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Company name SAP AG (ADR)
Stock ticker SAP
Live stock price [stckqut]SAP[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Fair
Sales growth Fair
EPS growth Fair
P/E growth Fair
EBIT growth Fair

ANALYSIS

Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $83.97
Target stock price (averages with growth) $117.87
Target stock price (averages with no growth) $109.17
Target stock price (manual assumptions) $82.92

The following company description is from Google Finance: http://www.google.com/finance?q=sap

Sap AG is engaged in enterprise applications in terms of software and software-related service revenue. The Company’s core business is selling licenses for software solutions and related services to deliver a range of choices fitting the varying functional needs of its customers. Its solutions cover business applications and technologies, as well as specific industry applications. In-memory technology across its data management offerings enables customers to access the data, which they need, where they need it, when they need it. The Company is structured along Technology & Innovation Platform, Products & Solutions, Global Customer Operations, Chief Operations Office, Global Finance & Administration, Human Resources, and On Device & Sybase. On December 1, 2011, the Company sold Steeb Anwendungssysteme GmbH. In February 2012, the Company acquired SuccessFactors, Inc. In October 2012, it acquired Ariba, Inc.

 

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in this stock as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor.

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Company name Teva Pharmaceutical Industries Ltd (ADR)
Stock ticker TEVA
Live stock price [stckqut]TEVA[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Good
Sales growth Good
EPS growth Good
P/E growth Good
EBIT growth Fair

ANALYSIS

Confident Investor Rating Good
Target stock price (TWCA growth scenario) $39.04
Target stock price (averages with growth) $48.75
Target stock price (averages with no growth) $44.89
Target stock price (manual assumptions) $38.78

The following company description is from Google Finance: http://www.google.com/finance?q=teva

Teva Pharmaceutical Industries Ltd (Teva) is a global pharmaceutical and drug company. It develops, produces and markets generic drugs in all treatment categories. The Company has a pharmaceutical business, whose principal products include Copaxone and Azilect. Teva’s active pharmaceutical ingredient (API) business provides vertical integration to Teva’s own pharmaceutical production. The Company’s global operations are conducted from North and Latin America to Europe and Asia. As December 31, 2010, it had direct operations in approximately 60 countries, including 40 finished dosage pharmaceutical manufacturing sites in 19 countries, 28 pharmaceutical research and development (R&D) centers and 21 API manufacturing sites. On October 14, 2011, it acquired Cephalon, Inc.

 

Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in this stock.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor.

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Craig Guillot over at Mint.com had a great article about saving for a rainy day.  In his article, he points out several concerning facts. According to a 2011 survey by the National Foundation for Credit Counseling, 64% of Americans don’t have enough cash on hand to handle a $1,000 emergency.

To handle the crisis:

  • 17% of respondents said they would borrow from family or friends.
  • 17% said they would neglect existing obligations.
  • 12% said they would pawn or sell belongings.
  • 9% said they would get a loan from a cash advance store.

To be perfectly blunt and honest, $1,000 is not enough emergency cash if you are investing in the stock market. In my book, The Confident Investor, I suggest that you have 6 months of cash on hand. At an absolute minimum you should have 3 months.

If you save 10% of your income from your paycheck, it will take you 2.5 years to have 3 months of income saved in your emergency account. The longer you wait, the harder this becomes and the more important it is to accomplish. Jump over and read Craig’s article as it will give you some good ideas to set up your savings.

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Company name Atlas Energy LP
Stock ticker ATLS
Live stock price [stckqut]ATLS[/stckqut]
Confident Investor Rating Poor

The following company description is from Google Finance: http://www.google.com/finance?q=atls

Atlas Energy, L.P., (Atlas Energy) is an independent developer and producer of natural gas and oil, with operations in the Appalachian Basin, Illinois Basin and the Rocky Mountain region. As of December 31, 2011, its principal development and production assets consisted of working interests in approximately 8,500 gross producing natural gas and oil wells; royalty interests in over 500 gross producing natural gas and oil wells; net daily production of 35.9 million cubic feet equivalent per day; proved reserves of 167.6 billion cubic feet equivalent, and its partnership management business, which includes interests in 98 investment partnerships and a registered broker-dealer that acts as the dealer-manager of its investment partnership offerings. It maintains ownership interests in the entities, which includes Atlas Pipeline Partners, L.P. and Lightfoot Capital Partners, LP and Lightfoot Capital Partners GP, LLC. On February 17, 2011, it acquired certain assets from Atlas Energy, Inc.
Confident Investor comments: At this price and at this time, I do not think that a Confident Investor can confidently invest in this stock. It is not possible to confidently invest in a company that is not currently profitable.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor.

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Earlier, I wrote about using the system described in my book, The Confident Investor, to build up your investment in Deckers Outdoor Corporation [stckqut]DECK[/stckqut]. I discussed how much your investment would have risen compared to the traditional method of “buy-and-hold” as an investment strategy.

At the time that I wrote the article, I hadn’t discussed portfolio management on my site to any great detail. Recently, I discussed the concept of doubling your investment to the point that the free stock is equal to one allotment of your portfolio. Now that this concept has been explained, I need to add another metric to the Deckers [stckqut]DECK[/stckqut] analysis.

If you would have invested in Deckers as described in that article, you would have doubled your investment by March 2, 2007. On that date, you would have acquired 150 shares of DECK which were valued at about $67.45 for a total profit of $10,101.75. This means your $10,000 initial investment would have doubled.

This event would have occurred 292 trading days after you initiated trading on DECK. If you followed my advice on portfolio management, you would stop trading in DECK at this point and focus on other stocks to build up equity in them.