price to sales ratio
FEDEX CORP. $132 (New York symbol FDX; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 312.2 million; Market cap: $41.2 billion; Price-to-sales ratio: 1.0; Dividend yield: 0.5%; TSINetwork Rating: Average; www.fedex.com) plans to sell $2 billion worth of new long-term notes. The delivery firm will use the cash to buy back 11.4 million of its common shares, or 4% of the total outstanding, at current market prices. It aims to complete these purchases by May 31, 2014.
Share buybacks raise earnings per share and other per-share calculations and give the remaining shareholders a larger stake in the company.
The notes will raise the company’s long-term debt to around $4.7 billion. That’s still a low 11% of its market cap. FedEx also held cash of $3.9 billion, or $12.37 a share, as of November 30, 2013.
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Share buybacks raise earnings per share and other per-share calculations and give the remaining shareholders a larger stake in the company.
The notes will raise the company’s long-term debt to around $4.7 billion. That’s still a low 11% of its market cap. FedEx also held cash of $3.9 billion, or $12.37 a share, as of November 30, 2013.
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THE BOEING CO. $130 (New York symbol BA; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 751.5 million; Market cap: $97.7 billion; Price-to-sales ratio: 1.2; Dividend yield: 2.3%; TSINetwork Rating: Above Average; www.boeing.com) delivered a record 648 passenger jets in 2013, beating its earlier forecast of 645. The 2013 figure is also 7.8% higher than the 601 planes the company delivered in 2012.
In addition, Boeing won orders for 1,531 commercial planes in 2013 (or 1,355 after cancellations). It ended the year with a record backlog of 5,080 aircraft orders.
Boeing is a buy.
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In addition, Boeing won orders for 1,531 commercial planes in 2013 (or 1,355 after cancellations). It ended the year with a record backlog of 5,080 aircraft orders.
Boeing is a buy.
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MCKESSON CORP. $173 (New York symbol MCK; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 229.7 million; Market cap: $39.7 billion; Price-to-sales ratio: 0.3; Dividend yield: 0.6%; TSINetwork Rating: Above Average; www.mckesson- .com) has agreed to buy shares of Celesio AG, a German firm that distributes prescription drugs in Europe and Brazil, from its two largest investors. The move will give McKesson about 75% of Celesio. It then plans to buy the remaining 25%.
Buying all of Celesio will cost $8.4 billion, including its debt. However, the purchase should add $1.00 to $1.20 a share to McKesson’s annual earnings; it earned $6.33 a share in the fiscal year ended March 31, 2013.
McKesson is a buy....
Buying all of Celesio will cost $8.4 billion, including its debt. However, the purchase should add $1.00 to $1.20 a share to McKesson’s annual earnings; it earned $6.33 a share in the fiscal year ended March 31, 2013.
McKesson is a buy....
NEWMONT MINING CORP. $25 (New York symbol NEM; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 493.1 million; Market cap: $12.3 billion; Price-to-sales ratio: 1.4; Dividend yield: 3.2%; TSINetwork Rating: Average; www.newmont.com) owns 48.5% of the Batu Hijau copper/gold mine in Indonesia, which supplies 7% of its revenue.
The Indonesian government wants miners to process more ore in the country, so it recently announced a ban on mineral exports. Batu Hijau can still export its ore until 2016, but it will face a new export tax in the meantime. Newmont will challenge these changes, because its contract exempts it from extra taxes and fees.
Newmont is still a hold....
The Indonesian government wants miners to process more ore in the country, so it recently announced a ban on mineral exports. Batu Hijau can still export its ore until 2016, but it will face a new export tax in the meantime. Newmont will challenge these changes, because its contract exempts it from extra taxes and fees.
Newmont is still a hold....
INTERNATIONAL BUSINESS MACHINES CORP. $176 (New York symbol IBM, Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 1.1 billion; Market cap: $193.6 billion; Price-to-sales ratio: 2.0; Dividend yield: 2.2%; TSINetwork Rating: Above Average; www.ibm.com) is selling its low-end server operations to China’s Lenovo Group, the same company that acquired IBM’s personal computer division in 2005. IBM will hang on to its more profitable mainframe computer business.
Because Lenovo is a Chinese company, the deal could run into trouble on national security grounds. But if regulators approve, IBM will receive $2 billion in cash and $300 million in Lenovo shares. The cash would help the company expand in areas with greater potential, including cloud computing and analytics services, which help businesses analyze large amounts of data and improve their efficiency.
IBM is a buy....
Because Lenovo is a Chinese company, the deal could run into trouble on national security grounds. But if regulators approve, IBM will receive $2 billion in cash and $300 million in Lenovo shares. The cash would help the company expand in areas with greater potential, including cloud computing and analytics services, which help businesses analyze large amounts of data and improve their efficiency.
IBM is a buy....
TEXAS INSTRUMENTS INC. $42 (Nasdaq symbol TXN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 1.1 billion; Market cap: $46.2 billion; Price-to-sales ratio: 4.0; Dividend yield: 2.9%; TSINetwork Rating: Average; www.ti.com) gets 65% of its revenue from analog chips, which convert inputs like touch, sound and pressure into electronic signals. Manufacturers use these chips in a variety of products, including cars, medical devices and appliances.
The company gets a further 20% of its revenue by making processor chips, which perform mathematical calculations. Many clients supply their own software for these chips. That lets Texas Instruments form long-term relationships with these users, as it helps them carry their software over when they upgrade.
The remaining 15% of revenue comes from other chips, handheld calculators and licensing. In the quarter ended December 31, 2013, the company’s earnings jumped 93.6%, to $511 million from $264 million a year earlier. Earnings per share rose 100.0%, to $0.46 from $0.23, on fewer shares outstanding. Texas Instruments recently quit making chips for mobile devices and closed plants as a result. Without closure-related costs, it earned $0.49 a share in the latest quarter.
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The company gets a further 20% of its revenue by making processor chips, which perform mathematical calculations. Many clients supply their own software for these chips. That lets Texas Instruments form long-term relationships with these users, as it helps them carry their software over when they upgrade.
The remaining 15% of revenue comes from other chips, handheld calculators and licensing. In the quarter ended December 31, 2013, the company’s earnings jumped 93.6%, to $511 million from $264 million a year earlier. Earnings per share rose 100.0%, to $0.46 from $0.23, on fewer shares outstanding. Texas Instruments recently quit making chips for mobile devices and closed plants as a result. Without closure-related costs, it earned $0.49 a share in the latest quarter.
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CISCO SYSTEMS INC. $22 (Nasdaq symbol CSCO; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 5.4 billion; Market cap: $118.8 billion; Price-to-sales ratio: 2.4; Dividend yield 3.1%; TSINetwork Rating: Average; www.cisco.com) makes hardware and software that links and manages computer networks. Its hardware includes routers, local area network (LAN) and asynchronous transfer mode (ATM) switches, and server computers. Cisco mainly sells this gear to large businesses and governments.
In its 2014 first quarter, which ended October 26, 2013, Cisco’s earnings rose 11.6%, to $2.9 billion from $2.6 billion a year earlier. Per-share earnings gained 10.4%, to $0.53 from $0.48, because it had more shares outstanding.
Revenue rose just 1.8%, to $12.1 billion from $11.9 billion. Many businesses are holding off on router purchases as they wait for Cisco to launch new models. However, demand for data centre and wireless networking equipment remains steady. As well, revenue from technical support and other services (22% of the total) rose 4.2%.
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In its 2014 first quarter, which ended October 26, 2013, Cisco’s earnings rose 11.6%, to $2.9 billion from $2.6 billion a year earlier. Per-share earnings gained 10.4%, to $0.53 from $0.48, because it had more shares outstanding.
Revenue rose just 1.8%, to $12.1 billion from $11.9 billion. Many businesses are holding off on router purchases as they wait for Cisco to launch new models. However, demand for data centre and wireless networking equipment remains steady. As well, revenue from technical support and other services (22% of the total) rose 4.2%.
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MICROSOFT CORP. $37 (Nasdaq symbol MSFT; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 8.3 billion; Market cap: $307.1 billion; Price-to-sales ratio: 3.7; Dividend yield: 3.0%; TSINetwork Rating: Above Average; www.microsoft.com) gets most of its revenue from Windows, the software that powers over 90% of the world’s computers, and its Office suite of business programs.
More users are upgrading their systems because Microsoft will soon stop supporting Windows XP, which it launched in 2001. At the same time, demand for its server software and cloud computing services is rising. In addition, the company launched new versions of its Xbox game console and Surface tablet before the Christmas shopping season.
These strengths lifted Microsoft’s revenue by 14.3% in its fiscal 2014 second quarter (which ended December 31, 2013), to $24.5 billion from $21.5 billion a year earlier. Earnings gained 2.8%, to $6.6 billion, or $0.78 a share, from $6.4 billion or $0.76.
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More users are upgrading their systems because Microsoft will soon stop supporting Windows XP, which it launched in 2001. At the same time, demand for its server software and cloud computing services is rising. In addition, the company launched new versions of its Xbox game console and Surface tablet before the Christmas shopping season.
These strengths lifted Microsoft’s revenue by 14.3% in its fiscal 2014 second quarter (which ended December 31, 2013), to $24.5 billion from $21.5 billion a year earlier. Earnings gained 2.8%, to $6.6 billion, or $0.78 a share, from $6.4 billion or $0.76.
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APPLE INC. $501 (Nasdaq symbol AAPL; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 892.4 million; Market cap: $447.1 billion; Price-to-sales ratio: 2.8; Dividend yield: 2.4%; TSINetwork Rating: Average; www.apple.com) continues to profit from its hugely popular mobile devices: the iPhone smartphone and the iPad tablet computer. These products account for 75% of its sales. The remaining 25% comes from its Mac computers, iPod music players and revenue from its iTunes online store.
In its 2014 first quarter, which ended December 28, 2013, Apple’s sales rose 5.7%, to $57.6 billion from $54.5 billion a year earlier. The company sold a record 51.0 million iPhones in the latest quarter, up 6.8%. iPad sales gained 13.9%, to a record 26.0 million units. Apple also sold 19.1% more Mac computers, but iPod sales fell 52.3% as users continue to upgrade to iPhones.
However, Apple is paying more for components after it upgraded its iPhones and iPads in 2013. As a result, its earnings were unchanged at $13.1 billion. Earnings per share rose 5.0%, to $14.50 from $13.81, on fewer shares outstanding.
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In its 2014 first quarter, which ended December 28, 2013, Apple’s sales rose 5.7%, to $57.6 billion from $54.5 billion a year earlier. The company sold a record 51.0 million iPhones in the latest quarter, up 6.8%. iPad sales gained 13.9%, to a record 26.0 million units. Apple also sold 19.1% more Mac computers, but iPod sales fell 52.3% as users continue to upgrade to iPhones.
However, Apple is paying more for components after it upgraded its iPhones and iPads in 2013. As a result, its earnings were unchanged at $13.1 billion. Earnings per share rose 5.0%, to $14.50 from $13.81, on fewer shares outstanding.
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T. ROWE PRICE GROUP INC. $79 (Nasdaq symbol TROW; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 260.9 million; Market cap: $20.6 billion; Price-to-sales ratio: 6.4; Dividend yield: 1.9%; TSINetwork Rating: Average; www.troweprice- .com) earned $284.8 million in the fourth quarter of 2013, up 23.9% from $229.9 million a year earlier. Due to more shares outstanding, earnings per share rose 20.5%, to $1.06 from $0.88.
Improving stock markets continue to spur demand for its mutual funds. Revenue rose 18.1%, to $929.8 million from $787.3 million.
T. Rowe Price is a buy....
Improving stock markets continue to spur demand for its mutual funds. Revenue rose 18.1%, to $929.8 million from $787.3 million.
T. Rowe Price is a buy....