stock evaluation
Post on 12-Apr-2017
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My Stock Portfolio
June 2 - June 17, 2015
Stategy
❖ Long-term wealth management for retirement ➢ Sought out long-term, growth companies primarily
in the technology and healthcare spaces➢ Invested $77,333.90 across 8 different stocks, many
of which were consumer brands
Google (GOOG)❖ Marketwatch projects
shares to jump 40% in FY15 & another 20% in FY16
❖ Accelerating search performance industry
❖ Google Play App Store totaled 60% more downloads than Apple Store (a substitute) in FY14
❖ World’s top search engine, but that’s not all➢ Strong core of
advertising business on its own network of sites (96% profits from ads)
Apple (AAPL)❖ Most valuable company
in history w/market cap >$700B
❖ Apple Watch & iPhone 6 both new hot sellers➢ Mac sales up 15%
❖ Growing faster than Microsoft, substitute
❖ Constantly innovating - pairing with Panera & Whole Foods & started “Swift” a new language to develop apps (already 11 million downloads)
Qualcomm (QCOM)❖ World’s largest supplier of
smartphone chips (big market share)
❖ Licenses out to Samsung, LG Display, Apple
❖ Valued higher than substitutes Broadcom, Intel and Texas Instruments
❖ Helped fund Ebay’s PayPal and Waze, both successes
❖ Collects royalties on almost all LTE devices sold in China
Disney (DIS)❖ Very large & diversified
➢ Owns ESPN (leader in sports), ABC, Disney Channel (media accounts for 43% of profits)
❖ Theme parks thriving, 31% of profits
❖ Huge growth potential for 10-15 year time frame as “it reaps the reward of its own virtuous media-merchandising cycle”
Netflix (NFLX)❖ Stock went up 25% in
Q1 of 2015❖ International revenues
up 55%❖ Verizon unbundling of
massive cable packages will catapult Netflix
❖ Content is easy and cheap, effectively increasing consumers’ purchasing power
Nike (NKE)❖ Who doesn’t own a pair
of Nikes?❖ Shares rose 5% right
before project began❖ Its product innovation &
massive dedication to marketing is paying off
❖ Under Armour, a substitute, is growing faster, but Nike is on the rise in Europe and China
❖ Foot Locker doing very well, so people are buying Nike products
CVS (CVS)❖ Operating profits up
33% for America’s largest drug store chain
❖ Has seen a 26% appreciation in its year-to-date index
❖ Has increased amount purchased by customer per visit, equaling greater marginal revenues
❖ People living longer, greater demand for drugs (CVS will fulfill that demand)➢ Pharmacy jumps
6%
Berkshire Hathaway, B (BRK/B)❖ Owns stock in GM,
Verizon, Heinz and Suncor Energy ➢ Large &
differentiated❖ Net income increases
each year by substantial margins
❖ Shares up 151% in past five years
❖ Warren Buffett owns it.
Evaluation❖ Portfolio increased in overall value by 1.13%❖ Differentiated stocks was key
➢ Each day, at least 1 stock made a gain■ MVPS: Netflix/Nike/CVS/Disney■ Netflix jumps 6%■ Nike jumps 4%■ Disney jumps 2%■ CVS jumps 3%
❖ Major weakness: My tech stocks did not perform well➢ Apple and Qualcomm, complimentary
■ Apple down 2%■ Qualcomm down 3%
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