Finance Articles and Investment Ideas

JetBlue is one of the smaller airlines in the industry and is dwarfed by the competition, but remains undervalued relative to its peers. JetBlue has many avenues of growth available to it that should combine to exert upward pressure on the stock price. Jet Blue's strong customer loyalty and customer relations will help it strengthen and grow its position within the industry. Company JetBlue (JBLU) Delta Air Lines (DAL) American Airlines (NASDAQ: AAL) Southwest (NYSE: LUV) United Continental (UAL) Market Cap 6.516B 34.04B 21.79B 31.21B 18.85B P/E 10.1 9.3 10.9 15.7 8.7 PEG 1.2 2.5 N/A 2.6 3.6 P/B 1.6 2.5 5.8 3.6 2.1 P/S 1 0.9 0.6 1.5 0.5 P/Cash Flow 4.5 7.5 4 8.1 5 Operating Margin 16.90% 15.20% 10.50% 16.50% 11.50% FCF yield 6.20% 3.80% N/A 5.30% 2.90% ...

Forecasting the Income Statement • Main categories to forecast – Revenues – Operating expenses • Cost of goods sold • Selling, general, and administrative expenses – R&D – Marketing expenses – Other/non-recurring expenses and income (if forecastable) • Restructuring costs • One-time charges • Non-recurring income – Depreciation and amortization (part of COGS or SG&A, but separated here to highlight the fact that this is a separate forecast) – Interest expense/income Shares outstanding Forecasting revenues • There are many ways to forecast growth rates in revenues. – Company guidance – but you should justify why you believe the company. You should give examples of instances when the company met/exceeded/underperformed its forecast. You want to adjust this number according to their performance – Macro approach – you can look at the forecast growth rate of the industry and/or economy and make ...

A major new China investment by chip maker Samsung (SSNLF) is spotlighting just how important the market has become to the company, and South Korean companies in general, and how they are trying to play into Beijing's agendas to maintain their place at the table . That's become all the more important lately, as a disagreement between Beijing and Seoul has been costing South Korean companies business in China, as often happens when such political disputes spill out into the business sector. This particular investment, totaling $7 billion, was obviously in the planning stages long before that dispute broke out earlier this year, involving Seoul's decision to install a sophisticated anti-missile defense system supplied by the US to counter the North Korean threat. But Samsung's decision to make its announcement now looks shrewd, as it should win its some goodwill from Beijing at a time when the company's smartphones face similar struggles in China that th...

Recession warning signs - a y-o-y uptick in the Unemployment rate -a y-o-y downtick in Industrial Production -an inverted Treasury yield curve - a sharp increase in the inflation rate -a y-o-y downtick in the Chicago fed National Activity Index -a y-o-y downtick in corporate earnings. There has been an explosion in "passive indexing" that uses exchange-traded funds and indexed mutual funds. These funds now account for more than 35% of equity assets under management, according to Morningstar. When the next bear market hits, investors will do what they always do- liquidate their stock positions.

Financial modeling Choose Function Choose function lets you have an index cell where you put in 1,2,3 and allows you to choose a scenario after which all the numbers change according the number of the scenario. So you if you put under Revenue "=choose(index cell, optimistic case, base case, worst case)" If you write 1 in the index cell, then the revenue is going to choose the optimistic case.   How to do a sensitivy analysis First on the top left, you link it to the "enterprise value". On the top row, you write the possible values for the WACC. On the left column, you write the possible values for the growth rate. After that, you click on the whole table, and go to "data" and do a "data table" Then you do an input on the row "WACC" and the column "g" After you click "OK," it does a sensitivity analysis for you. GoalSeek Function 　 　 　 　 　 　 ...

Starbucks 3 months Starbucks 5 years Company Profile: Starbucks Corp is the roaster, marketer and retailer of specialty coffee in the world, operating globally. It sells a variety of coffee and tea products. It sells goods and services under brands including Teavana, Tazo, and Seattle's Best Coffee. Disappoing Short-term Results: Starbuck's stock price has fallen as much as 18% from its high reached on June 2, 2017. The company's recent quarterly earnings report disappointed investors. Last quarter, Starbucks added 575 net new stores globally. Starbucks now has a total of 26,736 stores across 75 countries. Its revenues in Q3 increased by 8% from Q3 2016. Short-term looking, Starbucks' EPS and operating margin were disappointing. Management attributed to decline in operating margin to increased investments in US store partners and lowered beverage comps combined with strong food sales (food has lower gross margin than beverage). Another f...