Name: Tran Ly

Report Number: 3

1. Market Report:
The stock market has had a great three-week rally as economic data on inflation signals the Feds
unlikelihood to raise interest rate this year. One of the biggest challenges that prevents the Fed
from raising rates is inflation number. U.S. consumer-price index fell a seasonally adjusted 0.2%
in September, the second straight month of overall price declines. Including food and energy,
inflation is at 0%, compared to the Feds targeted 2%. The S&P500 gained 5.2% over the last 3
weeks, punching through the 2000 level for the first time since August plunge. Last week,
earnings from big banks came out, showing weak revenue and decreasing bottom line. The toobig-to-fail banks, for example, JP Morgan, now have to consider shrinking their business in
order to avoid high capital requirements and heavy regulations. For instance, Deutsche Bank will
split its investment bank in two and let several top executives go in its large effort of
organization restructuring and overcoming legal and management issue. China today released
third-quarter growth figure, 6.9%, missed governments official target of 7%, due to a deepening
industrial rout and slumping stock market.
2. Trading & Portfolio Report
2.1 Trading History & Decisions
Ticker

Name

Shares Traded

Trade

HAL

Halliburton

759

Long

FPT

FPT Vietnam

2541

Sell

SLB

Schlumberger

399

Sell

CVS

CVS Health Corp

670

Long

UA

Under Armor

579

Long

FPT: I decided to get out of emerging market entirely and sell FPT because the stock has not
moved a lot.

I got out of Schlumberger and put money into Halliburton. Q3 earnings show Halliburton
follows Schlumberger in the same pat but outperformed on cost control, which helps it beat
expected EPS. I believe there is potential upside for energy sector, especially one that is very
well positioned in cost cutting and operating efficiency such as Halliburton.

CVS: Solid long-term investment, aggressively taking over market share in retailing
pharmaceutical industry, strong revenue growth and steady dividend.

UA: Large growth stocks with 20 straight quarters with more than 20% revenue growth,
aggressive and successful expansion internationally, and strong earnings.

2.2 Portfolio Performance

Ticker

Name

Return

Profit & Loss

Best Stock

MO

Altria Group

9.71

4852

Worst Stock

NFLX

Netflix

-11.90

-8326

-0.36

-3,670

Overall Portfolio

3. Learning Experience:
Overall my portfolio has performed a lot better over the last two weeks. Netflix released Q3
earnings, which missed estimate EPS by one penny. The result got the stock a big slam, which
makes me regret not selling it when it was doing better in the middle of the week. However,
international expansion is on track and there some potential upside for the stocks. I decided to
give Netflix more time to cover my loss. Again, my problem is uncertainty in when to sell a
stock to realize my gains. I have forgone many potential capital gains and decided to hold onto

certain stocks, expecting them to keep rising. I dont think that this is a bad strategy, because the
companies that I have picked are consistent with my investing principle: long-term, sustainable
growth company. Therefore, short-term loss should not play a critical role in determining my
time to buy and sell stocks.