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

MANAGEMENT EXECUTION

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

ANALYSIS

Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $75.94
Target stock price (averages with growth) $81.37
Target stock price (averages with no growth) $69.2
Target stock price (manual assumptions) $80.87

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

Novartis AG provides healthcare solutions. The Company is a multinational group of companies specializing in the research, development, manufacturing and marketing of a range of healthcare products led by pharmaceuticals. Its portfolio includes medicines, eye care, cost-saving generic pharmaceuticals, preventive vaccines and diagnostic tools, over-the-counter and animal health products. It has five segments: Pharmaceuticals, which include patent-protected prescription medicines; Alcon, which include surgical, ophthalmic pharmaceutical and vision care products; Sandoz, which include generic pharmaceuticals; vaccines and diagnostics, which include human vaccines and blood-testing diagnostics, and consumer health, which include over-the-counter medicines (OTC) and Animal Health. In February 2014, it acquired CoStim Pharmaceuticals, Inc.

 

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in Novartis AG (ADR) 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. 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 Novartis AG (ADR) 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: $93.48
  • Growth: 0.07
  • Current EPS (TTM): $3.79
  • P/E: 24.5
  • Future EPS Calc: $5.31
  • Future Stock Price Calc: $130.23
  • Target stock price: $80.86

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

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Company name SINA Corp
Stock ticker SINA
Live stock price [stckqut]SINA[/stckqut]
P/E compared to competitors Fair

MANAGEMENT EXECUTION

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

ANALYSIS

Confident Investor Rating Poor
Target stock price (TWCA growth scenario) $0.01
Target stock price (averages with growth) $0.74
Target stock price (averages with no growth) $2.88
Target stock price (manual assumptions) $62.24

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

SINA Corporation (SINA), incorporated on July 9, 1997, is an online media company serving China and the global Chinese communities. Its digital media network of SINA.com (portal), SINA.cn (mobile portal) and Weibo.com (social media), enable Internet users to access professional media and user generated content (UGC) in multi-media formats from the Web and mobile devices and share their interests to friends and acquaintances. SINA.com offers distinct and targeted professional content on each of its region specific Websites and a range of complementary offerings. SINA.cn provides information and entertainment content from SINA portal customized for wireless access protocol (WAP) users. Based on open platform architecture to host organically developed and third-party applications, Weibo.com is a form of social media, featuring micro-blogging services and social networking services, which allow users to connect and share information anywhere, anytime and with anyone on its platform.

 

Confident Investor comments: At this price and at this time, I do not think that a Confident Investor can confidently invest in SINA Corp. The biggest problem is the inability to reliably return value to shareholders. This is typical in young companies so the prospects for the future may be better than the current status of the company. If you want to have more risk in your portfolio, this may be a company for you but I cannot recommend it for the general audience.

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 SINA 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: $45.37
  • Growth: 0.17
  • Current EPS (TTM): $0.36
  • P/E: 127
  • Future EPS Calc: $0.78
  • Future Stock Price Calc: $100.23
  • Target stock price: $62.24

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