Name & Fund Name: Junxi Nie ---- Market Mafia
Date of Analysis: Jan. 12. 2014
This analysis led to the following trade(s) executed on (date):
Trade Date Price Quantity
1.
Industry Description
Firms in Internet Information Provider industry generate their sales primarily through families of their sites. This industry excludes e-commerce companies (such as eBay, Amazon) as well as Internet software firms (like Oracle and Microsoft) or firms that otherwise are generally firm rather than consumer facing. Companies that are part of this industry specialize in creating or aggregating interesting and useful contents that attracting eye-balls to their site. And most of those informations are free.
Thus, those firms depend on their loyal and existing customers and widespread brand recognition to attract advertisers. Advertisers buy advertising space on their site or embed advertising. The firms reinvest their profit on enhancing their websites and improving their content offerings to attract more viewers then resell the eyeballs they attracted to advertisers.
Business cycle and Opportunities of the industry:
Below is a list that contains the leaders of market capital in this industry. You may note that there are some very large Chinese companies in Chinese market and some of them are listed on US stock exchange. Therefore, to better analysis the industry, we need to consider China and US economic data at the same time.
Leaders in Market Capitalization [1]
TENCENT [0700.HK] $913.8 B
BAIDU SP ADR-A [BIDUN.MX] $816.8 B
YAHOO [YHOO.MX] $541.1 B
Google Inc. [GOOG] $377.6 B
Facebook, Inc. [FB] $142.2 B
MONEYSUPERMARKET [MONY.L] $107.9 B
TENCENT HLDGS [NNNC.DE] $87.8 B
Baidu, Inc. [BIDU] $62.9 B
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...ders industry is quit high compare to our portfolio return of 3.28%. The percentage of our total asset that has invested in this industry is around 24%. Base on the weight of each stock, the weight average return of stocks from internet information providers industry is 9.36%.
The return from IIP industry is much higher than our portfolio return, and base on all the other industry analysis, I recommend to sell some underperformed stocks in our portfolio and invest the money in good stocks in internet information providers industry, like YOKU and SOHO.
List data sources:
[1] Leaders in Market Capitalization http://biz.yahoo.com/ic/ll/851per.html [2] Internet Users http://en.wikipedia.org/wiki/Global_Internet_usage http://en.wikipedia.org/wiki/List_of_countries_by_number_of_Internet_users
[3] Industry and Sector Data
http://biz.yahoo.com/p/851conameu.html
From an operational standpoint, Intel seems to be doing quite well. The company’s revenue has nearly quadrupled in the past 5 years to $4.059 billion in 1991. As can be seen in Exhibit 1, Intel’s Gross Margin has continually increased over the past 4 years to 60.28%. The company’s ROE and ROA have also continued to increase, which suggests Intel is using its assets and funding from equity wisely. The company’s current ratio suggests it has more than enough money to pay off its liabilities over the next 12 months. Although slightly decreasing from 1990 and 1989, Intel still has enough cash to fund 2.7 years of current investment expenditures wi...
The interesting part of this industry is the fact that there is no company with a dominant market share. Even though some revenue numbers might be higher for some companies, each company has a specialty that it brings to the industry. One of the main costs is manufacturing their products. A major reason the companies are moving manufacturing plants to Asia and South America is to lower manufacturing costs.
This article discusses the need for a revenue model for social networking websites like myspace.com. Myspace is a very active web destination, second only to yahoo in terms of page views. There are 106 million profiles on myspace.com. With such a prime web real estate, Myspace enjoys an excellent opportunity to serve as an advertising venue for prospective marketers to advertise their products. Similar to musicians, direct marketers can take advantage of MySpace to target a feasible and large target audience. Very similar to their classifieds platform, Myspace also has a display advertising section, which can be targeted and suited to a very selective target audience. This will also increase traffic for MySpace, and using a similar model like yahoo or AOL, their ad revenues can shine superbly. Due to the diversity of the member base of it's website, MySpace can select the pages that any offer can be placed.
Over the past two years, the company has suffered a $17.00/share loss on its stock (from $30 to $13.00) mainly due to declining operating margins (Domash, 2004) caused by over-optimism in the Texas market. Competitors were more deeply entrenched than their research had shown, and reduced earnings forecasts combined with declining operating margins were the sell signal for many investors in the company. Also, the need to upgrade their IT infrastructure to support expansion in its California base market was the second company downfall. The following is a summary of the company strategy:
These findings show that the company is doing very well. The financial statements look good and the company is profitable considering the industry averages. Therefore, it is recommended that investors consider this company for their investment portfolio.
Over the previous five years, the return of the ProIndex fund have outperformed the S&P 500 index, as the 5-year-return is nearly 3 times than the benchmark and the annualised return is nearly 2 times than the benchmark. It means ProIndex fund has a significant increase in value within that period. However, the ProIndex Fund has a higher standard deviation which means it is more risk than the S&P 500 index. Especially for the annualised standard deviation, it is approximately 10% higher than the benchmark. The correlation coefficient between the ProIndex and benchmark is about 0.65 which means both two variables are positive changing consistently, but there are still some other factors which have impacts on the relationship between two variables as the correlation is less than 1. Furthermore, the higher beta, 1.0132, which is more than 1 and it may be one of the reasons for high risk as well since it is more sensitive to the market change. It means that the ProIndex fund would increase by 1.0132% if the market increased by 1%.
Consumer confidence remains high, supported by solid job growth, rising wealth and still-low interest rates. Job growth was disrupted by hurricanes in September, but the unemployment rate dropped to 4.2%, and they expect solid job growth to resume (Economic Outlook - Edward Jones). Revenue has increased since 1990 from 18 million to over 4 billion (Gale). One of Edward Jones’ most valuable qualities are their financial advisors. They offer a plethora of investing products to help you build a diversified investment portfolio, including stocks, bonds, mutual funds, exchange-traded funds and Unit Investment Trusts. (The Jones Financial Companies,
Recommendation of this stock as an investment opportunity. Support rationale with resources such as peer-reviewed articles or material from the Strayer
This analyse report is written for not only the shareholders, but also the employees of Incharge to inform about the competition out there on the market.
Internet commerce is one of the fastest growing industries today. With the wide range of capabilities the web has it make it easier and cost efficient for businesses to make transactions with other businesses. One factor that allows businesses to find each other is search engines. Search engines are part of the reason the web is growing so rapidly.
maintain their identity and can differentiate themselves by customizing the services And information they provide over the Internet.
Internet Business Models The Internet can help companies create and capture profit in new ways by adding extra value to existing products and services or by providing the foundation for new products and services. The Internet Business models are abstraction of what and how the enterprise delivers product or service, showing how the enterprise creates wealth by taking advantages of the Internet's rich communication capabilities. They provide the customer with a new product or service; they provide additional information or service along with a traditional product or service, or they provide a product or service at a much lower cost than traditional means. The most important Internet Business models that have emerged include: Virtual storefront. It sells physical goods or services on-line instead of through a physical storefront or retail outlet.
The first thing that we must consider about Information Security is that there is not a final destination at which we can arrive. IT Security is an ongoing set of processes and activities that requires attention and expertise on a daily basis. It is important to understand that systems are not secured by themselves and it is our responsibility to maintain and improve them periodically as required. It is of vital importance to establish the appropriate mechanisms and requirements in order to support the company’s CIA triad. The following report will provide you guidance about auditing and hardening techniques applied though the 7 Domains by utilizing IT Security Best Practices.
Johnson & Johnson (J&J) has been important producer of consumer products for 125 years. The last 10 years have seen its stock create a 4.0 % return on investment, whereas the number generated for the S&P 500 is 1.4 % (Johnson & Johnson, 2012). J&J knows that keeping a pulse on the global consumer market is key to achieving profitable results in the marketplace. Despite recent struggles with several high pr...
The Internet Corporation for Assigned Names and Numbers [ICANN] is a nonprofit corporation formed in 1998 to take over the operations of the Internet from the United States government. The main duty of ICANN is to manage and control the domain name system [DNS] which is the main basis for the Internet. ICANN is also responsible for the technical operations of the Internet, the creation of innovative ideas for the Internet and also provides stability for the operations of the Internet. The governance and control of the Internet by ICANN has been a controversial issue mainly because of the United States' influence on ICANN and the way it influences the decisions made by ICANN. An example of this is the decision made by ICANN on the .xxx domain name. This decision is believed to be highly influenced by the United States government. The question now is, “Should ICANN continue to govern and control the Internet?”. In this essay, I am going to go through what the popular press articles which include newspaper articles and magazine articles say about this question. Also, I am going to talk about the point of view of scholarly articles which include university press journals and books about this question.