Online shopping has hit fever pitch in the United States. Some shop online for fear of going out and the dangers malls, department stores and outlet malls present. Others shop online for the comfort of having items conveniently delivered to your doorstep. Needless to say millions of people did their Christmas shopping online or from their phones this year and Amazon.com's bottom line is showing it.
Over the years, Amazon.com has built relationship with its suppliers, whether they be individuals or companies looking to sell inventory online using Amazon's platform. Everything from books, to electronics, jewelry and clothing, Amazon has it. This Christmas season Amazon added 3 million people to their Amazon Prime 2-Day delivery service and with this type of influx of users, Amazon put a strain on sales for big box corporations like Wal-Mart and Best Buy.
Company Snapshot (Yahoo! Finance Data)
Name: Amazon.com Inc. (as of close of business 12/30/2015)
Ticker: AMZN
Current Price: $689.07
52 Week High Price:$696.44
52 Week Low Price: $285.25
Market Capitalization: $325.3B (Large Capital)
Price/Earnings (P/E Ratio): 979.46
Earnings/Share (EPS): $0.69
Dividend: No Dividend Paid
Industry: E-Commerce
Primary Business: Internet & Catalog Retailer
The Good
Amazon.com has become a centralized place for people to do business to buy and sell a tremendous variety of things. Suppliers are using Amazon's marketplace to sell their products and pay Amazon a portion of profits for platform use. Amazon also has it's own inventory of products that it sells generating even more profits. For example, the Kindle Fire tablet is one of Amazon's most popular products that brings Amazon in to competition with heavy hitters in personal electronics like Apple and Samsung.
Amazon also spun off it's web service as a basis for companies to expand their cloud computing capabilities. Its a free service that you can use, so small business owners check it out especially if you're looking to maintain a database of customers or maintain inventory. Amazon Web Service is the best cloud platform available right now and generates a lot of traffic through its sites. This makes it appealing to companies looking for low cost options for cloud computing, making Amazon a competitor to the likes of Salesforce and Microsoft in cloud services.
Lastly Amazon is building out its own fleet of delivery trucks, planes and have plans to user drones to deliver your items directly to your front door. With this type of capability, they have catapulted to the top spot for online retail. And with the addition of Sunday delivery, Amazon is staking its claim to be on top for a long time.
The Bad
The only issue I can foresee is Amazon becoming competitive with various companies in such a way that some companies stop supplying them with items to sell on the Marketplace. Amazon becomes competition for small companies because they begin to produce the same products, but offer lower prices because they have economies of scale on their side to buy in bulk and sell at a lower price with smaller profit margins. This would change the amount of money that Amazon gets from providing the Marketplace.
The Ugly
The ugly part of why people are shopping online so much in part is out of fear of going to malls or stores. People get in fights and some killed over items in the store on sale when inventory runs low. This senseless chaos paralyzes people and confines them to their homes. In a time when we should be at peace and have joy in our hearts because this time many years ago God sent His Son to be an example of how to love each other, we are so very much at war. My prayer for 2016 is for peace and love for all mankind. Hope you have an amazing start of the New Year.
Til 2016 folks...
Showing posts with label Company Review Thursday. Show all posts
Showing posts with label Company Review Thursday. Show all posts
Thursday, December 31, 2015
Thursday, December 17, 2015
Company Review Thursday: Dow Chemical
Last week my dad made the request that I do a review of Dow Chemical. At first glance, Dow seems like a boring option, but they have made a few headlines recently so investigation was actually entertaining. Founded in 1917, Dow Company is one of the longest standing companies in the United States. Dow has successfully operated its business in 5 different segments including agricultural sciences, consumer solutions, infrastructure solutions, performance materials/chemicals and performance plastics. They service a wide range of industries like construction, oil/gas production, pharmaceuticals and automobile part manufacturers. Here is the current company snapshot:
Company Snapshot (Yahoo! Finance Data)
Name: The Dow Chemical Company(as of close of business 12/16/2015)
Ticker: DOW
Current Price: $50.72
52 Week High Price:$57.10
52 Week Low Price: $35.11
Market Capitalization: $58.76B (Large Capital)
Price/Earnings (P/E Ratio): 13.03
Earnings/Share (EPS): $3.89
Dividend: 1.84/year
Industry: Chemicals
Primary Business: Raw Materials Manufacturer and Supplier
The Good
First, let's talk about the dividend. With the high yield dividend of $0.46/quarter, Dow Chemical is probably one of the most consistent income generating stocks available at such a reasonable price. They also boast 635 US patents in 2014, which creates a tremendous climate to have competitive advantage especially in the chemicals industry where customizing materials is key.
Key Note: Patents give companies a way to protect their processes and products so that no one can duplicate what they are doing. Looking at the number of patents a company has can be useful to identify industry first movers/leaders.
Another interesting thing about Dow is the fact they are very aware of how their products impact the environment. They have 2025 Sustainability Goals of which Valuing Nature is the 4th (see news article). Although I wouldn't say I'm super passionate about the environment, I do know God gave us this earth to take care of and any initiative by a company to keep the environment safe for future generations, I'm here for it.
Lastly, Dow Chemical has recently announced a merger with the current competitor, DuPont Chemical, which itself has a pretty healthy balance sheet. The companies combined would have a $130 billion valuation and so much potential to gain a competitive advantage over other chemicals corporations. As a merged company, DowDuPont would dominate in the agriculture, specialty products and material science segments in 2016.
Because I care so much about dividends it's important to note that DuPont currently has a pretty hefty shareholder payout of $0.38/quarter. So combine that with a $0.46/quarter from Dow, can you say kah-ching, kah-ching, hotline bling?
The Bad
The Chemicals industry in general is not a segment that brings in significant year-over-year growth in sales and revenue. Dow Chemical hasn't had a tremendous increase of net income over the last 5 years and the stock price has steadily been within the $35-$60 over the same period. Similarly, DuPont's bottom line and stock price has seen similar consistency. Upon merge completion, I expect the larger research and development team will have more means to innovate and address global problems we are facing especially global warming.
The Ugly
Dow has been pretty active in getting patents approved, but that's not all they have been dealing with recently. Although they don't have any active lawsuits on the table, they did make a settlement back in February with a former employee who uncovered some spending issues and shortly there after got fired. Talk about whistle-blower woes.
If you're looking for a blue chip company to anchor your portfolio, look no further than Dow Chemical. They are really ramping up to make waves in the next 3 years with the initial merger planned for completion late 2016 and then a split 3 ways in late 2017/early 2018.
Until next post...and shoutout to R.M.J. for the company suggestion!!
Company Snapshot (Yahoo! Finance Data)
Name: The Dow Chemical Company(as of close of business 12/16/2015)
Ticker: DOW
Current Price: $50.72
52 Week High Price:$57.10
52 Week Low Price: $35.11
Market Capitalization: $58.76B (Large Capital)
Price/Earnings (P/E Ratio): 13.03
Earnings/Share (EPS): $3.89
Dividend: 1.84/year
Industry: Chemicals
Primary Business: Raw Materials Manufacturer and Supplier
The Good
First, let's talk about the dividend. With the high yield dividend of $0.46/quarter, Dow Chemical is probably one of the most consistent income generating stocks available at such a reasonable price. They also boast 635 US patents in 2014, which creates a tremendous climate to have competitive advantage especially in the chemicals industry where customizing materials is key.
Key Note: Patents give companies a way to protect their processes and products so that no one can duplicate what they are doing. Looking at the number of patents a company has can be useful to identify industry first movers/leaders.
Another interesting thing about Dow is the fact they are very aware of how their products impact the environment. They have 2025 Sustainability Goals of which Valuing Nature is the 4th (see news article). Although I wouldn't say I'm super passionate about the environment, I do know God gave us this earth to take care of and any initiative by a company to keep the environment safe for future generations, I'm here for it.
Lastly, Dow Chemical has recently announced a merger with the current competitor, DuPont Chemical, which itself has a pretty healthy balance sheet. The companies combined would have a $130 billion valuation and so much potential to gain a competitive advantage over other chemicals corporations. As a merged company, DowDuPont would dominate in the agriculture, specialty products and material science segments in 2016.
Because I care so much about dividends it's important to note that DuPont currently has a pretty hefty shareholder payout of $0.38/quarter. So combine that with a $0.46/quarter from Dow, can you say kah-ching, kah-ching, hotline bling?
The Bad
The Chemicals industry in general is not a segment that brings in significant year-over-year growth in sales and revenue. Dow Chemical hasn't had a tremendous increase of net income over the last 5 years and the stock price has steadily been within the $35-$60 over the same period. Similarly, DuPont's bottom line and stock price has seen similar consistency. Upon merge completion, I expect the larger research and development team will have more means to innovate and address global problems we are facing especially global warming.
The Ugly
Dow has been pretty active in getting patents approved, but that's not all they have been dealing with recently. Although they don't have any active lawsuits on the table, they did make a settlement back in February with a former employee who uncovered some spending issues and shortly there after got fired. Talk about whistle-blower woes.
If you're looking for a blue chip company to anchor your portfolio, look no further than Dow Chemical. They are really ramping up to make waves in the next 3 years with the initial merger planned for completion late 2016 and then a split 3 ways in late 2017/early 2018.
Until next post...and shoutout to R.M.J. for the company suggestion!!
Thursday, December 10, 2015
Company Review Thursday: Netflix
There was a time when a Blockbuster membership card was worth its weight in gold. As a preteen, I used my parent's Blockbuster card to rent VHS movies and PlayStation games and buy truck loads of popcorn and candy. But 'when I was a child, I spoke like a child and thought like a child' and now that I've grown up, I've traded in that Blockbuster card for a Netflix subscription.
R.I.P. Blockbuster
At the turn of the century, DVD's took over the media distribution industry. Then there was Blu-Ray. And then there was Netflix. The strategy behind Netflix made it so easy for people to have access to thousands of shows and movies without actually having to purchase the movies and spend hundreds of dollars on the actual DVD or Blu-Ray discs a year. Plus once you have all those movies, how often is it that you watch them? Maybe once or twice, unless you're someone who watches the Friday trilogy every Friday for good measure. And what about those times you binge watch Glee because you never really dedicate yourself to watching the season as it came on primetime TV? You NEED to have access anytime, anyplace. And from this need Netflix was born.
Company Snapshot (Yahoo! Finance Data)
Name: Netflix, Inc.(as of close of business 12/9/2015)
Ticker: NFLX
Current Price: $124.20
52 Week High Price:$133.27
52 Week Low Price: $45.08
Market Capitalization: $53.08B (Large Capital)
Price/Earnings (P/E Ratio): 330.32
Earnings/Share (EPS): $0.38
Dividend: No Dividend Paid
Industry: Internet & Catalog Retail
Primary Business: Internet Television Network Provider
The Good
Netflix has ruled the internet with exclusive shows like "Orange Is the New Black" and "House of Cards". Devoted watchers can not stop watching and the awards keep piling up for these shows. With exclusive rights to OITNB and HOC, new content in the works, and growth into international markets, Netflix is in the driver's seat in the internet video streaming world.
Netflix also has tremendous use of its technology and they use it primarily to create better experiences for their customers. They monitor how long customers watch videos, when they rewind/fast forward, and track the kinds of movies and shows customers watch. Having this type of data collected gives Netflix a competitive advantage in the customer experience category over other video streaming services with less subscribers.
As they provide customized services to customers, Netflix is also looking to create international movie industry partnerships in order to provide regional content in Chinese, Indian, Japanese and South Korean markets. In particular, Netflix hopes to work with Bollywood, Chinese movie creators and anime creators to provide regional content for international subscribers.
The Bad
Unfortunately Netflix doesn't pay a dividend and they also don't generate significant earnings per share (EPS). With such a low EPS, Netflix seems to be paying a lot of money to gain global market share. This leads me to believe that Netflix at its current $124.20/share is overpriced and I don't like paying more for something than I think it is worth.
Which leads me to my next point because next year my Netflix subscription price is going from $7.99 to $9.99 and I feel some kind of way about it. A significant amount of money is being spent in international growth in the emerging markets (i.e. China, India) and that initiative has yet to become profitable for Netflix. Also with movie and TV show content prices continuing to rise as competition for exclusive rights to content rise, this spending will chop even deeper into the revenue that Netflix produces.
The Ugly
Netflix offers a DVD-to-mail service that is losing traction to the internet subscription based service which now has 69 million subscribers worldwide. With competition as intense with the likes of Amazon and Hulu and network providers like HBO and Showtime inflating prices for their content, internet video service is prime for fierce competition.
I personally have no shares of Netflix. I think its overpriced. I wouldn't see myself paying more that $75/share for Netflix so I've missed the boat on entry. But do you think Netflix will continue to be the leader in online video streaming? Once Netflix has saturated the international markets, will it ever return a good profit or will they have to keep raising prices here in the US to cover some of those expenses? Will that lead to the subscription holders transitioning to other internet video providers for lower prices? And with loss of US subscriptions and in turn revenue, would Netflix be candidate for acquisition by a cash heavy company like Microsoft or Verizon? I have too many questions about Netflix. Its long term potential is hard to see because the price is so high right now. It's a great service provider, but not something I want to invest more in than my $8 monthly subscription.
R.I.P. Blockbuster
At the turn of the century, DVD's took over the media distribution industry. Then there was Blu-Ray. And then there was Netflix. The strategy behind Netflix made it so easy for people to have access to thousands of shows and movies without actually having to purchase the movies and spend hundreds of dollars on the actual DVD or Blu-Ray discs a year. Plus once you have all those movies, how often is it that you watch them? Maybe once or twice, unless you're someone who watches the Friday trilogy every Friday for good measure. And what about those times you binge watch Glee because you never really dedicate yourself to watching the season as it came on primetime TV? You NEED to have access anytime, anyplace. And from this need Netflix was born.
Company Snapshot (Yahoo! Finance Data)
Name: Netflix, Inc.(as of close of business 12/9/2015)
Ticker: NFLX
Current Price: $124.20
52 Week High Price:$133.27
52 Week Low Price: $45.08
Market Capitalization: $53.08B (Large Capital)
Price/Earnings (P/E Ratio): 330.32
Earnings/Share (EPS): $0.38
Dividend: No Dividend Paid
Industry: Internet & Catalog Retail
Primary Business: Internet Television Network Provider
The Good
Netflix has ruled the internet with exclusive shows like "Orange Is the New Black" and "House of Cards". Devoted watchers can not stop watching and the awards keep piling up for these shows. With exclusive rights to OITNB and HOC, new content in the works, and growth into international markets, Netflix is in the driver's seat in the internet video streaming world.
Netflix also has tremendous use of its technology and they use it primarily to create better experiences for their customers. They monitor how long customers watch videos, when they rewind/fast forward, and track the kinds of movies and shows customers watch. Having this type of data collected gives Netflix a competitive advantage in the customer experience category over other video streaming services with less subscribers.
As they provide customized services to customers, Netflix is also looking to create international movie industry partnerships in order to provide regional content in Chinese, Indian, Japanese and South Korean markets. In particular, Netflix hopes to work with Bollywood, Chinese movie creators and anime creators to provide regional content for international subscribers.
The Bad
Unfortunately Netflix doesn't pay a dividend and they also don't generate significant earnings per share (EPS). With such a low EPS, Netflix seems to be paying a lot of money to gain global market share. This leads me to believe that Netflix at its current $124.20/share is overpriced and I don't like paying more for something than I think it is worth.
Which leads me to my next point because next year my Netflix subscription price is going from $7.99 to $9.99 and I feel some kind of way about it. A significant amount of money is being spent in international growth in the emerging markets (i.e. China, India) and that initiative has yet to become profitable for Netflix. Also with movie and TV show content prices continuing to rise as competition for exclusive rights to content rise, this spending will chop even deeper into the revenue that Netflix produces.
The Ugly
Netflix offers a DVD-to-mail service that is losing traction to the internet subscription based service which now has 69 million subscribers worldwide. With competition as intense with the likes of Amazon and Hulu and network providers like HBO and Showtime inflating prices for their content, internet video service is prime for fierce competition.
I personally have no shares of Netflix. I think its overpriced. I wouldn't see myself paying more that $75/share for Netflix so I've missed the boat on entry. But do you think Netflix will continue to be the leader in online video streaming? Once Netflix has saturated the international markets, will it ever return a good profit or will they have to keep raising prices here in the US to cover some of those expenses? Will that lead to the subscription holders transitioning to other internet video providers for lower prices? And with loss of US subscriptions and in turn revenue, would Netflix be candidate for acquisition by a cash heavy company like Microsoft or Verizon? I have too many questions about Netflix. Its long term potential is hard to see because the price is so high right now. It's a great service provider, but not something I want to invest more in than my $8 monthly subscription.
Thursday, December 3, 2015
Company Review Thursday: Under Armour Inc.
Having signed the likes of Misty Copeland, Tom Brady, Stephen Curry, Cam Newton, Natasha Hastings and Eddie Lacy, it seems like Under Armour definitely has a long list of champions and greats on its team roster. Providing high end athletic gear is the core of Under Armour's business and they do pretty good job of delivering quality gear to both their athletes and their customers. But as with all textile/apparel companies, they are at the mercy of keeping up with customer trends and preferences, a test that few in the industry regularly pass over time. In a sector where they compete with Nike, Lululemon and Addidas, is Under Armour in a position to drive customer spending in the athletic apparel sector in the upcoming years? I hope so. I bought it in hopes that it would.
Company Snapshot (Yahoo! Finance Data)
Name: Under Armour Inc.(as of close of business 12/2/2015)
Ticker: UA
Current Price: $87.25
52 Week High Price:$105.89
52 Week Low Price: $63.77
Market Capitalization: $18.8B (Large Capital)
Price/Earnings (P/E Ratio): 90.04
Earnings/Share (EPS): $0.9654
Dividend: No Dividend Paid
Industry: Textiles, Apparel and Luxury Goods
Primary Business: Athletic Apparel Sales
The Good
With a catch phrase "We must protect this house" Under Armour was started in Kevin Plank's grandmothers garage in 1996. He was a former football player looking to design clothes that would provide an alternative to the cotton tshirts worn that absorbed and carried sweat. The goal was to design gear that kept athletes light, cool, warm, dry and capable of performing at their best at all times. The company has not strayed from that goal.
And by the sales that the company generates each year, its obvious people are enjoying the products. Over the last 5 years revenue has almost tripled from $1.06 billion in 2010 to $3.08 billion in 2014 (~189% growth). And with a price/earnings ratio of about $90.04 it seems that there is plenty of upside for UA to establish itself in a similar way Nike did early on in its public offering.
The Bad
Plain and simple...Under Armour doesn't pay a dividend. I don't get free money.
The Ugly
Think of it like comparing LeBron James with Stephen Curry. Ironically, Nike and UA are their respective sponsors. Nike is the established "King" of the industry and Under Armour stays "Cookin' up" new things that shake the industry up on regular basis. That type of competition is wonderful for the consumer, but both companies have to literally put their all out on the table to be able to keep their consumer base and nab a few from the other side. Nike is in the position that they can provide a steady dividend for their investors because they have significantly more cash to pull from to operate. Nike has an advantage in the market with investors looking for stability and establishment in companies they invest in especially after recent market volitility. Under Armour on the other hand is still somewhat the new kid on the block. It's growing fast and the company is climbing the maturity curve. In the next few years, investors are looking to see some of Under Armour products maintain their traction with consumers.
Do you think there will be another LBJ vs The Chef finals? Nike and UA probably hope so. Last year was the year of The Chef and Under Armour has benefited. This year seems to be following suit especially now that the only undefeated NFL team has an Under Armour Sponsored QB dabbin' on the world and the reigning NFL champions are lead by a Under Armour sponsored QB too. With the Panthers and Patriots being favorites to have a showdown in February, Under Armour is sure to win in 2016.
And so am I :-)
Company Snapshot (Yahoo! Finance Data)
Name: Under Armour Inc.(as of close of business 12/2/2015)
Ticker: UA
Current Price: $87.25
52 Week High Price:$105.89
52 Week Low Price: $63.77
Market Capitalization: $18.8B (Large Capital)
Price/Earnings (P/E Ratio): 90.04
Earnings/Share (EPS): $0.9654
Dividend: No Dividend Paid
Industry: Textiles, Apparel and Luxury Goods
Primary Business: Athletic Apparel Sales
The Good
With a catch phrase "We must protect this house" Under Armour was started in Kevin Plank's grandmothers garage in 1996. He was a former football player looking to design clothes that would provide an alternative to the cotton tshirts worn that absorbed and carried sweat. The goal was to design gear that kept athletes light, cool, warm, dry and capable of performing at their best at all times. The company has not strayed from that goal.
And by the sales that the company generates each year, its obvious people are enjoying the products. Over the last 5 years revenue has almost tripled from $1.06 billion in 2010 to $3.08 billion in 2014 (~189% growth). And with a price/earnings ratio of about $90.04 it seems that there is plenty of upside for UA to establish itself in a similar way Nike did early on in its public offering.
The Bad
Plain and simple...Under Armour doesn't pay a dividend. I don't get free money.
The Ugly
Think of it like comparing LeBron James with Stephen Curry. Ironically, Nike and UA are their respective sponsors. Nike is the established "King" of the industry and Under Armour stays "Cookin' up" new things that shake the industry up on regular basis. That type of competition is wonderful for the consumer, but both companies have to literally put their all out on the table to be able to keep their consumer base and nab a few from the other side. Nike is in the position that they can provide a steady dividend for their investors because they have significantly more cash to pull from to operate. Nike has an advantage in the market with investors looking for stability and establishment in companies they invest in especially after recent market volitility. Under Armour on the other hand is still somewhat the new kid on the block. It's growing fast and the company is climbing the maturity curve. In the next few years, investors are looking to see some of Under Armour products maintain their traction with consumers.
Do you think there will be another LBJ vs The Chef finals? Nike and UA probably hope so. Last year was the year of The Chef and Under Armour has benefited. This year seems to be following suit especially now that the only undefeated NFL team has an Under Armour Sponsored QB dabbin' on the world and the reigning NFL champions are lead by a Under Armour sponsored QB too. With the Panthers and Patriots being favorites to have a showdown in February, Under Armour is sure to win in 2016.
And so am I :-)
Thursday, November 26, 2015
Company Review Thursday: Verizon Communications
Happy Thanksgiving!! I'm so thankful for so much this year. I'm thankful for everything from my family and their health to my job and this blog. I'm also thankful for the fact that when you invest your money works for you while you sleep, eat, workout and basically all other times of the day. Currently waiting on my pound cake to finish baking in the next hour so I decided I'll post on this popular wireless carrier:
Company Snapshot (Yahoo! Finance Data)
Name: Verizon Communications (as of close of business 11/25/2015)
Ticker: VZ
Current Price: $44.92
52 Week High Price:$50.86
52 Week Low Price: $38.06
Market Capitalization: $183.87B (Large Capital)
Price/Earnings (P/E Ratio): 17.87
Earnings/Share (EPS): $2.5134
Dividend: $2.26/year
Industry: Diversified Telecommunication Services
Primary Business: Communications, Information and Entertainment Products and Services
The Good
Verizon has promoted and grown two services that have had tremendous response from customers:
1) go90 is the new social entertainment platform specifically built for mobile devices. You should be able to share snippets of favorite TV shows and NBA games using this app. It is offered on the Google Play Store and Apple Store and even if you aren't a Verizon Customer, you can download this app for use.
2) Enterprise Cloud Offering has become even more flexible and more requested as companies feel like cloud computing is more secure now. Verizon offers a carrier-agnostic connectivity with high quality cyber-security measures and provide the support and engineers needed to stand the infrastructure up for companies.
Then to top it off VZ offers a huge dividend yield at 5.02% or $2.26/share for the year. Remember dividends = money for owning the company. I'll take it!
The Bad
Verizon and other wireless service providers got hit with a pretty hard lawsuit earlier this year and ended up having to pay out about $90 million. The lawsuit came as a result of carriers allowing companies to charge customers millions of dollars for services that operated through SMS like horoscopes, special mobile updates and ringtones. Carriers would keep as much as 40% of the revenue generated by these companies to use SMS service to communicate with customers. The government caught AT&T, Verizon, T-Mobile and Sprint with this lawsuit.
The Ugly
With Apple now offering their own "Upgrade your device" options to their loyal iPhone customers and news that Samsung is soon to follow, the spaces for wireless carriers has gotten a little ugly to say the least. Having the option to pay off the phone in two years or upgrade every year is super convenient to people who like having the newest device on the market.Then on top of that this opens the door for people to shop around more for their preferred carrier. Although Verizon has one of the most extensive and fastest networks in the market, its still a service offered at a premium. People are looking for less expensive and no contract options. Verizon recently came out with the various plan options for new customers, but they'll really need to step up their game to compete on the device and wireless service end.
Hope you enjoy this day of thanksgiving with family and friends!!
Until next post <3
Company Snapshot (Yahoo! Finance Data)
Name: Verizon Communications (as of close of business 11/25/2015)
Ticker: VZ
Current Price: $44.92
52 Week High Price:$50.86
52 Week Low Price: $38.06
Market Capitalization: $183.87B (Large Capital)
Price/Earnings (P/E Ratio): 17.87
Earnings/Share (EPS): $2.5134
Dividend: $2.26/year
Industry: Diversified Telecommunication Services
Primary Business: Communications, Information and Entertainment Products and Services
The Good
Verizon has promoted and grown two services that have had tremendous response from customers:
1) go90 is the new social entertainment platform specifically built for mobile devices. You should be able to share snippets of favorite TV shows and NBA games using this app. It is offered on the Google Play Store and Apple Store and even if you aren't a Verizon Customer, you can download this app for use.
2) Enterprise Cloud Offering has become even more flexible and more requested as companies feel like cloud computing is more secure now. Verizon offers a carrier-agnostic connectivity with high quality cyber-security measures and provide the support and engineers needed to stand the infrastructure up for companies.
Then to top it off VZ offers a huge dividend yield at 5.02% or $2.26/share for the year. Remember dividends = money for owning the company. I'll take it!
The Bad
Verizon and other wireless service providers got hit with a pretty hard lawsuit earlier this year and ended up having to pay out about $90 million. The lawsuit came as a result of carriers allowing companies to charge customers millions of dollars for services that operated through SMS like horoscopes, special mobile updates and ringtones. Carriers would keep as much as 40% of the revenue generated by these companies to use SMS service to communicate with customers. The government caught AT&T, Verizon, T-Mobile and Sprint with this lawsuit.
The Ugly
With Apple now offering their own "Upgrade your device" options to their loyal iPhone customers and news that Samsung is soon to follow, the spaces for wireless carriers has gotten a little ugly to say the least. Having the option to pay off the phone in two years or upgrade every year is super convenient to people who like having the newest device on the market.Then on top of that this opens the door for people to shop around more for their preferred carrier. Although Verizon has one of the most extensive and fastest networks in the market, its still a service offered at a premium. People are looking for less expensive and no contract options. Verizon recently came out with the various plan options for new customers, but they'll really need to step up their game to compete on the device and wireless service end.
Hope you enjoy this day of thanksgiving with family and friends!!
Until next post <3
Thursday, November 19, 2015
Company Review Thursday: Cisco Systems
With this being the first time I'm doing a review, I'll go over one of the very first stocks I purchased back in January 2012, Cisco Systems, Inc. Working in technology and having a dad that worked in technology my whole life, the technology sector of the market was the very first place I looked for investment opportunities.
Company Snapshot (Yahoo! Finance Data)
Name: Cisco Systems, Inc. (as of close of business 11/18/2015)
Ticker: CSCO
Current Price: $27.12
52 Week High Price: $30.31
52 Week Low Price: $23.03
Market Capitalization: 139.96 B (Large Cap)
Price/Earnings (P/E Ratio): 14.43
Earnings/Share (EPS): 1.88
Dividend: $0.84/share/year
Industry: Technology
Primary Business: Network and Communications Equipment and Software
The Good
- Cisco has a wonderful dividend yield at 3.14%. When you're looking for stocks that will help generate income for you to reinvest passively, you're looking for dividend paying stocks and Cisco would definitely be a good one.
- Cisco just announced a partnership with Ericsson to provide to customers a larger portfolio of services and products as well as pursuing increase use for the Internet of Things capabilities. If you haven't heard about the Internet of Things, think of how a Fitbit communicates through Bluetooth on your phone. Or how you can connect your iPhone 6S Plus to practically every other Apple device you own. Basically you can have the convenience of many of your tools and appliances play well with each other and communicate with each other to make your life easier...This can be creepy or very exciting news for you. As an investor, I'm hoping that the predicted $1 billion in revenues generated in 2018 actually comes to fruition.
You can find the press release for this partnership here
The Bad
- Over the last 3 years of me holding this company, the price hasn't really gone too much further out of the 52 week range. Seems like growth is stagnant. They are able to keep their customers happy, but generating new revenue each year seems to have alluded Cisco the last couple years. In 2013, they reported $48.6 billion, in 2014 they reported $47.1 billion and this year they reported $49.2 billion (as reported by schwab.com). That is only a 1.23% growth from 2013 to 2015. As an investor, I want more here.
The Ugly
-Under the management of Chuck Robbins, Cisco is making a big push to create partnerships (with Apple and Ericsson to name a couple) and acquisitions quickly in search of ways to revolutionize the company. Although for the long term these partnerships look promising, in the short term that looks like a lot of cash going out the door and into other pockets not my own as a shareholder. Am I willing to take these short term lows for long term highs?
And the answer is yes. That type of risk is okay for me right now.
Hope you have a great weekend!! Feel free to leave comments and questions for me if you have any!!
Company Snapshot (Yahoo! Finance Data)
Name: Cisco Systems, Inc. (as of close of business 11/18/2015)
Ticker: CSCO
Current Price: $27.12
52 Week High Price: $30.31
52 Week Low Price: $23.03
Market Capitalization: 139.96 B (Large Cap)
Price/Earnings (P/E Ratio): 14.43
Earnings/Share (EPS): 1.88
Dividend: $0.84/share/year
Industry: Technology
Primary Business: Network and Communications Equipment and Software
The Good
- Cisco has a wonderful dividend yield at 3.14%. When you're looking for stocks that will help generate income for you to reinvest passively, you're looking for dividend paying stocks and Cisco would definitely be a good one.
- Cisco just announced a partnership with Ericsson to provide to customers a larger portfolio of services and products as well as pursuing increase use for the Internet of Things capabilities. If you haven't heard about the Internet of Things, think of how a Fitbit communicates through Bluetooth on your phone. Or how you can connect your iPhone 6S Plus to practically every other Apple device you own. Basically you can have the convenience of many of your tools and appliances play well with each other and communicate with each other to make your life easier...This can be creepy or very exciting news for you. As an investor, I'm hoping that the predicted $1 billion in revenues generated in 2018 actually comes to fruition.
You can find the press release for this partnership here
The Bad
- Over the last 3 years of me holding this company, the price hasn't really gone too much further out of the 52 week range. Seems like growth is stagnant. They are able to keep their customers happy, but generating new revenue each year seems to have alluded Cisco the last couple years. In 2013, they reported $48.6 billion, in 2014 they reported $47.1 billion and this year they reported $49.2 billion (as reported by schwab.com). That is only a 1.23% growth from 2013 to 2015. As an investor, I want more here.
The Ugly
-Under the management of Chuck Robbins, Cisco is making a big push to create partnerships (with Apple and Ericsson to name a couple) and acquisitions quickly in search of ways to revolutionize the company. Although for the long term these partnerships look promising, in the short term that looks like a lot of cash going out the door and into other pockets not my own as a shareholder. Am I willing to take these short term lows for long term highs?
And the answer is yes. That type of risk is okay for me right now.
Hope you have a great weekend!! Feel free to leave comments and questions for me if you have any!!
Friday, November 13, 2015
Company Review Thursday: The Introduction
After my first couple of posts, I decided Thursdays are a good day to try to highlight a single company just to bring in actual stock market happenings. The point of this blog is to teach and make people aware, but the principles you learn here can actually be applied in life. I think this type of exercise will help you see what I look for in investments so you can figure out what you want to look for when you're doing your own research for investment opportunities.
In each review, I'll be highlighting the good, the bad and the ugly of companies that I follow on a regular basis. Some I have actually invested in, and some I have not. I'll be sure to post what my status is on each company I write about for your information. But to keep track of it all, I really want to use a hashtag and I was hoping maybe you (as the readers) can interact with my blog more by using the hashtag. Here are some of my ideas:
1) #TasiaPickThursday
2) #TopPickThursday
3) #TheTasiaReview
4) #TheXFiles
5) #TasiaReviewThursday
If you have an idea or preference from the ones I've listed, feel free to leave me a comment about it below. Thanks in advance.
In each review, I'll be highlighting the good, the bad and the ugly of companies that I follow on a regular basis. Some I have actually invested in, and some I have not. I'll be sure to post what my status is on each company I write about for your information. But to keep track of it all, I really want to use a hashtag and I was hoping maybe you (as the readers) can interact with my blog more by using the hashtag. Here are some of my ideas:
1) #TasiaPickThursday
2) #TopPickThursday
3) #TheTasiaReview
4) #TheXFiles
5) #TasiaReviewThursday
If you have an idea or preference from the ones I've listed, feel free to leave me a comment about it below. Thanks in advance.
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