Profit Bulls enjoy a $5k lead in stocks contest

The team’s stock has been valued at $71,770 — $5,000 more than their nearest rival.

Chasing them is fellow Bermuda Institute team Tradewins with a portfolio worth $66,771.

Profit Bulls will be keen to retain their lead in this final month of trading in a bid to secure the $10,000 first prize.

Fifteen teams from eight of the island’s schools are taking part in this year’s contest, which sees them invest a fictional $50,000 in the stock market.

The team that makes the most money wins.

Friends

In third place is the Gekko Brokers from Mount Saint Agnes Academy, with a portfolio worth $66,220.

It is the smallest team with just two members, best friends Thomas Mahoney and Ryan Sousa, both 17.

The boys named themselves after Michael Douglas’s character in Wall Street, infamous corporate raider Gordon Gekko.

They chose a “wide variety” of stocks in different industries, primarily oil, technology, health and insurance.

But a general pharmaceutical firm has been their most shrewd investment.

They bought stocks for a low price in January then sold for twice the price.

Thomas said: “The timing was right. It was a cheap stock when we bought it for about 13 cents and it jumped up to about 30 cents, so we sold it.

“We made a lot of money from it, about $5,000.”

Ryan added: “It brought us up to third place so really helped us.”

Having just two people on the team has its advantages.

Ryan said: “It’s not a very long decision-making process. But even though there are only two of us, we still fight over things to sell.

“It’s a learning process, about how stocks can be good and bad.

“You need more of a visual than mathematical approach as everything is so unpredictable.”

Thomas added: “We’re not too concerned about where we end up, it’s more of a fun experience for us.”

At the Bermuda High School for Girls, students have learned the effect of disasters on the stock market and world economy.

The school is fielding two teams — the boys’ IB Investors and girls’ Common Cents.

Tragedies

Ryan Whiting, 16, spoke of the impact of last month’s earthquake and tsunami in Japan.

He said: “We’ve learned how tragedies can make things plummet within a few hours.

“After the situation in Japan, all of the stocks were in the red. The disaster has reduced demand for many industries.”

Ryan took part in last year’s KPMG Challenge at Somersfield Academy with teammates Nathaniel Sussman and Sean Stapley.

He said the volatile nature of world affairs in 2011 was making the stock market more unpredictable.

He added: “It’s not just Japan but there have been other events that have affected the stock market.

“It’s more unpredictable this year because we are facing so many disasters and revolts.”

Nathaniel, 16, said: “It makes you see how interconnected everything is. Even though most of our stocks are US-based, tragedies around the world can impact on US stocks.”

IB Investors take their name from the boys’ International Baccalaureate studies in sixth form.

The team, which also includes Connor Elliott, has invested about 35 per cent of its money in funds and about a fifth of the portfolio is industrial. The team is currently in 10th place.

Sean, 17, said: “We chose riskier stocks to get ahead but this strategy backfired and we dropped a few places.

Technology

“Now we’re hoping to keep our stocks and make a respectable placing.”

Rival school team Common Cents consists of Janyia Heaven, Ashlee Lambe, Janaya Caines and Britney Ferreira.

They invested in retail, consumer goods, technology, finance and minerals and are in 14th place.

Ashlee, 13, said: “Consumer and retail aren’t doing very well right now but technology and energy (Exxon Mobil) are doing a bit better.”

Tracy MacPhee, BHS lab technician, said: “The students have learned a lot, particularly how to communicate better and be democratic about what stocks they want to buy.”

Wanda Armstrong of KPMG said: “The current trading results of the teams are mixed, with eight of the 15 teams’ portfolios making gains for the trading period.

“US and international markets experienced continued positive performance for the trading period ended March 25, 2011.

“Bermuda Institute’s Profit Bulls’ success in the period, during which their portfolio increased by three per cent, was built on their devoted investments in the basic materials sector, taking advantage of the rise in the stock prices of Silver Wheaton and Frontier Gold.”