...What are Blue Chips? Blue Chips are stocks of well-established companies with strong track records. When we refer to blue chips they are often known companies in the country. They are somewhat treated as icons in their respective industries. In terms of financial resources, blue chip companies are known to have large amount of capital. They are known to be profitable, pays regular dividends to its stock holders, and have a good rating on their debts. Image taken from oldvegaschips.com How’s the Performance of Blue Chips? Let’s take one blue chip stock for example. Jollibee Foods Corporation (JFC) has been a great performer in the Philippine Stock Market during the last decade. As you can see in the chart below, the direction of its price is generally upward. JFC is the parent of Jollibee, the country’s leading fast-food chain brand. And if you would add all Chowking, Greenwich Pizza, Red Ribbon, Mang Inasal and Burger King stores it will total to 2,510 food-chains worldwide and a total sales of 82.1 billion pesos (around 2 billion US Dollars). Generated from http://investing.businessweek.com Is it Safe to Invest in a Blue Chips Stocks? All stock market investments has no guarantee of earning you money. Stocks investment is always involved with high risks. The market can go very high but sometimes it can go crashing down. If you plan to do short-term investment only, then I might say that blue chip stocks are not really the best choice. But, is it safe to invest in blue...
Words: 766 - Pages: 4
...INTRODUCTION Investment instrument is a document such as bond and share certificate that has monetary value through agreement that agrees make payment of money to another parties for purpose gain equity capital or loan capital. An investment instrument give a promise of earnings and return to the holders or recipient. It also called as financing instruments. There are three common types of investment instruments in the market which are money markets, bonds and common shares. Money market is the short-term loan market which is less than one year maturities with relatively liquid and low-risk debt due to short duration. Governments and large corporations are usually issued the money market securities in forms of banker’s acceptance, certificates of deposit and commercial papers. The money market instruments have a lower risk compare to others instruments. As a result of lower risk and relatively liquid instrument, thus money market instruments get a lower return compared to others investment. Money markets also called as cash investment. Bond is a long-term debt instruments which is more than one year maturities with the purpose of lend money for raising capital at specific period at fixed interest rate. Bonds are usually used by companies or government to finance a different type of activities and project. The risk level of bond instrument is considered lower risk than common shares. However, if an investor investing in junk bonds can be very risky to investor. The return of...
Words: 3562 - Pages: 15
...founded by Elmer Doolin in 1932, and the H. W. LAY COMPANY, formed Frito-Lay, Inc., founded by Herman W. Lay, also in 1932. Herman Lay, former chairman and CEO of Frito-Lay, was chairman of the board of directors of the new company; Donald M. Kendall, former president and CEO of Pepsi Cola, was president and chief executive officer. The new company reports sales of $510 million and has 19,000 employees. Major products of the new companies are: Pepsi Cola Company: Pepsi Cola (formulated in 1898), Diet Pepsi (1964) and Mountain Dew (introduced by Tip Corporation in 1948). Frito-Lay, Inc.: Fritos brand corn chips (created by Elmer Doolin in 1932), Lay's brand potato chips (created by Herman W. Lay in 1938), Cheetos brand cheese flavored snacks (1948), Ruffles brand potato chips (1958) and Rold Gold brand pretzels (acquired 1961). 1966- Doritos brand tortilla chips are introduced. They are destined to become the most popular snack chip in the United States. Pepsi enters Japan and Eastern Europe. 1971- PepsiCo moves from New York City to its new world headquarters in Purchase, N.Y. The new corporate headquarters features a building by one of America's foremost architects, Edward Durrell Stone (19021978), set on a 144acre campus amid an outdoor sculpture garden. Frito-Lay begins a program of expansion. Over the next decade, the company opens, on average, more than one new plant a year. Pepsi is the first company to respond to consumer preference 1971- PepsiCo Chief Executive...
Words: 1655 - Pages: 7
...Renee’ Johnson “The Importance of Accounting in Business” It important to take accounting in business because starting a business often requires entrepreneurs to understand and complete a variety of business functions. An important business function when starting a small business is accounting. In business there are endless stacks of financial documents, and accounting will provide a clearer picture for success in business. Whether you are an entrepreneur you mu9st keep records your business for tax and legal purposes. Many small businesses started as a hobby or side business use cash basis accounting. This accounting method records and recognizes transactions when cash changes hands. It provides entrepreneurs with a simple method for maintaining accounting information. As companies grow and expand, they may need to change to the accrual accounting method. Accrual accounting is the most widely used method in business; it records and recognizes transactions as they occur, regardless of cash changing hands. Forecast Financial Estimates Entrepreneurs may need to provide banks, lenders or investors with a financial forecast relating to the new small business venture. This information is essential for obtaining outside financing for business startup costs. Entrepreneurs usually write a business plan, which includes an economic forecast, expected startup and monthly expenditures, and pro forma financial statements. This accounting information is heavily relied upon by lenders...
Words: 1194 - Pages: 5
...Assignment 2: Kristin Decides to Try Her Hand at Investing Katherine Druin Professor Karaffa Fin 215 08/20/2011 Kristin Earhardt is a 26-year-old management trainee at a large chemical company. She is single and has no plans for marriage. Her annual salary is $34,000 (placing her in the 15% tax bracket), and her monthly expenditures come to approximately $1,500. During the past year or so, Kristin has managed to save around $8,000, and she expects to continue saving at least that amount each year for the foreseeable future. Her company pays the premium on her $35,000 life insurance policy. Because Kristin's entire education was financed by scholarships, she was able to save money from the summer and part-time jobs she held as a student. Altogether, she has a nest egg of nearly $18,000, out of which she'd like to invest about $15,000. She'll keep the remaining $3,000 in a bank CD that pays 3% interest and will use this money only in an emergency. Kristin can afford to take more risks than someone with family obligations can, but she doesn't wish to be a speculator; she simply wants to earn an attractive rate of return on her investments. 1. Discuss the investment options open to Kristin. Kristin has many investment options available to her. There are many different types of stocks that should could place her money in. If she isn’t very comfortable doing this herself, she can always ask someone for advice, or there are people she can pay, such as...
Words: 1189 - Pages: 5
...high investor optimism to widespread investor fear and pessimism. a 2. Blue chip stock b. A blue chip stock is a stock of a large company that is expected to be a safe investment and will often be a dividend paying stock. 3. Bonds c. A debt investment in which an investor loans money to an entity (corporate or governmental) that borrows the funds for a defined period of time at a fixed interest rate. b 4. Bull Market d. A bull market is associated with increasing investor confidence, and increased investing in anticipation of future price increases (capital gain). A bullish trend in the stock market often begins before the general economy shows clear signs of recovery. c 5. Buying on the margin e. The purchase of an asset by paying the margin and borrowing the balance from a bank or broker. Buying on margin refers to the initial or down payment made to the broker for the asset being purchased. d 6. Buying short f. Purchasing securities in order to close an open short position. This is done by buying the same type and number of securities that were sold short. e 7. Capital Gains g. A capital gain is a profit that results from a disposition of a capital asset, such as stock, bond or real estate, where the amount realized on the disposition exceeds the purchase price. f 8. Dividends h. Dividends are payments made by a corporation to its shareholder members. It is the...
Words: 826 - Pages: 4
...Business Venture ACC/281 June 25,2012 Business Venture Different Types of Corporate Stocks There are two different types of stocks in which a corporation can sell. It does not matter if it is a penny stock, growth stock, or blue chip stock corporation, they can sell common stock or preferred stock. Each type stock has its own advantages and disadvantages. It would be up to the investor to decide which type of corporation stock would work best for him or her. Common Stock Common stock is just as its name states, common. This type of stock is the most basic type of stock a corporation sells. One can by this stock and own a piece of the company. This is by far the most type of stock sold, but it does come with some risk. The risk with common stock is, one is taking a gamble. If the company is successful one can make a good profit, but if the company fails common stock holders are the last to be paid his or her dividends. This type of stock also allows the investor one vote per share when electing board members. By means of capital growth, common stock yields the highest return over the long term than any other investment. When all common stock is issued, companies will start to issue preferred stock. Preferred Stock Preferred stock holders also have ownership in the company, but may not have the same voting rights. One advantage of preferred stock is the investor gets his or her dividends before common stock holders are paid. This is also the case if the company was...
Words: 376 - Pages: 2
...Steven Paul Jobs was born in San Francisco on February 24, 1955 to two university students, Joanne Carole Schieble, of Swiss Catholic descent, and Syrian-born Abdulfattah "John" Jandali (Arabic: عبدالفتاح جندلي), who were both unmarried at the time. Jandali, who was teaching in Wisconsin when Steve was born, said he had no choice but to put the baby up for adoption because his girlfriend's family objected to their relationship. The baby was adopted at birth by Paul Reinhold Jobs (1922–1993) and Clara Jobs (1924–1986), an Armenian American whose maiden name was Hagopian. According to Steve Jobs's commencement address at Stanford, Schieble wanted Jobs to be adopted only by a college-graduate couple. Schieble learned that Clara Jobs hadn't graduated from college and Paul Jobs had only attended high school, but signed final adoption papers after they promised her that the child would definitely be encouraged and supported to attend college. Later, when asked about his "adoptive parents", Jobs replied emphatically that Paul and Clara Jobs "were my parents." He stated in his authorized biography that they "were my parents 1,000%." Unknown to him, his biological parents would subsequently marry (December 1955), have a second child, novelist Mona Simpson, in 1957, and divorce in 1962. His family moved from San Francisco to Mountain View, California when he was five years old. The parents later adopted a daughter, Patty. Paul worked as a mechanic and a carpenter, and taught his...
Words: 1211 - Pages: 5
...NCR Case study: Issues with virtual trade shows: * No creativity in choosing this option by the team as it has been introduced in the case study. * Type of attendees tends to be smaller companies rather than large corporations. * Virtual trades do not get as many visitors as in-person events (p.160) The dilemma brad has is that trade show attendance had been waning and that it might not worth the time, money and effort (p.149). * NCR had just released a new generation of pos that was ahead of the competition by almost a year (p. 149). * Official launch occurred in January at a major trade show (this type of launching is considered to be a soft launch because it is geographically limited and the audience/targeted customers are limited. NCR needs to head towards an aggressive hard launch product as soon as possible. * Why is that? To reach its vast majority of its customers in a very limited time in order to take a competitive advantage of being ahead of the competition with the new generation POS. * Time is crucial: new technology life spam is very short and keeps evolving. * NCR needs to acquire the greatest possible market share before this technology becomes obsolete or available for its competitors. (example of apple vs Samsung-similar graphical user interface and touch screen function) What should they do to reaches the vast majority of their customers in a short period of time? The answer is a hard launch: * Marketing campaign...
Words: 347 - Pages: 2
...3/26/2013 | GEO 605 | Northern Career Report | Table of Contents A Brief Overview of a Financial Advisor 2 Duties and Responsibilities of Financial Advisor 3 Career Path for Becoming a Financial Advisor 4 Steps Required for Becoming a Senior Financial/Fiscal Advisor 5 Qualifications needed to be a Senior Fiscal Advisor in the North 5 Job Platform or Potential 6 Potential Remuneration and Comparison to the North 6 Investment Opportunities for the Northern Resident 7 Works Cited 8 A Brief Overview of a Financial Advisor As a Senior Financial Advisor the ideal candidate would have demonstrated exceptional knowledge and have at a minimum of 3-5 years of experience as a financial advisor. The steps required for becoming a financial advisor are not the same for everyone. Some students believe that achieving an undergraduate degree in Business, majoring in finance or accounting is the first step needed. By completing business commerce degree students will have a concrete foundation and be able to comprehend the theories involved in financial planning. Some employers do not necessarily require potential employees to have an undergraduate degree in business since they provide training to the successful candidate. Once completed the employee will be licensed and be able to provide financial advice. Since the requirements to become a financial advisor differ amongst employers there are no set criteria for potential employees to follow, this is why it is...
Words: 1939 - Pages: 8
...Nike Marketing Plan; Phase I Eddie Chantaniyom, Lizbeth Geary, Chris Marlow, Dean Nicholson MKT/421 Marketing Stephen Oaks September 13, 2012 Nike Marketing Plan; Phase I Discussed in this reading will be the beginning phase of the marketing plan to customize and personalize Nike shoes. Discussed will be a summarization of the Nike Corporation along with a description of the new customization service being provided. In addition, this reading will also explain the overall importance of a proper marketing plan and provide critical data of a SWOT analysis to help determine product feasibility, marketing strategy, and tactics for the new service. Good intro. The largest market competitor in the world of sportswear for 2012 is Nike Inc. A company that opened the doors in 1962 by two individuals Bill Bowerman and Phillip Knight with a gentlemen handshake and became the supplier called Blue Ribbons Sports for Japanese shoe makers in Oregon later known as Nike Inc. They started selling supplies for Onitsuka Tiger, now known as ASICS, from Knight’s automobile making most of their sales at track meets. Bowerman handled the innovations for the company as Knight managed the business operations. Bowerman created the first shoe using his wife’s waffle iron, giving Nike the first ever waffle shoe. The waffle shoe helped the growth of the company position into the market, by starting their-own innovative brand of soccer shoes, called the Nike; that followed the first trademark...
Words: 1412 - Pages: 6
...Rumelt (2011) “The perils of bad strategy” McKinsey Quarterly June 2011, pp1-10. Bad strategy abounds, says UCLA management professor Richard Rumelt. Senior executives who can spot it stand a much better chance of creating good strategies Horatio Nelson had a problem. The British admiral's fleet was outnumbered at Trafalgar by an armada of French and Spanish ships that Napoleon had ordered to disrupt Britain's commerce and prepare for a cross-channel invasion. The prevailing tactics in 1805 were for the two opposing fleets to stay in line, firing broadsides at each other. But Nelson had a strategic insight into how to deal with being outnumbered. He broke the British fleet into two columns and drove them at the Franco-Spanish fleet, hitting its line perpendicularly. The lead British ships took a great risk, but Nelson judged that the less-trained Franco-Spanish gunners would not be able to compensate for the heavy swell that day and that the enemy fleet, with its coherence lost, would be no match for the more experienced British captains and gunners in the ensuing melee. He was proved right: the French and Spanish lost 22 ships, two-thirds of their fleet. The British lost none.1 Nelson's victory is a classic example of good strategy, which almost always looks this simple and obvious in retrospect. It does not pop out of some strategic-management tool, matrix, triangle, or fill-in-the-blanks scheme. Instead, a talented leader has identified the one or two critical issues...
Words: 3203 - Pages: 13
...Assignment 1: Financial Research Report Anthony Wilkins Fin 534 August 30, 2015 Introduction Toyota Motor Corporation is one of the most important automaker that has been operational since 1973, based in Japan. The company has gone global and their operations are massive such that it trades in the New York Stock Exchange (NYSE). The company started as a department of the human resources that used to employ 317,734, before it become the biggest automobile due to the huge production that it used to make from the huge labour. It was until the operations were now very stable that the automaker became globally known and being the largest conglomerate in the world. Toyota was able to attain a high number of customers who were impressed with automobiles made by the company (Srivastava, 2009). Some of the products that are produced by the company are inclusive of; mini vehicles like vans and trucks, auto parts, commercial vehicles and passenger vehicles. There are other vehicle that are sold by the company under the Lexus brand name and they include the luxury sporty vehicles and crown majesta, all liked by many people in the United States. The company currently sells limousine in most parts of the world together with Scion tC, a type of a sporty car that is used in sports. Rationale for the company I as a financial manager, I had to consider some factor before taking part of investing in this company. I considered many factors that included its financial statements...
Words: 3050 - Pages: 13
...corporation 1. Read more: http://www.ukessays.com/essays/business/business-environment-of-international-business-machines-corporation-business-essay.php#ixzz2zlzJOVvG Industry Overview and Principal Competitors Because IBM has a large diversified range of product and services, and is present in more than 170 Countries (IBM Form 10-K Annual 2010 Report, 2011) it ́s not easy to analyze the markets where it acts. Although, we can see some main competitors: Hewlett-Packard (HP) and Dell, each of these companies with a different focus area. Dell makes most of its money on PC and server hardware, while HP is more diversified as the leader in PCs and Imaging & Printing as well as offering IT services. Since IBM relies heavily on its Software and Services segment, it mainly competes with HP in the servers and IT services markets and with Dell in the servers and software markets. IBM is the leader in servers, IT services, and software. Also IBM leads HP and Dell in all measures of profitability, largely because IBM is focused on high-margin sectors such as services and software and has gotten out of the thin-margin PC business, in which HP and Del lare still heavily involved. In addition to HP and Dell, IBM also competes with smaller IT consulting firms such as Accenture. However, IBM leads these companies by a large margin in terms of revenue, profitability, and scale as we see on the next table. Finally, we put the data of Microsoft because it can permit us compare IBM...
Words: 976 - Pages: 4
...growth plans? 7 4. WILL AMD’S CUSTOMER CENTRIC APPROACH BE A SOURCE OF ADVANTAGE OVER INTEL? 8 5. WILL IT YIELD COMMERCIALLY VIABLE INNOVATIONS THAT ARE DRAMATICALLY DIFFERENT THAN THOSE INTEL WILL DEVELOP? 10 Conclusion 11 LIST OF REFERENCES AND BIBLIOGRAPHY 12 EXECUTIVE SUMMARY For years, AMD held the place of a distant follower of the large microprocessor market leader, Intel. Up to there, the competitor Intel hold a “push” strategy by creating consumer needs thanks to technological innovations. Those were linked with strong marketing campaign in order to facilitate a quicker adoption process of their new product line. However, in 2003, AMD change its traditional strategy to use a widely different one by switching into a blue ocean strategy. Indeed, AMD has changed course to become a “starter” firm. AMD has decided to launch at first its own brand server microprocessor range, called “Opteron” before one of Intel. At this moment, the firm made the decision to initiate the moves of server segment and therefore take heavier risks in term of investments, sales, pushing partners to adopt their new technology, reliability of their new products and also regarding their credibility of the market. Corporate desktop segment is for mass market,...
Words: 3447 - Pages: 14
