The crisis in the world created the situation, when people do not really trust banks, but still are not encouraged to keep their money at home. Money must be the source of income and the problem appears for most people which companies may still be relied in the current crisis situation and which company to invest with money with the aim to receive the highest income and not to be mistaken in the choice. The careful analysis may decide the problem. Starting with the investigation it was found that BusinessWeek had published “The 50 Most Innovative Companies’ and coming out of the investigation and numbers of the stocks and returns the conclusions will be provided which firms are best for investments.
Companies for investment
Apple Company deals with computers and according to the BusinessWeek report since the previous year remains on the first place in the rate of the journal (“The 50 Most Innovative Companies”). The company may be invested as coming out of the company’s rates, which are introduced, the stock returns in 2008 increased in 5.9 %, in comparison with 2008. Moreover, both revenue and margin growth increased in 30.4% and 15.8% relevantly (“The 50 Most Innovative Companies”). It should be mentioned that margin growth is harder to achieve than revenue growth, so the rates of the company are promising, taking into account that the volume of the products is in constant growth since may 2009 (“Stock charts for Apple Inc”). The profit from the investment in three year will be 30.4% (“BusinessWeek 50 Scoreboard”).
Computer games and software became popular with the increase of the innovative technologies widespread and their usage personally. Nintendo Company is specialized in video computer games, which are of a great demand now. Supporting the choice of the current company for investment by stock and revenue numbers, the company’s stock returns increased in 36.7%, revenue grows is 61.1% and margin growth is 20.6% (“The 50 Most Innovative Companies”). The stock volume is on the low level now, about 30 (“Stock charts for Nintendo”), but it is connected with the crisis in the world and the additional investment may support the company and increase it.
The other company, which may be invested, is LG Electronics, South Korea. The stock returns of the company reduced in 5.0%, but at the same time revenue increased in 9.6% and margin growth is 17.0% (“The 50 Most Innovative Companies”). The sales of the company increased, from 15.97% to 16.74%, which was one of the main factors of the company revenue increase as well. In addition, the important activity in the decision whether to invest in the company or not is that the revenue increased from 53.4 thousands to 63.3 thousands (“Financial statement for LG Electronics Inc.”).
An American ExxonMobil Company is the biggest private oil company in the world. In spite of the world crisis, ExxonMobil continues its development ad the activities only increase, without any expenses. Oil will always be in great demand and in the situation when the oil market is unstable, the investment in the sphere may be profitable. The words may be supported by the numbers, as stock returns of the company increases in 14.5%, revenue grew in 8.8% and margin growth increased in 2.0% (“The 50 Most Innovative Companies”).
Johnson & Johnson Company is the company, which has already recommended itself as the reliable brand on the market and the investments in the company are going to be profitable. The numbers also prove this. Stock returns increased in 2.4%, revenue grows is in 8.1%, as well as marginal grows is characterized by increase in 1.0%. The volume of sold products of the company has been increasing since March, 2009, and continues to rise (“Stock charts for Johnson & Johnson”).
Education is crucial in the modern world and youth understands this going to Universities, as well as adult, who did nit have the opportunity to receive the qualitative education in time. The Apollo Group, Inc. is the company, which deals with the adult education in the USA. The profitability of the company is 100.8%, market value is $11.6 billions with the market growth rate 12.5 %. The investments in the company will be profitable in three years in 48.6% total return (“BusinessWeek 50 Scoreboard”). In spite of the fact that the sales volume reduced in November, 2009, the company’s rates are increasing now. Total Revenue of the company is $4.0 billions, gross profit is $2.4 billions, operating income is $1.1 billions, and net income is $598.3 millions, while the expenses are $8.1 millions, which are too small in the relevance to incomes (“Financial statement for Apollo Group Inc”).
Colgate-Palmolive Company will bring the investor 17.8% of total return in three years. The profitability of the company is 58.8%, sales growth rate is 10.6% with the market value $30.2 billions. The Colgate-Palmolive brand is wide known, so the company does not afraid of being lost in the amount of similar products (“BusinessWeek 50 Scoreboard”).
People care greatly about their health and the investments in the current sphere are profitable. Gilead Sciences Inc. deals with biopharmaceutics, and specifically with therapies for viral and infectious diseases and cancer. In three years after the investment in Gilead Sciences Inc, the profit will comprise 49.3% of total return. In general the profitability of the company is 48.6% with the sales grows for the last time in 38.2% (“BusinessWeek 50 Scoreboard”).
One of the most profitable companies in the reference to returns after investments is CF Industries Holdings, which is specialized in manufacturing and distribution of nitrogen and phosphate fertilizer products in North America. The profit from investment will be in three years only, but the total returns are magnificent – 269,4%. The general profitability of the company is 47.2% with the market value $3.1 billions. In addition, the growth of sales is rated 28.0% (“BusinessWeek 50 Scoreboard”).
The increase of the Internet technologies leads to the fact that Internet sales become in demand now. Amazon.com is the leading company, which is specialized in the sale of electronic version of books. The profit in three years from the investment in the company will be 73.1% of total return. Such activities are achieved from the general profitability of the company, which is 29.2% and the sales growth, which is 31.9% (“BusinessWeek 50 Scoreboard”).
Bonds for investment
Boyd Gaming Corporation (BYD) offers bonds on the current conditions: Maturity Date is December 15, 2012, the amount is $300 millions on the fixed coupon type with 7.75% (“Boyd Gaming Corporation BYD”). The shareholders’ returns with dividends will comprise 50% (“The InfoTech 100”).
Netflix Company announced about the interesting offer of selling its 8.5% of obligations for $200 millions till 2017 (Netflix). The offer is profitable, taking into account that the company deals with online movie rental service, which is rather popular in the modern world. In addition, Netflix shareholders’ returns comprise 42% (“The InfoTech 100”).
As it was noted above, the companies, connected with the innovative technologies, Internet and other facilities are in a great demand now. McAfee is the company, which deals with antivirus software and in the case of bond purchase there, the shareholder will receive 13% of returns (“The InfoTech 100”). Moreover, analyzing the financial information of the company, it is noticed that the company follows forward with slam but assured steps, and in some years the company may appear on the top level of rates.
BMC software is also the company, which deals with innovative technologies, so the revenue from the investment may increase greatly in the next several years. The shareholders’ returns are only 2% now, but the sphere is rather promising, so the investments should be provided with t aim to raise the company and get the higher revenue in future (“The InfoTech 100”).
Multi-Fineline Electronix Inc. (MFLEX) is the company, which manufactures the equipment for the electronics industry. The sale volume of the company increased greatly from the beginning of 2009, so there are the great potential in the company. The shareholders returns comprise 6%, which may increase with the raise of the company popularity in the world (“The InfoTech 100”).
In conclusion, money should work, but not stay in people’s pockets. The current economical crisis in the world led to the fact that most people do not believe banks and they try to search for the alternatives of the money deposits. The current paper introduced the alternatives, where money may be invested with the aim to receive the revenue.
Works Cited
“BusinessWeek 50 Scoreboard.” BusinessWeek. 2009. Web.
“Boyd Gaming Corporation BYD.” Morningstar. 2009. Web.
“Financial statement for Apollo Group Inc.” BusinessWeek. 2009. Web.
“Financial statement for LG Electronics Inc.” BusinessWeek. 2009. Web.
Netflix. Official site. 2009. Web.
“Stock charts for Apple Inc.” BusinessWeek. 2009. Web.
“Stock charts for Johnson & Johnson.” BusinessWeek. 2009. Web.
“Stock charts for Nintendo Co LTD-INSPONS ADR (NTDOY).” BusinessWeek. 2009. Web.
“The 50 Most Innovative Companies.” BusinessWeek. 2009. Web.
“The InfoTech 100.” BusinessWeek. 2009. Web.