Seeking Alpha

Chun Bong Lai's  Instablog

Chun Bong Lai
Send Message
Owner @ Trade ETF Funds. Owner @ Math365 Learning. MS Finance. MBA Candidate. + loves to trade stocks + loves to travel + loves to take pictures + loves to teach + loves symbols + loves Lady Gaga FB me: fb.com/loololool Like Math365 Learning: fb.com/math365learning Follow Math365 Learning:... More
My company:
Math365 Learning
My blog:
Examiner.com
View Chun Bong Lai's Instablogs on:
  • Hilton Worldwide Holdings Inc. Is Going Higher In Near Term

    Hilton Worldwide Holdings Inc. (HLT) is a potential stock that can go up higher in near term. Hilton is currently trading at $21.50 per share and potentially going up to $30 or higher by the year 2016.

    Many investors like to travel and should be familiar with the Hilton brand. It is one of the largest hospitality companies in the world. It has more than 4,000 hotels and resorts all around the world. At the moment, there are almost 680,000 rooms total. The company benefits from long, positive brand global recognition. There are total 10 world-class Hilton brands such as the Conrad, Embassy Suites, DoubleTree, Hampton Inn, etc. It was founded in 1919 by Conrad Hilton and has been well-established and growing since then. There are more than 150,000 employees and 160,000 individuals at franchised locations.

    Some of the statistics about this stock:

    Exchange: NYSE
    Ticker Symbol: HLT
    Actual E.P.S. FY 2013: $0.45
    Estimated E.P.S. FY 2014: $0.65
    Estimated E.P.S. FY 2015: $0.75
    Current P/E Ratio: 44.90
    Shares Outstanding: 985 Million
    Market Cap: $21.8 Billion

    The company had its IPO around three months ago in December 2013. Since then, the stock hasn't changed much and basically stayed flat at around $21 to $23 level. After this consolidation, the stock will explode and go up based on the following reasons. It is really an attractive stock.

    1. Loyalty program, Hilton HHonors, attracted about 40 million members around the world. The company continues to expand overseas and thus its earnings gains will be substantial in the future.

    2. The company's diverse brand lineup enables to drive costs down for customers and provides enough incentives for most customers' needs.

    3. The company's future outlook is impressive. There are around 190,000 rooms scheduled to be opened which makes this company the largest hospitality in the world. It keeps expanding worldwide. Since 2007, Hilton doubled its rooms in Asia region specifically in China. China is a huge market for Hilton.

    4. The industry's future outlook is good. In the near future, the global economy is looking bright. In the long run, there will be more people traveling and need a place to live. We can see that the global tourism has doubled over the last 20 years; there will be increases in global travel and tourism in the next 20 years.

    5. The company is generating lots of cash flows from its hotels around the world. Its hotels are situated in the best locations such as in New York and London.

    6. Barriers to entry are very high for this hotel industry.

    The above are positive facts about this company and its industry. There is one negative fact: Hilton has lots of debts to pay. But, the company won't need to pay those debts until 2018. Also, with the current excessive cash flows, the company can pay off those debts before 2018.

    Based on these factors, the stock should go up in the near future.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

    Tags: HLT
    Apr 10 4:47 AM | Link | Comment!
  • Apple iPhone 5 Fever

    http://www.examiner.com/article/apple-iphone-5-fever

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

    Sep 15 5:56 PM | Link | Comment!
  • Research In Motion Ltd. plunges in after-hour trading

    From Examiner.com: http://www.examiner.com/stock-market-in-san-francisco/research-motion-ltd-plunges-after-hour-trading

    Research In Motion Limited (NASDAQ: RIMM) falls 14.35% in after-hour trading due to its forecast misses estimates.
     
    In today’s earnings conference call, Research In Motion, a well-known company that manufactures BlackBerry smartphone, announced that its quarterly revenue may drop for the first time in nine years. Additionally, the company is planning to cut jobs in order to reduce costs.
     
    The average analysts’ estimate for sales was $5.47 billion, but the company said that the revenue will be between $4.2 to $4.8 billion in the fiscal second quarter. Its forecast misses estimates due to BlackBerry sales have declined. Moreover, there are many competitors such as the Apple iPhones. Apple has been introducing new, popular models nearly every year, but RIM has not introduced a new, popular Blackberry model since last August. Obviously, RIM is losing its market shares all year long.
     
    From February 2011 to June 2011, its shares dropped around 57% (from $70 per share to around $30 per share). There are definitely problems remain in this company – not enough new products, not enough advertisements, huge amount of employees, many competitors in the industry, not getting enough revenue, etc. The company is in trouble; it faces growth and shares drop problems. In order for this company to survive, it needs some revolutionized ideas and some new products to attract customers and to compete with other companies. Basically, this company needs to make a higher profit.
     
    Company Website: http://www.rim.com/
    Jun 17 4:51 AM | Link | Comment!
Full index of posts »
Latest Followers

StockTalks

  • Bearish market today with DJIA off 266pts.. Nasdaq down 3%. $SPY broke the support at 184.50~
    5 days ago
  • Hilton Worldwide Holdings Inc. Is Going Higher In Near Term $HLT http://seekingalpha.com/p/1oktt
    6 days ago
  • Sold $TWTR (+0.6%, 2 days) and bought $HLT today at 21.41
    6 days ago
More »
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.