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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.
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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.

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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.

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The way a financial adviser charges for advice often makes no sense, and it needs to change.

The typical adviser charges absurdly high fees to manage your money, often with mediocre results—but next to nothing to provide financial-planning expertise, which can be hugely valuable.

According to survey data gathered from more than 7,000 advisers by Cerulli Associates, a financial-research firm in Boston, 79% of advisers’ compensation comes from asset-based fees—which may bear little relationship to the services the clients use.

Such charges, typically based on the size of a client’s investment portfolio, vary widely. You might pay as little as 0.25% annually or up to 2% or more. Advisers and analysts estimate that the typical investor likely pays a pinch less than 1%.

But these fees look increasingly bizarre nowadays: For less than 0.1% annually, you can build your own portfolio of exchange-traded funds covering every worthwhile investment in the world. And online “robo adviser” services will manage ETF portfolios for you for 0.25% or less.

Of course, many people require advice that extends well beyond baskets of stocks, bonds or funds: saving for college, managing debt, minimizing income and estate taxes, giving to charity, financing retirement.

That sort of advice can be priceless—yet, oddly, many financial advisers don’t charge separately for it. You pay indirectly, out of the fees you are charged for portfolio management.

This clip of the article on financial adviser fees has been very lightly edited and was originally found at: Why You’re Paying Too Much in Fees – MoneyBeat – WSJ

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Apple Inc. [stckqut]AAPL[/stckqut] has fallen victim to the “Curse of the Dow.”

Friday marks the three-month anniversary of Apple’s inclusion in the Dow Jones Industrial Average. It hasn’t exactly been a stellar three months for Apple’s stock.

The old Wall Street adage about the supposed “curse” goes as follows: Companies typically rally in the months leading up to their addition to the Dow 30, but underperform in the months that follow.

Since 1999, the 16 firms joining the Dow (Apple excluded) have seen their stocks increase an average 1% in the six months after their induction, according to data gathered by Birinyi Associates. That’s compared to gains of 11%, on average, for the companies in the six months preceding their inclusion.

Apple hasn’t reached the six-month mark yet. But three months later, its shares are down 0.5% after rising 13% in the three months leading up to their addition. The stock’s sideways action the past three months isn’t that different than the performance of the broader market. The Dow has risen 0.2% since mid-March, only slightly outperforming Apple.

“The ‘Curse of the Dow’ is alive and well,” said Nick Colas, chief market strategist at Convergex, referring to Apple’s performance.

You can read the rest of the article at the original source: Apple Plagued by the Curse of the Dow – MoneyBeat – WSJ