best companies to invest 2009 - jrm
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Best Companies to Invest Recommendations 2009 - JRMTRANSCRIPT
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“Best Companies to Invest Spring 2009”
- Jay Modi
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Exxon Mobil
McDonalds
Monsanto
Altaria Group
• Company Overview
• Economic Impact
• Financial Report
• Recommendation
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Exxon Mobil
• Incorporated in New Jersey on Aug. 5, 1882
• Number of Employees: 107,100 (as of 12/31/2007)
• Market Cap: 362.32 B
• 52wk Low – High: $56.51 - $96.12
• Chairman and CEO: Rex W. Tillerson
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Macro-economy Impact - Industry
Negative Impact• Fall in stock values to 50%• US ethanol companies lost $8.7 billion in market value
Positive Impact• Fall in crude oil price to half• Fall in production cost inflation• More projects to US companies
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Macro-economy Impact - Company
• Sell-off 820 company owned gas stations
• Sell-off 1400 outlets operated by dealers
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Liquidity Ratio
Chevr
on C
orpo
ratio
n
Conoc
oPhil
lips
Exxon
Mob
il Cor
p.
Petro
leos
Mex
icano
s (P
emex
) (M
exico
)
Sinope
c Zhe
nhai
Refini
ng a
nd C
hem
icals
Co. L
td.
0
2
4
6
8
10
12
14
Current Ratio
Current Ratio
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Solvency Ratio
Chevr
on C
orpo
ratio
n
Conoc
oPhil
lips
Exxon
Mob
il Cor
p.
Petro
leos
Mex
icano
s (P
emex
) (M
exico
)
Sinope
c Zhe
nhai
Refini
ng a
nd C
hem
icals
Co. L
td.
0
2
4
6
8
10
12
14
Debt to Equity Ratio
Current Ratio
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Profitability Ratio
Chevr
on C
orpo
ratio
n
Conoc
oPhil
lips
Exxon
Mob
il Cor
p.
Petro
leos
Mex
icano
s (P
emex
) (M
exico
)
Sinope
c Zhe
nhai
Refini
ng a
nd C
hem
icals
Co. L
td.
0
50
100
150
200
250
300
ROA
ROI % (Operating)
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Profitability Ratio
Chevr
on C
orpo
ratio
n
Conoc
oPhil
lips
Exxon
Mob
il Cor
p.
Petro
leos
Mex
icano
s (P
emex
) (M
exico
)
Sinope
c Zhe
nhai
Refini
ng a
nd C
hem
icals
Co. L
td.
0
50
100
150
200
250
300
ROI % (Operating)
ROI % (Operating)
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Recommendation
• Expansion in West Africa, the former Soviet Union,
and in South America
• Focusing towards oil and gas business
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McDonalds
• Incorporated in Delaware Mar. 1, 1965
• Number of Employees: 390,000 (as of 12/31/2007)
• 31,377 restaurants in 118 countries (20, 505 by
franchise)
• 52wk Low – High: 45.79 - 67.00
• Market Cap: 60.82 B
• CEO: James A. Skinner
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Macro-economy Impact - Company
Negative Impact• Fall in Net Income by 47.9% in a
Positive Impact • Sales rose-up by 4.1% in last 6 months
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Liquidity Ratio
Alsea
SA de
CV (Mex
ico)
J. F
ront
Ret
ailing
Co
Ltd
McD
onald
's Cor
p
Yum! B
rand
s, In
c.
Zensh
o Co
Ltd
0
0.2
0.4
0.6
0.8
1
1.2
Current Ratio
Current Ratio
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Solvency Ratio
Alsea
SA de
CV (Mex
ico)
J. F
ront
Ret
ailing
Co
Ltd
McD
onald
's Cor
p
Yum! B
rand
s, In
c.
Zensh
o Co
Ltd
0
0.5
1
1.5
2
2.5
3
LT Debt to Equity
LT Debt to Equity
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Profitability Ratio
Alsea
SA de
CV (Mex
ico)
J. F
ront
Ret
ailing
Co
Ltd
McD
onald
's Cor
p
Yum! B
rand
s, In
c.
Zensh
o Co
Ltd
0
5
10
15
20
25
30
35
40
ROI %
ROI %
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Profitability Ratio
Alsea
SA de
CV (Mex
ico)
J. F
ront
Ret
ailing
Co
Ltd
McD
onald
's Cor
p
Yum! B
rand
s, In
c.
Zensh
o Co
Ltd
0
2
4
6
8
10
12
14
16
ROA % (Net)
ROA % (Net)
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Recommendation
• Growing Industry
• To add 1000 locations during 2009 in US
• More focus on emerging area like China
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Monsanto – Company History
– Monsanto is a relatively new company. While we share the name
and the history of a company that was founded in 1901, the
Monsanto of today is focused on agriculture and supporting
farmers around the world in their mission to feed, clothe and fuel
our growing world. We are an agricultural company.
– Monsanto Company was first incorporated as a subsidiary of
Pharmacia in 2000, and then spun off as a separate company in
2002.
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Company Overview
• World Leader in producing agricultural products for
farmers.
• In past two years, they have acquired many similar
companies.
– Agroeste Sementes (Brazil) – corn seed company
– De Ruiter (Netherlands) – vegetable seeds
– Marmot, SA – seed company
– Aly Participacoes Ltda – sugar can and technology companies.
– Recent, three other biotech companies.
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Economic Analysis
• Leader in their Industry: Agricultural Chemicals
• Germany, France, Greece, and Hungary banned GM
seeds.
– EU will be voting to lift ban within next couple months.
– French food agency report shows GM corn is safe.
• Developing markets
– Asia – China, Vietnam, India, and Indonesia
– Brazil, Argentina, Canada, Mexico, and others.
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Financial Analysis
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Financial Analysis (Cont…)
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Recommendations
– Good Buy – Buy ratings from analysts.
– Economic environment is growing more favorable.
– Highly anticipated GM corn, soybean, and cotton trials near
completion.
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Altria Group, Inc - Industry InformationMarket Value• The United States tobacco market grew by 3.9% in 2008 to
reach a value of $96.7 billion.
Market Value Forecast• In 2013, the United States tobacco market is forecast to have a
value of $109 billion,• An increase of 12.7% since 2008.
Market Share• Altria Group, Inc. generates 48.5% of the United States tobacco
market's value.
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Numbe r of Employees 84,000 (as of 12/31/2007)
Primary Ticker MO
Primary SIC 2111 – Cigarettes
Primary NAIC 312221 - Cigarette Manufacturing
Number of Shareholders: 100,000 (as of 01/31/2008)
Closing Stock Price: 15.61
Market Cap 31,854 M
PE Ratio 5.04
52wk Low – High 14.34 - 23.72
EPS 1.66 %
CEO Michael E. Szymanczyk
Company Overview
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Financial Report
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Financial Report
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Company Name Current Ratio LT Debt to Equity ROA % (Net) ROI %
Altadis S.A. 1.11 2.4 5.57 28.81
Altria Group Inc 1.22 0.43 12.12 31.09
Gallaher Group Plc 1.35 20.18 15.48 36.87
Imasco Ltd. 0.89 0.7 0.97 12.04Reynolds American Inc 1.28 0.6 7.11 19.26
Comparison Report
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Recommendation