I've been keeping an eye on the news related to the oil spill in the Gulf of Mexico. After reading more in yesterday's paper, I decided it might be a good idea to sell my shares in BP and BPT. Although I'm not sure the trust would face any litigation related to the spill, I figure what's bad for British Petroleum would be bad for them as well.
At any rate, I've placed orders to sell all shares and am using the cash to purchase more shares of AZN, AT&T and UVE. So all the money I get back from my investment in British Petroleum will be re-deployed and put back to work so I shouldn't lose much dividend income.
Just hope the politics of this oil spill don't lead to such severe restrictions that consumers end up paying for the whole mess.
Showing posts with label astrazeneca. Show all posts
Showing posts with label astrazeneca. Show all posts
Monday, May 3, 2010
Thursday, April 22, 2010
WILL THERE BE A MARKET CORRECTION?
There has been a lot of speculation of late about a correction in the stock market. Will the market correct in the near future? I really couldn't say, one way or another, with any degree of certainty. But one thing I do know for sure is, money that is not working has no chance at all to build additional wealth. That is why I like to keep my money working all the time. Once I've earned a dollar, it goes right to work. My paychecks are deposited into interest bearing accounts. Even the money I use to pay my bills are drawn from an interest on checking account, so I'm able to earn interest on the money until the payments clear the bank. My dividends that I recieve in cash are paid directly to my money market account, so they go right to work earning interest.
I read somewhere that one of the main reasons John D. Rockefeller was so successful in business was that he always maintained a large "war chest" of cash. In keeping with my philosophy of doing what the rich do to build your wealth, I've been increasing my own cash positions. Of course I maintain the cash in interest bearing money market, checking and savings accounts and while interest rates are extremely low right now, the cash is still working and earning even more money.
I've been sticking with my plan to cut investment costs by re-investing dividends to purchase more shares, thus avoiding commissions since there are no commissions on re-invested dividends. I did purchase some additional shares in BPT to take advantage of their great dividend payout. I'm also working on increasing my stake in Astrazeneca for my IRA account. They have fantastic earnings, a great dividend payout and a good deal of cash per share. I figure it can't hurt to own a few more of their shares.
At any rate, if and when we do see another correction in the stock market, I intend to be in a better position to take advantage of the lower prices and load up on more quality stocks for my investment accounts. I plan to follow Rockefeller's example and have a "war chest" of cash to take advantage of investment opportunities as they present themselves.
I read somewhere that one of the main reasons John D. Rockefeller was so successful in business was that he always maintained a large "war chest" of cash. In keeping with my philosophy of doing what the rich do to build your wealth, I've been increasing my own cash positions. Of course I maintain the cash in interest bearing money market, checking and savings accounts and while interest rates are extremely low right now, the cash is still working and earning even more money.
I've been sticking with my plan to cut investment costs by re-investing dividends to purchase more shares, thus avoiding commissions since there are no commissions on re-invested dividends. I did purchase some additional shares in BPT to take advantage of their great dividend payout. I'm also working on increasing my stake in Astrazeneca for my IRA account. They have fantastic earnings, a great dividend payout and a good deal of cash per share. I figure it can't hurt to own a few more of their shares.
At any rate, if and when we do see another correction in the stock market, I intend to be in a better position to take advantage of the lower prices and load up on more quality stocks for my investment accounts. I plan to follow Rockefeller's example and have a "war chest" of cash to take advantage of investment opportunities as they present themselves.
Monday, February 22, 2010
ANOTHER GREAT STOCK FIND!
While reviewing AstraZeneca's stats, I also decided to take a look at Glaxo Smith Kline (GSK:NYSE). GSK pays a $2.29 annual dividend per share, which represents a yield of 6.00% on their recent share price of $38.26. Their price to earnings is 10.90 with earnings of $3.49 per share. They also have $3.65 per share in cash, so their dividend should be quite sustainable. Their ROE is 60.40% with a gross margin of 81.70% and a profit margin of 19.50%.
With my purchase of a stake in AstraZeneca, I found myself short on cash to buy a stake in GSK. So I decided to take profits I'd made on Merck to purchase a position in GSK. I think GSK's numbers are better right now and I am retaining the same dollar position I originally held in Merck shares, so it's kind of like playing with the house's money. But I think that I'll actually come out much better with my position in GSK than if I left the entire amount invested with Merck. I'll also be adding an additional source of dividend income.
Glaxo Smith Kline is facing criticism and possible litigation over diabetes drug Avandia, due to implication of increased heart attack risks for persons taking the drug. However, loss of sales of Avandia in the U.S. would cut 2010 and 2011 earnings estimates by less than 1%. While litigation still could have detrimental effects on earnings going forward, I think that overall the company will come out O.K.. It's not unlike a similar situation faced by Merck a few years back. The threat of litigation and the resulting depressed stock price, could spell opportunity for anyone wanting to invest in GSK for the long term.
With my purchase of a stake in AstraZeneca, I found myself short on cash to buy a stake in GSK. So I decided to take profits I'd made on Merck to purchase a position in GSK. I think GSK's numbers are better right now and I am retaining the same dollar position I originally held in Merck shares, so it's kind of like playing with the house's money. But I think that I'll actually come out much better with my position in GSK than if I left the entire amount invested with Merck. I'll also be adding an additional source of dividend income.
Glaxo Smith Kline is facing criticism and possible litigation over diabetes drug Avandia, due to implication of increased heart attack risks for persons taking the drug. However, loss of sales of Avandia in the U.S. would cut 2010 and 2011 earnings estimates by less than 1%. While litigation still could have detrimental effects on earnings going forward, I think that overall the company will come out O.K.. It's not unlike a similar situation faced by Merck a few years back. The threat of litigation and the resulting depressed stock price, could spell opportunity for anyone wanting to invest in GSK for the long term.
Wednesday, February 17, 2010
ASTRAZENECA P L C MY LATEST STOCK PURCHASE
Yesterday was a good day for the market and a good day for shopping for a new addition to my investment portfolios. I've decided to add shares of drug maker AstraZeneca P L C (AZN:NYSE) to my regular investment portfolio and as a long term holding in my IRA account. AZN has earnings per share of $5.19 with a dividend payout of $3.42, which represents a 7.80% return on their recent share price of $43.94. Their ROE is 35.10% and they have $5.38 per share in cash. They have great profit margins and an acceptable level of debt. As a dividend investment, I'm thinking I will do quite well with AZN.
AstraZeneca PLC is focused on the discover, development, manufacturing and marketing of prescription pharmaceuticals and biological products for important areas of healthcare: Cardiovascular, Gastrointestinal, Infection, Neuroscience, Oncology, and Respiratory and Inflammation. Its primary products include Arimidex for hormonal breast cancer, Crestor that provides treatment for managing cholesterol levels, Nexium for acid-related diseases, Seroquel an atypical anti-psychotic therapy for treating schizophrenia and bipolar mania and Symbicort for the treatment of asthma patients. The company is active in over 100 countries with a growing presence in important emerging markets including China, corporate office in London, UK and major R&D sites in Sweden, the UK and the U.S.. The company owns and operates numerous R&D, production and marketing facilities worldwide. It has over 25 manufacturing sites in over 15 countries. It operates a small number of sites for the manufacture of active ingredients in the UK, Sweden and France, complemented byefficient use of outsourcing.
AstraZeneca PLC is focused on the discover, development, manufacturing and marketing of prescription pharmaceuticals and biological products for important areas of healthcare: Cardiovascular, Gastrointestinal, Infection, Neuroscience, Oncology, and Respiratory and Inflammation. Its primary products include Arimidex for hormonal breast cancer, Crestor that provides treatment for managing cholesterol levels, Nexium for acid-related diseases, Seroquel an atypical anti-psychotic therapy for treating schizophrenia and bipolar mania and Symbicort for the treatment of asthma patients. The company is active in over 100 countries with a growing presence in important emerging markets including China, corporate office in London, UK and major R&D sites in Sweden, the UK and the U.S.. The company owns and operates numerous R&D, production and marketing facilities worldwide. It has over 25 manufacturing sites in over 15 countries. It operates a small number of sites for the manufacture of active ingredients in the UK, Sweden and France, complemented byefficient use of outsourcing.
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