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Increased growth will improve Joy's multiple, perhaps up to 15 times. This will give the company a stock price of $64.95.
CTrip has a P/E of 77.21, very high but supported by the firm's high growth rate. Interest in China tourism will continue to grow at a faster rate than overall economic growth. As a result, the multiple is justified. Earnings will continue to improve at their historic rate, given the company an expected future share value of $143.61.
Gerdau's success is tied to industrial development in Brazil. The P/E is currently 64.40, which indicates a high level of growth. The Brazilian has performed well in recent years, but its growth is volatile. Gerdau's growth has been strong some years, minor in others. The current high P/E reflects strong recent growth, but the multiple should come down in the coming months, to around 58 times earnings. This will give the stock a value of $14.50.
Gol Lineas has no trailing P/E, since it loses $1.74 per share. The forward P/E is 12.07 times. However, rising fuel costs and struggles in the Brazilian economy due to the economic downturn will see the earnings fall short. The company will again lose money, so the actual P/E will be negative. The stock will fall as a result of this underperformance, to around $9.
Green Mountain Coffee Roasters has a high multiple of 45.21 on account of its rapid growth in the past couple of years. This growth is unlikely to be sustained as the company matures and enters into more intense competition with existing coffee outlets. The multiple will need to come down to around 30 in order to match the company's realistic future growth prospects. This will give the stock a price of $41.70.
Rio Tinto lost money last year. The forward P/E is 12.97 times. Earnings are likely to rebound next year as commodity prices improve with the overall global economy. Thus, the current price for Rio Tinto is likely to hold.
Vale is in a similar situation as Rio Tinto, except that it made money last year. The P/E for Vale S.A. is 25.64. Earnings should improve, resulting in an improvement in stock price. A 10% boost in earnings would give Vale S.A. A stock price of $31.58.
Wendy's is subject to shifts in U.S. consumer spending. This is expected to grow slowly over...
As a result, the company may return to profitability. With no profits, it has no P/E. The forward P/E is also non-existent, as the firm is not expected to make money in 2010. The stock price, then, is liable to hold steady pending a major shift in consumer spending.
Portfolio Expected Performance:
AAPL
20623
0.238841
1.5
9.87
2.357365
BRCD
8.62
0.049915
1.94
12.7652
0.637181
JOYG
34.05
0.078869
2.23
14.6734
1.157273
CTRP
48.59
0.056274
2.03
13.3574
0.751669
GGB
16.81
0.077873
2.15
14.147
1.101666
GOL
12.35
0.071515
1.82
11.9756
0.85643
GMCR
71.48
0.082783
1.56
10.2648
0.849753
RTP
20237
0.234371
1.44
9.4752
2.220712
VALE
26.9
0.062307
1.59
10.4622
0.651873
WEN
4.08
0.047252
0.86
5.6588
0.267388
86346
1
10.85131
Portfolio Actual Performance:
AAPL
20623
0.238841
19991
BRCD
8.62
0.049915
7.09
JOYG
34.05
0.078869
53.54
10708
CTRP
48.59
0.056274
73.35
GGB
16.81
0.077873
16.1
GOL
12.35
0.071515
14.16
GMCR
71.48
0.082783
62.98
RTP
20237
0.234371
20410
VALE
26.9
0.062307
28.67
WEN
Stock Portfolio Management Project Selected 10 companies Company Symbol purchase date purchase price Apple, Inc. APPL Industry/Sector: Technology/Personal Computer -- Investment Style: Large Growth Brocade BRCD Communications Systems Inc. Industry/Sector: Technology/Data Storage -- Investment Style: Small Growth Joy Global Inc. JOYG Industry/Sector: Farm/Const/Mach -- Investment Style: Large Growth Ctrip.com CTRP Industry/Sector: Consumer Services -- Investment Style: International Gerdau SA GGB Industry/Sector: Steal & Iron -- Investment Style: International Gol Linhas GOL Aereas Inteligentes SA Industry/Sector: Regional Airline -- Investment Style: International Green Mountain GMCR 10/21/2009 Coffee Roasters Inc. Industry/Sector: Processed Pkgd gds -- Investment Style: Small Growth Rio Tinto PLC RTP 10/21 /
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