By:
On:
In: Poor company, Stock analysis
Tagged:
With: 0 Comments

IBM International Business Machines

Company name International Business Machines Corp.
Stock ticker IBM
Live stock price [stckqut]IBM[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

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

ANALYSIS

Confident Investor Rating Poor
Target stock price (TWCA growth scenario) $140.82
Target stock price (averages with growth) $184.37
Target stock price (averages with no growth) $185.92
Target stock price (manual assumptions) $165.02

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

International Business Machines Corporation (IBM) is an information technology (IT) company. IBM operates in five segments: Global Technology Services (GTS), Global Business Services (GBS), Software, Systems and Technology and Global Financing. GTS primarily provides IT infrastructure services and business process services. GBS provides professional services and application management services. Software consists primarily of middleware and operating systems software. Systems and Technology provides clients with business solutions requiring advanced computing power and storage capabilities. In October 2013, International Business Machines Corporation acquired Xtify Inc. In October 2013, the Company announced that it has completed the acquisition of The Now Factory, a privately held provider of analytics software that helps communications service providers (CSPs) deliver better customer experiences and drive new revenue opportunities.

 

Confident Investor comments: At this price and at this time, I do not think that a Confident Investor can confidently invest in International Business Machines Corp.

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: $179.68

Growth: 0.08

Current EPS (TTM): $14.47

P/E: 12.5

Future EPS Calc: $21.26

Future Stock Price Calc: $265.76

Target stock price: $165.01

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

By:
On:
In: Poor company, Stock analysis
Tagged:
With: 0 Comments

Company name Laboratory Corp. of America Holdings
Stock ticker LH
Live stock price [stckqut]LH[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

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

ANALYSIS

Confident Investor Rating Poor
Target stock price (TWCA growth scenario) $82.57
Target stock price (averages with growth) $107.3
Target stock price (averages with no growth) $100.49
Target stock price (manual assumptions) $88.75

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

Laboratory Corporation of America Holdings is a clinical laboratory company in the United States. Through a national network of laboratories, the Company offers a range of testing services used by the medical profession in routine testing, patient diagnosis, and in the monitoring and treatment of disease. In addition, it has developed specialty and niche operations based on certain types of specialized testing capabilities and client requirements, such as oncology testing, human immunodeficiency virus (HIV) genotyping and phenotyping, diagnostic genetics and clinical research trials. It processes tests on approximately 470,000 patient specimens daily and provides clinical laboratory testing services in all 50 states, the District of Columbia, Puerto Rico, Belgium, Japan, the United Kingdom, China, Singapore and three provinces in Canada.

 

Confident Investor comments: At this price and at this time, I do not think that a Confident Investor can confidently invest in Laboratory Corp. of America Holdings.

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: $101.85

Growth: 0.08

Current EPS (TTM): $6.08

P/E: 16

Future EPS Calc: $8.93

Future Stock Price Calc: $142.93

Target stock price: $88.75

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

By:
On:
In: Good company, Stock analysis
Tagged:
With: 0 Comments

Company name ePlus Inc.
Stock ticker PLUS
Live stock price [stckqut]PLUS[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

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

ANALYSIS

Confident Investor Rating Good
Target stock price (TWCA growth scenario) $83.48
Target stock price (averages with growth) $7.18
Target stock price (averages with no growth) $5.4
Target stock price (manual assumptions) $67.38

The following company description is from Google Finance: https://www.google.com/finance?q=NASDAQ%3APLUS&sq=plus&sp=5&ei=iAicUrjSFtO60AGuJw

ePlus inc. (ePlus), along with its subsidiaries, is engaged in the business of selling, leasing, financing and managing information technology and other assets and provides software. The Company operates in two segments: technology sales business segment and financing business segment. The technology sales business segment includes sales of information technology hardware, third party software, professional engineering services, and third party maintenance contracts and the Company’s software. The Company’s financing business segment consists of the financing of equipment. On November 14, 2013, the Company’s subsidiary, ePlus Technology, Inc. acquired AdviStor, Inc.

 

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in ePlus Inc. as long as the price is correct. Most of the fundamentals of ePlus Inc. are good, in fact the company ranks as a Good company, but there are some concerns with the price of the stock. I am not adding this company to my Watch List even though the stock is a Good Company.
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: $54.02

Growth: 0.15

Current EPS (TTM): $4.15

P/E: 13

Future EPS Calc: $8.34

Future Stock Price Calc: $108.51

Target stock price: $67.37

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

By:
On:
In: Commentary
With: 0 Comments

When asked if they would rather be smart or dumb, surely everyone would answer smart! If you’re looking to improve your mental capabilities you can start by following in the footsteps of some of the smartest people in the world.

A person’s Intelligence Quotient indicates their mental abilities relative to others of approximately the same age.

  • Average IQ= 100
  • Above Average=115
  • Genius= 140
  • Extraordinary Genius=160

I have often wrote that you do not need to be a genius to invest in the market. In fact, the market is not always kind to smart people. Most of the math is adequately done with math that you learned in 4th grade math class. Even still, it is interesting to look at the habits (good and bad) of those that appear to be extremely intelligent.

 

The Habits of Smart People
Source: Online-PhD-Programs.org