We expect to see this company experience growth in the next few quarters and we should watch for obvious indicators for valuation: P/E ratio being most important. Taylor Morris is a recent IPO and has been offering award-winning eco-friendly home designs that have stunned the Jones next door. In a recent post, we discussed the opportunities in the real estate market in Arizona but this suggestion offers a new point-of-contact for investors to harness the boom. Our first suggestion is Taylor Morris (TMHC) which has recently been laying its foundation in Arizona as a home developer that we should keep our eyes on. We can conclude that indeed wealth is moving westward into these states, but how are we going to capture it? In addition, studies have proven that salaries in the New York City Region are recently falling short of those similar salaries offered in San Francisco. California, although it experiences +9% unemployment, has a net job growth of 4% this year and is expected to increase by another 8% next year. Amongst the top ten states with highest amounts of net jobs include: California, Washington, Arizona, New Mexico, and Nevada.
Economists conclude the key driving factor in this growth is the prevalence of new jobs. is expected to continue its recently observed growth throughout the next decade, allowing a great investment opportunity. When it comes to data management, NetApp has established itself among the competitors and offers unique product differentiation.Įconomic expansion in the southwest region of the U.S. While Oracle and EMC are challenging competitors, truly the demand for these services have increased and all companies will experience growth. This quarter we expect increased revenues and lower expenses. NetApp has been growing in market share modestly over the past few years. Another attractive aspect is Cisco's relatively low P/E ratio. For Cisco, revenues from governments around the world are going to boost sales, and although we can acknowledge that Cisco has more competitors now than it ever has, its established reliability is worth the price for customers. This quarter we are expecting increased revenues from both companies. These two companies offer much of the technological "infrastructure" that is needed for growing and expanding economies such as BRIC and EMEA nations with particular emphasis on increased demands from China and African nations. These companies have been performing beyond analyst expectations quarter after quarter and we feel that 2Q results will not be disappointing. Special attention on this upcoming week when both Cisco and NetApp release their earnings. Summary: Forensic investing is key for analyzing a company when fundamentals cannot be trusted and technical analysis is misleading.
Of course, the company has had turbulent trading days with news on CEO Bill Ackman stepping down, but the forensic investing that went into our analysis ignored the hype on this event and focused more closely on how the company would continue to perform. Comparing it then to Macy's and Nordstrom and even other JCPenneys, we were confident that Wall Street was undervaluing the company's ability to perform. We noticed that the store's inventory was turning, lines at the checkout were rather long and the store itself was recently redone. Run of The Bull did forensic investigating, which entailed a "customer experience" at the department store. While the company is not in great shape, many investors believed it was worse than it truly is. This morning, JCPenney released earnings that shocked many it opened nearly 8% higher than yesterday's close.
The point of this is to explain the importance in knowing the company's operations, so when company news events are published, it will seem viable to you. Chances are, outliers are more prone to sway investors for larger corporations, especially those like Starbucks that can be found on any street corner in the world. Keep in mind though, it is important to increase the sample size in your exploration to avoid the misleading of an outlier. If you are fed-up with the long lines at Walmart or tired of cold McDonald's Big Macs, chances are, other people are too. This method of analysis is absolutely valid for backing-up your fundamental analysis. For example, if you think Starbucks is a great company to buy, maybe you should go to a few locations, buy a few products and experience for yourself whether this company has a future. Forensic investing is experiencing what the company offers. The principles of forensic investing is knowing more than what is on the company's financial statement.
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