Wednesday, May 6, 2020
No need for topic Example
Essays on No need for topic Essay Finance and Accounting While making any investment decisions regarding the purchase of stock from any company, it is always prudent to conduct a background check on the financial viability of the investment choice one makes while purchasing these stock. For purpose of this study, we will be assessing the viability of purchasing stock from seven companies; Coca-Cola, Twitter Inc., Toyota Motor, Bank of America Corp, Amazon.com Inc., Schlumberger NV and Intel Corp. This will be based on the companyââ¬â¢s five year financial overview from Yahoo Finance. The last financial year saw the net income of Coca-Cola drop by 4% to $2.68 translating to 59 cents per share with the companyââ¬â¢s revenues slipping by 3% to $12.75 billion. Additionally, the shares for the company have continuously underperformed in the past 52 weeks which is a clear indicator of depression. Despite this, I decided to invest in the company owing to the fact that the brand is a global powerhouse which allows the brand charge premium prices for its products. Additionally, the fat that the company continues to invest in emerging markets with high prospects o generating revenues and the company generating over $4 billion in operating cash flow is enough indicator for future growth. In the case of twitter Inc. the companyââ¬â¢s shares at the end of 2013 was $63.65 with the shares trading well over $70, and later coming down to around $55 with the company later gaining 5% to hit $63.75 presents clear indicators of the companyââ¬â¢s stocks providing greater returns in future hence the stocks are viable to buy. In the case of Toyota Motor Corp, with the 52 week range being between $118.95-$119.98 with a price to equity ratio of 18.55 and dividend of $2.53 translating to a yield of 2.0%, Toyota Motor Corp is arguably growing faster than both Apple, Amazon.com and Google all combined together. It is the profit potential confidence that makes me invest in this company. With a pretax income $16.17 billion signifying a high rise compared to 3.07 Billion realized during the previous financial year and 11.43 Billion net incomes compared to 4.19 Billion realized during the previous financial year, the Bank of America Corp has shown resilience in its growth. Additionally, the fact that the net income available to common shareholders continue to grow is a great indicator of future prospects of more profit for the company. Despite Amazon performing poorly two years ago, the stocks of the company have continued to rise quickly. This we can partly attribute to the fact that the company has proved to be amongst the best tech investment opportunities. Amongst the reasons I will be buying the stocks at Amazon include the success Kindle has realized in terms of sales revenue, the success with which the company has been able to employ the use of ecommerce and the willingness of the company to spend on research and development and to experiment. With revenues of approximately $46, 459, a net income of $6,732 and earnings per share of 5.05, Schlumberger NV seems to be financially healthy. The fact that the company is able to produce healthy returns to the investors is the mail reason I invested there. In the case of Intel Corp, with a market capitalization of about $120 billion, and with 10 times trailing earnings, there is expectations of moderate growth in earnings per share and a five year PEG ratio of 0.9, Intel is an income stock hence the reason to invest there.
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