Investment Grin Of The Day Google
Why You Should Have Bought Best Buy’s Stock Instead Of Windows 95
FUNDAMENTAL ANALYSIS:
As mentioned above, by 1997 Best Buy had a decade of excellence under its belt. In both, the stock price appreciation and the growth of its retail business. Between 1986 and 1997 the company’s stock price had already appreciated by 1,900% (a 19 Bagger). Yet, things were about to get a whole lot better for Best Buy and the company’s shareholders.
To establish a clear picture of what had happened between 1997 and 2006 must first study the fundamental growth of the company at the time.
| Key Statistics | 1997(December 31, 1997) | 2006(December 31, 2006) |
| Price Per Share | $4.05 | $50.00 |
| Market Cap | $1.4 Billion | $17.4 Billion |
| Earnings Per Share | $0.27 | $4.02 |
| P/E Ratio | 14.8 | 12.42 |
| Price/Sales Ratio | 0.17 | 0.48 |
| Price/Book Ratio | 2.5 | 2.8 |
| Revenue | $8.3 Billion | $ 36 Billion |
| Net Income | $94.5 Million | $1.4 Billion |
| Annual Earnings Growth | 26%(gross profit) | 21% |
| Total Cash | $520 Million | $1.2 Billion |
| Total Debt | $225 Million | $590 Million |
| Book Value Per Share | $1.60 | $17.8 |
| Shares Outstanding | 348 Million (split adjusted) | 348 Million |
| Total Assets | $2 Billion | $13.5 Billion |
| Shareholder Equity | $558 Million | $6.2 Billion |
As we analyze the data above, one thing becomes evident. Best Buy’s fundamental growth during the time did NOT match the growth in the company’s share price. While the Best Buy’s stock price appreciated 4,000%, shareholder equity and book value grew by only 1000%, net income and earnings per share grew by 1,380% and the revenue base increased by only 333%. While an admirable performance, the numbers above do not justify the rise in the stock price from the fundamental perspective alone.
We must now go back and study the 1996-2007 period in greater detail in order to determine why the company was selling at such a discounted level and what fundamental changes would occur to propel the stock price higher.
In 1995 the company began enhancing its store format into the so called “Concept III”. The concept featured a larger redesigned store format created to produce a more informative and exciting shopping experience for customers. The standard size of the Concept III stores was increased to 45,000 square feet and it was intended to be as good as or better than the selections offered by Best Buy’s competitors in each of its principal product categories. In other words, Best Buy was starting to focus more on hands on demonstrations, bigger stores and providing customers with the most desirable shopping experience possible.
Why You Should Have Bought Best Buy’s Stock Instead Of Windows 95 Google
The Reason Why NATO Will Lead The US Into A Devastating War
Continuation from yesterday……That is the situation we are facing today. Yet, it is safe to assume that things will deteriorate even further over the next decade between the USA and Russia/China.
This type of an unrest is not coincidental. What most people don’t realize is that the conflicts above are being perpetuated by the 3 major superpowers. The US, Russia and China. The EU is involved as well, but to a smaller extent. The countries above are jockeying for position in the fight for limited natural resources and in attempt to stem their ever increasing irrelevance. For instance, the wars in Ukraine and Syria have nothing to do with “freedom and liberty” for Syrians or Ukrainians and have everything to do with a proxy war between Russia and the US. As both countries try to either maintain or exert their influence in the region.
We are also beginning to see the same type of a behavior from China. China sees the South Pacific as their turf. Yet, with the US projecting their military might with the help of the Philippines, Japan and Taiwan, the Chinese government is beginning to act out. This situation is likely to deteriorate further over the next decade until one of two things happen. Either the US will leave the region or China and the US will get into some sort of a military conflict. Since the US will never abandon their allies in the region, we can already ascertain the most likely outcome.
Fundamental Reasons For The War:
To further comprehend what will happen over the next 15-20 years we must first have a better understanding of the parties involved. Let’s begin by taking a look at the North Atlantic Treaty Organization (NATO).
NATO is a military alliance organization that consists of 28 countries. You can see the full list HERE. It’s membership consists mostly of the EU countries and North America. Obviously, the US is the largest superpower, force multiplier and policy driver. More or less, the treaty works in the following way. If any of the NATO members are attacked, all other members must provide military support, assistance and equipment. Basically, if any of the member states are attacked, the entire NATO goes into war. NATO was originally created to counterbalance Soviet Russia after the World War 2.
As was mentioned earlier, over the last 20 years NATO has been on quite an expansion drive, pushing closer and closer to the Russian border. For reasons that shall remain “officially” unknown. As the picture above illustrates, NATO has been able to penetrate a number of the former Soviet Union states and satellite countries and now finds itself right next to the Russian border. While a number of fictitious reasons are typically given, to mask the expansion, the reality has to do with the nuclear shield that NATO and the US would like to build around Russia. Rendering Russian nuclear forces obsolete. Understandably, Russia is furious with NATO’s expansion.
To Be Continued Tomorrow…...(Why Am I Seeing This On A Financial Website?).
The Reason Why NATO Will Lead The US Into A Devastating War Google
How Stress Works
How Stress & Fear Works Behind the Scenes
Before we can transform fear and stress into positive energies, we must first understand how fear and stress work behind the scenes. We must understand what drives them.
Continuation from yesterday…… Let me begin this chapter by saying that I have no medical or psychological qualifications whatsoever. Outside of taking 2 years worth of pre-med courses in college, my knowledge on the subject matter from the “traditional education and application” point of view is very limited. Yet, despite my lack of experience in the field, the experience that I do have goes well beyond what they teach you in school.
A few years ago I was fortunate enough to make a quantum jump in human consciousness. Subsequently, after studying the human body, mind, feelings, emotions and other energies associated with the human form, for many years and at a higher level of consciousness, I was able to gain a deep understanding of how the “Human Form” works. On all levels. It is through this understanding that I am able to guide you in transforming your stress and fear energies into a positive state of being.
Now, allow me to pause here for a second to issue an important warning, once again. At this stage you either believe me or you don’t. How you feel is inconsequential to me, but here is what I want you to do. If you do NOT believe in what you have read thus far, I want you to close this book and throw it in a garbage can. Please contact me at [email protected] with a proof of purchase and I would be delighted to send you the money back.
If you do not take issue with what I have said above, I truly believe that this book will transform your life. The only suggestion I would make is this. Do not dismiss the methods described in this book prior to trying them out. While some of them might seem unconventional, they truly work. With a little bit of effort and some patience on your part, your stress and fear will disappear, only to be replaced by happiness and bliss. Or whatever other positive avenue you would like to channel this energy towards. No doctor can do that for you.
Finally, stress and fear come out of one unified energy field. Fear causes stress and stress causes fear. And while they might have different trigger points and manifestations, they come out of the same place. For our purposes and for the reminder of the book I will unify this feeling, emotion and physical reaction under the term “STRESS”. Yet, keep in mind that we are also talking about fear when we are talking about stress and that all of the exercises that apply to transforming your stress energy also apply to transforming your fear energy.
Now that we are all done with the house cleaning, we must ask an incredibly important question.
What is STRESS?
Wikipedia defines stress as: Physiological or biological stress is an organism’s response to a stressor such as an environmental condition or a stimulus. Stress is a body’s method of reacting to a challenge. According to the stressful event, the body’s way to respond to stress is by sympathetic nervous system activation which results in the fight-or-flight response. In humans, stress typically describes a negative condition that can have an impact on a person’s mental and physical well-being.
To Be Continued Tomorrow…..(Why Am I Seeing This On A Financial Website?)
Google’s Valuation Is Heading To Gazillion Dollars
An up day with the Dow Jones up 77 points (+0.22%) and the Nasdaq up 9 points (+0.25%).
The Dow opened up a 50 point gap in the morning as it continues to climb higher (exactly as per our internal forecast). That is in addition to a large 100 point gap from Monday. Suggesting an upcoming correction.
The amount of stupidity out there is truly mind numbing. Last week, it was the forecast that the Dow will hit 20,000 and even 30,000 by the end of the year. Yesterday, most financial commentators jumped on a perpetual bear bandwagon to declare that the market is about to crash. Today? Well, today, Google will apparently hit a $1 Trillion valuation within the next 10 years. With Facebook’s valuation not that far behind. Any reasonable valuation metrics should not apply.
Google has the potential to hit a trillion-dollar market cap in the next 10 years, according to one technology investing leader.Jim Breyer, founder and CEO at Breyer Capital and a partner in Accel Partners, expects the search engine giant to join Facebook in gobbling up smaller companies and continuing to grow rapidly. The environment we’re in now is probably the most interesting seismic change relative to the new companies that will be Internet leaders.
You know what, just f$%* this. Most people will never learn. I am really looking forward to this market developing as per my internal forecast. It will be fun watching people scramble as the market gets decimated in a matter of a few short days/weeks. Trust me, there is nothing better than watching CNBC talking heads trying to explain a 1,000 point drop on the Dow as my profits skyrocket. If you would like to learn when, well, qualify for my premium service.
This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2014-2017. In fact, when it starts it will very quickly retrace most of the gains accrued over the last few years. If you would be interested in learning when the bear market of 2014-2017 will start (to the day) and its internal composition, please CLICK HERE
(***Please Note: Due to my obligations to my Subscribers I am unable to provide you with more exact forecasts. In fact, I am being “Wishy Washy” at best with my FREE daily updates here. If you would be interested in exact forecasts, dates, times and precise daily coverage, please Click Here). Daily Stock Market Update. July 16th, 2014 InvestWithAlex.com
Did you enjoy this article? If so, please share our blog with your friends as we try to get traction. Gratitude!!!
The Reasons Why You MUST Start Your Business Today
The Shocking Secret Corporations Do Not Want You To Know.
Why Your 9-5 Is Killing You and Why You Need To Quit Your Job In Order To Save Your Life…….Like Yesterday.
Continuation from yesterday……I still remember my first corporate job. I was hired as a CFO assistant in a midsized company. I was so excited. The pay was not that great, but I was working directly for the CFO of the company and doing stuff that the rest of the kids in my graduating class could only dream of. I couldn’t wait to apply all of the skills that I have learned in the business school.
Unfortunately, I was young, naive and stupid. At that time I truly believed that I could change the company for the better. I believed that they would listen to my ideas and make suggested adjustments for the betterment of the company and its bottom line. I believed that by showing initiative, showing up early, leaving late and by making the CFO of the company look good I would eventually be rewarded with a higher salary or other perks.
It took about a year for the reality to set it. They didn’t care about any of the things above. All they wanted me to do was to follow corporate rules and regulations, mind my own business and do what I was paid to do. That was until the CFO of the company threw me under a bus for her shortcomings and I was promptly fired a year and a half into my job. Looking back, I certainly deserved to be fired, if for no other reason than being too gullible and too committed for my own good. I didn’t know the secret.
What secret? Well, there is no easy way to swallow the bitter pill, so I am just going to come out and say it.
If you work for someone else and get a regular paycheck, you are a slave.
I know that many people will baulk at such a statement. After all, no one is beating you with a stick nor are there any shackles around your wrists. Yet, the shackles come in many different shapes and forms, even in the form of a Gold Rolex. Let’s take a closer look at some hard to ignore points to prove my assertion.
Do You Have To Ask For Permission?
Do you constantly seek supervisor permission to do anything? Things like going to visit your sick child in the hospital during business hours, taking an early lunch or even using a restroom. If so, I am sorry to tell you, but you are a slave.
Do You Have To Follow Rules & Regulations?
Is there a 100 page employee manual on your desk spelling out every little detail of what you can and cannot do? If so, I am sorry to tell you, but you are a slave.
To Be Continued Tomorrow…..(Why Am I Seeing This On A Financial Website?)
Inspiration Of The Day
Why The World War 3 Is Coming
Continuation from yesterday……
Why Will the War Start? All wars repeat in cycles. In the preceding chapter I have identified a clear 84 year cycle associated with all of the major American (USA) wars. With the Nuclear World War 3 being just 15 years away, I believe it is important to understand what fundamental factors will set things in motion. Understanding such benchmarks will help us keep close tabs on exactly when the war will start. And while some people might assume that this gives us enough time to prevent the war from happening, unfortunately, real life doesn’t work that way. Based on my stock market work, the future is predetermined and cannot be altered by “spiritually unconscious” population. Simply put, the war is coming and cannot be stopped.
Further, as I write this in July of 2014, it appears that that most of world’s geopolitical and macroeconomic factors are already lining up to usher in the war. Let’s take a quick look at what is happening in the world today …..
- Israel is fighting another war in Gaza.
- Civil wars in Syria and Ukraine.
- Iraq is about to fall in the hands of a terrorist organization ISIS. Afghanistan will follow the same scenario in a few years time. Both countries will face catastrophic civil wars.
- NATO is pushing closer and closer to the Russian border. Russia blames the US and the EU for being directly responsible for financing the unrest in Ukraine. In order to expand NATO even closer to Russia.
- The US is readying the next round of unilateral sanctions against Russia.
- Russia responds by getting further involved in Iraq, Syria and Ukraine.
- Russia reopens its spy base in Cuba to spy on the US.
- Cold War 2 between Russia and the US is accelerating.
- China is trying to establish its dominance in the South Pacific region by bullying the Philippines, Vietnam, Japan and Taiwan.
- China has already told the US, in no uncertain terms, to get out of the South Pacific region.
- China and Russia are already aligning their interest through their military cooperation and the biggest oil/gas deal that was signed between the countries in the mid 2014.
- Massive speculative stock market bubbles throughout the world and an upcoming financial crisis.
And that’s just the beginning as things will continue to deteriorate on all fronts.
To Be Continued Tomorrow…….
Best Buy That Stock
| Company Name: Best Buy, Inc | Stock Symbol: BBY | Industry: Electronics Retail |
| Percent Appreciation: 4,000% | Number of Bags: 40 | Holding Period: 9 Years |
| Entry Date & Price: March,1997 @$1.25 share | Exit Date & Price: December, 2006 @ $51 share | Original Investment($10,000): $400,000 |
Company Description: Best Buy Co., Inc. operates as a multi-national, multi-channel retailer of technology products in the United States, Canada, China, and Mexico. Its stores offer consumer electronics consisting primarily of television and home theaters; digital cameras and camcorders; DVD and Blu-ray players; portable electronics, such as MP3 devices, headphones and speakers, car stereo, navigation and satellite radio; and all related accessories. The company’s stores also provide computing and mobile phone products, including notebook and desktop computers, tablets and e-readers, mobile phones and related subscription service commissions, and related accessories; entertainment products, such as video gaming hardware and software, DVDs, Blu-rays, CDs, digital downloads, and computer software; and appliances, including large and small appliances, and kitchen and bath fixtures, including faucets, sinks, toilets, and bathtubs. It also offers extended warranty service contracts, technical support, product repair, delivery, and installation services, as well as offers snacks and beverages
Quick Trading Overview & Objective: While Best Buy’s stock price has appreciated over 44,000% (440 bagger) since the company first went public in the mid 1980’s, we will be concentrating our attention on a more recent period. We will initiate our coverage at 1997 bottom of around $1 a share (split adjusted) and see what had caused the company to appreciate over 4,000% between 1997 and 2006.
We will now go back in time and take an in depth look at the company in order to determine if we could have taken a long position at that time. More importantly, we will look at Best Buy’s fundamental and trading patterns over that period of time in order to ascertain if we would have been able to maintain our position over a 9 year period of time while getting out at the top.
How To Come Up With Million Dollar Business Ideas
Continuation from yesterday…..
Understandably, the answer to this question is different for everyone. It is the question that can only be answered when one has complete freedom from all circumstances and enough financial resources to be able to do anything. While for some of us it means laying on the beach all day while drinking margaritas, others might spend most of their free time shopping. I am not entirely sure how that can be of interest for very long, but to each its own.
For people like me, it might be travelling the world, learning about various cultures while having the luxury to stay at any given place for as long or for as little as I wish. Others might concentrate all of their attention on giving back, starting a charity or running a business. Finally, the rest might simply enjoy spending more time with their friends, family and kids while having the financial freedom to support their loved ones.
Knowing what you really want out of life in crucial when it comes to developing your next big business idea. When money is no longer an issue it becomes a force multiplier. In other words, it allows you to concentrate on business ideas that really spark your passion. The exercise above is designed to uncover what that is. By putting money aside and by making it a non issue you will able to discover what your true passions are and what really gets you going. It is only by concentrating your attention on this area that you will be able to achieve success on top your brilliant business idea.
On the contrary, going after a business idea for the sake of making more money or for the sake of getting rich is a recipe for a disaster. As you probably already know, generating great business ideas is just the first stepping stone on your path to success. Undoubtedly, you will run into a multitude of problems, issues and failures as you continue to build your business. Yet, if you are not passionate or love what you do, the probability of you quitting along the path increases exponentially. In fact, in 95% of the cases it is the difference between failure and success.
Perhaps Steve Jobs said it the best in his interview a few years ago (Link To Video)
“People say you have to have a lot of passion for what you are doing and it’s totally true and the reason is, because it is so hard and if you don’t have that passion, any rational person would give up. It’s really hard. And you have to do it over a sustained period of time. So, if you don’t really love it, if you are not having fun doing it, you are going to give up. And that’s what happens to most people actually.
If you really look at the ones that ended up being successful, in the eyes of the society and the ones that didn’t, oftentimes the ones that were successful loved what they did so they have persevered. You know, when it got really tough. And the ones that didn’t love it, quit, because they are sane. I mean who would want to put up with this stuff if you don’t love it. So, it’s a lot of hard work and it’s a lot of worrying, constantly and if you don’t love it you are going to fail. So, you have got to love it, you have got to have passion”
Truer words have never been spoken and that is exactly what it takes. First, find your passion and what you truly love. When it gets tough, as it undoubtedly will, this passion will help you through the sleepless nights and through the near death experiences that you will surely encounter on the way. It will make all the difference between failure and success. When you really know what you want out of life and what your passions are, life becomes a whole lot easier. So, forge your next big idea out of your passion and success becomes a guaranteed outcome. Let’s get to it.