Topic > Rebalancing Student-Managed Investment Fund

Question 1: The company I was assigned was Exelixis Inc. The organization is a small-cap growth company in the healthcare sector and is expected to underperform the market in the next six months with very high risk (http://www.investing.money.msn.com). Based on this stock's Value Line ratio, short-term gains are possible. Having a Technical Rating of 2, which has increased recently, Exelixis Inc. is likely to grow in the short term. However, over the long term, this stock scores mediocre, with a rating of 4 for timeliness. This rating likely has to do with the steep decline the stock took in 2000. The stock price peaked at $47.50 and dropped dramatically to around $11.00 later that year. Since then, the share price has still not approached its former levels. This lack of enhancement is likely the reason for the low technical and safety ratings. The security rating itself is 5, which means the stock is as risky as any other stock. Exelixis Inc. also has a heavily debt-weighted capital structure. The debt is probably necessary due to their poor financial position, but in ten years it would make sense to have a larger capital structure to place elsewhere. Additionally, cash flow per share has not been consistent. This likely means that Exelsis Inc. isn't using debt to grow and is instead just supporting its operating expenses. Revenue and earnings per share have also fluctuated significantly, which could potentially mean that the organization does not have an effective business strategy and/or product line. There are articles online discussing the benefits of buying Exelixis Inc. right now, considering how low a price then......half the card......locks in at a low value and you earn even more money when these securities increase in value. Having the chance to hear from Tyler, Martha, and Doug about their investing strategies and opinions was a fantastic experience. Each individual brought to the class their perspective on financial markets and how to best proceed with rebalancing the student-managed investment fund. Works Cited • David Swensen Insight. (n.d.). David Swensen Intuition. Retrieved April 15, 2014, from http://david-swensen.comPiper says it's time to buy Exelixis stock. (n.d.). Yahoo Finance. Retrieved April 15, 2014, from http://finance.yahoo.com/news/piper-says-time-buy-shares-101803604.html• Value Line: The most trusted name in investment research. (n.d.). Value Line: The most trusted name in investment research. Retrieved April 15, 2014, from http://www.valueline.com