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Final UPS Team Paper!

Its stock price has grown from 9096 on to 24750 on

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Its stock price has grown from $90.96 on February 23, 2009 to $247.50 on November 15, 2010, and eventually to $588.28 on April 30, 2012. This demonstrates a constant and steep growth in stock price over the past three years as seen by the chart on the right. In addition, this stock price reflects investors’ confidence in the company and shows the value of the company’s product. It has a strong ROA at 15.67%, which is an important ratio when looking at a sales company. Fundamentally, the stock has a beta of 1.59, which indicates that the stock has high yield that would benefit our pension plan to try to catch up to the major deficit. Intuitive boasts a 44.45 P/E ratio that is about double the 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
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Its stock price has grown from 9096 on to 24750 on November...

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