Buying low, selling high
By Staff
Seventh grader wins state stock contest
Tracy B. Cieniewicz, Hartselle Enquirer
Wanda McAbee's Hartselle Junior High School gifted social studies students have once again had a successful experience in the Alabama Stock Market Simulation.
One student, seventh grader Zac Bodley, won the Alabama Northern Region division defeating junior high and high school students across area.
He named his Alabama Stock Market Simulation team of one the "Zac Attack."
"I've worked with a group in previous competitions, but I am an independent person and work well on my own," Bodley said.
After making 51 trades over the first three weeks of the 10-week competition, the Attack was hiding out in spot 109 of 118.
Two weeks later, at the midway point for Bodley's trading period, he had ascended to the second place position with a portfolio valued at $108,299.69.
By the following week, the "Zac Attack" assaulted first place and remained there or a close second throughout the remainder of the competition.
At week 10, with a portfolio value of $131,129.77, the "Zac Attack" finished off the competition and won the $200 award given to the student or group with the best-performing portfolio from the simulation.
Bodley plans to invest his winnings.
"One of my personal concepts is to buy low and sell high," Bodley said. "Sometimes it doesn't work and, of course, there's more to the process than just that."
Bodley said reading stock magazines and the book "Take Stock" helped him to make wise investment choices and to learn more about the stock market. He said he highly recommends the book to anyone who is serious about investing.
Bodley's portfolio concentrated mainly on communications and biotechnology stocks with some ventures into the retail market.
Salix Pharmaceuticals was Bodley's biggest profit. He purchased 3,500 shares of Salix that rose from 6.21 to 10.03, earning him $13,320.
His next biggest profit was on the popular clothing line Urban Outfitters.
Bodley purchased 1,250 shares at 17.81, then picked up 100 more at 23.00. He sold all 1,350 shares at 25.29, resulting in a profit of $9,504.
So what trading tips does this budding investor have for those ready to try their hand in the stock market"
"I know people here in Hartselle might not listen to me, because I'm a kid, but I would encourage potential investors to seriously consider investing in TMP Worldwide at $12 a share," Bodley said. "It has a good history, which is something investors should look for, and its profits are steadily rising."
Bodley plans to participate in the Alabama Stock Market Simulation again next winter.
The Alabama Stock Market Simulation is an educational tool provided by the Alabama Council on Economic Education.
The Stock Market Simulation (SMS) enables students to learn about the market in a firsthand experience by providing them with a hypothetical $100,000 to invest in stocks and mutual funds over the course of a 10-week period.
SMS encourage students to compare their results to the S&P 500 Index's performance over the same period. The S&P 500 is one of the most popular and accurate market indices and is considered a goal for many investment professionals.
