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Company name Nike Inc
Stock ticker NKE
Live stock price [stckqut]NKE[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

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

ANALYSIS

Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $65.65
Target stock price (averages with growth) $77.19
Target stock price (averages with no growth) $60.66
Target stock price (manual assumptions) $68.79

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

NIKE, Inc. (NIKE) is engaged in the design, development and worldwide marketing and selling of footwear, apparel, equipment, accessories and services. NIKE is a seller of athletic footwear and athletic apparel worldwide. The Company sells its products to retail accounts, through NIKE-owned retail stores and Internet sales, and through a mix of independent distributors and licensees, in approximately 190 countries around the world. The Company focuses its product offerings in seven key categories: Running, Basketball, Football (Soccer), Men’s Training, Women’s Training, NIKE Sportswear (its sports-inspired products) and Action Sports. It also markets products designed for kids, as well as for other athletic and recreational uses, such as baseball, cricket, golf, lacrosse, outdoor activities, football (American), tennis, volleyball, walking and wrestling. In February 2013, it sold its Cole Haan affiliate brand to APAX Partners LLP.

 

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.

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(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: $66.82

Growth: 0.105

Current EPS (TTM): $2.69

P/E: 25

Future EPS Calc: $4.43

Future Stock Price Calc: $110.79

Target stock price: $68.79

I hope that this makes you a better investor. [/s2If]

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There is nothing that will destroy your ability to save money for the future and invest in your own welfare like living beyond your means. I am often told by my readers (by email, Facebook, or Twitter) that they cannot afford to invest because they cannot even live on their own paycheck.

Far be it for me to tell someone else how to live and the personal decisions that individual or family has to make. I did read this article recently that impressed me for the frugality of these super-rich people. These people are not just rich; several of them are the 1% of the 1%. While I am sure there are certain aspects of their individual lives that we may deem excessive, it is important for all of us to do whatever is reasonable to reduce our daily costs of living. If you invest that savings, you have the potential for financial independence some day.

  • Legendary US investor Warren Buffett, who has an estimated net worth of $US54.6 billion, famously still lives in the same five bedroom house he bought 55 years ago for $US31,500.
  • Chuck Feeney, co-founder of Duty Free Shoppers who has donated his fortune of more than $US6 billion to charity, travels in economy class “because first class won’t get me to my destination any faster”. He doesn’t own a house or a car and wears a $15 watch.
  • Ikea founder Ingvar Kamprad also prefers to fly economy class, and prefers to book with budget airlines. He also encourages his Ikea staff not to be wasteful, and tells people off if they don’t use both sides of a sheet of paper or leave lights on when they leave a room.
  • US oil magnate T. Boone Pickens, worth $US1.2 billion, reportedly shops with a grocery list and only carries enough cash in his wallet to cover what he is about to buy for better budgeting.
  • Indian mogul Azim Premji, worth an estimated $US11.2 billion, drove a Ford Escape for eight years before he traded it with a Toyota Corolla. When he travels he prefers budget hotels over five-star accommodation.

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

MANAGEMENT EXECUTION

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

ANALYSIS

Confident Investor Rating Poor
Target stock price (TWCA growth scenario) $57.28
Target stock price (averages with growth) $70.97
Target stock price (averages with no growth) $69.74
Target stock price (manual assumptions) $63.42

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

PepsiCo, Inc. (PepsiCo) is a global food and beverage company. PepsiCo is organized into four business units: PepsiCo Americas Foods (PAF), which includes Frito-Lay North America (FLNA), Quaker Foods North America (QFNA) and all of its Latin American food and snack businesses (LAF); PepsiCo Americas Beverages (PAB), which includes all of its North American and Latin American beverage businesses; PepsiCo Europe, which includes all beverage, food and snack businesses in Europe, and PepsiCo Asia, Middle East and Africa (AMEA), which includes all beverage, food and snack businesses in AMEA. Its four business units are comprised of six segments: FLNA, QFNA, LAF, PAB, Europe, and AMEA. It manufactures, markets and sells a range of salty, convenient, sweet and grain-based snacks, carbonated and non-carbonated beverages, dairy products and other foods. In November 2012, the Company opened a food and beverage innovation center in Shanghai, China.

 

Confident Investor comments: At this price and at this time, I do not 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.

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(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: $79.43

Growth: 0.06

Current EPS (TTM): $4.24

P/E: 18

Future EPS Calc: $5.67

Future Stock Price Calc: $102.13

Target stock price: $63.41

I hope that this makes you a better investor. [/s2If]

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Company name Republic Airways Holdings Inc.
Stock ticker RJET
Live stock price [stckqut]RJET[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

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

ANALYSIS

Confident Investor Rating Poor
Target stock price (TWCA growth scenario) $8.87
Target stock price (averages with growth) $10.5
Target stock price (averages with no growth) $9.06
Target stock price (manual assumptions) $10.71

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

Republic Airways Holdings Inc. is a holding company. The Company offers scheduled passenger services through its wholly-owned operating air carrier subsidiaries: Chautauqua Airlines, Inc. (Chautauqua), Shuttle America Corporation (Shuttle), Republic Airline Inc. (Republic Airline) and Frontier Airlines, Inc. (Frontier). As of December 31, 2011, its operating subsidiaries offered scheduled passenger service on 1,483 flights daily to 132 cities in 42 states, Canada, Mexico, and Costa Rica under Frontier operations as Frontier and through fixed-fee code-share agreements with AMR Corp., the parent of American Airlines, Inc. (American), Continental Airlines, Inc. (Continental), Delta Air Lines, Inc. (Delta), United Air Lines, Inc. (United), and US Airways, Inc. (US Airways). The Company took delivery of eight A320 aircraft, two E190 aircraft, placed into service three A319 aircraft, sold five A318 aircraft, four of which have remained in the fleet under sale leaseback agreements.

 

 

Confident Investor comments: At this price and at this time, I do not 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.
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(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: $12.19

Growth: 0.07

Current EPS (TTM): $1.23

P/E: 10

Future EPS Calc: $1.72

Future Stock Price Calc: $17.25

Target stock price: $10.71

I hope that this makes you a better investor. [/s2If]