hey guys,

this is my first post!!!

At the moment, I have been given an assignment to pick between two stocks to invest in. Either LLC or CPA. Note these are Aussie stocks. I am currently studying commerce/law in Australia. I have taken some appraoches such as ratio analysis and so on. I was wondering what would you do if given this question. Basically I just want to understand what other investment approaches people would do. Note I only have a time horizon of 3 months.

Thanks in advance!

 

Tell your prof. that three months is a far too short time horizon and you chose a 3-month CD instead (or Aussie equivalent).

 

With a 3 month horizon you need to pick flyers, a total crap shoot. Find a couple of small caps and bet the farm. Look for something with a sub $5 share price.

 

i cant change the facts of the assignment. from the assignment i can only choose out of these two companies over this amount of time. i would change it if i could. i might persue doing technical analysis to help me out. if anybody could help, it would be much greatly appreciated.

 

Must you choose one or else the other, or may you choose a combination of the two?

 

3 months means you need to find stocks with an immediate catalyst, not earnings or fundamentals. You need to find some undiscovered tiny stocks with some drug trials or something coming forward this quarter which could move the stock. If you pick large caps you be riding the fundies (which is fine for an investment over a longer period) and be lucky to get 2 or 3% returns. Even technical analysis won't help you much in this timeframe.

I'd pick a couple of small cap biotechs. Go over the investment websites and research ones with trials results expected soon. It will take a lot of work to read up on everything but all you are really looking for is a catalyst within your horizon. Nothing else matters than much.

I understand the constraints of your assignment but unless you're taking daytrading 101 I question the value of it.

 

Yes i have to choose one or the other. So i cant choose a combination.