Stocks - Rate My Portfolio - r/Stocks Quarterly Thread September 2020 |
- Rate My Portfolio - r/Stocks Quarterly Thread September 2020
- r/Stocks Daily Discussion & Technicals Tuesday - Sep 01, 2020
- Tesla to sell up to $5 billion in stock amid rally
- Which stocks do you think will have explosive gains in the next couple of years like Tesla, Nvidia, AMD have had?
- Tesla - hype is fun, until its not
- Zoom's market cap dashes past Lowes, Phillip Morris, Starbucks, and more.
- Let's talk about $ZM popping 44% this morning
- Walmart VS Amazon, the next big online retailer (Walmart DD). Why my money is on Walmart
- What ETF would you buy today to hold for 10 years?
- What are your thougths on $NIO
- Sold my Nokia shares. 15k now to invest.
- Thoughts on Xpeng
- Tax question about selling shares...
- NYSE:TRQ 3rd Largest Copper and Gold Mine in the World by 2023. Breaking Out above $1.00 and 52 Week High
- RKT earnings tmrw
- To anyone that owns NVDA shares or are about to own NVDA shares
- Virgin Galactic (SPCE)
- CVNA: Work From Home VS Online Sales
- 3D Printing stocks?
- Peloton? What does the next year look like
- Thoughts on Oil stock rebounds?
- Thoughts on CARR?
- Vaccine Stock Plays
- FDS DD
- What’s going on with Moderna?
| Rate My Portfolio - r/Stocks Quarterly Thread September 2020 Posted: 01 Sep 2020 05:07 AM PDT Please use this thread to discuss your portfolio, learn of other stock tickers, and help out users by giving constructive criticism. Why quarterly? Public companies report earnings quarterly; many investors take this as an opportunity to rebalance their portfolios. We highly recommend you do some reading: A list of relevant posts & book recommendations. You can find stocks on your own by using a scanner like your broker's or Finviz. To help further, here's a list of relevant websites. If you don't have a broker yet, see our list of brokers or search old posts. If you haven't started investing or trading yet, then setup your paper trading. Be aware of Business Cycle Investing which Fidelity issues updates to the state of global business cycles every 1 to 3 months (note: Fidelity changes their links often, so search for it since their take on it is enlightening). Investopedia's take on the Business Cycle and their video. If you need help with a falling stock price, check out Investopedia's The Art of Selling A Losing Position and their list of biases. Here's a list of all the previous portfolio stickies. [link] [comments]  |
| r/Stocks Daily Discussion & Technicals Tuesday - Sep 01, 2020 Posted: 01 Sep 2020 01:07 AM PDT This is the daily discussion, so anything stocks related is fine, but the theme for today is on technical analysis (TA), but if TA is not your thing then just ignore the theme and/or post your arguments against TA here and not in the current post. Some helpful day to day links, including news:
Technical analysis (TA) uses historical price movements, real time data, indicators based on math and/or statistics, and charts; all of which help measure the trajectory of a security. TA can also be used to interpret the actions of other market participants and predict their actions. The main benefit to TA is that everything shows up in the price (commonly known as "priced in"): All news, investor sentiment, and changes to fundamentals are reflected in a security's price. TA can be useful on any timeframe, both short and long term. Intro to technical analysis by Stockcharts chartschool and their article on candlesticks If you have questions, please see the following word cloud and click through for the wiki: See our past daily discussions here. Also links for: Technicals Tuesday, Options Trading Thursday, and Fundamentals Friday. [link] [comments]  |
| Tesla to sell up to $5 billion in stock amid rally Posted: 01 Sep 2020 04:32 AM PDT It shall be interesting to see how the market react to this and whether it will just shrug it off. The price has dropped a little in after hours, but is still up 2% at time of posting. https://www.cnbc.com/2020/09/01/tesla-to-sell-up-to-5-billion-in-stock-amid-rally.html [link] [comments]  |
| Posted: 01 Sep 2020 01:56 AM PDT
If you had to make a (potentially) high-risk pick, which company could be on track to witness such impressive growth figures in the years ahead? Obviously no one knows for sure but I was curious what you guys think. Let's have a fun discussion... 😉 [link] [comments]  |
| Tesla - hype is fun, until its not Posted: 01 Sep 2020 12:12 PM PDT Im prepared for the downvotes. Look at a specific digital coins chart pre-2017 and then look at the tesla chart. We are in full on hype mode where anyone who holds the stock thinks that we are im a massive paradigm shift and that prices will only rise. If you are able to separate yourself from the emotions of your wins, you'll see that a nearly 6x gain in 6 months is not sustainable. There has been no insane breakthroughs and nothing that fundamentally changed the future of the company. Some will say that "People are adequately evaluating its potential now". Thats not a fundamental shift to its potential earnings, its just a shift to perceived value. That is exactly what drove a specific digital coins rise too back in 2017... perceived value and hype. Yes. Tesla is amazing. Elon musk is a visionary. They have incredible engineers and are more of a tech company than a car company. All of that is true. It is a fantastic company. And ya, one day i might actually earn its spot as the 7th largest market cap in the United States. But theres a whole lot that needs to go right between now and then. Its priced for its 2025 or even its 2030 value. This will absolutely dip and people who buy now will lose most of their money. It might be 1 month, it might be 3, but its nkt going to hold at 400B market cap. BE CAREFUL WITH HYPE. Disclosure: I hold one put. And ill probably lose because i wont time it right. [link] [comments]  |
| Zoom's market cap dashes past Lowes, Phillip Morris, Starbucks, and more. Posted: 01 Sep 2020 01:33 PM PDT Zoom has added close to $40 billion to its market cap over the past 24 hours after what many are saying could be one of the best earning reports of all time.
In the process, Zoom has surpassed 32 stocks by market cap in the past 24 hours including Lowes, Phillip Morris, Starbucks, JD, Boeing and more. [link] [comments]  |
| Let's talk about $ZM popping 44% this morning Posted: 01 Sep 2020 07:17 AM PDT I know Tesla and Apple are stealing headline space. But Did anybody see this coming for ZM? 44% pop this morning. Is the P/E ratio irrelevant when measuring Zoom's evaluation? With Salesforce and Docusign also popping this week, I don't see how much longer we can keep this rally going. [link] [comments]  |
| Walmart VS Amazon, the next big online retailer (Walmart DD). Why my money is on Walmart Posted: 01 Sep 2020 11:22 AM PDT Walmart Due Dilligence PARTNERSHIPS - Partnership with Instacart Recently Walmart and Instacart have founded a partnership that will allow Walmart to use Instacart their same-day shipping service. [Walmart and Instacart together make up for nearly 50% of the online grocery sales.]( https://secondmeasure.com/wp-content/uploads/2019/08/GroceryDelivery-chart2png-1024x631.png) Walmart's vast inventory and Instacart their network and experience will only strengthen their position as the dominant grocery delivery providers, and thus putting more pressure on Amazon. - Partnership with Shopify In addition to Instacart Walmart has also partnered with Shopify. This new partnership will allow third-party sellers to directly sell their item's on the Walmart marketplace. This new partnership will greatly expand Walmart's inventory while giving small businesses the opportunity to reach a bigger demographic. Walmart is expecting to add 1200 Shopify sellers in 2020. Listing an item on Walmart's marketplace allows Walmart to pick up some fees and generate greater traffic to the website. Another interesting possibility to consider is the fact that Walmart could be used as a Shopify returns hub, with a Walmart being within 10 miles of 90% of the US population it is the ideal candidate for further strengthening their relation with Shopify and saving both parties a lot of money. - Partnership with ThredUp Walmart has also partnered with Thredup. ThredUp is basically an online thrift shop for clothes and wearable's. This brilliant partnership means Walmart can now offer both normal and high-end clothing on their marketplace for an affordable price and expose customers to nearly 750,000 pre-owned items. Who would've ever thought you could tell someone that you bought your Michael Kors or Calvin Klein at Walmart. Walmart has been partners with Google for over 3 years now. This partnership allowed Walmart to enter the domain of voice ordering groceries. Simply ask one of your Google devices to buy milk and it will add milk to your Shopping cart. This Partnership might just be the beginning of a strong bond between Google and Walmart as both companies are interested in competing with Amazon. - Microsoft (+ Possible TikTok acquisition) Walmart has been partnered with Microsoft for about 2 years with 3 more years to go. Since the partnership Walmart has been using the full range of Microsoft cloud solutions in a bid to accelerate their digital transformation, innovation and efficiency. Acquisitions - Bonobos, ModCloth, ShoeBuy, Moosejaw, Parcel Let's start at the beginning, with these acquisitions Walmart stated entering the e-commerce market in 2016-2017. Sadly as is known none of these are particularly success stories with the companies being sold again, being discontinued or CEO's leaving. However Walmart learned a lot from these companies and has used this knowledge to further try to expand in the e-commerce market. - Jet.com The first big step in the fight against Amazon. When amazon acquired Jet.com it was a clear signal of what its intentions were. Jet.com was one of the fastest growing U.S. e-commerce companies and Walmart acquired them in September 2016. Since then a lot has happened, Jet.com has been discontinued but the knowledge, progress and technology gained due to Jet.com is irreplaceable and has given Walmart a brilliant boost into the e-commerce with their e-commerce sales increasing 29%. Furthermore (ex)CEO of jet.com Marc Lore is now the CEO of Walmart's e-commerce. - Flipkart Ever heard of the small startup company called Flipkart? Maybe you have not, you should though. Flipkart owns 35% of the Indian e-commerce market, a true giant. Walmart acquired Flipkart in 2018 and ever since then it has been expanding its influence in India and fighting against Amazon for market dominance. This year Flipkart took over Walmart's 28 Indian stores in order to expand its wholesale growth. Another interesting thing is that Walmart might make Flipkart public within the next 3 years. - TikTok acquisition Some very recent news of their Partnership with Microsoft is to potentially acquire TikTok. TikTok's enormous userbase and the current pressure in the US and India have made for an interesting situation causing the partnership to push forward in the bid to acquiring TikTok. In my opinion Walmart has a very decent chance of getting TikTok and making it work. One factor that plays a big role in this is Walmart's presence in India due to Flipkart. Flipkart is India's biggest online store for; phones, electronics, books, home appliances, etc. With Walmart having a presence in both countries where TikTok is (going to be) banned might mean some positive things for the future, but for now that is speculation. The acquisition of TikTok would allow Walmart to use its genius algorithm and massive userbase to further promote and integrate its Walmart marketplace. Walmart PLUS Word is finally out, in September Walmart will be launching its Amazon competitor called Walmart plus. It will give numerous benefits to the user such as; Unlimited free delivery(with 2700 stores having same day delivery), fuel discounts and scan&go a tool to make shopping faster, all for the price of $98 per year 2 Hour Delivery Walmart recently launches its new delivery service, called Express Delivery. This new service will allow customers to place their order online and receive their groceries (for a 10$ fee) within 2 hours. Walmart express delivery is currently available in 800 stores with plans to expand to 2000 stores. In addition to 2 hour delivery Walmart also offers same-day delivery in almost the entire United States. 5000+ US stores. This is Walmart's biggest weapon. The thing Amazon lacks the most is physical stores. Walmart has over 5000 stores while Amazon has just over 600 (worldwide!). If Walmart can find a way to combine e-commerce with its enormous physical presence then it could give Amazon an absolute run for its money. Remember that 90% of Americans live within 10 miles of a Walmart. Some other interesting facts to consider. - 90% of US population live within 10miles of a Walmart. - Walmart's e-commerce sales are currently up 97% - Walmart's expansion in Africa, India, China. Conclusion/TLDR Let me first state with you that this has been my first Due Dilligence and that English is not my first language. Walmart is currently the underdog, and not many people are expecting them to properly fight Amazon. However its recent spree of partnerships and acquisitions have been a brilliant and very clear move in the direction of e-commerce. If Walmart fully utilized its massive physical network together when their growing fresh e-commerce, I see no other outcome then for Walmart to grow, grow, grow. Covid has given Walmart customers the push they needed to fully explore Walmart their marketplace, the marketplace that is now starting to fill up with thousands of sellers and endless products. Walmart VS Amazon, here we go, my money is on Walmart. Sources: Instacart: https://secondmeasure.com/wp-content/uploads/2019/08/GroceryDelivery-chart2png-1024x631.png Shopify: https://techcrunch.com/2020/06/15/walmart-partners-with-shopify-to-expand-its-online-marketplace/ ThredUp https://www.walmart.com/browse/clothing/thredup-shop-all/5438_6272369_7404214 Google: https://techcrunch.com/2019/04/02/walmart-partners-with-google-on-voice-enabled-grocery-shopping/ https://techcrunch.com/2017/08/22/walmart-and-google-partner-on-voice-based-shopping/ Microsoft + TikTok https://techcrunch.com/2017/08/22/walmart-and-google-partner-on-voice-based-shopping/ https://edition.cnn.com/2020/08/28/tech/walmart-tiktok-bid-hnk-intl/index.html Bonobos, ModCloth, ShoeBuy, Moosejaw, Parcel https://www.investopedia.com/articles/markets/102315/top-4-companies-owned-walmart.asp Jet.com https://www.cnbc.com/2020/05/20/walmart-ceo-on-buying-jetcom-we-would-do-that-all-over-again.html https://www.fool.com/investing/2020/05/20/jetcom-may-be-history-but-walmart-got-what-it-need.aspx Flipkart Walmart PLUS https://www.tomsguide.com/news/walmart-plus-price-launch-date-and-everything-you-need-to-know https://corporate.walmart.com/newsroom/2020/09/01/walmart-introduces-walmart 2 hour delivery https://www.roadie.com/resources/press-releases/walmart-grocery-delivery [link] [comments]  |
| What ETF would you buy today to hold for 10 years? Posted: 01 Sep 2020 03:16 AM PDT What ETF would you recommend to buy (or several) to buy and hold for 10 years? I have about 250.000 EUR I do not really need at this moment, I would like to invest it into an ETF and hold it. Any tips? Thank you in advance [link] [comments]  |
| What are your thougths on $NIO Posted: 01 Sep 2020 09:58 AM PDT I think currently NIO is undervalued as a company, they are at the beggining of their technology innovation could they potentially hit $50 you think? [link] [comments]  |
| Sold my Nokia shares. 15k now to invest. Posted: 01 Sep 2020 08:59 AM PDT Head is scrambled. Need some advice. Sold my Nokia shares since I have heald 4000 since 4.50 and now I'm entering minis territory. Will enter Nokia again if it dips more. Looking to invest 15k, was thinking to throw it all into apple. Heads gone, need some help 😂 [link] [comments]  |
| Posted: 01 Sep 2020 01:38 PM PDT So I've done a bit of reading on Xpeng and have seen that one of the original investors was the founder of Xiaomi with a few executives from Alibaba as well. Later on Alibaba as a company has invested way more. Iam about to start reading about more technical parts of the company and comparing cars so any inputs there are welcome. What do you think about the company? [link] [comments]  |
| Tax question about selling shares... Posted: 01 Sep 2020 06:22 AM PDT I want to sell 300 shares of AAPL, but am worried about getting taxed. I will not be taking the money out of my account, but instead will be putting it into other investments. My question is, will I be taxed for selling the shares without withdrawing the money from my account or will I only be taxed for withdrawing money from my account? [link] [comments]  |
| Posted: 01 Sep 2020 10:17 AM PDT NYSE:TRQ 3rd Largest Copper and Gold Mine in the world by 2025. Breaking above $1.00 today and 52 week high. I will show you a copper/gold mining stock that is mining 2 open pits while building a huge underground mining complex that is so enormous, it'll be a mine for over 100 years. Next year it'll mine 550,000-600,000 oz. of gold and 250K tons of copper. Get this... It sells for just over $1 (from $22high). PE is 5, and next year will be under 2! Price/Book = 0.1 (i.e. valued at 10% of book value!) And 3 years from now it'll start producing 650M+ tons of Cu and 500-650K oz of gold, all automated from underground mining at a cost of about 25c/ lb of Cu. It will be an enormous cash cow, generating $6-10/share in earnings. Why is it unknown and so cheap? Its mine is located in Mongolia, about 25 miles near Chinese border. It is majority owned by a predator mining company called Rio Tinto. It is being run by an ansavory character (you can read it in the news), who employs funds to short its own stock to keep it dirt cheap with the intention to buy it all up once they secure the last agreement with government of Mongolia to swap its 1/3 ownership of the deposit for accelerated royalty payments. Once this is done (sometime this year or early next), TRQ will most likely initiate a buy-out. The value of the stock today should be over $4, and next year over $10, considering they'll produce over $1B in gold as a side product of copper mining. Imagine... now valuation of the company is $1.7B, and next year they'll generate over $1.4B in sales. TRQ .... Get on board the train is leaving the station. You're welcome! [link] [comments]  |
| Posted: 01 Sep 2020 09:18 AM PDT What are your thoughts on how RKT will move tmrw AH? Ive never had a stock that released prelimary earnings. Will the stock tank due to its performance since its IPO? Up 5% today already. [link] [comments]  |
| To anyone that owns NVDA shares or are about to own NVDA shares Posted: 01 Sep 2020 08:31 AM PDT Here is a link to their GeForce special event. Let us hope General Huang delivers today! :D [link] [comments]  |
| Posted: 01 Sep 2020 12:07 PM PDT I recently bought shares of Virgin Galactic and was wonder what you guys think about the stock. I'd love your opinions as well as other stocks around that price range that you'll believe can do well. 👇👇👇 [link] [comments]  |
| CVNA: Work From Home VS Online Sales Posted: 01 Sep 2020 12:11 PM PDT The run up on CVNA has been often attributed to online sales boosts. This helps compete against brick and mortar but the competing force of Work From Home on family car purchases is appearing to be more significant in the short term. CVNA speculation counts on WFH returning to normal while counting on buying trends to be permanently impacted. It's a silver lining paradox. Two clouds don't get a silver lining if ones in front of the other. I jumped in on calls after Ally banks financing but now it's clear we've squeezed short a few times and are far above a justifiable level. [link] [comments]  |
| Posted: 01 Sep 2020 09:09 AM PDT Has the craze for 3D printing stocks been down lately? Checked out a few famous companies and noticed weirdly varying results. Protolabs and Materialise have been killing it but 3D systems and Stratasys have been beaten blue. I believe the construction and manufacturing sector can see some huge splashes and 3D printing can do it. Thoughts? [link] [comments]  |
| Peloton? What does the next year look like Posted: 01 Sep 2020 10:22 AM PDT Hey all - Peloton (PTON) is up ~9% today and has a new price target if $96 from Goldman Sachs. I'm wondering how much room there is for this stock to move with more people committing to working out at home. Sure peloton is an expensive product but that relative. If you drop your gym membership it's quite affordable. [link] [comments]  |
| Thoughts on Oil stock rebounds? Posted: 01 Sep 2020 01:56 PM PDT Obviously demand for oil has dropped substantially, but what are your thoughts on oil stocks rebounding over the next few months? I personally think that with markets being forward looking that we could expect to see some recovery, especially with big name stocks like XOM and RDS.A. I know oil is slowly fading out but I would doubt that has a major impact for many, many years. Does anyone else feel like we can see oil stocks start to reverse course and potentially shoot up over the next several months? [link] [comments]  |
| Posted: 01 Sep 2020 01:56 PM PDT I read that reopening guidelines will require businesses like malls and gyms to have enhanced air filtration systems. Additionally, many schools are still closed and have classes online. Schools can't be closed for too long as they need the money and people like Trump want schools to resume. The reopening guidelines will force schools to update their HVAC systems, since majority have outdated systems. "About 41% of U.S. public-school districts need to update or replace their HVAC systems in at least half their schools, representing about 36,000 schools nationwide, according to a report published in June by the U.S. Government Accountability Office. Key to Preventing Covid-19 Indoors: Ventilation I also interned at a construction company and noticed that many owners wanted their buildings to be fitted with updated ionizers and HVAC systems that utilize UV rays to kill airborne pathogens. It seems to be the norm for new buildings that are under construction. So with all this, I don't see how HVAC companies like CARR is not a good play in the next few years. I see that they also pay a small dividend (1%). Thoughts? [link] [comments]  |
| Posted: 01 Sep 2020 01:37 PM PDT If you are looking to bet on a vaccine. Here is a pretty good breakdown of each contender. GENETIC CODE VACCINES #mrna #pfe The Moderna and Pfizer candidates began Phase 3 testing in late July. Neither uses the actual coronavirus. Instead, they're made with the genetic code for the aptly named "spike" protein that coats the surface of the coronavirus. Inject the vaccine containing that code, called mRNA, and the body's cells will make some harmless spike protein — just enough for the immune system to respond, priming it to react if it later encounters the real virus. These mRNA vaccines are easier and faster to make than traditional vaccines, but it's a new and unproven technology. TROJAN HORSE VACCINES #azn Britain's Oxford University and AstraZeneca are making what scientists call a "viral vector" vaccine but a good analogy is the Trojan horse. The shots are made with a harmless virus — a cold virus that normally infects chimpanzees — that carries the spike protein's genetic material into the body. Once again, the body produces some spike protein and primes the immune system, but it, too, is a fairly new technology. Two possible competitors are made with different human cold viruses. Shots made by Johnson & Johnson began initial human studies in late July. The company plans to begin Phase 3 testing in September in as many as 60,000 people in the U.S. and elsewhere. China's government authorized emergency use of CanSino Biologics' adenovirus shots in the military ahead of any final testing. 'KILLED' VACCINES #sva Making vaccines by growing a disease-causing virus and then killing it is a tried-and-true approach — it's the way Jonas Salk's famed polio shots were made. China has three so-called "inactivated" vaccine candidates against COVID-19 made this way. Sinovac has final studies of its candidate underway in Brazil and Indonesia. Competitor SinoPharm has announced plans for final testing in some other countries. Safely brewing and then killing the virus takes longer than newer technologies. But inactivated vaccines give the body a sneak peek at the germ itself rather than just that single spike protein. PROTEIN VACCINES #nvax Novavax makes "protein subunit" vaccines, growing harmless copies of the coronavirus spike protein in the laboratory and packaging them into virus-sized nanoparticles. There are protein-based vaccines against other diseases, so it's not as novel a technology as some of its competitors. But it only recently finished its first-step study; the U.S. government's Operation Warp Speed aims for advanced testing later in the fall. [link] [comments]  |
| Posted: 01 Sep 2020 10:59 AM PDT Factset: How You can Invest in Hedge Funds' Biggest Investment Tl;dr FactSet is the most undervalued widespread SaaS/IT solution stock that exists If any of you have relevant experience or are friends with people in Investment Banking/other high finance, you know that Factset is the lifeblood of their financial analysis toolkit if and when it's not Bloomberg, which isn't even publicly traded. Factset has been around since 1978 and it's considered a staple like Bloomberg in many wealth management firms, and it offers some of the easiest to access and understandable financial data so many newer firms focused less on trading are switching to Factset because it has a lot of the same data Bloomberg offers for half the cost. When it comes to modern financial data, Factset outcompetes Reuters and arguably Bloomberg as well due to their API services which makes Factset much more preferable for quantitative divisions of banks/hedge funds as API integration with Python/R is the most important factor for vast data lakes of financial data, this suggests Factset will be much more prepared for programming making its way into traditional finance fields. According to Factset, their mission for data delivery is to: "Integrate the data you need with your applications, web portals, and statistical packages. Whether you need market, company, or alternative data, FactSet flexible data delivery services give you normalized data through APIs and a direct delivery of local copies of standard data feeds. Our unique symbology links and aggregates a variety of content sources to ensure consistency, transparency, and data integrity across your business. Build financial models and power customized applications with FactSet APIs in our developer portal". Their technical focus for their data delivery system alone should make it stand out compared to Bloomberg, whose UI is far more outdated and complex on top of not being as technically developed as Factset's. Factset is the key provider of buy-side portfolio analysis for IBs, Hedge funds, and Private Equity firms, and it's making its way into non-quantitative hedge funds as well because quantitative portfolio management makes automation of risk management and the application of portfolio theory so much easier, and to top it off, Factset's scenario analysis and simulation is unique in its class. Factset also is able to automate trades based on individual manager risk tolerance and ML optimization for Forex trading as well. Not only does Factset provide solutions for financial companies, they are branching out to all corporations now and providing quantitative analytics for them in the areas of "corporate development, M&A, strategy, treasury, financial planning and analysis, and investor relations workflows". Factset will eventually in my opinion reach out to Insurance Risk Management a lot more in the future as that's a huge industry which has yet to see much automation of risk management yet, and with the field wide open, Factset will be the first to take advantage without a shadow of a doubt. So let's dig into the company's financials now: Their latest 8k filing reported the following: Revenue increased 2.6%, or $9.6 million, to $374.1 million compared with $364.5 million for the same period in fiscal 2019. The increase is primarily due to higher sales of analytics, content and technology solutions (CTS) and wealth management solutions. Annual Subscription Value (ASV) plus professional services was $1.52 billion at May 31, 2020, compared with $1.45 billion at May 31, 2019. The organic growth rate, which excludes the effects of acquisitions, dispositions, and foreign currency movements, was 5.0%. The primary contributors to this growth rate were higher sales in FactSet's wealth and research workflow solutions and a price increase in the Company's international region Adjusted operating margin improved to 35.5% compared with 34.0% in the prior year period primarily as a result of reduced employee-related operating expenses due to the coronavirus pandemic. Diluted earnings per share (EPS) increased 11.0% to $2.63 compared with $2.37 for the same period in fiscal 2019. Adjusted diluted EPS rose 9.2% to $2.86 compared with $2.62 in the prior year period primarily driven by an improvement in operating results. The Company's effective tax rate for the third quarter decreased to 15.0% compared with 18.6% a year ago, primarily due to an income tax expense in the prior year related to finalizing the Company's tax returns with no similar event for the three months ended May 31, 2020. FactSet increased its quarterly dividend by $0.05 per share or 7% to $0.77 marking the fifteenth consecutive year the Company has increased dividends, highlighting its continued commitment to returning value to shareholders. As you can see, there's not much of a negative sign in sight here. It makes sense considering how FactSet's FCF has never slowed down FactSet's annual subscriptions and professional services have made its way to foreign and developing markets, and many of them are opting for FactSet's cheaper services to reduce costs and still get copious amounts of data and models to work with. Here's what FactSet had to say regarding its competitive position within the market of providing financial data in its last 10k: "Despite competing products and services, we enjoy high barriers to entry and believe it would be difficult for another vendor to quickly replicate the extensive databases we currently offer. Through our in-depth analytics and client service, we believe we can offer clients a more comprehensive solution with one of the broadest sets of functionalities, through a desktop or mobile user interface or through a standardized or bespoke data feed." And FactSet is confident that their ML services cannot be replaced by anybody else in the industry either: "In addition, our applications, including our client support and service offerings, are entrenched in the workflow of many financial professionals given the downloading functions and portfolio analysis/screening capabilities offered. We are entrusted with significant amounts of our clients' own proprietary data, including portfolio holdings. As a result, our products have become central to our clients' investment analysis and decision-making." (https://last10k.com/sec-filings/fds#link_fullReport), if you read the full report and compare it to the most recent 8K, you'll find that the real expenses this quarter were far lower than expected by the last 10k as there was a lower than expected tax rate and a 3% increase in expected operating margin from the expected figure as well. The company also reports a 90% customer retention rate over 15 years, so you know that they're not lying when they say the clients need them for all sorts of financial data whether it's for M&A or wealth management and Equity analysis: https://www.investopedia.com/terms/f/factset.asp FactSet also has remarkably good cash conversion considering it's a subscription based company, a company structure which usually takes on too much leverage. Speaking of leverage, FDS had taken on a lot of leverage in 2015: So what's that about? Why were FactSet's long term debts at 0 and all of a sudden why'd the spike up? Well usually for a company that's non-cyclical and has a well-established product (like FactSet) leverage can actually be good at amplifying returns, so FDS used this to their advantage and this was able to help the share's price during 2015. Also, as you can see debt/ebitda is beginning a rapid decline anyway. This only adds to my theory that FactSet is trying to expand into new playing fields. FactSet obviously didn't need the leverage to cover their normal costs, because they have always had consistently growing margins and revenue so the debt financing was only for the sake of financing growth. And this debt can be considered covered and paid off, considering the net income growth of 32% between 2018 and 2019 alone and the EPS growth of 33% EBITDA has virtually been exponential for FactSet for a while because of the bang-for-buck for their well-known product, but now as FactSet ventures into algorithmic trading and corporate development the scope for growth is broadly expanded. P/E has declined in the past 2 years, making it a great time to buy. Increasing ROE despite lowering of leverage post 2016 Mountains of cash have been piling up in the coffers increasing chances of increased dividends for shareholders (imo dividend is too low right now, but increasing it will tempt more investors into it), and on top of that in the last 10k a large buyback expansion program was implemented for $210m worth of shares, which shows how confident they are in the company itself. SGA expense/Gross profit has been declining despite expansion of offices I'm a bit concerned about the skin in the game leadership has in this company, since very few executives/board members have significant holdings in the company, but the CEO himself is a FactSet veteran, and knows his way around the company. On top of that, Bloomberg remains king for trading and the fixed income security market, and Reuters beats out FactSet here as well. If FactSet really wants to increase cash flow sources, the expansion into insurance and corp dev has to be successful. Summary: FactSet has a lot of growth still left in its industry which is already fast-growing in and of itself, and it only has more potential at its current valuation. Earnings September 24th should be a massive beat due to investment banking demand and growth plus Hedge fund requirements for data and portfolio management hasn't gone anywhere and has likely increased due to more market opportunities to buy-in. Calls have shitty greeks, but if you're ballsy October 450s LOL, I'm holding shares I'd say it's a great long term investment, and it should at least be on your watchlist. [link] [comments]  |
| Posted: 01 Sep 2020 10:56 AM PDT I bought in a month ago betting that price would go up upon good news but the stock is down significantly. I'm tempted to cash out before i lose more and put it in like Fedex. I checked the news and there hasn't been anything bad. [link] [comments]  |
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