Jack DorSey(co-founDer of TwITTer, Inc.)

Jack Dorsey (born November 19,1976)is widely known as a co-founder andCEO of Twitter. He grew up in St.Louis, Missouri and became interestedin computer programming in highschool. He was fascinated withdeveloping software that allowed taxidrivers, delivery people and otherservices that needed people to remainin constant, real-time communicationwith one another.

After a brief stint in College he movedto Oakland, California and at 24 yearsold started a company offering hisdispatch software through the web.This instant messaging concept wasexpanded to include friends and familywhere users could instantly post shortmessages of 140 characters or less,known as “tweets.”

Twitter became popular withcelebrities and businesses forreal-time communications and newsevents.

In addition to Twitter, Dorsey is thefounder and CEO of the mobilepayment company, Square. Hispersonal goal is to create technologythat allows people to have a better andmore immediate experience aroundthe everyday things they do in life.

Assume we have two stocks, each selling at $10per share. The first stock declines to $5 per sharewhile the other appreciates to $15 per share. Whichone would you buy today? Many investors prefer a“bargain-hunting”approach, believing thelower price stock is abetter value. However,before you purchase the$5 stock it is important todetermine why the stocklost half of its value.Possible reasonsinclude: datedtechnology, stiffercompetition, decliningprofitability ormanagement changes. Ingeneral, a declining stock price is associated withproblems or, as CNBC’s Jim Cramer would say,leading you to the “House of Pain!”

A rising stock price suggests that a company’sbusiness is improving and exceeding investorgrowth expectations. The company could havelaunched a new product, gained market share fromits competitors or adjusted its business model

which could lead to higherrevenue and earnings growth.

In our example, the $15 stock may actuallybe a cheaper stock than the

$5 stock based on thecompany’s improving longerterm prospects. A problem-plagued, lower-price stockmay never recover.

A “buy low, sell high”approach could lead to somegood bargain-hunting ideasbut usually won’t lead you tothe next Google, Facebookor Amazon type ofinvestments. A buy-high,

sell-higher approach suggests you are purchasingsolid companies with improving growth prospects.Typically, these companies seem expensive, butsecurities trading at new highs tend to be acommon characteristic of successful companies.Buying low-price stocks, especially with a decliningprice trend, is usually not a formula for success. Itis not enough to buy a stock that looks cheapwithout an expectation of higher growth prospects.

Monetta

Share: A unit of ownership in acorporation.

Stock Symbol: Letters used to identify listed companiestraded on a stock exchange e.g. AMZN (Amazon.com Inc.)

SuccessfulE n t r e p r e n e u r

i n v e s t o r s

Images are for Editorial Use Only.

Buy high, and sell higher

KnowKnowT hese!T hese!Financial Terms

CoolCoolConcept!Concept!

Hypothetical Graph

DOLLARS

EURO

POUND STERLING

FRANC

EURO

EURO

Twitter, Inc.(TWTR) hasdeclined from $31to $14 a share over thepast year. Assumingtoday’s value is $18 per

share, is Twitter a buy or sell?

What would you do?

Check Check

it out !it out !

SellBuy

NEWSLETTER | 4th Quarter 2016 | www.monetta.com

Young

Email info@monetta.com with your investmentrecommendation and reasons, for a chance towin a $10 Target gift Card.

1. Why was there thunder andlightning in the lab?

2. What did the judge say when theskunk walked into the court room?

3. What did the penny say to theother penny?

4. What did thehamburger name his daughter?

5. How do youcommunicate with a fish?

Twitter was created on aplayground in South Park, San Francisco. Co-founderJack Dorsey sent the firsttweet on March 21, 2006.

Twitter’s Bird is called“Larry,” named after theBoston Celtics legend LarryBird.

Friendstalker was one ofthe early names consideredfor Twitter.

Average number of followersper Twitter user is 208.

Katy Perry has the mostfollowers, 92.9 Million!

Every minute, 350,000Tweets are sent.

Every Tweet Americans sendis being archived by theLibrary of Congress.

Enter for a chance to win a $10 Target Gift Card Send your answers in to info@monetta.com. (Only one shareholder will win.) To enter online please visit www.kidsnewsletters.com

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Stock Price Quiz

y o u n g � i n v e s t o r s � n e w s l e t t e r � m o n e t t a . c o m

The scientists were brainstorming!

Odor in the court.

We make perfect cents.

Patty.

hello

Drop him a line!

carolyn from Lanesboro, Ma is last quarter’s

newsletter winner of the $10 Target Gift card.

1. It is easy to determine whether a certainstock price is too low or high. True or False

2.When a stock price is declining investors tend to have anegative outlook on the company’s growth prospects. True or False

3 . What looks like a high pricetoday may actually be a greatlong-term value. True or False

4. Stock prices are not affected byinvestor emotions. True or False

5.Stock tips from TV investmentprofessionals are a “must-buy”regardless of the stock price. True or False

6. A stock price trading at a new low always represents agood buying opportunity. True or False

7. Before purchasing a stock you should determine whatyou are buying and why. True or False

Determine if the following statementsare True or false? Take

Take

the Quiz!

the Quiz!

For educational purposes only, not intended as a recommendation to buy or sell a security. All logos are trademarks of their respective owners.