4 Stocks I Own - January 2018
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Today we are doing 4 stocks i own which is taking the place of 4 stocks I’m buying my old series. These 4 stocks are my 4 biggest investments in the stock market going into January 2018. Enjoy!
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Welcome into my four day is investments January 2018. edition guys now this new series, it’s taking the place of four stocks on buying it has ended for stocks on buying series, which I started over a year and a half ago and has changed trends around the three stocks, three crypto currencies, like people are doing three everything now or for everything.
I changed the whole game with that. And I’ve decided to try. The main reason was, I felt like the name could be deceiving the whole three stocks I’m buying for stocks I’m buying, that implies that I’m actually always buying those shares during that upcoming more month.
But what if I don’t buy those shares that during the month? Does that make me a liar at that point? What if I go ahead and I actually start selling some of those shares during the month because I haven’t changed a heart a few weeks. And I’m like, you know what?
This one’s jumped awesome. 10%. Now you know what, I want to start exiting the position, then does that make me like an extra layer and things like that? And what if I buy five shares in this company, but I buy 1000 shares of this company.
But this one company, the new investment is a very small investment compared to my huge investment. Should I really talk about that one over this one, I think the name was just confusing overall, which is why I changed it to my four biggest investments in the stock market guys, it’s not as catchy I know.
But you know what I’d rather it be understandable. And you know, you can understand what I’m talking about going into a month because these are my four biggest investments. So hope you guys enjoy this thing we’re getting into it. And by the way, check out my stock market investing mastery course that’s a first link down there in the description.
If you are in your first year of investing. That course will help you out tremendously that goes into everything I look for in a stock. Let’s go ahead and get into this guy’s eBay is coming in here. And number four, this is my fourth biggest investment currently eBay, as many you guys have probably use a platform several times to buy or sell things.
They also own things like StubHub and things like that you guys can pause the video if you want to read more into the description and see what their business is about if you don’t already know it. So this is a growth company right now. It’s a strong single digit growth company, it’s kind of the one in my portfolio that.
I just like it because consistent play. If we look here, they expected the current year around six and a half percent revenue growth next year, somewhere around 7% revenue growth, that’s a strong single digit growth company. Okay. And then if we look here, on their income statement, you know.
The past few quarters, it’s just very consistently that $2.3 billion in revenue, then 2.2 billion, then 2.3 billion in 2.4 billion very consistent numbers in that revenue line. Look at the gross profit quarter after quarter 1.8 billion 1.7 billion 1.7 billion $1.8 billion in gross profit. eBay is just a very consistent company with strong single digit growth in it’s just one of those names.
I really like it’s one of those names, I just have to have my portfolio also very good balance sheet, you know, they do have a lot of debt. But if we look here, 1.7 billion in cash $4.2 billion in short term investments, $6.3 billion dollars, they’re in long term investments.
So that’s a if you add all those up, that’s over about $12 billion there. And then they do unfortunately have about $9.2 billion in long term debt. But still, the cash investments way outweigh those debts they’re in they’re extremely profitable companies, so they have no problem paying their bills.
If we look here on a Ford p basis, it’s just under a 17 right now. So when I look at this company, I’m saying to myself, okay, I’m getting a forward PE on a company that’s a pretty safe company. That’s a single digit growth company, like like, what am I missing here, this one just makes sense for me.
And then also this past summer, the authorized an additional $3 billion stock repurchase program, which will obviously help out epcs over time, guys. So this one to me was a no brainer, you’re going to give me eBay at a 17 forward fee. With strong single digit growth.
I’m going to buy it every single time. Cirrus Logic comes in here at number three Cirrus Logic here at number three. This one they do a lot of audio components. They’re kind of like in my opinion, the best audio component maker out there for smartphones, tablets and things like that.
A lot of the devices that are super popular isn’t a breakdown in the iPhone seven here just to kind of give you an example of some of the the the chips they make and what another semiconductor company we see here they have the audio codec in there. They also have multiple amplifiers in this iPhone here.
They have a lot of different things like that as far as audio amplifiers, things that run your voice through them and all kinds of things guys for the speakers and whatnot. They do also have Samsung as a customer they do have a pretty decent relationship with Samsung, but they are not in the main Samsung devices yet though the the flagships meaning the know what are they on now the note eight or whatever and the Galaxy S eight.
They are not in those yet. That is a huge potential win out there for Cirrus Logic if they can get to a point where they have Samsung as a customer guys. It’s not something I’m definitely counting on as a shareholder and someone that’s just started buying back into Cirrus Logic By the way.
I’ve had a relationship on and off of Cirrus Logic I’ve held the stock multiple times. First time I held it didn’t really make crap for money. The second time I held it, I made probably the second or third most money I ever made on stock in my life. And now I just started biting back into this one recently, right now just kind of give you guys an update.
It’s a company that has had super strong growth. And we’ll look at that here in just a second. But they shouldn’t have much growth at all this year and next year, okay, so there shouldn’t be much growth in probably in about two to three years from now is when the major growth should start again.
Now, balance sheet wise here that I mean, unbelievable balance sheet, you guys know how much I love an unbelievable balance sheet cash and cash equivalents of 180 billion, or excuse me, $180 million short term investments of 15,000,130 3 million in long term investments in they have no short slash current long term debt and have no long term debts at all guys, so they just loaded with money, super profitable company.
And they also have no debts. That’s fabulous. If we look at the revenue here, it was pretty consistent 2000 see, you know, the 2015 and 2016. And then they jump up huge here, they jump up huge in 2017 to $1.5 billion in total revenue there. And then if we look at what the actual net income did there, it nearly doubled up there guys a double up and net income there.
So they had a fabulous growth year with Apple being their main customer and Apple having a few more chips in the new iPhones than they used to have basically, it’s a company right now, as a forward p e under 11. A Ford p under 11, when most in the semiconductor space are trading the 20s 30s and plus those ones at an 11.
Currently main reason it has its add an 11 is one because there’s not going to be huge growth over the next year or two. But not just that, because they’re still heavily reliant upon Apple, until they really get Samsung as a main customer, which honestly, if you’re in the smartphone game, there’s two companies that are important to you as a semiconductor company, Apple and Samsung.
Everybody else is like almost non existent because they move so few units compared to Samsung and Apple. So if Cruz can get Samsung as a main customer, again, that will help out their valuation in a huge way, not just because they’ll be they’ll become more profitable and revenue go up and all that kind of stuff.
But because people will view this as Oh, apples not 80 something percent of their revenue now apples maybe 60% or 50% in the Samsung’s you know, 40% or something like that. And everybody else is another 10%. Now, if we look here, still pretty strong guidance here for the revenue for their guidance at their midpoint for $530 million in revenue.
523 is what they did last year and crews usually sandbags so you know, they should be able to hit that pretty easily based upon you know, historically what crews does, they always kind of sandbag that way they can come in and beat the numbers or whatnot. We look here headcount has had nice growth over the last year or so. They’re up to over 1500 employees.
Now with this company. The reason they have to add that more and more headcount is because obviously, they have more and more revenue coming in more and more profits. And they have a lot of more things they could go after, not just with Apple and expanding content with Apple, but Samsung and all these other companies that they kind of want to expand their business with.
That they’re not even expanding, they can’t even pursue a lot of these opportunities have audio chips and a lot of devices because they just don’t have the manpower to do it. Apple alone takes up hundreds and hundreds and hundreds of employees at crews are dedicated just basically to Apple because Apple is such a big customer.
Now, if we look here, also, they have a big share buyback, they just bought $50 million in shares back in this past quarter, they still have about $80 million remaining on the share buyback. So that will obviously help out epcs over time. So this one’s super low PE phenomenal balance sheet phenomenal relationship with the main customer you want to have a relationship with in the semiconductor space, which is Apple.
They do have a relationship already with Samsung, they’re just kind of looking to expand that also some huge growth vectors a few years out with voice biometrics and things like that guys, so very exciting company with crews and they’re still expected to have single digit growth this year, this upcoming year which is fabulous.
Now number two a good old GoPro is my second biggest investment currently going into January 2018. This is a company that I’m basically having to pay $1 billion for so if you buy this stock you’re paying $1 billion for the company All right, forward P of just over 17 right now which you know they’ve been a very fast growth companies past year they’ve had a very nice growth year.
Now this current year they they’re expected to have grown around 11 and a half percent next year around 7.4% growth so that’s very strong there. You’re getting the number one player in the action camera space okay, which they just came out with hero six a few months ago, you’re getting the number two player in the drone space and you’re getting what will probably be the number one player in the virtual reality over capture space because from what.
I have seen him from what tech reviewers have reviewed this product it’s been a lot of good said about it as far as this is the premier product as far as the hardware in the software matching. I remember I watched a video just this past week that a guy came out with I iPhone door or something like that his name is he usually hates on GoPro products.
He even said that this was The best virtual reality product as far as the hardware software he has played within the scene yet guys, so a lot to be excited there. As far as you getting the number one action player, you’re getting the number two drone maker, and which is going to have their second model more than likely come out, you know in 2018.
And you’re getting what will probably be the number one virtual reality maker out there. That’s pretty, that’s pretty exciting here. Now there I want to talk about discounting for just a second here, guys. So there were some discounts GoPro was doing throughout the holidays.
So there’s one there’s a couple of ways we could look at this one is, you know, GoPro just wasn’t selling good, you know, GoPros weren’t selling good, they got a discount on they got slashed prices, we saw a lot of sales going on and a GoPro you know, some of us buy some Amazon.
I think those ones are probably more planned out. Those are probably more planned sales. However, I did receive emails and people received emails, I have bought GoPros in the path of like, you know, get it and get 25% off and you give this code to a friend and family that could also be playing or could be sales, we’re just weak.
Okay, we could say, you know, sales were weak, and they just weren’t good. And they saw they needed a discount. It’s possible. It’s possible. I don’t know for sure. I track sales on Amazon’s bestsellers list as far as electronics. And I can tell you the hero six and hero five were not nearly as high as they used to be.
As far as like the you know, the the GoPro Hero four in the five, around Christmas time of year, they were usually in the top 25. This year, they had trouble cracking the top 50 Amazon has added more products to that top electronics category. So that does hurt it a bit.
But at the same time, I’m not 100% convinced that sales were as strong as past years. As far as strictly photos, action cameras. However, we don’t know there’s no way of knowing until the next quarter is reported. But there’s another way to look at this, the two main cameras they were discounting on was hero five, which is still a $399 camera, they never lowered the price on that.
And the other main camera they were doing the discounts on was the hero five session which was still $299. This was these were the same prices they charged when they came out last year in 2016. Guys, so when these are were announced in 2016, those were their prices in going into this holiday season 2017 they were still at the same prices.
So maybe GoPro just went with the philosophy, which in my opinion, probably good philosophy, and I probably would have went with it. Let’s not come down on the prices. Let’s keep them at that. But those slash the prices come holiday season. So people feel like they’re getting a sale. And that’s what they did you know, they brought this down.
No, basically, after the discount, sometimes it was around 199, this one came down to 299. And it’s definitely a way you can increase sales because a lot of people are wired like in order to go out and buy something that’s a non necessary thing like an iPhone or a new Samsung or something that’s almost like people feel like that’s an E need type thing.
A GoPro in many instances is kind of like a one type thing. Okay? So you lower the prices by saying a sale and people feel like they want the one. But if you keep it just you lower this price, drop the bet to 299 199. And then you don’t see the sales there. What do you end up having to do, then you have to discount and also bring this one down to 199.
And then what do you bring this one down to 149, maybe $99 or something like that, and you start getting SILLY PRICES, guys where you know, you’re almost your entire profit margins erode, I can almost guarantee you with the hero five, even if they bring it down to 299, they’re still making a fabulous profit on that same thing with the hero five session guys.
Even if they bring that down 199 the other one down to nine, nine, there’s still a lot of profit to be made. But if they had to bring it to 299 to 199 and 199 to 149, then all sudden the profit starts going away very quickly, guys, so that’s kind of where I’m at with the old discount thing, which I got a lot of questions about that in the comment section and whatnot, and kind of my feelings on that.
And then the last thing I kind of want to talk about here with GoPro is Mr. Wood men, okay? So it’s always hard for me to trust Mr. woodmen going forward because he’s made a lot of mistakes in the past that I feel like we’re you know, him a CEO, he’s the he’s a figurehead I think a lot of those mistakes have fallen on him.
However, I will say in the last nine to 12 months, specifically really last nine months last three quarters, this company has been run much, much better Okay, since they announced that the new guy CJ came in and kind of took off over the chief operating officer that the company has just been run much, much, much better since then.
So leadership is being improved, but I don’t still 100% Trust GoPros leadership which is why I’m still not buying any new shares even though it’s in the $7 range. Even though I have all those things that I’m really excited about. I’m just holding my shares because I’ve gone so you know big in this in the past and I’ve gotten burned so bad that at this point in time I’m still management still doesn’t have my 100%.
Trust which is why I cannot buy new shares in this one. I’m just holding the ones I do in the option contracts that I do have currently so that’s that one and Wynn resorts otherwise known as winning resorts comes here here on number one so as you guys probably know if you ever been to Vegas before they have two resorts out here.
Though When in the Encore they also have two resorts we actually have three resorts in Macau one’s called the when one’s called encore and one’s the brand new one that just opened last year called Wynn palace, a absolutely amazing resort and probably the creme de la creme of any resort out there.
Revenue Growth expected this quarter to grow at least 20% current year they’ve grown grown around 38% next year analysts have this company has only grown 6% I don’t see it, I see it growing at a much faster rate than 6%. Guys, I think that’s extremely low, extremely low.
Reason being is Macau is on fire right now and not like in a bad way in a very good way. Macau December ggR growth is expected 400 basis points plus above forecast numerous saying this just came out a couple of weeks ago here. So you’re on your growth in December casino gross gaming revenue in the Macau market could be at least 400 basis points above the range suggested by the market estimate service numerous such growth could be 20 to 25%.
Up here guys, that is absolutely phenomenal news for Wynn resorts, they capture much of the high end of the market that VIP business and whatnot. As more and more customers come in, they kind of get the push the ones that aren’t big spenders out of the way and have more and more of that VIP type clientele guys.
And that VIP clientele is ridiculously profitable because you’re talking about people that are spending hundreds of 1000s if not millions and millions of dollars every night when they come into town to gamble and things like that guys, and we know the house is going to win the majority of the time.
So that’s really really good news for when and we’re looking at a company here with a forward p e of around 25 which obviously is a little above what the markets trading at right now but it’s not much more in for a company that in my opinion they should easily be able to grow 10% plus in revenues next year if not 20% plus on the bottom line.
I see no reason why that can’t happen if not more than that. So when I look at this company I’m looking at analysts I think have way under estimated what revenue will actually go up next year guys and that’s why I’m so excited about when when is a position I will probably be exiting throughout 2018 you know.
I’ve shared that with you guys I think a couple of times on here I believe I will kind of exit that position out but for now mostly holding and then I’ll probably start selling you know once it gets above this $170 mark and probably start getting out of my position fully if it approaches a $200 plus Mark guys.
So anyways, I hope you absolutely enjoyed this today, the four biggest investments going into January 2018. Make sure if you’re a beginner in the stock market or you’re somewhat new to the stock market, you want to know my exact strategy, click that first link in the description of my stock market investing mastery course even as a private email address.
You can contact me if you have any questions in regards to the course. Thank you for watching guys and have a great day