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Jennifer Lynn
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Jennifer Lynn is a proficient investor, executive and manager working with analytics data to drive smart business decisions. Technology, eCommerce, Management, Healthcare, Consulting, Strategy. Passionate for Finance, IT & Emerging Markets. Email: consultbydigital @ gmail.com
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  • Cisco, A Dividend Favorite

    Cisco, A Dividend Favorite

    Cisco (NASDAQ: CSCO) quarterly dividend of $0.17 per common share giving the stock a 3.3% yield. "We are increasing our dividend as part of our strategy to deliver a consistent return to our shareholders, in line with our capital allocation commitment," stated Frank Calderoni, executive vice president and chief financial officer, Cisco. Cisco stock is up +24.91% year-to-date. FY 2013 sales for the current year ending July 30 are expected to be higher by 5.7% to $48.7 billion. Cisco's earnings are forecast to grow 7.6% to $1.99 per share. The annualized dividend yield is expected at 2.7%.

    " Investors who focus on just a few emerging markets, particularly the countries known as the "BRICs," that is Brazil, Russia, India and China, are too narrowly focused." states Greg Behar, senior investment strategist at Northern Trust.

    The company recently announced that it has agreed to buy cloud services management business SolveDirect. Cisco added 0.5 percent to $20.85. Challenges can arise from the newer technology companies, which have abilities to outpace traditional enterprise models. Big data now has an outstanding opportunity to identify new emerging data for all industry organizations. Forrester's 2013 expectations predict a strong rebound in the worldwide technology market with enterprise organizations.

    For investor's Cisco high paying dividend makes its stock attractive. Question's are present on the outcome of QE3. Dividend stocks for Cisco are promising. The dividend stocks outperformed in first quarter. Cisco's average price-sales ratio over the past three years is $26.08 trailing 12-month sales. Average price-earnings multiple since 2008 has been 17.72 times earnings. Cisco has $1.99 of EPS, that average P/E would correspond to a stock price north of $35.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Jun 21 7:12 PM | Link | Comment!
  • Capital One SMB Outlook

    Capital One Financial Corp. (NYSE:COF) According to Capital One's second quarter 2013 survey Spark Small Business Barometer, small businesses in the United States economic environment is expected to gauge economic, financial and business conditions throughout the rest of the year. This in combination with the economy today, has made a dramatic after effect on American behavior, overall American consumer behavior, spending habits and lifestyle changes. "Our survey results for the second quarter indicate that while optimism and confidence are on the rise and more small businesses are on sound financial footing, concerns and uncertainty continue to hold back plans for staffing increases and growth," stated Jon Witter, President of Direct, Consumer and Small Business Banking at Capital One. "While many small businesses have seen an uptick in sales over the past six months, this is not necessarily translating into significant new hires or investments in the business."

    Small business confidence is positive that financial revenues would increase in six months (45 percent), a 7 point increase from Q4 2012 (38 percent) and a 2 percent increase from Q2 2012 (43 percent). Forty-one percent of small businesses report they believe their financial positions will be about the same in six months.

    In the United States, 67 percent of small business do not plan on hiring next month. 30-38 percent of companies plan to hire additional employees in the next six months. Small Business owners outlook has remained stagnant conservatively since 2009 as they prefer to wait for further updates from Washington, tax and regulation standards results.

    Challenges arose due to the weakened economy has led Americans to cut back on driving, instead taking public transportation to avoid rising costs of fuel. As a result, the demand for gasoline has slowed with Americans becoming more fuel-efficient. Convenience is key. The outlook of the future of today's economy has impact on how much money individuals earn. If earnings stay high, then consumers will obviously keep spending and keep the economy growing. Consumer spending affects 70% of today's economic output.

    The U.S. annual Small Business Week (June 17-21) recognizes and supports millions of small businesses. China, India, and Russia are also likely to emerge as significant players over the next two decades, a development that will give Western companies major short-term cost-reduction opportunities that they must capture. Capital One's second quarter 2013 survey Spark Small Business Barometer and Small Business Week are significant milestones which also bring out the present challenges that are faced by small businesses.

    Investors outlook towards the right market, trends and technologies for small business will see success. There are growth markets thriving such as mobile which provide cost savings options. The small business' opportunity to reach more consumers is there. Having a strong understanding of small business behaviors, customer needs and how it impacts their purchasing decisions is crucial. Success is driven by understanding. The ability to understand is important in the process as well expanding the small business network.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Jun 21 5:09 PM | Link | Comment!
  • S&P Berkshire Hathaway Downgrade
    Berkshire Hathaway Inc (NYSE:BRK.B) The rising interest rates may impact Berkshire Hathaway's performance in markets within the next years. The company reported a solid first quarter hitting new record highs. $500 million of 4.3 percent bonds due May 2043 rose 0.7 cents last month. First-quarter operating earnings of $3.782 billion, or $2,302 per Class A share, increasing from $2.665 billion, or $1,615 billion per Class A share, during the first quarter of 2012 were also reported. First-quarter revenue totaled $43.867 billion, increasing from $38.147 billion in the first quarter of 2012. Average volume has been 3.9 million shares over the past 30 days.

    Warren Buffett also showed to investors during a recent shareholder meeting its expectations of underperformance by Berkshire Hathaway in relation to the S&P 500 Index. Last month, Standard & Poor's downgraded Berkshire Hathaway's credit rating because of over reliance on its insurance business. The ratings were lowered one notch to "AA" from "AA+." The S&P stated "Management succession at BRK is also an offsetting factor."

    The S&P cited Berkshire Hathaway's ratings as "risky." Berkshire Hathaway had held the highest S&P credit rating as well as Fitch Ratings and Moody's Investors Service since 2009. After the financial crisis of 2008, further liabilities on derivatives also caused downgrades with these ratings agencies. Overall, the company's ratings are negative.

    Berkshire Hathaway still remains strong in the bond markets. Last month it sold 5- and 30-year debt, according to Bloomberg. The extra yield for investors demand in bonds to hold the 30-year bond instead of government debt compared with a 144 basis-point spread on a Bank of America Merrill Lynch index for AA rated U.S. corporate debt maturing in 15 years or longer.

    Berkshire's market cap presently is of $190 billion, with $162 billion in revenue in 2012. The company owns tens of billions of dollars of common stocks such as Coca-Cola Co, International Business Machines Corp and Wells Fargo & Co. The company has a P/E ratio of 17.1, below the S&P 500 P/E ratio of 17.7. Even though the company has low profit margins, its strengths in its revenue growth, operations, growth in net income and return on equity has investor's outlook to be promising. Berkshire Hathaway's more than 80 businesses have proven to benefit from stronger economic conditions. Berkshire's long term strategic growth outcome presently has gains from derivatives increased 20 percent before taxes. Derivatives have been strong due to the company's long-term contracts related to performance in S&P's 500 stock which had rose 10 percent in the first quarter.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Jun 21 3:12 PM | Link | Comment!
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