Friday, 17 October 2014

Not a stock tip

I’m no Warren Buffett, but one of these shares feels a bit like his famous purchase of Sanborn Map Company (““We got hold of assets at a steep discount with a map company thrown in for free.”) :

· (AMZN): internet mega retailer.  Makes a measly 1% margin, pays no dividend, valued at 804 years worth of earnings
· (NFLX): internet streaming provider.  Roughly 0.5% margin, no dividend, valued at 91 years worth of earnings
·         Seadrill (SDRL): rents out oil rigs for deep water exploration.  50% margin, (very) generous dividend, valued at 3 years of earnings

Share Price
Mkt Cap
Net Profit
Annual Dividend
Price/Earnings Ratio
$745 million
$203 million
$4 per share

In the interests of balance:

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