I did my homework!!!

**stockman09** · 05-26-2009, 12:10 PM

Here's my homework on Visa.

STEP ONE: Find out how the company makes its money.
How did it make its money last year? Makes money with interests, APR, late fees.

How did it make money last quarter? Makes money with interests, APR, late fees.

Are these high-or low-quality earnings? High quality

STEP TWO: What sector does the company belong to and how has that sector performed?
Sector: financial

Sector performance over the last three, six, and twelve months: medium

What forces tend to move stocks in this sector? Late fees, interests, APR,ETC.

STEP THREE: How has the stock performed?
Last year: AWFUL
Last six months: Good
Last three months: Up a dozen
Last month: good
Last week: good

STEP FOUR: What do the comparisons tell you?
Does this company face any threatening competition: yes

What is the P\E of this stock: 44.8!!!

What is the average P\E of its competitors: 20.5

What is the PEG rate of this stock: ?

What is the average PEG rate of its competitors: ?

How much cheaper or more expensive is this stock compared to its peers: ?

Based on P\E: 24
Based on PEG: ?

STEP FIVE: Can the stock survive its balance sheet?
How much debt does this company have: ?

How much debt does it have due this year: ?

How much free cash flow did the company have last year: ?

Will this company generate enough cash flow to pay its debts this year: ?

Can it pay its next year: ?

Will it have to sell assets to pay its debts in the near future: ?

STEP SIX: Does this stock look like a good investment in light of your homework:

Yes

**stockman09** · 05-26-2009, 03:44 PM

Here's my homework on Kroger.

STEP ONE: Find out how the company makes its money.
How did it make its money last year? High prices(at least most of the country says that), gift cards, products.

How did it make money last quarter? High prices(at least most of the country says that), gift cards, products.

Are these high-or low-quality earnings? Tough to tell, I’d say Low.

STEP TWO: What sector does the company belong to and how has that sector performed?
Sector: Retail

Sector performance over the last three, six, and twelve months: Low

What forces tend to move stocks in this sector? Products

STEP THREE: How has the stock performed?
Last year: bad
Last six months: bad
Last three months: up, good
Last month: good
Last week: good

STEP FOUR: What do the comparisons tell you?
Does this company face any threatening competition: yes

What is the P\E of this stock: 11.4

What is the average P\E of its competitors: 14.4

What is the PEG rate of this stock: ?

What is the average PEG rate of its competitors: ?

How much cheaper or more expensive is this stock compared to its peers: ?

Based on P\E: 3
Based on PEG ?

STEP FIVE: Can the stock survive its balance sheet?
How much debt does this company have: ?

How much debt does it have due this year: ?

How much free cash flow did the company have last year: currently 33.3

Will this company generate enough cash flow to pay its debts this year: ?

Can it pay its next year: ?

Will it have to sell assets to pay its debts in the near future: ?
STEP SIX: Does this stock look like a good investment in light of your homework: Very tough to tell, on short term, Yes, long term, no.

**billyjoe** · 05-26-2009, 07:40 PM

Stockman,
I believe your homework on how Visa makes money is incorrect.

----------billy

**skiracer** · 05-27-2009, 08:27 AM

Originally posted by billyjoe View Post

Stockman,
I believe your homework on how Visa makes money is incorrect.

----------billy

but still a move in the right direction to a degree billy. at least something of substance that could be questioned or talked about.
i think having a decent understanding of both the fundamental and technical aspects wouldnt hurt anyone. i think he has come upon ibd which for the fundamentals is great. canslim produces fundamentally sound stocks. what you do with them is another thing. understanding chart patterns and the technical side would help in trading them and balance your decisions. i would like to see the corresponding numbers inserted in the spots where you have stated "bad" or "good". it would give a more specific picture of the stocks performance. it takes alot more work. but definitely a move in the right direction and i read every word of each of them.

**stockman09** · 05-27-2009, 08:27 AM

Can you correct me?

**stockman09** · 05-27-2009, 08:29 AM

Originally posted by skiracer View Post

but still a move in the right direction to a degree billy. at least something of substance that could be questioned or talked about.
i think having a decent understanding of both the fundamental and technical aspects wouldnt hurt anyone. i think he has come upon ibd which for the fundamentals is great. canslim produces fundamentally sound stocks. what you do with them is another thing. understanding chart patterns and the technical side would help in trading them and balance your decisions. i would like to see the corresponding numbers inserted in the spots where you have stated "bad" or "good". it would give a more specific picture of the stocks performance. it takes alot more work. but definitely a move in the right direction and i read every word of each of them.

bad=down,good=up.

**billyjoe** · 05-27-2009, 08:46 AM

stockman,
Ski is right. You're definitely heading in a positive direction with your research, something most so called investors don't take the time to do.

--------------Visa uses banks as intermediaries receiving fees for issuing the cards and transaction fees for each use at the retail level, the banks, not Visa, charge the interest rates. In this way Visa and Mastercard are similar. American Express and Discover differ in that they in effect act like a bank charging interest and late fees on balances that are each like a small loan.

------------billy

**ninner** · 05-27-2009, 03:02 PM

i think cramers on glue......just look at price and volume you will see where a stock is going to go.....fundys dont mean much!!!!

**stockman09** · 05-27-2009, 04:34 PM

Well,he's only a millionare in stocks and expert in stocks.Think what u think,I think what I think.

**billyjoe** · 05-27-2009, 05:07 PM

Cramer is very right some of the time and very wrong some of the time. He usually sets out a premise based on how a stock should react to certain events that take place. It's very logical but often doesn't turn out exactly the way Cramer envisions. You may agree 100% with everything he says and the stock will do the opposite.

------------billy

**skiracer** · 05-27-2009, 06:56 PM

Originally posted by stockman09 View Post

Well,he's only a millionare in stocks and expert in stocks.Think what u think,I think what I think.

remain open minded to learning from others that may have forgetten more than you know and understand right now. once you gain a bit more experience you'll understand more about crammer and others like him. buy his recommendations when he spews out his bs and see where you end up. he might be a millionaire but he's and expert in bs.

**Odysseus** · 05-28-2009, 08:14 AM

Aye, I hate to admit it but I've made a little money off of Cramer's picks, though I sold right quick. Not sure what other's call it but I call it the Cramer Effect. Sometimes when he makes a pick, the stock shoots up for a brief period of time then drops sharply, ie someone is taking profit off his build up.

When starting out, I watched CNBC nonstop (Cramer included)... helped gain the lingo insight but as one who works in the media field, I can honestly say I take what they say with a grain of salt and 1 part Lime, and 2 parts Tequilla.

Though I have to say, I do very little fundamental research (too little time as is on my end), I like what you have going above. Keep it up !

**yoyomama** · 05-28-2009, 12:44 PM

Originally posted by Odysseus View Post

Sometimes when he makes a pick, the stock shoots up for a brief period of time then drops sharply, ie someone is taking profit off his build up.

I've only been watching a couple of months but I think he's definitely helped the push with BRCD...when he picked his Tech Specs.

**stockman09** · 05-31-2009, 08:19 AM

Here's my Homework for sprint.

STEP ONE: Find out how the company makes its money.
How did it make its money last year? Tough to tell?

How did it make money last quarter? Tough to tell?

Are these high-or low-quality earnings? High

STEP TWO: What sector does the company belong to and how has that sector performed?
Sector: Technology

Sector performance over the last three, six, and twelve months: good

What forces tend to move stocks in this sector? Products

STEP THREE: How has the stock performed?
Last year: horrible
Last six months: up=good
Last three months: good
Last month: good
Last week: down

STEP FOUR: What do the comparisons tell you?
Does this company face any threatening competition: no

What is the P\E of this stock: N\A

What is the average P\E of its competitors: N\A

What is the PEG rate of this stock: N\A

What is the average PEG rate of its competitors: N\A

How much cheaper or more expensive is this stock compared to its peers: N\A

Based on P\E: N\A
Based on PEG N\A

STEP FIVE: Can the stock survive its balance sheet?
How much debt does this company have: 21.6 Billion

How much debt does it have due this year: ?

How much free cash flow did the company have last year: 3 Billion

Will this company generate enough cash flow to pay its debts this year: No

Can it pay its next year: ?

Will it have to sell assets to pay its debts in the near future: ?

STEP SIX: Does this stock look like a good investment in light of your homework:
Yes, Buy LOW, Sell High.

I did my homework!!!

I did my homework!!!

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