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Too Late to Buy JD.com?

GOOGL (Google/Alphabet,$1,154.38) announced this morning of it’s invested partnership with JD, China’s second largest e-commerce player (JD.com,$46.81), for $550 million dollars in return of class-A ordinary shares worth $27 million, promotion of JD’s goods on GOOGL’s shopping service and more. See our most recent tech stocks discussion here.

JD is second place to China’s #1 e-commerce business, BABA (Alibaba,$205.70) and investors see the partnership with GOOGL a great call since JD and GOOGL are also competing with tech giant AMZN (Amazon,$1,705.00).

Image from MSNMoney.com

In lieu of this partnership, JD has made relatively slow growth over the past 10 years- not bad since it’s #1 competition BABA, the leading e-commerce in China. Buy-and-hold investors see this company as a long-term investment. And though $550 million is not a grand number, it’s a great contract price to hold a partnership.

As the stock making an 8% climb after-hours on the market today (currently $46.80), it’s not too late to buy-in on JD.

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

The Christian Investor: Time To Be A Leader

If you want to be a leader or you’re already placed in a leadership role, take action and always be ready to serve people in the best way possible. There are many readings you can find in the bible about people taking leadership roles and how God helped them in a difficult situation. But there is a big difference in managing people and leading people. Five signs of successful leadership qualities are:

  • Generosity
  • Being Likable
  • Remembering everyone’s name
  • Showing others that you genuinely care
  • Focusing on people and looking at them in the eye when they are talking

Being a leader takes courage, discipline, and determination. You have the responsibility to serve others before you serve yourself. As is says in Galatians 6:9,

Let us not become weary in doing good, for at the proper time we will reap a harvest if we do not give up.

Perhaps you’re not a CEO of a large corporation or manager of a firm, but God may want you to take a leadership role amongst your friends. As you draw closer to God this week, ask him in what ways you can have better leadership skills and how you can be a godly influence on others.

Do nothing out of selfish ambition or vain conceit. Rather, in humility value other above yourselves. – Philippians 2:3

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Who is Jamie Dimon?

Jamie Dimon was announced this spring to be the CEO of the new healthcare venture owned by the founders of Berkshire Hathaway (Warren Buffett), Amazon (Jeff Bezos). He has big shoes to fill since the world is watching, but who is Jamie Dimon?

Jamie Dimon is currently the chairman and CEO of JPM ( JPMorgan Chase, $107.63) and has a net worth of approx. $1.3 billion dollars. Dimon was born in the heart of New York City and took after his paternal grandfather who was also a banker in Athens, Greece. However, his grandfather changed the family name from Papademetriou to Dimon to sound more French and less greek (Greek Orthodox). Dimon’s father and grandfather were also stockbrokers.

In his career, he has achieved multiple awards for excellence. Known for yanking JPM out of more than $12 billion dollars of debt, he is honored and appreciated by his employees for his strong and kind-hearted leadership skills.

Dimon, Buffet, and Bezos have discussed problems amongst each other for years about the poor healthcare benefits their employees receive. Buffet said this year in a recent Berkshire Hathaway meeting in Omaha,

“We don’t necessarily plan to start healthcare companies or necessarily insures of anything. The motivations are not primarily profit-making. We want our employees to get better medical services at a lower cost.”

The powerful trio is concentrated on the long-term benefits rather the near-term and is eager to make necessary changes if it’s best. Since healthcare costs have risen drastically other the past few decades, investors are anticipating great management from Dimon for the new healthcare venture.

 

 

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

Information Attained: Cnbc.com, Wikipedia.com

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Investing Secrets: R&D Expenses

R&D stands for Research and Development on a company’s financial statement. This expense is usually misunderstood and overlooked by many investors. Let’s take a quick look at how we can use this to our advantage.

Similar to “Cost of Goods”, R&D entails the company’s cost of reinventing new products and their costs of production. These expenses may vary, but technology companies can spend huge sums of money in this category. When GOOGL (Google/Alphabet, $1,144.23) may spend 25% of their gross profit on R&D (which is very good for such a superior corporation), AMD (Advanced Micro Devices, $16.50) spends almost 65% of their gross profit on R&D to survive and keep up with their competitors.

Look for consistent numbers in this area.

Some companies may need to spend more than others, however if prices continues to fluctuate year after year, this can be a warning sign of poor management. Depending on which sector you may be investing in, investors tend to look for consistent numbers in this area. INTC (Intel, $55.00) similar to GOOGL, is known for consistency spending 25% of their gross profit on R&D expenses.

These expenses are very important and investors. Calculating a company’s expenses is an exceptional way to discover their long-term stability over the next five to ten years. Some investors take a step further and combine the SGA and R&D percentages to calculate how much the company overall spends from their gross profit. Yet, every investor makes different calculations in regards to their own investing style.