By: Max Scardetta
Contributing Writer
Trading Activity
Buy:
Trinity Industries (TRN)
Trinity Industries, Inc. is a diversified industrial company that owns market-leading businesses which provide products and services to the energy, transportation, chemical and construction sectors. Headquartered in Dallas, Texas, Trinity utilizes its plants in Mexico and southern United States for its manufactured parts and other components, which are primarily focused in North America. Trinity remains at the top, delivering more than 14,000 cars-to-date, while the next closest competitor only delivers 4,750. This is important, because the shale-oil revolution in North America creates huge demand for companies necessary for transportation. Demand for rail cars, parts and other services are then provided by Trinity. In addition, the improved North American economy has led to a higher demand for rail cars as a means of transportation. With the 4.2% increase in GDP seen last quarter by the U.S., as well as a relatively healthy second half expected, analysts are optimistic about an increase in rail shipping.
Long Fund: $272,911
Energy Fund: $259,000
Market Movers of the Week
Gainers
Apple Inc. (AAPL) 1.7%
iShares TIPS Bond ETF (TIP) 0.3%
SPDR Bond ETF (BWZ) 0.1%
iShares Treasury Bond ETF (SHY) 0.1%
Losers
Yahoo! Inc. (YHOO) -4.6%
Enterprise Product Partners (EPD) -3.7%
Ford (F) -2.9%
Phillips 66 (PSX) -2.9%
Market Highlights
On September 19th 2014, Alibaba went public and became the largest initial public offering at $25 billion. They only became the largest IPO in history after bankers released additional shares; this is commonly referred to as the “green shoe.” This allowed bankers to sell more shares of the company in order to meet high investor demand. Without this, Alibaba would have only had a $21.8 billion IPO; however 48 million more shares were issued helping them surpass Agricultural Bank of China’s $22.1 billion IPO. Alibaba priced its IPO at $68 per share to become the largest U.S. offering ever. Once trading started, its shares opened 36% higher than the offering price at $92.70 and ended at $93.89. After trading concluded on Friday, Alibaba’s market value was $231.4 billion.
SIMM meets every Monday and Wednesday from 4-5:15 p.m. in the Financial Services Lab (Swan 101). Any major and all experience levels are welcome. Researching companies and presenting recommendations help you develop personal investing skills provide education that can’t be found in any other class. If you are interested feel free to contact Steve Zimmer at zimmersm11@bonaventure.edu
