Stock Investing 101: What Am I Looking for When I Start Investing?

Do you want to start investing but you don’t know what to look for? Let’s take the first step together and find out what is important.

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  • There are many things you could look for in a company, but if your new to stock investing it can get be overwhelming.

  • Today we are looking for a company that has two characteristics: a special product or a special service.
  • Always look for consistency and growth and any long-term investment. Let’s get started.

There are many exceptional companies you can find on the stock market, but some of the greatest corporations will have at least one of these characteristics: a special service or a special product. And if the company has both, you may have found the jackpot. Now, this sounds very simple considering most corporations have something to sell to make a profit from, yet what is special about this product? What is unique about this service that attracts repeat customers to want to use more than other companies? Let’s dig deeper into what to look for in a company if they have a special service.

A Special Service

Leading companies on the stock market that have a special service may be companies such as WFC (Wells Fargo), WTW (Weight Watchers INTL. INC.), AWK (American Water Works Company Inc.), or FDX (FedEx). You will find that most of these companies listed are businesses you have already heard of because they have mastered the technique to be people specific.

For example: If you want to lose 10 pounds, you may want to subscribe to a Weight Watchers meal plan. Or perhaps you want to mail a monetary gift to a friend who is getting married? You can use FedEx or send money through an app through Wells Fargo. These companies have solved and everyday people problem and these everyday solutions have made these companies millions of dollars in revenue.

 

Read: How To React When Your Portfolio Is Plunging

A Special Product

You may not have to look far to find a special company that owns a special product. The fastest place to look may be your bathroom counter or you daily vitamins that are placed in your pantry. Companies such as PG (Proctor & Gamble), USANA (United Health Sciences Inc.), or EL (The Estee Lauder Companies, Inc.) are companies that mastered a way to sell a special product to maintain repeat customers. Their special product(s) aim to solve a problem for the consumer and if the products are good enough, there is no need to make revisions this lead to fewer company costs that will save the company more money in the long run.

Fast Analysis: Sysco Corporation Ready, Set, Goals!

There are many great corporations I may not have mentioned today, but when looking for a particular company to invest in, find a company that has a durable competitive advantage over other corporations. This company with a special product or service needs to stick out from the crowd from their competitors. After you have found the company’s niche, look through their history of performance and look for consistency of growth in areas such as revenue, gross profit, dividends, and production. Is the company holding profit or are they struggling with debt?

Take your time to do your research on the company that deserves your money and time for maximum profitability.

 

Closing Disclaimer:

I am not a certified professional, nor responsible for any of your gains or loses. I’m simply a passionate stock investor who loves to share my experience with other women/men who want to learn general information about the market. May I encourage you to study and evaluate before you make any purchase or sale in the stock market. We are a participant in the Amazon Affiliate Services LLC program, an affiliate advertising program designed to provide means for us to earn fees by linking to Amazon.com and affiliated sites.

Please see About Me & Disclaimer for additional information about Black Tea.

Information Attained:

TheStreet.com

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JD.com: What’s Your Competitive Advantage?

  • JD.com had a productive year so far, but their performance is still average in their competitive industry.
  • A global company with such potential should have higher revenue.
  • Is JD a quality long-term investment for you?

JD (JD.com Inc., $33.16) is China’s second largest e-commerce retail website and as affordable, the stock price is, many investors are anxious for better financial results.

Fast Analysis

JD has a history of low GPM (gross profit margins) ranging from 11% to 14% from 2014 to 2017. Leading corporations that have a higher competitive advantage may have a percentage that lies in 20% or above such as BABA (Alibaba Group Holdings) at 57% and AMZN (Amazon.com Inc.) at 23%.

Investors are also mindful of JD’s earnings history. Limited or erratic growth in earnings may be a sign of the company’s poor management of supply- also known as “boom and bust”.

Image Credit

Though investors do not solely use GPM’s or earnings as a sole deal-breaker for investing, a company that shows consistent growth in these areas is a positive sign of long-term durability.

Read: Honda VS. Toyota- Which Stock Is The Better Buy?

Recent Acquisitions, Mergers & Investments

JD had a busy summer with the large partnership made with GOOGL (Google/Alphabet) and acquisition of a large european fashion brand, Finish Line.

JD also partnered with L. Catterton Asia for a convertible note investment of $175 million in SECO (Secoo Holding Limited), one of the world’s leading online luxury brand. This joint venture was made to further expand revenue and audience in the online retail market.

Related: Alibaba Group Holdings Ltd: The International Powerhouse

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On the other hand, analysts such as Zack’s are currently listing JD as a “strong sell” due to the low annualized return rate below 5%.

Should investors wait until the trade dispute subsides between Asia and the United States? JD is taking immediate action through the right investments to broaden their audience.

Please see About Me & Disclaimer for additional information about Black Tea.

Information Attainted:

Nasdaq.com, Zacks.com, Msn.com/Money, CNBC.com

Sysco Corporation (SYY): Ready, Set, Goals!

A company that sets and achieves goals is a company for me.

SYY (Sysco Corporation, $72.83) is one of America’s leading foodservice distributor. Found in the “Consumer Defensive” sector on the NYSE, this powerhouse controls more than 17%, approx. $300 billion in its market. From servicing educational facilities to hospitals, the company stays on top by staying committed to one of the things they see most important, goals.

(Even Jim Cramer has his own humble opinion on SYY)

SYY has consistently created and completed their goals and keep a 3-year plan to hold themselves accountable to. This year they have a plan to finish strong with only three goals in mind:

  • “Enriching the Customer Experience,”
  • “Delivering Operational Excellence,”
  • “Optimizing the Business and Activating the Power of Our People.”

Improving the company from the inside out, the company also set strong goals for the year 2020:

  1. Sales growth of increased 4% or 4.5%.
  2. Adjusted income growth of 9%.
  3. Adjusted net earnings of 9%.
  4. Adjusted diluted earnings per share in the range of $3.40 to $3.50, and an increase of approximately 12%.
  5. Reaching $600 million to $700 million of adjusted operating expenses.
  6. Achieving 16% in adjusted return on invested capital for existing businesses.

SYY is prepared to carry through with the action of accelerating locally managed customer case growth and driving leverage between the growth of gross profit and expense growth.

So Far…

SYY’s achieved $0.94 quarterly earnings (pers hare) from analysts estimates of $0.72 per share last year. Revenue growth grew to $15.32 billion for the quarter ending in July of 2018 and sales increased by 6.1%. The company has now passed consensus EPS estimates three times, great stuff SYY.

Related: Alibaba Group Holdings LTD: Ther International Powerhouse

Many investors compare SYY to other stocks such as KR (The Kroger Corp.), UNFI (United Natural Foods Inc.), CORE (Core-Mark Holding Co., Inc), or SVU (SUPERVALU Inc.). However, investors enjoy investing in SYY for their history of consistent dividends cash payments- recent cash payment amount was $0.36 cents, effective date 10/4/2018)

Please see About Me & Disclaimer for additional information about Black Tea.

Information Attained:

Nasdaq.com,SEC.gov,MSN.com/Money,Zach’s Equity Research

Know Your CEOs: Who is Adena Friedman?

Top 3 Retail Stocks For Your Watchlist

Don’t miss out on these companies, you may regret it later.

If you’re looking for a high performing retail company, check out these three companies and see if they have a place in your watchlist


Kohl’s Corporation

KSS (Kohl’s Corporation,$82.22) has made reasonable gains this year. With a history of consistent dividends now at $0.61 cents, many investors claim they stock is currently “expensive” and should be bought near its 52-week low of $37.97 from a price above $70.00. However, KSS beat recent 2Q ’18 earnings at $0.64 from expected earnings of $0.50. Some of the companies leading brands are Sonoma, Craft & Barrow, and APT. 9 consists of a net worth of over $19 billion. KSS has great potential to end the year strong.

Five Below Inc.

Five (Five Below Inc.,$114.64), a retail company originally aimed towards kids and teens, has opened over 30 new stores this year and ended their first quarter with a total of 658 stores in 32 states. As said in their recent annual report,

As we continue to pursue our growth strategy, we expect that a significant percentage of our net sales will continue to come from new stores not included in comparable sales. Accordingly, comparable sales is oarey one measure we use to assess the success of our growth strategy.

Though FIVE doesn’t have a dividend, investors like the stock for its consistent growth and stability it’s maintained throughout the years.

Fast Analysis: General Electric (GE): The More Cash The Better

Callaway Golf Company

ELY (Callaway Golf Company,$22.65) made a bold acquisition last year in 2017 of a well-known golf brand Travis Matthew for $125.5 million. Though some investors aren’t pleased with their low dividends, others are impressed with their operating cash flow operating cash flow that increased by 51.46% in 2017. Analysts currently consider ELY currently as a Buy.

Please see About Me & Disclaimer for additional information about Black Tea.

Information Attainted:

SEC.gov ,MSN.com/Money, Wikipedia.com,MarketWatch.com

Hazardous Habits For Stock Investors

These habits could be keeping you from building wealth.

Perhaps your portfolio was going great until you noticed you have been losing more money more than keeping it. Do you find yourself selling more than you need to? here a few bad habits every investor needs to recognize and how you can avoid them if you pick them up again.

Save More, Withdraw Less

Money Here, There and Everywhere

There are a lot of stock investors in chat groups who like to boast about how much money they took out from their growing stock accounts, but why are your harvesting your crops early? Unless your investing as a hobby, save more and withdraw less. You’ll make money in the long-term if you leave your account alone.

Panic Selling

This is the most common disease to an investor, but we are human after all. It’s hard to notice when your favorite stock goes down 15% and you know the only simple thing you have to do is sell. However, have a plan. Set a “stop loss” or have a written rule as to when you need to sell. Most of the time the stock goes back up and you’ll then regret that you had sold your shares in the first place (ouch). Keep in mind that whenever you sell, you always invite the “taxman” to your party.

Fast Analysis: Bed, Bath & Beyond: Only Time Will Tell

Financial News

It’s important for every investor to keep up with financial news, but these articles can destroy your portfolio if you listen to their every move. Be relieved and know that you don’t have to react to the financial news, they don’t your portfolio (necessarily), you do.

Unlike going to a job work for money, investing lets your dollars go to work for you. If you find a good investment strategy, be committed and stick to it. Continue to stash money into your account and sell when its necessary.

Please See About Me & Disclaimer for additional information about Black Tea.

Facebook: 20% Discount!

Will Facebook be able to make a comeback from their historic fall? Don’t Miss out!

  • Facebook didn’t beat earnings this quarter and had their biggest drop in market value ever.

  • What’s the excuse?

  • Can they rebound from public humiliation?


FB (Facebook, $174.00) I have one word for you…ouch.

F.A.A.N.G lovers are not happy with FB missing estimates and the company is still expecting a decrease in revenue in the next quarter. After the earnings call, their stock fell a whopping 23% in after-hours trading. Yet, what kept FB for beating earnings?

(Image from Yahoo!Finance. After-hours trading plummets from the Q2 call)

Related: Earning Week: What To Look For In The Next Earnings Report

GDPR (General Data Protection Regulation)

FB is still fighting with issues associated with GDPR. And due to the sole fact that it’s not yet completed, their ads aren’t all up and running it’s interfering with their revenue.

Facebook Stories

FB is concentrating on adding more value to their FB stories feature on their website. Though they have updated their feature multiple times this year, this doesn’t satisfy their shareholder’s feelings for missing over $100 million in revenue. This focus led them to less monetization.

Just before the earnings call, FB hit an all-time high of $218.63 in stock price. FB also announced at the beginning of their earnings call that at least 1/3 of the world’s population now use at least one of FB’s products each month.

Though this was a tough pill to swallow, will the stock be able to rebound a few days after this disaster?

Investors are already seeing FB on a 20% discount, yet others are banishing them from their portfolios. But does this make FB a bad company? This is a historic fall from their early years in 2012 from a drop of only 12%. Many agree FB will eventually recover from their loss, but investors have very high expectations.

But before they move forward, FB has to clear the GDPR issues with Europe. The company has already told their shareholders that the next quarter will not be appealing to them either. We hope FB can quickly solve these issues before they are run down again by more rumors. I think they have felt with enough this year.

Please see About Me & Disclaimer for additional information about Black Tea.

Information Attained:

CNBC.com, Yahoo!Finance.com

Earnings Week: What To Look For In The Next Earnings Report

This is a big week in the stock market. Find out what to look for in the next in your company’s earnings report.

This week we are having some of the market’s biggest companies presenting their quarterly earnings reports. These billion dollar empires hold up most of the market’s value and investors have high expectations. Here are a few tips to remind you of what to look out for in your company’s report.

Consistency

We all want rapid growth, but the companies that stand the longest have mastered discipline and consistency in every aspect of their corporation. Listen and look for consistent growth in production, financials, or even a decrease in liabilities.

Don’t let one bad quarter determine the value of a great company.

Read: Why You Need To Keep Read SEC Filings

Growth

Along with consistency, investors tend to look for stable growth. Whether you are looking for an increase in gross profit or an increase in production, listen and look for consistent growth from quarter-to-quarter. Yet, depending on the company’s competitive advantage, the company may have slower growth in this quarter from their recent quarters. Don’t let one bad quarter determine the value of a great company.Wheather you should continue to hold, sell, or buy more shares depends entirely on the individual investor.

Minor Details

Perhaps the company you love seems perfect! Too good to be true? Look in their filings to see if they have any unpaid taxes or read if the corporation has any pending lawsuits. Always pay attention to the minor details on the earnings reports (or calls). It’s typical for CEOs to say the wrong thing at the right time and drive down stock prices within minutes.

Earnings reports can be a pivotal moment for your investing journey. Contrast and compare from similar corporations. And if need be, refine your investing strategy. Buy low, sell high, and take your profits.

Please see About Me & Disclaimer for additional information about Black Tea.

Snapshots

Opinion| Kylie Jenner: You Should Be Inspired

Who knew a selfie could generate hundreds of millions of dollars?

Kylie Jenner, the youngest daughter of the Kardashian-Jenner Family, is proclaimed to become America’s next youngest billionaire according to Forbes by reaching a total net worth of $900 million.

Kylie Jenner reaching Forbes is more than “status”. When working in any business, it takes hard work. She has utilized SNAP (Snapchat, $12.43) and TWTR (Twitter, $43.64) “tweets” to market her products. According to Insider.com, Kylie Jenner is one of the most influential stars on social media today. Who knew a selfie could bring in hundreds of millions of dollars.

Kylie is mostly known for her “Kylie’s Lip Kit” cosmetic line. According to CNBC.com, she has turned a $29 dual lipstick set into a $420 million dollar empire within 18 months -now that’s impressive.

The Kit is projected to make $1 billion in 2022. But her loyal fans have created a Go Fund Me page to donate to Kylie to reach $1 billion.

In my opinion, STOP IT! Why are we donating money to a businesswoman? She is not a kid (well…yes she is) and the last thing we need to promote is an easy hand-out. Instead of donating your measly Starbucks allowance to help another woman, just buy her products. Her instagram selfie’s have made her more money in a day than what the general hospital physician can make in a year (no offense to my physician friends).

Read our latest: FitBit: How Far Can We Go?

Women control more than half of the costs of beauty purchases. Don’t give up now Kylie, get the job done.

Please see About Me & Disclaimer for additional information about Black Tea.

Information Attained:

CNBC.com, ThisIsInsider.com

FitBit: How Far Can We Go?

FitBit: How long will their business last? Stock investors are watching their every move.

FIT (FitBit Inc., $5.70), headquarters in San Fransisco, CA, is a corporation that provides health and fitness devices with software services to create a health log for their user that pertains to their lifestyle.

FIT created an easy to use, a wearable fitness tracker that not only catered to the gym bodybuilder but to the office worker who wanted to track her steps to lose the high calories he at lunch. FIT has done an excellent job with their marketing and customer relatability. However there is one problem, their biggest competitors have beat them.

These competitors are Apple Inc. (Apple Watch), Garmin (Vivo Fit), Whoop (The Whoop fit tracker Used by LeBron James last season), and With things Go (activity and fit. tracker) and more.

A statement released by FIT on their last annual report,

For the remainder of 2018, we expect our gross margin to trend lower due to our product mix shift from connected health and fitness devices to smartwatches and the absence of the one-time benefit from the release of outstanding product return and rebate reserves related to Wynit…

FIT’s largest customer Wynit Distribution announced bankruptcy last year in September 2017 with bad debt expenses over $30.3 million and FIT has reported a substantial decrease in subscriptions.

According to MSN.com/money, FIT has a negative net income of -277.19 million. With penny stock investors enjoy the volatility of the stock, other see a better investment in related stocks such as APPL, GRMN, KYCCE, FTV, GRMN, and KEYS, since FIT comes in the form of a “product feature” instead of a large services provider. Though FITs presence seems to be strong in the athletic and teach department, how long with this last? Will, they merge with a large corporation or can they come up with a better head-turning product?

Please see About Me & Disclaimer for additional information about Black Tea.

Information Attainted:

SEC.gov, MSN.com/money, Bestreviews.com