In this year's letter to shareholders,�Amazon.com� (NASDAQ: AMZN ) �CEO Jeff Bezos writes:
...as I frequently quote famed investor Benjamin Graham ... "In the short run, the market is a voting machine but in the long run, it is a weighing machine." ... We want to be weighed, and we're always working to build a heavier company.
With this analogy, there are times when the market's scale could add some pounds that Amazon lacks -- that is, the stock could be overvalued. But looking at history, Amazon constantly ends up weighing more than what the market believes, and then outperforms in its weight class.
So, what about now? It would be crazy to think this trend of outperformance will keep going for a $150 billion company that reports losses instead of profits, right? Here are some reasons to the contrary.
Market opportunity
Amazon, of course, began selling books. Now it enters any industry it deems lucrative. Even though it operates in a breadth of industries from Web services to publishing to video entertainment, and it seems like there aren't many more industries to take on, it can still grow through depth. To Amazon, it's all about the customer experience, and giving incentives and features that will attract new customers and keep old ones. If this strategy proves effective, it could grow its share in any of its many businesses.
5 Best Stocks For 2014: Alexandria Minerals Corporation (AZX.V)
Alexandria Minerals Corporation, a development stage company, engages in the acquisition, exploration, and development of mineral resource properties in Canada. It explores for copper, gold, silver, and zinc ore properties. The company holds interests in 24 mineral properties in 3 areas in the Abitibi Belt in northern Quebec and Ontario. It primarily focuses on exploring the Cadillac Break property group consisting of 21 individual properties covering 12,526 hectares on 675 claims located in Val d�Or, Quebec. The company was founded in 2002 and is headquartered in Toronto, Canada.
5 Best Stocks For 2014: Dios Exploration Inc (DOS.V)
Dios Exploration Inc., a mineral research company, operates as a mining exploration and evaluation company in Canada. It focuses on exploring gold, uranium, diamonds, and a carbonatite with rare earth and niobium metals. The company holds interests in various properties comprising 5,300 mining claims covering approximately 2,750 square kilometers in the areas of central Quebec and the Otish Mountains. Dios Exploration Inc. is based in Montreal, Canada.
Top 10 High Tech Companies To Watch In Right Now: Reading International Inc(RDI)
Reading International, Inc., together with its subsidiaries, engages in the development, ownership, and operation of entertainment and real property assets in the United States, Australia, and New Zealand. It operates multiplex theatres; and involves in real estate development, as well as the rental of retail, commercial, and live theater assets. The company manages its cinema businesses under the Reading, Angelika Film Center, Consolidated Amusements, and City Cinemas brand names. As of December 31, 2010, it had interests in 56 cinemas comprising approximately 453 screens; fee interests in 4 live theaters; and fee ownership of approximately 1.1 million square feet of developed commercial real estate, and approximately 14.9 million square feet of land. Reading International also owns a 66% unincorporated joint venture interest in a leased 5-screen multiplex cinema in Melbourne. The company was founded in 1937 and is headquartered in Commerce, California.
5 Best Stocks For 2014: Aviva plc (AV)
Aviva plc provides insurance, savings, and fund management products and services worldwide. It offers life insurance and savings products, which comprise pensions products, such as personal and group pensions, stakeholder pensions, and income drawdown; annuities; protection products, including term assurance, mortgage life insurance, flexible whole life, and critical illness cover; bonds and savings comprising single premium investment bonds, regular premium savings plans, mortgage endowment products, and funding agreements; and investment products consisting of unit trusts, individual savings accounts, and open ended investment companies, as well as equity release and structured settlements. The company also provides general and health insurance products that include personal lines of insurance products, such as motor, household, travel, and creditor insurance; commercial lines of insurance products consisting of fleet, liability, and commercial property insurance; health insurance products comprising private health, income protection, personal accident, and corporate healthcare insurance products; and insurance for corporate and specialty risks. In addition, it offers fund management products and services for institutional, pension fund, and retail clients. Aviva plc sells its products through various distribution channels, including direct sales forces, intermediaries, corporate partnerships, bancassurance, and joint ventures, as well as through the telephone and Internet. The company was formerly known as CGNU plc and changed its name to Aviva plc in July 2002. Aviva plc is headquartered in London, the United Kingdom.
Advisors' Opinion:- [By Royston Wild]
Bubbly activity in developing geographies can create large opportunities for many London-listed firms. Today, I am looking at Aviva (LSE: AV ) (NYSE: AV ) and assessing whether its operations in these regions are likely to underpin solid earnings growth.
5 Best Stocks For 2014: Flanigan's Enterprises Inc.(BDL)
Flanigan's Enterprises, Inc. operates a chain of full-service restaurants and package liquor stores in south Florida. It operates restaurants under Flanigan?s Seafood Bar and Grill name, which offers alcoholic beverages and full food services; and package liquor stores under Big Daddy?s Liquors name that provides brand name and private label liquors, beer, and wines. As of April 2, 2011, the company operated 24 units that consists of restaurants, package liquor stores, and combination restaurants/package liquor stores; 1 adult entertainment club; and franchised 5 units comprising 1 restaurant and 4 combination restaurants/package liquor stores. Flanigan's Enterprises, Inc. was founded in 1959 and is headquartered in Fort Lauderdale, Florida.
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