Daily Investment Tips

Since the dot com bubble burst Microsoft stock has been the sick man of Wallstreet, the stock has remained stuck in the $20s range for the last decade. During that period other Tech stock, Google, Apple and Amazon have delivered out size returns for their investors.

Recently theres has been good news from analyst about Microsoft stock, here is a a round of of what Analyst covering Microsoft are saying.

Oppenheimer & Co Microsoft Stock Prediction

The U.S. investment firm Oppenheimer & Co. analyst Brad Reback released investment, maintaining the Microsoft stock’s “outperform” rating and raised the Microsoft stock price target to $36 from $32. His judgments were based on seeing the Microsoft system’s advantages in the Developer Conference of the 2012 Mobile World Congress.

Citigroup analyst forecast for Microsoft

Citigroup analyst Walter Pritchard reiterated the Microsoft stock’s “buy” rating and the Microsoft stock price target of $35.

Barclays Microsoft share price forecast

Barclays Capital has also raised its price target on the stock.Its price target on Microsoft’s stock is $33.

Goldman Sachs Forecast

Goldman Sachs raised its price target on Microsoft from $29 to $32 following better-than-expected Q4 EPS.

Is Microsoft stock finally turning the corner? Investors should not be too excited because even as Microsoft stock was lagging in the last decade, this is a company that always reported good results but the stock never barged.

written by Constantine Njeru \\ tags: Amazon, Barclays, Barclays Capital, Citigroup, Developer Conference, Goldman Sachs, Google, Investment Firm, Microsoft Price, Microsoft Stock Price, Microsoft System, Oppenheimer, Pritchard, Q4 Eps, Stock Prediction, Stock Price Target

I have read many comments complaining why at $100 Billion value Facebook is over valued. The logic is, with profits of $1billion a multiple of 100 is wrong.

Take a look at tech IPOS of other tech giants, Google and Apple, that Facebook is compared to and you will say those companies where even more expensive during there IPOs.

Apple IPO PE ratio.

Apple Inc – today, the world’s most valuable technology corporation – went public at a valuation of just $1.19 billion in 1980, equivalent to 25 times revenue and 102 times earnings.

Google IPO PE ratio.

Google – to which Facebook is most often measured against in terms of potential – was valued at $23 billion at the time of its 2004 debut, or 218 times earnings.

This is my my thought about Facebook “It’s the next Google.”

written by Constantine Njeru \\ tags: Apple, apple ipo, Facebook, Facebook IPO, Google, google ipo, Ipo

If you read the news in 2011, most headlines was about how bad things were for investors, falling stock markets and European debt crisis. But the true is even in this crisis there were areas where investors made money. Investors who bought Junk bonds of companies such as Ford saw good returns, some stocks even out performed the market in 2011 (check this video of best performing stocks in 2011). The lesson here is, if you look at individual stocks you are likely to find value and opportunities.

Best Opportunities to Invest your Money In 2012

Facebook IPO in 2012

You can’t talk of investment opportunities in 2012 without mentioning Facebook. 2012 is the year this social network will go public. I have big feeling Facebook is another Google: it will keep getting bigger and bigger. Other tech IPOs in 2011, Linkend and Groupon, opened high on first day but came to down later. The only people who made money were the early investors and the few who were lucky to buy the IPO.

Buying Short Term Bonds

As rates go up, the value of bonds that have long dated maturities go down, sometimes significantly. For that reason, stick with short term bonds (both government and corporate), Inflation Linked Bonds (TIPs) and Floating Rate Notes. Once rates go up — and they have nowhere to go but up — gradually change those holdings into longer term bonds.

Buying Under Water Properties

There are millions of mortgages across US that are under water, the value of this properties have fallen low and the return on investment is now high. If you have enough cash and you buy this properties, you can get a good return renting out the properties.

Investing In Companies Catering in Luxury Goods

2011 was the year the middle class disappeared. Companies that target the upper end of the market have continued to do well. Stats indicate the number of super rich people has gone up, these group continues to spend on luxury cars, boats etc. Companies like Lululemon Athletica (targeting Yoga lovers) have continued to see year-over-year earnings growth at or above 50%.

Investing in Low End companies

As the middle class disappears, the majority of these people are finding themselves in the lower end. As numbers of low income people continue to swell, discount retailers such as Wal Mart will continue to do well.

To find best opportunities to invest your Money In 2012 you need to look at individual stocks and not the whole market.

written by Constantine Njeru \\ tags: Athletica, Best Investments, Best Performing Stocks, Cars Boats, Debt Crisis, Facebook, Google, Inflation Linked Bonds, investing 2012, investment 2012, Investment Opportunities, Ipo, Junk Bonds, Linkend, Luxury Cars, Luxury Goods, Maturities, Middle Class, opportunities 2012, Return On Investment, Stock Markets, Term Bonds

The business world was turned today by the news of Googles $12.5 billion purchase of Motorola. The big question is why is Google buying a dying business like Motorola? Maybe for its patent portfolio?

Remember AOL-Time Warner? And few people today probably recall that Exxon entered the computer harware business in the 80s. Another flop. This will be so too. Google has just committed the error of a mature company: thinking they can run any business. They are moving further away from their core expertise. There will not only be a huge culture clash between the companies but different skill sets needed for success. Jobs isn’t worried about this, but cheering. It confirms his business model and Apple, unlike Google, does understand manufacturing, supply chain management and consumer product marketing.

written by Constantine Njeru \\ tags: 80s, Aol Time Warner, Apple, Business Model, Business World, Computer Harware, Core Expertise, Culture Clash, Exxon, Google, Jobs, Manufacturing Supply, Mature Company, Motorola, Patent Portfolio, Product Marketing, Supply Chain Management, Time Warner

Google plus, Googles answer to facebook has already roped in 20 million users and some analyst are already predicting, google + will be a big success.

Investors are already betting big : the launch and hyper growth of Google’s ambitious Google+ social site has helped fuel a meteoric rise in the company’s stock. Google stock (GOOG) is up nearly 30%,since Google + was announced.

Signing them up is one thing, stickyness is another thing. Usage is ultimately what will determine whether Google+ wins or not.

The latest Google + usage stats are not encouraging, Average time on Google+ fell 10% in the last week, which might mean the service has peaked in usage, according to numbers from web analytics Experian Hitwise.

written by Constantine Njeru \\ tags: Goog, Google, Googles, Hitwise, Hyper Growth, Investors, Launch, Meteoric Rise, Stock, Usage Statistics, Usage Stats, Web Analytics, Wins

We checked over at Jim Cramer (mad money website) for stock picks for the month of June 2011.  Jim Cramer made some bold calls on stock to buy and sell for the month of June 2011.

Jim Cramer buy recommendations for June 2011

1. Limelight Networks
2. Google
3. Corn Products International
4. SPDR Gold Shares
5. McDonald’s
6. Caterpillar
7. Apple
8. Deere & Company
9. Cummins

Jim Cramer Sell Recommendations for the month of June 2011

1. Teekay Tankers
2. Frontline
3. Crude Carriers
4. Vale
5. Kimberly-Clark
6. Kraft Foods
7. Abbott Laboratories

Remember this are just recommendations, use them as a guide rather than

written by Constantine Njeru \\ tags: Abbott Laboratories, Amp Company, Apple, Buy Recommendations, Caterpillar, Corn Products International, Cramer Mad Money, Crude Carriers, Cummins, Gold Shares, Google, Jim Cramer Mad Money, Kimberly Clark, Kraft Foods, Limelight Networks, Mcdonald, Money Website, Month Of June, Stock Picks, Teekay Tankers

The Tech IPOs train 3.0 is truly underway. First it was Demand media off the blocks, then Renren, Linkedin. And now it is the turn of Yandex, Russia’s largest search engine.

Yandex IPO Price.

Yandex IPO was priced at $25. We made a comparison of Yandex valuation with another famous search engines, Google and Baidu: At $25 a share, the company is valued at some $8bn, with an earnings multiple – about 60 times net income – higher than Google’s, but below that of Baidu, China’s top search site.

Yandex IPO Date

The US Initial Public offering started on Monday 22, May 2011. The shares will begin trading on Tuesday on the Nasdaq stock market.

written by Constantine Njeru \\ tags: Baidu, China, Earnings, Google, Initial Public Offering, Ipo Price, Ipos, Largest Search Engine, Linkedin, Nasdaq Stock Market, Net Income, Russia, Search Engines Google, Train, Yandex

At $500 – 600 Google stock might seem expensive but if you look at Google fundamentals you may understand why 35 out of 38 Google analysts polled by Thomson Financial rate Google shares a Buy.

Google Stock Forecast : Google Stock prediction : Google stock outlook

One fundamental that makes a good case for Google stock to rise higher is data on internet advertising.

The nation’s top 100 advertisers direct just 5.5% of their total ad spending to the web, according to industry trade publication Advertising Age. Meanwhile, Internet advertising is expected to hit 9% of total ad spending by 2011, according to Jupiter Research, an industry research firm.

Paid search advertising, which is Google’s bread and butter, accounts for 40% of total ad spending on the Net and is the fastest growing category, helped by the fact that it’s both cost effective and highly scalable.

“Even at 40%, search has just barely scratched the surface,” Aggarwal says. “We think advertisers on a long-term basis are going to embrace search. Google, with the largest market share, is the biggest beneficiary of that growth.” Data Source: smartmoney.com article.

Although Google has been accused of being a one trick-pony that relies 99% on advertising, the above data shows Google core business of  search advertising is solid and the company will continue on the path of higher revenues, higher profits that translates to a higher stock price.

Facebook : The elephant in the room

Facebook is growing fast and attracting advertisers but i don’t think Facebook is a threat to Google business. Google is good at search advertising while Facebook is good at display advertising.

written by Constantine Njeru \\ tags: Advertisers, Advertising Age, Aggarwal, Amp, Bargain, Beneficiary, Bread And Butter, Core Business, Data Core, Data Source, Display Advertising, Facebook, Google, Google Google, Googles, Internet Advertising, Investing Stocks, Jupiter Research, Market Share, Nbsp, Profits, Search Advertising, Search Google, Shares, Show Business, Smartmoney, Stock Forecast, Stock Outlook, Stock Prediction, Stock Price, Term Basis, Thomson, Thomson Financial, Trade Publication, Trick Pony

It is that ime of the month when we look at our favorite stock picker, Jim Cramer of CNBC Mad Money Show. Jim Cramer Stock Picks for April 2011 included a buy recommendation for Apple again.

Some of Cramer Buy Recommendation for April 2011

1. Northern Oil and Gas
2. Bank of America
3. Continental Resources
4. EOG Resources
5. Whiting Petroleum
6. Red Hat
7. Lowes
8. Fossil
9. Amazon.com
10. Apple
11. Google
12. Nucor
13. Clear Channel Outdoor

Some of Cramer Sell Recommendations for April 2011

1. Intel
2. Cisco Systems
3. Microsoft
4. Hewlett-Packard
5. Qualcomm
6. Skyworks Solutions
7. Network Appliance
8. Home Depot
9. Citigroup

written by Constantine Njeru \\ tags: Amazon, Bank Of America, Cisco Systems, Citigroup, Cnbc, Cnbc Mad Money, Continental Resources, Eog Resources, Google, Home Depot, Jim Cramer, Money Show, Network Appliance, Northern Oil, Nucor, Qualcomm, Skyworks Solutions, Solutions Network, Stock Picker, Whiting Petroleum

Facebook is now the hottest property in the internet, with over 500 million registered users every one is wondering whether Facebook will knock out Google as the most influential company in the internet. Already statistics indicate facebook is now the most visited site in the internet, ahead of Google.

At the moment Facebook revenues are just under $2 billion compared to Google near $25 billion. Will Facebook ever catch up with  Google or over take Google at the end.

Facebook Vs Google Revenue Comparison when both Companies were Six Years Old

For all of 2009, Facebook’s revenue was $777 million and its income was $200 million. Google in 2003—the similar year in the search giant’s history—reported revenue of $1.5 billion and a profit of $106 million.

Facebook Vs Google Revenue Comparison When both companies were seven years old

Through the first nine months of 2004, Google reported revenue of $2.2 billion and net income of $195 million. Through the first nine months of 2010, Facebook’s revenue was about $1.2 billion and its income was $355 million.

There you have it, although Google had more revenue, it is clear Facebook is a more profitable company.

Source of data, wallstreet journal article

written by Constantine Njeru \\ tags: Ahead, Company Source, Facebook, First Nine Months, Giant, Google, Journal Article, Net Income, Profitable Company, Seven Years, Six Years, Statistics, Wallstreet Journal