The new company at RM-S is expanding opportunities for domestic investors. It is a multinational, stable and financially strong corporation with growth potential, which is one of the key market players in its industries.
On February 25, 2008, five new foreign stocks began trading on the RM-Systm stock market: Exxon Mobil, Microsoft, Intel Corporation, McDonalds and Volkswagen.
The size of companies is evidenced by their market capitalization, which in all cases exceeds $ 60 billion. The largest company with a market capitalization of $ 460 billion is the oil giant Exxon Mobil and the smallest fast-growing restaurant McDonalds (market capitalization with $ 66 billion).
You can find basic fundamentals of the company HERE
Exxon Mobil (XOM)
Exxon Mobil is the largest oil company in the world, producing around 10 million barrels of oil per day. The economic results for 2007 were above normal, when the profit reached USD 41 billion. This is the highest ever achieved by American society.
Last year, the stock rose 24% to $ 95. Due to the crisis in the real estate sector, shares weakened by 5.3% this year.
We see the development of the Exxon Mobil title further positively and we will appreciate that the shares will exceed the value of USD 100 during this year.
The risks are mainly due to the decline in demand for oil and the dispute with the Venezuelan state company PDVSA.
Microsoft is primarily focused on the production, licensing and sale of software products. These include operating systems for servers and personal computers. In line with the entire technology sector, Microsoft shares have fallen sharply since this year ‘s arrest, weakening by more than 20%, erasing 2007 profits.
The financial results for fiscal year 2007 were above the real time when Microsoft reached a total need of USD 51,122 billion. The company was mainly from the fact that it launched a new version of its operating system for PC Windows Vista, according to the sale of MS Office 2007 and the number needed to connect with SQL Server and Windows Server. At the same time, it relies on consumers gradually continuing to replace the old Windows XP operating system with the new Windows Vista.
Growth potential is limited here, mainly due to lower profit margins due to defective Xbox 360 consoles, for which the company increased the grain for 3 years and in connection with it reported a cost of 1.06 billion USD. According to the company, it will encounter piracy and illegal copies of its products.
The development of share prices is also negatively affected by various lawsuits concerning the infringement of the existing market position (see the last fine imposed in the amount of EUR 899 million) or the infringement of the first intellectual property of other manufacturers.
Intel Corporation is engaged in the manufacture and sale of semiconductor IPs, the development of advanced integrated digital technologies for the computing and communications sectors. In the field of processors, it is clearly the biggest game on the market and the winning competition over the biggest competitor – AMD.
This stock was, like the entire technology sector, significantly affected by the mortgage crisis in the US. Since the arrest of 2008, shares have fallen by more than 25%, close to 18 dollars per share. The unexpected economic results thus contributed to this decline.
At present, the price of the action close to 20 USD is low and, according to our opinion, the Intel stock is undervalued. As a result, this year the shares will grow and exceed the limit of 25 USD.
Thanks to very little competition and high demand for products, Intel managed to keep very high profit margins (more than 50%). The deconsolidation of the losses of the NOR memory unit has a positive effect, which is a one-off cost (in the 4th quarter of USD 234 million), but in the long run it will change the business to pay off.
Volkswagen AG (VOW)
Volkswagen is one of the most important games on the market, accounting for almost 10% of the global market and controlling 20% of the car market in Europe. This stock recorded a sharp increase last year, by 80%. Since the end of the year, it has lost only 2.63% of its value, which shows that it was not fully affected by the turbulence in the financial markets as a result of the mortgage crisis in the United States.
We see the development of Volkswagen’s action in the coming year positively. The company is one of the key games on the market and can increase the number of cars sold through a number of negative factors (globalization, cost growth, and customer requirements).
The support for the shares is represented by the payment of a dividend with a contribution of 0.85%. Thanks to the strong position on the market, the growth trend can be expected in the future. The risks of this stock are primarily a highly competitive environment and the ever-increasing requirements of customers.
McDonalds Corp. is the world’s largest fast-growing chain with 31,000 restaurants in more than 100 countries. Fast-moving operations are among the defensive sectors that are not fully affected by individual business cycles and are therefore a suitable investment today (threat of a recession in the US economy).
Over the past year, the shares of these companies strengthened by 34%, mainly due to high demand for fast food and penetration into new markets. Thanks to strong expansion into Asian markets, we will see the McDonalds gym in the future.
An increasing purchasing power in India, along with a growing market share in these countries, will be a pinch of high sales in the coming years. The expected decline in income from the US should be replaced by the first growing demand from Asian countries.
The support for this stock title is thus the payment of dividends. It is likely that over the next two years, this stock will hit the $ 70 mark. Risks can be seen in the large number of competing companies operating in the market and, according to the rising prices of energy and raw materials.
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