Amazon.com Inc.

Amazon.com, Inc. (AMZN) and Community Bancorp (CMTV) – Buy

    

Once again, I added more to my positions today in Community Bancorp (CMTV) at 15.75 and Amazon.com, Inc. (AMZN) at $1753.13.

Amazon is now my 3rd largest holding and Community Bancorp is my 4th largest holding. Rankings for top holdings are located here.

COMMUNITY BANCORP

I continue to believe Community Bancorp is a safe income investment. It’s pulled back a bit more since my previous purchases, the but the business continues to grow. Revenue, income, equity, book value all consistently growing. The dividend yield is currently 4.8% is great! 

While I’ll don’t see any huge gain in value of the shares, it’s a great place to put some money to produce income while minimizing risk to national or international risk factors being that it’s a very small local bank here in northern Vermont.

Valuation

  • PE of 9.6
  • PEG of 1.01
  • Price/Book of 1.3
  • Dividend yield is 4.8%

AMAZON

This follows up my purchase from last week to build up the position further.

Amazon was under more pressure earlier after their quarterly results and guidance disappointed some. The company is switching back to investment mode and should be seen as a long term positive. One Day shipping is proving to be expensive but will provide them more of an advantage over competitors. Growth in ad sales is going very well and they can use that to offset increased shipping costs.

It’s expected to be another record holiday sales year for e-commerce and Amazon will benefit.

Here is my previous analysis on both Amazon and Community Bancorp: