The sector that may get the most action in the next couple of decades may be healthcare. Baby boomers are growing older and retiring in waves. The cost of healthcare seems to be constantly increasing and people are living longer lives which could mean healthcare companies have some opportunities coming up. Out of all the sectors though, the performance of healthcare companies was the hardest to compare between the different sectors. Honestly, the healthcare sector and biotechnology companies in general are out of the realm of my expertise. This gives me a disadvantage with respect to investing in healthcare companies but the IWC Stock Portfolio will give it a shot. The screening and evaluation process is focusing only of dividend performance and business growth. At this stage of the process, the operations are not looked at until part two when we analyze the company performance on a case by case basis.Read More
Qihoo 360 Technology Ltd. (NYSE:QIHU) is a Chinese internet company that specializes in the internet security market, gaming and search. The claim to fame is internet security but have made the shift to gaming and internet search. If you have read anything I have written over the past few months or follow the IWC Stock Portfolio, you will know that two companies I'm extremely bullish on are Qihoo 360 and Baidu (NASDAQ:BIDU). The reason being the developed nations have an internet usage rate of between 75-80% of the population. China has an internet adoption percentage in the 40% range. With a huge population and low but rapidly growing internet adoption rate, this market should double and therefore large internet companies in China (i.e. Baidu, Tencent, Alibaba, etc.) stand to benefit. In the IWC Stock Portfolio, the two biggest positions are Baidu followed by Qihoo 360.
For information, check out the link below for the full article on SeekingAlpha.Read More
Fossil fuels, carbon dioxide in the atmosphere, and the environment as a whole have all been a concern to the general public. The poster child for poor environmental performance are energy companies and especially oil refinery corporations. Just recently BP was found guilty of "gross negligence" for the oil rig explosion in the Gulf of Mexico in 2010. With renewable energy still a while away from global adoption, oil will still have a place in the general public and therefore companies in these fields will have demand moving forward.
Energy companies are typically cash driving behemoths. Exxon Mobil had been the most valued corporation before Apple took its place. Still some of the biggest companies in the world are in the energy sector and the reasons are pretty obvious. Barriers of entry are quite large and you need a lot of capital invested to succeed. Also, having some exposure to energy seems like a good idea for a well diversified portfolio. The IWC Stock Portfolio has National Oilwell Varco shares. Owning Berkshire Hathaway also exposes the portfolio to some Exxon Mobil shares.Read More
"The market is a very sensitive beast that can turn in an instant on the slightest bad news. Sometimes this creates buying opportunities for the ones who pay attention." - Anonymous
Qualcomm reported third quarter earnings with some really strong results. Due to the strength in the chipset technology segment, Qualcomm saw good increases in revenue and earnings year-over-year. These results resulted in an 11% drop in share price over the next few days. The culprit was the two words every investor dreads: lower guidance. Whenever a company forecasts lowered guidance, people rush to dump the stock without taking into account where the weakness is coming from and if it's a fundamental development or short-term event that will run its course.
So what caused this downward forecast? The lowered guidance came mainly from one source: China. Specifically the under-reporting from licensees in China.Read More
Technology companies are some of the most followed companies in the world. Apple is currently the most valued corporation in the world. Think about that for a second. A company that sells smartphones, tablets and laptops among other things is valued more than Big Oil. Not only that, if you look at companies with the largest market caps in the world, they include companies like Cisco, Microsoft, Google, etc. Before technology companies were synonymous with growth companies and didn't pay dividends. Google still doesn't pay a dividend but now they are more the except to the norm. Microsoft has been paying a dividend for years, Apple recently started paying dividends again, and the list goes on. Therefore, it was not surprise that there would be many companies to chose from when looking for a dividend paying company to invest in.Read More
The financial sector during the 2008 crash in the markets probably suffered the worst out of all sectors. Large banks including Bank of America, JP Morgan, and Wells Fargo all saw their market caps shrink tremendously. They have since rebounded but public sentiment towards big banks and the financial sector still weighs on the industry due to the thoughts that they instigated the recession. Whether that is true or not, this sector holds some companies that are strong dividend paying corporations and worth taking a look.Read More
Whenever I think of industrial companies, I think of Caterpillar, General Electric, and Deere. These companies produce good and sell them. This makes them most times easy to understand. You produce a good in demand, determine how much it costs to produce said good, sell the goods with a mark-up which represents your gross profit margin. Seems pretty simple right. Nowadays with a public company there is more to it than this what with how companies manage accounts receivable, what the inventory turnover ratio looks like, how they manage their debt. It can get complicated if you really wanted it to be complicated. For a first pass analysis when the overall business trends are analyzed to narrow down our scope, the analysis becomes very simple. Especially since this is a continuation of the dividend analysis study.Read More
Baidu (NASDAQ:BIDU) has been a favorite company ever since it was hovering in the $80/share range as near back as 2013. The growth trajectory for Baidu has been apparent, and if you follow my investing principles, you will find that I am very bullish on the Chinese internet market as the population grows and technology is adopted throughout China. Now that Baidu has exploded almost 11% after its strong 2nd quarter results and has gained over 27% year-to-date, how does Baidu look at these lofty heights?Read More