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Company name Boston Beer Co Inc
Stock ticker SAM
Live stock price [stckqut]SAM[/stckqut]
P/E compared to competitors Fair

MANAGEMENT EXECUTION

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

ANALYSIS

Confident Investor Rating Good
Target stock price (TWCA growth scenario) $239.95
Target stock price (averages with growth) $203.61
Target stock price (averages with no growth) $133.57
Target stock price (manual assumptions) $198.53

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

The Boston Beer Company, Inc. (Boston Beer) is a craft brewer in the United States. During the year ended December 31, 2011, Boston Beer sold approximately 2.5 million barrels of its products (core brands) and brewed or packaged approximately 13,000 barrels under contract (non-core brands) for third parties. During 2011, the Company sold over fifty beers under the Samuel Adams or the Sam Adams brand names, seven flavored malt beverages under the Twisted Tea brand name, three hard cider beverages under the Angry Orchard brand name and one hard cider under the HardCore brand name. Boston Beer produces malt beverages and hard cider at Company-owned breweries and under contract arrangements at other brewery locations. The Company-owned breweries are located in Boston, Massachusetts (the Boston Brewery), Cincinnati, Ohio (the Cincinnati Brewery) and Breinigsville, Pennsylvania (the Pennsylvania Brewery). During 2011, the Company launched the Angry Orchard brand family.

 

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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Company name Quality Systems, Inc.
Stock ticker QSII
Live stock price [stckqut]QSII[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

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

ANALYSIS

Confident Investor Rating Poor
Target stock price (TWCA growth scenario) $11.78
Target stock price (averages with growth) $15.87
Target stock price (averages with no growth) $16.37
Target stock price (manual assumptions) $14.63

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

Quality Systems, Inc.develops and markets healthcare information systems that automate certain aspects of medical and dental practices, networks of practices, such as physician hospital organizations (PHOs) and management service organizations (MSOs), ambulatory care centers, and dental schools. It operates as four business divisions and an India-based offshore captive: QSI Dental Division, which includes ViaTrack Systems, LLC (ViaTrack); NextGen Division, which consists of NextGen Healthcare Information Systems, LLC (NextGen); Hospital Solutions Division (formerly Inpatient Solutions), which includes Opus Healthcare Solutions, LLC (Opus), and RCM Services Division (formerly Practice Solutions), which consists of NextGen Practice Solutions, LLC (Practice Solutions) and Quality Systems India Healthcare Private Limited (QSIH). On May 1, 2012, it acquired The Poseidon Group. On November 14, 2011, it acquired ViaTrack. On July 26, 2011, the Company acquired CQI Solutions, Inc. (CQI).

 

Confident Investor comments: At this price and at this time, I do not think that a Confident Investor can confidently invest in this stock. I am removing Quality Systems from my Watch List since their performance in the last year has not been up to par.

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 QUALCOMM, Inc.
Stock ticker QCOM
Live stock price [stckqut]QCOM[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

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

ANALYSIS

Confident Investor Rating Good
Target stock price (TWCA growth scenario) $73.37
Target stock price (averages with growth) $101.12
Target stock price (averages with no growth) $86.12
Target stock price (manual assumptions) $72.15

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

QUALCOMM Incorporated (Qualcomm), incorporated on August 15, 1991, is engaged in design, manufacture, have manufactured on its behalf and market digital communications products and services based on code division multiple access (CDMA), Orthogonal Frequency Division Multiplexing (OFDMA) and other technologies. The Company operates in four segments: Qualcomm CDMA Technologies (QCT); Qualcomm Technology Licensing (QTL); Qualcomm Wireless & Internet (QWI), and Qualcomm Strategic Initiatives (QSI). The Company develops and supply integrated circuits and system software based on CDMA, OFDMA and other technologies for uses in voice and data communications, networking, application processing, multimedia and global positioning system products. In November 2012, the Company acquired certain assets of EPOS Development, Ltd. (EPOS), developer of ultrasound technologies for input solutions, including pen, stylus and gesture recognition.

 

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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You might wonder if your credit cards could be used as an emergency fund.

Unfortunately, the answer is not clear cut, but it depends on your immediate situation. Basically, if you need a loan to cover your needs,  you should avoid the loan. If you don’t need a loan, then the loan is probably a decent thing.

Remember, your credit card is nothing more than a short-term loan for the balance of the month until your next bill. It is when you start to use short term credit card loans for a long time that you begin to have problems.

Too many people are already in credit card debt. This is likely costing them a great deal of income in interest. That interest is taking away from their ability to invest for the future.

If you carry a credit card balance,  adding an emergency charge will not help your situation in the long run.  You can do some substantial damage to your finances and your credit score.  You’ll probably end up paying interest on the charges, and you’re credit score will be hurt since you’re using more of your available credit.

On the other hand, if you have an emergency fund put away and you pay your credit card balances in full every month then using your credit card in an emergency is just a short-term bridge loan with no interest.  You can use the card then pay it off in full with your emergency savings.

Taking on additional debt to get you out of an emergency situation is not optimal. I understand if you must do it to get yourself out of a bad situation as that is the reason for the emergency fund. It is far better if you start today to build your emergency fund so that your credit card is simply a 30-day interest free loan.

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Company name Potash Corp./Saskatchewan (USA)
Stock ticker POT
Live stock price [stckqut]POT[/stckqut]
P/E compared to competitors Fair

MANAGEMENT EXECUTION

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

ANALYSIS

Confident Investor Rating Good
Target stock price (TWCA growth scenario) $62.42
Target stock price (averages with growth) $69.92
Target stock price (averages with no growth) $50.09
Target stock price (manual assumptions) $48.96

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

Potash Corporation of Saskatchewan Inc. (PCS) is an integrated fertilizer and related industrial and feed products company. The Company operates in three segments: potash, phosphate and nitrogen. The Company owns and operates five potash mines in Saskatchewan and one in New Brunswick. Its phosphate operations include the manufacture and sale of solid and liquid phosphate fertilizers, phosphate feed and industrial acid, which is used in food products and industrial processes. The Company also has a phosphate mine and two mineral processing plant complexes in northern Florida and five phosphates feed plants in the United States. It produces phosphoric acid at its Geismar, Louisiana facility. The nitrogen operations involve the production of nitrogen fertilizers and nitrogen feed and industrial products, including ammonia, urea, nitrogen solutions, ammonium nitrate and nitric acid. It has nitrogen facilities in Georgia, Louisiana, Ohio and Trinidad.

 

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.