I’m going to go out on a limb here and actually recommend a stock for 2011. I believe that there are very few really valuable stocks to choose from right now. I am a little concerned by the number of analyst who are predicting big things to come for 2011. I am looking for stocks, which have made gains in revenue and earnings during the downturn. Companies with strong leadership. Such companies demonstrate strength and value. Companies with low debt and or overhead cost tend to peak my interest. I also like companies that have introduced successful new product lines or have expanded market share.
After I sift through my short list one that I like very much is Amazon.com symbol AMZN. I believe the company is now benefiting from sales of its best selling product the Kindle. The Kindle is growing ever popular. It was once thought that the kindle would become a dinosaur with the introduction of the ipad. But both applications seem to be doing just fine. Amazon is also benefiting from a growth in Internet sales.
Amazon has created a convenient and time saving way to shop. You can order products from your home or office. Amazon carries everything from automotive supplies, computers, hunting knives and surprisingly enough even groceries. All which can be shipped to your home within days. Saving you the driving and long lines at the grocery store. Amazon shipped to 178 countries. Evidence of global reach of its products.
Unfortunately I work for a struggling brick and mortar retail chain. I am not going to say which one. But I feel I have experience in knowing what works and what does not work. I know that in retail much of the tricks used in advertising don’t work. You must simply have quality products consumers want and delivered in a timely manner. They must be available in store or can be shipped quickly, as many customers are not interested in lengthy waits for products they have already paid for. I am a customer as well and I want the best quality for the lowest price.
Fundamentally Amazon has experienced strong revenue and earnings growth over the past five years. In December it was reported that Amazon recorded Black Friday sales of 13.7 million items or 158 per second sold vs. their previous best day in December 2009 9.5 million or 110 per second. 2009 sales were up 27.9 % from the previous year and I expect that this trends will continue into this year as well. The companies’ yearly revenues have more than doubled since 2006. The company also has a strong cash position, and their cash flows seem to improve every year. I also like a solid return on equity. A return on equity of between 15% and 20% is ideal. This shows how well a company uses its investment funds to generate earnings growth. For the small investor this is an easy way to calculate the effectiveness of a company’s management. Amazon’s Return on equity was about 17%.
As a disclaimer I always suggest you seek the advice of a financial advisor or by doing your homework before making any investments. Keep in mind there is always a risk of loss when investing in a stock. So good luck and may 20011 be a prosperous year for you.
Blogs, Twitter, the Kindle: The Future of Reading
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Fire & Ice $12.76 All products are BRAND NEW and factory sealed. Fast shipping and 100% Satisfaction Guaranteed…. |
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LeapFrog: Letter Factory (Kids Pack) $6.97 Genre: Children’s VideoRating: NRRelease Date: 23-JUN-2009Media Type: DVD… |
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How to Play Guitar Like A Rock Star This is a how to guide on how to play the guitar like a rock star. In this book you will learn: 1. Legends of Rock Stars2. History of Rock and Roll bands from the 50′s and 60′s 3. The Golden Era 4. Types of Rock 5. How to Form a Rock Band 6. Playing Like a Rock Star You will also learn how to play several popular Rock and Roll songs with chord formation and so much more…. … |
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The Tale of Despereaux $3.32 The Tale of Despereaux looks a little like Shrek. The storytelling and animation draw on everything from Ratatouille and classic fairytales to Shakespeare, Jonathan Swift, Indiana Jones, and, in its action sequences, even Bourne and Bond. But this movie stands on its own; too dark and violent for very young children, perhaps, but for the most part it’s exciting and funny, and it delivers a m… |
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Tuesdays With Morrie $3.98 This warmhearted TV offering based on Mitch Albom’s nonfiction bestseller of the same name dives right into the action, with Morrie (Jack Lemmon) collapsing within the first three minutes. Then it’s cut to Mitch’s hectic life as a sports columnist cum television host and long-term, often long-distance boyfriend. But this Mick Jackson-directed film slows considerably after the introductions as… |
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Groundhog Day (Special Edition) $5.42 Bill Murray does warmth in his most consistently effective post-Stripes comedy, a romantic fantasy about a wacky weatherman forced to relive one strange day over and over again, until he gets it right. Snowed in during a road-trip expedition to watch the famous groundhog encounter his shadow, Murray falls into a time warp that is never explained but pays off so richly that it doesn’t need to be. T… |
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