In general, I like it when companies that I track do stock splits. I completely understand that there should be no difference in the market capitalization of a company after the split.

However, the trading methodology that I describe in my book, The Confident Investor, performs better over the long term if the stock is under $100. This may be counter-intuitive, but since my method has the investor keeping the short-term gains of the trade in the successful stock, a lower priced stock makes it easier to accumulate stock.

Netflix Inc. [stckqut]NFLX[/stckqut] plans to split its high-flying stock 7-for-1, a move intended to make the shares more attractive to retail investors as the video streaming company presses on with an ambitious international expansion.

A dividend of six additional shares for each outstanding share would be paid out on July 14. Shares would begin trading at the new price the following day.

Source: Netflix Plans 7-for-1 Stock Split – WSJ

Company name McKesson Corporation
Stock ticker MCK
Live stock price [stckqut]MCK[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

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

ANALYSIS

Confident Investor Rating Good
Target stock price (TWCA growth scenario) $324.54
Target stock price (averages with growth) $349.27
Target stock price (averages with no growth) $167.17
Target stock price (manual assumptions) $318.2

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

McKesson Corporation delivers pharmaceuticals, medical supplies and healthcare information technology. The Company operates in two segments. The McKesson Distribution Solutions segment distributes ethical and drugs and equipment and health and beauty care products throughout North America and internationally. This segment provides pharmaceutical solutions for biotech and pharmaceutical manufacturers, and practice management, technology, clinical support and business solutions to oncology and other specialty practices operating in the community setting. The McKesson Technology Solutions segment includes McKesson Health Solutions, which includes the Company’s InterQual clinical criteria solution, claims payment solutions and network performance tools. This segment delivers enterprise-wide clinical, patient care, financial, supply chain, strategic management software solutions, as well as connectivity, outsourcing and other services.

 

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

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.

How was this analysis of McKesson Corporation calculated?

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
[s2If current_user_can(access_s2member_level1)]

In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

  • Stock price at the time of the calculation: $235.9
  • Growth: 0.17
  • Current EPS (TTM): $7.54
  • P/E: 31
  • Future EPS Calc: $16.53
  • Future Stock Price Calc: $512.46
  • Target stock price: $318.19

[/s2If]
I hope that this makes you a Confident Investor.

Company name Las Vegas Sands Corp.
Stock ticker LVS
Live stock price [stckqut]LVS[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

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

ANALYSIS

Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $82.03
Target stock price (averages with growth) $72.23
Target stock price (averages with no growth) $32.53
Target stock price (manual assumptions) $52.96

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

Las Vegas Sands Corp. (LVSC) is a developer of destination properties that offers accommodations, gaming, entertainment and retail, convention and exhibition facilities, celebrity chef restaurants and other amenities. The Company’s principal operating and developmental activities occur in three geographic areas: Macao, Singapore and the United States. In Macao, its operating segments are The Venetian Macao; Sands Cotai Central; Four Seasons Macao; Sands Macao, and Other Asia (that includes its ferry operations and various other operations). In Singapore, its operating segment is Marina Bay Sands. In the United States, its operating segments are The Venetian Las Vegas, which includes the Sands Expo Center and The Palazzo, and Sands Bethlehem. The Paiza Club located at the Company’s properties is an invitation-only club, which offers a range of services and amenities. The Company also offers players club loyalty programs at its properties.

 

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in Las Vegas Sands Corp. as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns. I will leave Las Vegas Sands Corp. on my Watch List for now to see if it improves.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.

How was this analysis of Las Vegas Sands Corp. calculated?

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
[s2If current_user_can(access_s2member_level1)]

In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

  • Stock price at the time of the calculation: $53.03
  • Growth: 0.1
  • Current EPS (TTM): $3.21
  • P/E: 16.5
  • Future EPS Calc: $5.16
  • Future Stock Price Calc: $85.3
  • Target stock price: $52.96

[/s2If]
I hope that this makes you a Confident Investor.