3 STOCKS I'M BUYING - AUGUST 2018
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Today we do 3 stocks im buying the August 2018 edition! Only 1 stock carried over from last month’s edition of the 3 stocks Im buying, thus 2 stocks are new ones for August. Enjoy!
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30 stocks on buying August 2018 edition welcoming guys it is one of my favorite series we do every single month three stocks I am planning on buying in the future month of future month being August 2018.
We do this series every single month if you’re new here I am Jeremy. I’m a long term investor in companies so it’s not like I just buy these stocks and and hope for a short term trade trade in a week or a month.
I’m buying these corporations because I believe in them over the long term. Okay, so I hope you guys really enjoy this in last month’s edition. The three stocks we had one was Toll Brothers, one was FedEx and the other one was sky work solutions.
Of those three stocks, only one stock has made it down to this month. In terms of me buying it or planning on buying it, we got two new comers so we’ll get to the old player first and then we’ll get to the two newcomers afterward.
Hope you guys really enjoyed this. As always, make sure you get in my private stock market membership group. If you have not already, it’s the first link down there in the description and listen to this.
Right now if you enter code half off at checkout, it will take off half the price of the first month and every single month after that it’s an amazing deal amazing value to you guys. Make sure you get in there I want to see you got as many of you guys in there as possible.
We have over 300 series investors in there. I want to see you guys in there. Alright guys, let’s get into this. So number one that did carry over from last month is a company named sky work solutions and this is the only one of the bunch I did not get to add shares up in July. Okay.
I want to build a position in skyworks solutions, which is a semiconductor company. It’s trading at about a $17 billion market cap right now. Trailing P of 24 P of 12 which is super low when you kind of look at what this company has this potential in the future.
And like I said, I didn’t get to build a position the stock I really want to get a position built Toll Brothers I got to add more shares a Toll Brothers FedEx, I got to start a position there sky works.
I really want to buy this one. Look at this company guys. It is a very consistent company, they do $2.2 billion of revenue in 2014. Then they go to 3.2 in 2015. Then they do 3.2 again in 2016 things kind of you know just stagnant for the company.
Then they grow to the next level last year $3.6 billion dollars of revenue there. And you can see a very similar trend on that bottom line less than a half a billion dollars of net income in 2014 then 2015 they do nearly 800 million then 2016 they do almost a billion dollars this past year 2017 they do over a billion dollars of net income.
This is a very consistent growing company who grows market share in smartphones okay not just smartphones, but anything that’s a connected device okay. And this is a company that has executed phenomenal year after year after year after year.
Lou these most recent earnings his company did okay. So skyworks solutions they increase their dividend they have very solid earnings by way of the stock fell after these earnings. Okay, so skyward said it earned $286 million, or $1.57.
A share in the quarter compared to 246 are only 32 and a year ago period. So that’s an up and up adjusted for one time items a company earned $1.64 compared with $1.57. A year ago.
Revenue fell to 894 million from 900 million a year before analysts polled by fact check expected adjusted earnings of $1.60 on sales of 889 million so that’s a beat and a beat. The company’s board of directors declared a 38 cent dividend per share 19% increase found.
A dividend by the way is payable August 28 to shareholders on record as of August 7. So pretty strong earnings despite a very weak smartphone environment in the short term here. Okay, one of the reasons I love this stock so much other than proven management team proven results.
Great profitability with this business is there, their potential out there for 5g? Okay, 5g is kind of one of the big new sectors we’re going into Okay, 5g is gonna start rolling out in a major way, starting in 2019. Okay.
We’re gonna start seeing more and more 5g phones, 5g cell towers, 5g, everything, okay, if things running off 5g, and the beautiful thing is skyworks Solutions is a company that set up as long as they execute on the vision.
This is one of the companies that can benefit the most from 5g out there as far as public companies you can actually invest in. So if they just execute which this company has done nothing but execute over I mean.
If you look at their stock price over the past decade, you look at where their revenues have trended the past decade, their profits, everything, there’s management team, his board of directors is phenomenal with this company.
They got a great vision, they know how to execute, okay, there has to be a company and get three to $4 of content per phone sold out there. Okay. Now, this company on some of the high end phones get 15 to $20.
They execute, execute, execute. And when we move into 5g and all these different devices are connected and everything’s talking to each other. A lot of that’s going to be going through skyworks solution chips.
So a pretty amazing company with a pretty amazing opportunity ahead of itself in a pretty low four P of 12. It’s almost like its price like its company is going to have no growth going in the future for it.
It’s just a stagnant stock and a lot of that’s because the trade war worry out there. When I look at this company, they got huge potential. out there as long as they execute. This is a phenomenal company guys.
Stock number two I have made it this month is a company named eA eA is a company I used to be involved with a sold out of the position a while back. And now I kind of want back in this stock.
Okay guys, so eBay, you probably know it’s a huge e commerce play market cap of 33 billion for P of 12.9. Okay, just under 13 as a Ford p, they’re obviously they have the huge eBay business, which.
You know, people buy a lot of different things on there. And most people go on there to buy used items. But a lot of people, including myself buy actually new items on eBay as well, because a lot of their sellers actually beat prices of pretty much everywhere across the board.
Also they have StubHub, which is another business they own which is a very much an auction type business for tickets and whatnot. So you’re kind of getting two different businesses there that are that are somewhat similar in that in the fact that a lot of it is auction based off okay.
So EIA reported revenue of 2.6 4 billion for the period ended June 30. In missed analysts expectations of 2.66 so barely the slightest little mess they had on revenue there, but sales were up 9% from a year ago quarter okay. 9% raise from a year ago.
Quarter adjusted earnings came in at 53 cents, beating views of 51 cents. I was a nice beat there on ETS, gross merchandise volume transacted on eBay sites totaled $23.6 billion in the quarter up 10% from a year ago period.
All right, and your thing is decent earnings stock probably went up a little bit or something no stock dropped majorly Okay, five day change in this one went down 11% okay 10% downward move on Thursday alone huge downward move.
And when I looked at this I’m like I think this is probably a buying opportunity for me and eBay shares which is probably why i’m not buying these shares. Okay, so if we look here further into the company.
They’re expecting around 10% over 10% sales growth in this current quarter we’re in then another 12% in the December quarter current year around 13% and next year around 8% revenue growth is expecting this company if we look at the earnings estimates very very strong growth.
Okay, this past year they did $2 A VPS this year they’re expected to do 229 next year they’re expected to do 258 solid solid growth there with this company okay solid solid growth and when I look at the business model of eBay okay.
When I kind of really view it out there I see them I do I ever see them beating beating Amazon no I would say that’s a highly unrealistic and medium if I’m going to start buying shares of stock Am I counting on them beating Amazon someday and becoming the main e commerce play in North America.
Absolutely not absolutely not. But with the story still to be told on who’s going to be the number two player in e commerce in the North America over the next decade okay. He Bay has unbelievable opportunity in front of themselves Okay.
It’s probably between them and Walmart on who will be the number two player in e commerce for the next decade or so. Okay. And it’s up for grabs right now. I think eBay is in a very good position to grab that and if they can grab that with the way that company’s been executing guys.
It’s a good it’s a great company that’s trading at a fair valuation want to just look at it. It’s kind of like I don’t I don’t necessarily want to say it’s a no brainer, but in my opinion, it’s pretty close to a no brainer as I look out 510 years on where this company is going.
Let’s get into stock number three. So the third stock I’m planning on buying as a company I already own a lot of shares in and if Goldman Sachs Goldman Sachs Corporation, this company is at a trailing P of 22.
But a Ford P of nine, four P of nine guys unbelievably low. They just reported their second straight quarter of blockbuster earnings. absolutely unbelievable. They knocked out the ballpark.
They did $5.98 of epcs versus the analysts were expected for 66 that’s two straight quarters. They just killed it just killed it. Okay, revenue was up 19% from last year, net income up 40% from last year, return on equity Rose 14.1% institutional Client Services was up 17% Okay. 45% rise in the commodities business.
All right. Investment Banking Rose 18% led by an 88% surge in equity and underwriting revenue, investment management, Rose 20% investing, lending Rose 23%, these numbers are unreal, like unreal.
You would think this is a company that should be trading at a forward p e of 20 or 30 with that type of growth, and we’re trading at a nine right now. Okay? That’s like the definition of undervalued when you got this type of growth.
And you’re trading at a forward p e of nine. It’s almost a joke guys. It’s almost a joke. So if we look here at the revenue estimates, okay, this quarter we’re going into they’re only expecting around 1.7% revenue growth. Okay.
So that gives the company a phenomenal chance to beat their okay. The December quarter they’re expecting over 10% revenue growth. The current year they’re expecting over 13 percent revenue growth.
But next year, it was only expecting around 1% revenue growth alright. Unless we go into some type of huge downfall in the economy like I can see Goldman Sachs having a way better than 1% rise in revenue like.
That’s almost a joke like unless the economy goes off the rails they can super weak like they should be able to grow revenue by at least five or 10% next year 1% as a joke as if we stay in a strong economy that is now if we look at ETS what’s expected so this past year, they did $19.76 ETS.
Now this current year, they’re expected to do just under $25. And once again, analysts have very weak numbers for them. They only expected them to around $25.37 of epcs their next year.
So I think Goldman Sachs is in a position super low valuation and analysts aren’t expecting anything for this company for the for next year. Okay, I think that sets it up in a very, very good position is a great company and great investment bank.
At the end of the day, this is one of the I in my opinion, the best investment bank in the world how well politically connected they are, is unreal, it’s off the charts. So when I look at this company.
I would love to add some additional shares of Goldman Sachs during the month of August. Two straight quarters just blow out numbers guys, it was I want to know what your stocks you guys are planning on buying out there.
Going into August. I would love to hear from you guys. As always Also, I’d love to hear kind of what your biggest positions are out there. Make sure you get my stock market membership group only a few days left to get in there.
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