Ask me for a financial analysis of any stock

[meteoraln]

Give us a rundown on Mr Markets holdings.
AAP, AGP, CIB, NTES, PRGO, SRCL, TQNT, TRCR, UNH, VIT.

AAP - The basic numbers look good. Rising revenue, rising earnings per share, positive cash flow with around 30%-50% of operating cash going to capital expenditures. Debt of 300m is only around half of 2011's op cash flow. The shareholder equity is not really increasing, but this is explained by the fact that AAP spends a large portion of its cash flow towards repurchasing stock. Considering the PE ratio is under 5, this is probably a good use of its excess cash. However, there are still things that I don't like. If you normalize the number of outstanding shares by looking at the ratio of shareholder equity to outstanding shares, we see 1024m/99m = $10.3/share for 2007 and 1039m/82m = $12.67/share in 2011. Over 4 years, this translates into an average increase in shareholder equity of around 5% per year. Even adding back the ~100m paid out in dividends over 4 years, we would be looking at ~7% increase in equity per year. The rate of increase in accounts payable bothers me. It has gone from 688m in 2007 to 1292m in 2011 although revenues have only increased around 20% in the same time period.

[meteoraln]

Give us a rundown on Mr Markets holdings.
AAP, AGP, CIB, NTES, PRGO, SRCL, TQNT, TRCR, UNH, VIT.

AGP - This one is not easy for me to analyze since it's an insurance company, which is practically finance. When it comes to numbers purely on a yearly basis, this company looked good. It has a pretty "standard" unusual expense from the 2008 year, in which many companies had to write off a loss for any mortgage backed bonds that they might have been holding. It has manageable levels of debt, operating cash, and capital expenditures. The sharp drop in the stock price near 8/1/2011 was hard to ignore, so I looked at the 10-Q, as the drop occurred right after earnings. In their most recent quarter, they've have to pay out more health benefits and their selling/general/admin costs and premium tax have gone up. These contributed to the drop in AGP's income for the quarter. I'm not familiar enough with insurance companies and the special laws they operate under to know if this drop in income is only temporary. I also don't know if this is due to too little revenue coming in.