First submission
Date 26/10/2009 | Table 1 | | | Company | Shares bought | Share Price | Change | 3i Group | 2000 | £2.95 | £5,900.00 | BP | 2000 | £5.65 | £11,300.00 | Prudential | 4000 | £6.33 | £25,320.00 | Sainsbury’s | 2000 | £3.39 | £6,780.00 | | | | | TOTAL | | | £49,300.00 | CASH HELD | | | £50,700.00 | | | | | Original amount | | | £100,000.00 | Profit/Loss | | | 0 |
I will undertake an analysis of 3i Group. I have already invested £5,900.00 and have bought 2000 shares at the share price of £3.39. I will be watching my shares closely so that I can make a choice to sell, buy or hold my shares
3i Group
Established in the 1945, is one of the UK 's biggest investors in private companies, it says its strategy is to go for early stage growth companies rather than the financial wizardry favoured by by other ventured capitalists. It has been a big investor in technology companies in the past.
The reason why I chose this company is because I followed the advice given to me in lecture to not pick companies that I am familiar with.
This chart shows the behaviour of the share price over 6 months.
I will undertake an analysis of BP. I have already invested £11,300 at a share price of £5.65. The Beta for this company 0.89 which is less than 1. This means that the security will be less so I may not make a profit on my return so there is a bit of a risk.
BP
Oil giant BP moved into the bracket of oil companies in the late nineties, with the acquisition of US concerns Amoco and Atlantic Richfield. More geared to oil production and exploration than its main rivals. BP has moved into the former Soviet Union to secure future production as its current key asset in the North Sea and Alaska wind down.
The reason why I chose this company was because petrol prices have been going up, at one stage the price for a litre was less than £1. So I am