stock market challenge · shipping ﬁ rm with its nameplate on the world’s largest oil tankers...

Stock Market ChallengeStudent’s Guide

Tuesday 1 March 2011

5.00 p.m. to 8.00 p.m.

St. Mary’s College

Northland Road

Derry

Thursday 3 March 2011

5.00 p.m. to 8.00 p.m.

Assembly Hall

University of Ulster

Jordanstown Campus

Monday 5 March 20125.00pm to 8.00pm MF Building Magee Campus University of Ulster

Wednesday 7 March 20125.00pm to 8.00pmSir William Whitla HallMain CampusQueen’s University Belfast

Aqualux Shipping fi rm with its nameplate on the world’s largest oil tankers and cruise liners. Founded by Italian magnate Alessandro Lozano, the family made its fortune in commercial shipping before moving into the luxury cruise market. Now based in the UK and run by the founder’s daughter Sonia.

Opening share price: £500

Bet LinkOnline betting outfi t led by industry veteran Maurice Ammon, who opened his fi rst bookmakers in Manchester in 1960. Launched the fi rst web casino and is now Europe’s largest Internet bookie. Lobbied successfully for the abolition of the 9% betting tax in the last budget.


Frozen North Yorkshire-based food producer whose recent rapid growth has made it a hostile takeover target. Cornered the frozen organic food market with pioneering “quick-freeze” technology. A move into retail could be its only defence against superstores pushing their own name brands to the front of the shelves.


KineticaGas supplier with a promising sideline in alternative energy research. The company made a foray into telecommunications in the late nineties, laying fi bre optic cables alongside gas pipelines. Run by Marianne Smith, formerly of US energy giant Vexxon and an outspoken critic of the government’s “oil-fi xated” energy policy.


NanotecComputer and telecoms software group that survived the late 90s sector bloodbath, unscathed. Good at grabbing the headlines with “gizmo-and-gimmick” technology; less successful at securing long-term shelf life. MD Lily Bonds’ acquisitions strategy worries investors looking for a period of quiet consolidation.


PlosionSports apparel manufacturer run by ex-professional golfer Mortimer Jones. Recently launched its controversial “Flesh” range of sportswear made from genetically modifi ed material. Currently based in the UK, though recent industrial disputes have made relocation to the Far East a tempting prospect.


Quantum RecordsRecord producer with a major stake in the Flick megastore chain and at the forefront of industry attempts to outlaw Internet music swapping. Chairman BB Dylan hopes to recapture Quantum’s mid-90s golden age, though some analysts blame that period’s excesses for the company’s debt hangover.


SKP AirThe UK’s largest airline, now battling to protect market share in the face of the discount operators’ aggressive tactics. The company plans to expand European and Pacifi c operations to replace lost transatlantic business. Its new chief executive is Jean Vanier, formerly head of UK rail company Velocita.


VisageHealthcare and cosmetics company, the jewel in the crown of the Yoshami empire. Lack of competition in the UK high street gave its Nip & Tuck “body enhancement” chain a fl ying start. Run by Californian ex-fashion guru Jinty Flint, its strategy is to “bring the body beautiful to Britain”.


US dollarA decade of sustained US growth has kept the dollar in pole position in the markets. But with dark clouds gathering on the US economic horizon, some analysts believe the only way is down for the greenback. A solid long-term prospect, though it could be in for a rough ride if the rumbling trade war with Europe erupts.

Opening rate £1 = $1.50

Trading information*Tools of the trade

The object of Stock Market Challenge is to maximise your team’s portfolio value by buying and selling shares in nine companies and by trading in the dollar.

With £15,000 to invest, your team will battle it out on the trading fl oor against other teams, all seeking to steer a profi table course through a week of unpredictable, fast-moving world events.

The game runs over fi ve days, a Monday to Friday in the life of a market, with each day lasting around fi fteen minutes.

Your team is made up of fi ve players: a fi nance manager, investment analyst, news analyst, fl oor trader (buyer) and fl oor trader (seller).

The winning team will be the one with the highest total value of shares, dollars and cash at the close of trading.

You will be trading in the listed companies and in the dollar at the prices displayed on screen. Buying and selling takes place at the central trading pit.

Company shares are bought and sold in certifi cates of 1,000, which is the price quoted on screen. The dollar is bought and sold at its sterling exchange rate.

When you buy dollars, we will multiply the amount of sterling you have by the exchange rate and give you this amount in dollars. This amount will be written on a bill of exchange that can be converted back into sterling at any time. When you sell dollars, you will be given pounds in return for your bill of exchange at the current rate.

Throughout the game, you will receive information affecting the companies’ and dollar’s performance and price. Your decisions about which investments to make will be based largely on this information.

The information will come from:

A daily fi nancial newspaper•

TV news bulletins •

Radio news bulletins •

News fl ashes•

Playing the game

Buying and selling

News and information

*Company stocks are quoted and traded in certifi cates of 1,000 shares.



































News fl ashes•

Playing the game

Buying and selling





































News fl ashes•

Playing the game

Buying and selling



Sterling’s top tips

1. Decide what you are going to buy and sell before the beginning of each day.

2. Pay careful attention to the news bulletins and keep the rest of your team informed of the latest developments.

3. Buying and selling frequently is the key to doing well in the game: don’t sit on your portfolio.

4. Make sure your team isn’t holding too much cash. It won’t increase in value sitting on your table.

5. Make a note of the price at which you bought your shares or dollars. Then you will know when is the right time to sell to maximise profi ts.

6. Keep investing right to the end of the trading week. Portfolios can make signifi cant gains in the fi nal few trades of Friday afternoon.

One man with a wealth of trading experience is the maverick of the markets, Max Sterling, chief analyst at Braddock & Booth. Here he gives his expert view of the stocks on offer.

With Nanotec technology, I get market updates and the latest football results relayed to my mobile phone. If the company can turn novelty value into asset value, it’ll be worth plugging into any portfolio. If you prefer greenbacks to gizmos, then take refuge in the US dollar. After a decade of world domination, the currency looks secure despite the looming trade war with Europe.

If your fi nances won’t stretch to luxury cruises, then wave from the quayside with Aqualux tucked into your portfolio. The Lozano family’s Midas touch should guarantee success at the luxury end of the market. If you prefer to travel by air, SKP could be worth a return ticket, especially if it can fend off upstart no-frills operator GoEasy.

Somebody must be eating those frozen ready meals – just take a look at Frozen North’s profi ts! The food might not be to your liking, but the share price looks appetising. And if music is the food of love, then play on Quantum Records, spinning its way up the FTSE100 with high-quality A&R, backed by astute marketing.

Bet Link, the online bookies, is a short-odds wager, providing the perfect opportunity to profi t from other people’s risk-taking. If it’s the risk to the environment that keeps you awake at night, then back energy supplier Kinetica. Its ‘cleaner doesn’t have to be costlier’ mantra is beginning to hit home.

The sportswear industry is booming, as Plosion’s strong results last year indicate, and its share price suits me much better than its skin-tight clothing! Vanity will always be a sound investment and body beautiful experts Visage will give any portfolio a facelift. After twenty years in the City and three recessions I could certainly do with a week in one of its growing number of luxury health spas.

Market View - Tools of the Trade

stock market challenge · shipping ﬁ rm with its nameplate on the world’s largest oil tankers...

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