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Final UPS Team Paper!

06 pe ratio of the industry making intuitive a

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23.06 P/E ratio of the industry, making Intuitive a worthwhile stock to invest in. It also carries a 13.23 earnings per share, which is better than most of the major competitors. Intuitive’s product, business strategy, and ability to protect their advantage made it a great stock to invest in, and the results followed as Intuitive has been highly profitable. On February 28th, the group added 26,949 shares at $520.39 a share to our portfolio. It is currently trading at 576.64, which yielded a net profit of $1,515,989.71, which netted a 10.8% yield and was one of the best stocks in our portfolio. The driver for why the stock performed so well over the course of this project are the same drivers that have caused the meteoric rise of Intuitive since it was a $90 stock a few years ago. Intuitive relies heavily on the competitive advantages opened by having and unrivaled piece of equipment such as the da Vinci. The product is very much protected by patents and when a company is close to perfecting a competing technology; Intuitive is very good at acquiring those smaller companies. As far as repetitive business, Intuitive is the best company at making sure they have a constant market. Each robot cost hospitals upwards of $1.8 million and each time a hospital uses the technology they need to buy around $40,000 worth of equipment per usage. The driver of the stock is increased demand and cutting down all competition. Another stock that we had selected was Time Warner Cable, which is classified under the cable television industry. The company has shown to be strong after a recent price. Because Time Warner Cable is a service company, the Return on equity was heavily weighted compared to its competitors at %21.33. Time Warner is a safe stock due to its low 1.14 beta but due to recent investments of money and efforts into developing a service that will help them compete in new growing industries the Beta will reflect a strong floor while the new investments will allow for a higher ceiling helping it fit the investment strategy of high returns. Time Warner Cable has a PE ratio of 15.45. This is a strong number, however it is slightly behind Viacom and Comcast, which are direct competitors. The reason that Viacom has a higher P/E ratio is probably due to the fact that the company is bigger and in more diversified in other industries. While it would have been ideal to have a higher P/E, Time Warner has the highest Earnings per Share of 5.26 which is higher than Viacom’s 2.99 and Comcast’s 1.5. Since then the stock proved to be
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profitable as we purchased 50,500 shares at $79.13 on February 28th and since then the stock has risen to $81.14 for a 2.54% yield. While the yield wasn’t very high the stock performed as I expected as it as a safe pick with a low bet and still yielded a net gain of $101,505. The drivers that had to do with the TWC’s success over the course of the eight weeks had to do with the recent flux of popularity of movie and television streaming services like Netflix. However, this past year Netflix opened up itself for potential competition by drastically changing the price of the services. Time Warner Cable owned
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