Archive for February, 2009

What is the primary difference between Common Stock and Preferred Stock?

Saturday, February 28th, 2009
boogsephine asked:


I’m also trying to find the four characteristics of Common Stock and Preferred Stock.

Harry

What effect does a debit and a credit do to common stock? Does a debit decrease common stock or does it increa

Monday, February 23rd, 2009
maniac0788 asked:


What effect does a debit and a credit do to common stock? Does a debit decrease common stock or does it increase common stock?

Esther

How much will be distributed per share of preferred and common stock?

Tuesday, February 17th, 2009
Helen R asked:


Collins Corporation plans to distribute $134,000 in dividends. It has outstanding 20,000 shares of 7%, $10 par value preferred stock (noncumulative and nonparticipating), and 60,000 shares of $2 par value common stock. How much will be distributed per share of preferred and common stock?

Stanley

Visa IPO Analysis

Tuesday, February 17th, 2009
st0ckman asked:


http://st0ckman.blogspot.com/2008/03/stockmans-visa-ipo-analysis.html
check my blog for a full analysis
$42, that would put it at PE at 26.6,
$44, that would put it at PE at 28,
$50, that would put it at PE at 31.6,
$55, that would put it at PE at 35,
$60, that would put it at PE at 38,
$65, that would put it at PE at 41,
MA was offered and opened at PE of 15 at $39 IPO and today’s price of
MA is at PE of 26, which puts Visa at par with MA at $42, given they
have same earnings.

DIRECT COMPETITOR COMPARISON

MA AXP DFS Pvt1 Industry
Market Cap: 27.33B 48.56B 7.28B N/A 132.24M
Employ­ees: 5,000 67,700 12,800 N/A 51
Qtrly Rev Growth (yoy): 27.80% 12.40% 4.60% N/A 16.30%
Revenue (ttm): 4.07B 31.45B 4.10B N/A 110.01M
Gross Margin (ttm): 100.00% 44.16% 100.00% N/A 39.62%
EBITDA (ttm): 1.23B 8.89B N/A N/A 14.65M
Oper Margins (ttm): 27.83% 26.21% 32.58% N/A 0.27%
Net Income (ttm): 1.09B 4.05B 588.63M N/A -386.67K
EPS (ttm): 8.002 3.355 1.229 N/A N/A
P/E (ttm): 26.04 12.52 12.37 N/A 18.08
PEG (5 yr expected): 1.51 1.11 1.66 N/A 1.17
P/S (ttm): 6.72 1.54 1.78 N/A 1.64
AXP = American Express Company
DFS = Discover Financial Services
Pvt1 = Visa Inc. (privately held) *****this has to be updated****
Industry = Business Services
-keep in mind that people with pre market shares usually dump them for an immediate profit. these sellers need to be washed out of the market. this is one of the reasons master card did not do well right away. master card also did very well because it came out with a pe of 15 then the stock went down which also decreases then pe ration bringing more value into the stock. as of the close yesterday the stock has a pe ration of roughly 36, the highest pe in the sector. as a value play the stock is expensive. keep in mind the average pe on the dow jones is 14.27.

DOW JONES AVERAGES INDEX FUNDAMENTALS

Index
P/E (Incl. Negative)

P/E (Excl. Negative)

P/Book Value

Div. Yield

P/Sales

P/Cash Flow
Trailing

Projected

Trailing

Projected
Industrial Average
14.27

12.60

14.01

12.60

3.31

2.57

1.06

16.14
Transportation Average
14.73

13.88

14.73

13.88

2.16

1.42

0.79

8.34
Utilities Average
15.30

14.21

15.30

14.21

2.05

3.39

1.34

6.84

visa is seen by some(video below) as a hedge against a recession or a weak economy because visa charges per sale, they do not finance and people use their cards more in tough times.

lets not forget the markets are in a down trend and in very bad shape. as many of you know i am expecting a major crash in the markets world wide.

keep an eye on the highs and lows and of course the trend. i would not go long this stock with out a option hedge. because of v’s price to earnings ratio this is not a master card mirror. dont get me wrong it could do very well. ide just sit on the side lines for now. subscribe to my blog for updates. you can subscribe with any reader or your email.

Wesley

How to Journalize a Common Stock Accounting Entry?

Saturday, February 14th, 2009
rufftackle asked:


“Sold 500 shares of common stock that was a short term investment. The Stock sold for 14 3/4, less a commission of $147.75. The stock was originally purchased as a block of 1,000 shares at a total cost (including commission) of $9,250.00″

Whoever gets it right gets a big pat on the back from me!

Loretta

What is the cheapest exchange to list an IPO on?

Friday, February 13th, 2009
Will asked:


I can’t find a way to compare prices on IPO listing prices. If anyone
knows of a site where exchange IPO price listings are available or even can report specific prices so that I can get a general idea of the cost, that would be appreciated.

Bruce

What considerations can I make when buying IPO from an energy company please advice?

Saturday, February 7th, 2009
dude asked:


Tell me what I need to find out before investing in the IPO it on in a weeks time

Gene