In recent news, Perrigo’s (PRGO) current CEO Joseph Papa has announced he has left for rival company Valeant Pharmaceuticals (VRX). This news dropped the pre-market trading by 12.85% and as much as 19% at one point during the day’s session. However, the company is remains great shape fundamentally. We believe the massive drop in value today (a whopping 20% dip!) was caused by investors completely overreacting to news. Therefore, we believe this is presenting investors a great opportunity with this entry point before the stock begins to rebound.
I suggest that Verizon’s stock should be incorporated with a diversified portfolio. The company is producing resilient free cash flow with the dividend yield at 4.52%. In the previous year VZ’s management agreed on raising the dividend to 2.7%. This increased their yearly dividend to $2.26 per share, making it their ninth straight year increasing it. Last year, VZ’s free cash flow was at $21.2 billion while it paid $8.5 billion to its dividends. Therefore, their free cash flow dividend payout ratio 40%!
Since 2016, VZ’s stock have increased up to 8.1%, and the S&P 500 Index have dropped by 9.4%, while the Nasdaq Composite Index have also dropped by 14.5%. The average target price of analysts is $52.33, or slightly higher than the time of this post. However, in my opinion the stock can keep increasing steadily.
To add on to my argument, VZ remains hungry to constantly re-invest in their networks to better their future. As a result of this, their investment in the previous year have situated themselves in the driver seat to better their growth and to sustain their network leadership spot. With VZ stock being ranked second to all of 34 Russell 3000 telecommunication stocks, I recommend buying them now and especially on any dip below the $50 level.
For those either coming to the FIBER Poker Night tonight and or wanting to buy a ticket as a donation, here are the event details and ways to buy a ticket.
From 7:00 – 8:30 pm FIBER is having Nick Appelo from neighboring UF’s MSF program come and do a presentation on the Discounted Cash Flow (DCF) valuation method. We will also conduct a walk-through of valuing a company from scratch and how to build a DCF model in Excel.
If you’re interested in all things finance, equity research, private equity, hedge funds, M&A, and even FP&A, then this event is for you.
This event is open to the general public.
Jacksonville University’s Davis College of Business, Room #114
In light of the upcoming poker night FIBER is having on April 8 over at Best Bet, we wanted to make sure everyone coming and or interested received an overview of how to play Texas Hold’em Poker. Below is a clear, brief, and fun video explaining the rules. So buy your ticket, grab a drink, sit back and get your poker face on!
Your mid-terms are done. Last minute projects have been turned in. And the sounds of cars cranking up in the JU parking lots for cross-country road trips or to go see the family are echoing. It’s Spring Break. Time to chill. Time to have some fun. Time to live as if school didn’t exist for a while.
While it is true that temporarily disconnecting from things in life such as school or career can prove very healthy and beneficial, FIBER wants to encourage not to use use your entire Spring Break in this fashion. Here are three tips to still maximize time at the beach while also keeping yourself engaged in your professional interests and career pursuits:
One of the main ways to discover what you’re truly interested in is to spend time delving in and reading about many things. One way to do this is to keep up with what’s going on in the career fields you would like to pursue. Time spent reading the news right now will probably be geared toward the latest bracket-busting victories and not so much towards other items such as financial news or global events. To make doing this easier, we would encourage downloading some basic apps to help keep you engaged and developing an interests in the accompanying areas. After all, you don’t know what you don’t know. Here are four apps worth downloading to sift through headlines or listen to each morning while waxing the surf board down during Spring Break:
There are tons of topics out there to be interested in and tons of items out there to capitalize off of both from a monetary standpoint and professionally. As a student, FIBER encourages you over this Spring Break to spend time Googling a topic you may have covered in class which caught your attention that you want to know more about. Google it, read about it, learn about it. Then, put your entrepreneurial thinking cap on and figure out how you could capitalize off of what you’re learning.
For example, you may Google “What is a hedge fund?” and then begin reading about great fund managers and differing strategies and fee structures. Then, think of how you would run a hedge fund and what your strategy would be and why. Or maybe it’s something completely different such as “Why does corporate culture bite?” You may read about current trends in this area and what corporations are doing to change this. Then, think about what you would do to change this from a business perspective.
This is a fun exercise and could really bring you back to school with a stronger hunger for learning and cultivating your career (I can already feel your inner-entrepreneur ready to start Googling!).
Look, you’re going to be graduating soon, whether you’re a freshman or senior. Now is the time to begin researching prospective employers and building your relationship with them. We recommend doing a general search for places you would want to work at. Then go ahead and apply. From here, cold-call them and ask about your application status and also about internship possibilities this summer. Follow-up and then repeat this again with another employer of interest to increase your odds.
With Spring Break upon us, set a modest goal of three places to reach out to by the end of the break and see if you can’t lock in that summer internship or get the conversation started for the full-time role.
We wish everyone a fun and productive Spring Break. See you on campus upon your return!