Finance and Management: Stock portfolio analysis for selected companies Oracle and Sage Group Oracle Corp is a publicly traded company based in Redwood City of California. It is specialized in the production of supply chain management software as well as Oracle ERP and CRM software for developing and managing a computerised protocol for apt customer relations management. Its products are widely used in large supply chains and firms with several branches and large market share. Currently, Oracle is listed as NASDAQ-ORCL with revenue of about US$36 billion as at the beginning of Q1 2012FY (NASDAQ, 2012).
Sage on the other hand has perfected the art of developing accounting tools and software such as Sage Accpac, Sage Saleslogix, MicrOpay e-HR and PayPoint ePOS. The company is based in Newcastle and listed as SGE in the London Stock Exchange. It has a market share of about 9.3% of the global software revenue (FINData, 2012) Microsoft Corporation, Intuit Inc & SAP In accounting, Microsoft is the leading developer of Microsoft Dynamic CRM and MS-ERP. These are extensively used in enterprise resource development and management in organizations with a workforce of less than 7500 employees.
It is listed as NASDAQ-MSFT with an approximated income of about US$69.4 billion (Stock Market Watch, 2012a). Conversely, Intuit deals in taxation software for companies and individual usage. Some of its popular products include QuickBooks, proSeries and the Billing Manger. According to Maggie (2011), Intuit commands a large customer base in the US and beyond especially in the advancing field of credit cards billing and electronic taxations. Lastly, SAP is a German based company commonly known to produce the famous SAP Business Suit.
This package incorporates SAP CRM, SRM, PLM and SCM used for managing various components of customer relations, suppliers, and product-life and supply chains respectively. It is listed in the Frankfurt Stock Exchange revenue prospects of about €12.5 billion accounting for 4% of the world software revenue (Stock Market Watch, 2012b) Stock Portfolio and Comparative Analysis Stocks of MSFT performed quite poorly over the three months period leading to a cumulative net loss of $116,732.52. On the other hand, the company staggered between a highest of $31.39 and a lowest price of $23.01 resulting in an average loss of -$6.39 per share as inferred in Appendix 1. It is imperative to note that the value of Oracle stocks remained relatively stable over the investment period as ascertained by WSJ (2012).
Similarly, the stocks of Sage Group demonstrated high share value with significant volatility to changes in market forces as opposed to the stock performance of Oracle. See Appendix 2 for graphical presentation. Taking into account the overall investment trends in the third scenario, the investor closed business with a net gain of $37,124.18 over the 120 day tracking period.
It should be noted however, that with an investment capital of $750,000, MSFT stocks showed further deterioration to a closing loss of $175,100.47. Apart from the corporate capacity of each company, it evidently emerged that Intuit was the best performing of all stocks. With an investment of $1,000,000 the company closed at an average gain of $9.46 per share with doubled returns on investment amounting to $180,846.82. This consistency in Intuit’s positive performance and the stabile profitability index of Oracle stocks among the large corporation defined the criteria of selective approach implied in Best Scenario 5 as illustrated in Appendix 3.
Ideally, Excel was useful in deriving the information instantaneously with minimal chances of human error. Furthermore, it generated the analytical graphs of stock performance with comparative elements of daily trends. Other possible uses of these statistics that could have been generated using excel include NPV and internal rate of return IRR. The data could also be used to project the speculative performance of each stock in the extrapolated future. References FINData, 2012.
Sage Group Stock Performance: Charts. Retrieved February 13, 2012 from: Maggie, M. O. (2011). Intuits Profit tops Wall Street view. Retrieved February 13, 2012 from: NASDAQ, (2012). Investment: Intuit Stocks and Performance. Retrieved February 13, 2012 from: < http: //www. marketwatch. com/investing/stock/intu/charts> Stock Market Watch, (2012a). Microsoft Corporation Stocks: NASDAQ: MSFT. Retrieved February 13, 2012 from: Stock Market Watch, (2012b). New York Stock Exchange: SAP AG – NYSE. Retrieved February 13, 2012 from: , WSJ, (2012). Oracle Corp Stocks: NASDAQ: ORCL. Retrieved February 13, 2012 from: Appendix 1: Microsoft Stock Performance Appendix 2: Comparative Stock performance in the two large corporations Appendix 3: Comparative Stock Performance between Intuit and Oracle