Friday 17 October 2014

Not a stock tip


I’m no Warren Buffett, but one of these shares feels a bit like his famous purchase of Sanborn Map Company (““We got hold of assets at a steep discount with a map company thrown in for free.”) :

·         Amazon.com (AMZN): internet mega retailer.  Makes a measly 1% margin, pays no dividend, valued at 804 years worth of earnings
·         Netflix.com (NFLX): internet streaming provider.  Roughly 0.5% margin, no dividend, valued at 91 years worth of earnings
·         Seadrill (SDRL): rents out oil rigs for deep water exploration.  50% margin, (very) generous dividend, valued at 3 years of earnings


Company
Share Price
Mkt Cap
Revenue
Net Profit
Annual Dividend
Yield
Price/Earnings Ratio
$305
$141bn
$74.4bn
$745 million
-
-
804
$343
$21bn
$4.3bn
$203 million
-
-
91
$23
$11.5bn
$5.2bn
$2.78bn
$4 per share
~17%
2.7





In the interests of balance:





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