 10/21/2009 Coffee Roasters Inc. Industry/Sector: Processed Pkgd gds -- Investment Style: Small Growth Rio Tinto PLC RTP 10/21 /
Because of this, I would expect that U.S. Energy would have performed better, but that has not been the case. None of the individual holdings are overly dependent upon energy costs, such as we would see in the airline industry, so the performance of the portfolio does not seem to have been overly affected by the rise in energy prices. The proper approach to investing involves diversifying, not only across
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