Stock Sales is still on! COVID-19 Price Slash
- Ogechi Aguma
- Apr 20, 2020
- 3 min read
Updated: Sep 15, 2020
COVID-19 remorsefully still taking lives and changing our views of what's real. Individuals, families, communities, business circles, all calibrating and re-calibrating the essence and depth of living. What comes next?
You can only forecast what tomorrow holds in two streams; one stream flowing with pessimism and the other stream with optimism. Your choice will guide your actions and destination.
Hence the theory 'Confirmation bias' surfaces. This is your tendency to search and research, explore and confirm facts that your chosen stream of flow is right even when the evidence may prove otherwise.
Consequently, i would like to suggest that you checkmate your choices and traces of Confirmation bias, if any, with facts and an open mind.
Simply put, my stream of choice is that of optimism and with COVID-19 in play, i see Stock 'Sales', discounts in the Stock Market. History repeats itself. Given humans nature to be resilience, this virus will pass and only strengthen our quest for survival.
In that same light, companies with sustainable reach into the fabric of our existence, having strong fundamentals with core values of profitability and growth will emerge strong, clinging to the grasp of long-term investors.
When i speak of 'Sales' here, i refer to COVID-19 discount effect on the markets. The drop starting early Feb 2020 being the peak.
Check out this simple maths
See note in chat. Think about it.
Warren buffets company with a Market cap of $463.50B. Profit Margin 32.124% a Return on investment of 11.76% with a diversified portfolio rings value. Most importantly the company is ran by two great money managers with a lot of common sense in our time.
Tim Cook running the show here with Market cap of $1.24T, Profit Margin 21.49% Return on investment of 22.9%. Dividend per share of $3. Given the negative virus effect on iPhone sales, earnings report this coming April (30th) might yield further sales in stock price. Remember value stays unchanged.
Currently run by Satya Nadella, who is doing a good job with Microsoft 365. Market cap $1.36T, Profit margin of 31.08%, Return on Investment 17.63%, Dividend per share $1.8. The price is rather soaring than dipping. Still with some discount.
James Quincey steering the ship, Market cap $206.3B, Profit margin 24.11%, Return on investment 16.39%, Dividend per share $1.59. Still discounted by the virus.
On the drivers seat CEO Bob Swan. Market cap $258.37B, Profit margin 29.25%, Return on Investment 18.66%, Dividend per share $1.26. Sales still on.
Two other companies with a sustain hit from the virus pandemic are Boeing (BA) -57% and Airbus (AIR) -58% discount. These are the two major air plane manufactures in the world.
Do your detailed research into more fundamentals.
Other companies of interest. Facebook (FB), Advanced Micro Device (AMD), Bank of America (BAC), PG&E Corp (PCG), Alibaba (BABA).
Remember value is always what you get. The price is what you pay for it. The value remains the same but the price changes. So endeavour to buy stocks at the right price.
I hope you find value investment this period, make wise decisions with fundamentals and stay focused on value.
"Everyday is a bank account, and time is our currency. No one is rich, no one is poor, we've got 24 hours each."
--Christopher Rice
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Hargreaves and Lansdown. Take a look at their fees.
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Bamboo App - Especially for those in Africa.
Do your research.
Counsel
Always try to buy stocks when they are on SALES! (basically when there is a dip in the share price).
Drip feed your investments. Share prices vary day to day especially in times economic crisis, high volatility becomes a common theme. In the same vain, be watchful of purchasing fees.
Investopedia is a great website to help you with understanding almost any financial terms and definitions.
Disclaimer
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