Question

Discuss how Covid-19 pandemic impacted your portfolio-stocks you have monitored since the beginning of the semester and what adjustments you would make in your portfolio going forward? Based on multiple analysis can you identify one stock that seems to be undervalued? why

Answer 1

The Covid-19 pandemic began in the Wuhan province of China in December 2019, has already affected 206 countries, infected more than 980000 and we also lost many lives due to this virus outbreak. And ofcourse this outbreak leads to an economic crash and financial crisis. When we analysing the financial market we can understand this thing. All the shares are going down and the value of shares are delcined very much. Now nobody is willing to make transaction on them because it shows very low value and it can be only sell. This will adversely affect our global economy as a whole.

We can see that how much a stock price is reduced in these days. Every shares graph gone declined after this virus outbreak and when we made analysis of shares actually all the shares are undervalued. Because these are some external and accidental factors which we can not predict earlier. So when we are using different model to value the company may be using dividend discount model, discounted cash flow model, comparable company analysis etc we can see that the shares got undervalued. Because we cant predict how much time it will take to control this virus. Currently the market is facing a crash and all financial performance and transaction goes down. For adjusting our portfolio we needs to buy and sell our share and always try to new portfolio by proper analysis. But at this point of time this wont work more accurately. But we can use this moment to buy some shares at lower price and in the future we can sell it when the price is higher. For that ae should make a valuation on the share and hold the share until we get that value. It will helps to make some positive growth.

ThankYou...