ARCHIVES: Quarter 3 Year 2018

ECONOMIC NEWS:

NAFTA has numerous negotiations taking place between management and labor.  Major strikes in airlines and trucking have been avoided with settlements reached in multiyear contracts.  Given the rate of inflation, most agree some upward salary adjustment is needed.

 

The EU is amazingly quiet in terms of labor unrest.  Some economic writers feel the euphoria about economic growth and employment far overshadows the impact of inflation … so far. 

 

Money policy marches forward with another increase in the T-bill rate. 

 


INDUSTRY

Raw material prices, as previously reported, will increase in Q4.  The exact amount is now known: Type 1 by $.98 and Type 2 by $.35.

 

Demand for scents exploded in Q3 (seasonally speaking) as many stores sought to increase inventories for the expected burst of demand in Q4 holidays.  Q3 demand shot up 15% to 30% over Q3 of 2017.  Firms are cautioned not to use Q3 data for forecasting purposes as the increase in demand was a one time only supply chain adjustment.

 


 

CONTRACT

 

Peacock is now closed to ALL Simulation Teams. Any contracts entered this quarter and all future quarters will be deleted.

 

If your firm does not have a manufacturing plant you may negotiate with other simulation teams to purchase finished goods. You may NOT enter a contract with another simulation team without that team's confirmation of agreement to all contract details. Entering unauthorized contracts is illegal and will not be tolerated.

 

If your firm does not yet have the password for the Chat Room/Message Board forum please contact Kristi your simulation administrator for assistance.

 

*Remember that Peacock does NOT sell raw materials or plant hours. To purchase raw materials, use the "Raw Materials" decision form. These materials must be ordered one quarter in advance of using them in production. These will always be your cheapest source of raw materials.

 

To order plant hours, use the "Capacity" decision form to order stage 1 and stage 2 plant hours in the area or areas of your choice.

 


STOCKS:

 List of firms in order of net present value 

             Stock No.    NPV    Index  
                35        2.10      1   
                31        1.78      2   
                44        0.91      3   
                23        0.71      4   
                32        0.39      5   
                25        0.37      6   
                55        0.37      7   
                54        0.36      8   
                53        0.31      9   
                41        0.25     10   
                43        0.12     11   
                33        0.05     12   
                34       -0.08     13   
                52       -0.29     14   
                24       -0.32     15   
                22       -0.72     16   
                45       -1.50     17   
                21       -1.56     18   
                42       -2.75     19   
                51       -2.97     20   
 


Stock  
Number       D  a  t  e  s
        20174  20181  20182  20183 
=====  =====  =====  =====  =====  
   21    3.83   3.98   4.05   1.05 
   22    2.91   3.23   2.01   2.43 
   23    2.76   3.06   3.48   3.72 
   24    2.42   2.38   2.52   2.43 
   25    2.90   3.30   3.56   3.64 
   31    3.96   5.70   6.39   6.59 
   32    2.72   3.40   3.08   2.58 
   33    2.59   2.83   2.85   3.03 
   34    2.62   2.76   2.95   2.94 
   35    4.02   4.96   6.08   6.59 
   41    2.41   2.69   2.90   3.06 
   42    4.28   3.39   1.43   1.77 
   43    2.39   2.58   2.77   2.90 
   44    2.66   2.96   3.46   3.71 
   45    2.46   2.21   1.15   1.11 
   51    3.88   3.66   1.04   1.05 
   52    3.31   3.49   3.54   3.50 
   53    2.99   3.27   3.55   3.72 
   54    3.01   3.35   3.58   3.70 
   55    3.25   3.71   3.95   4.09 


  Mkt    3.07   3.35   3.22   3.18 
TBill  0.0200 0.0025 0.0037 0.0050 


          Stock        Shares        Closing                 
         Number        Traded         Price           Change 
         ======      ========        =======         ========
            21              0          1.05           -3.00  
            22              0          2.43            0.42  
            23              0          3.72            0.24  
            24              0          2.43           -0.09  
            25              0          3.64            0.08  
            31              0          6.59            0.20  
            32              0          2.58           -0.50  
            33              0          3.03            0.18  
            34              0          2.94           -0.01  
            35              0          6.59            0.51  
            41              0          3.06            0.16  
            42              0          1.77            0.34  
            43              0          2.90            0.13  
            44              0          3.71            0.25  
            45              0          1.11           -0.04  
            51              0          1.05            0.01  
            52              0          3.50           -0.04  
            53              0          3.72            0.17  
            54              0          3.70            0.12  
            55              0          4.09            0.14  


           Mkt              0          3.18           -0.04