Amazon.com

Amazon.com, Inc. (AMZN) – Buy

I added to my position in Amazon.com, Inc. (AMZN) for the 4th time this year today at $1789.71. It is now our largest position at this time.

Most of the same reasons for my previous purchases still stand. Based on our own sales of Wondermugs and other products on Amazon.com over the holiday season which were significantly better than last year, I expect the next report to be better than they expected. Of course there are risks to this such as Amazon’s increased re-investment in services, which I’m fine with if it makes the business stronger in the long run.

I also believe that their revenue/profits from advertising will be good as we spent a lot ourselves on ads, much more than last year. Amazon added more ad options I believe and they started providing more options in the backend and transparency more like Google Ads provides which should help increase budgets from advertisers like myself.

If the price continues to stay at this price or drops further I may add more to my position.

Amazon.com, Inc. (AMZN) – Buy

I added to my position in Amazon.com, Inc. (AMZN) on 11/15/2019 at $1735.27. It is now our 2nd largest position at this time.

Most of the same reasons for my previous purchases still stand. Based on our own sales on Amazon.com and expectations for this holiday season, I expect the next report to be better than they expected. Of course there are risks to this such as Amazon’s increased re-investment in services, which I’m fine with if it makes the business stronger in the long run.

If the price continues to stay at this price or drops further I may add more to my position.

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:

Amazon.com, Inc. (AMZN) – Buy

I added to my position in Amazon.com, Inc. (AMZN) today at $1,757.76. It is now our 3rd largest position at this time.

Most of the same reasons for my previous purchases still stand.

We did quite well selling products for our Wondermugs business on Amazon.com and have increased our advertising spending to get our listings rank higher in Amazon’s shopping searches.. We expect to sell significantly more mugs this year than last year.

Some overall threats to Amazon are:

  • Amazon.com’s will have more margin pressure from increased investment/competition from competitors such as Walmart, Costco, and Target.
  • International expansion holds no guarantee of matching success as the US Market
  • AWS is facing increased competition from strong competitors such as Google and Microsoft.
  • Government pressure due to size and influence.

However, the positives are:

  • Amazon.com dominates the overall e-commerce market with sizeable international growth opportunities for it’s marketplaces, advertising and devies
  • Strong growth in devices to help keep and bring in new customers.
  • Strong favorability with Generation Z.
  • Increasing number of shoppers initiating their searchers with Amazon instead of Google
  • Increasing advertising share and signups from 3rd party sellers on their platform, which helps the ability for Amazon to increase profits while reducing costs/burdens of selling inventory directly.

The stock currently trades at a PEG of 1.1 which is quite good and makes for a good buying opportunity.

Facebook Inc (FB), Carrols Restaurant Group, Inc. (TAST), and Amazon.com, Inc. (AMZN) – Buy

   

Once again, I added more to my positions today in Facebook Inc (FB) at $144.41, Carrols Restaurant Group, Inc. (TAST) at $9.60, and Amazon.com, Inc. (AMZN) at $1587.31

The continued price drop in all three of these are a great opportunity. Retail sales are strong and Amazon and Facebook will benefit from this. Amazon with actual sales and advertising, and Facebook with advertising on Facebook itself and Instagram.

Amazon has been very aggressive with increasing it’s share of holiday sales and we are seeing that personally with our Wondermugs business. We have sold over twice as many mugs on Amazon this year compared to last year. With Facebook, we are personally spending significantly more this year on ads as well as for our clients of Advantage Creations.

With Carrol’s the price drop is just making the company very cheap. At today’s price, the market is valuing the 828 stores at only $729,773 each. To start a brand new store, you are typically looking at an initial investment of $1,200,000 to $2,800,000. These are mostly proven stores with excellent management in place.

Some are thinking the economy is going negative. If that’s the case, people still need to buy goods, will still use social media and go out to eat. Amazon and Carrols provide great prices on products. Facebook/ Instagram will still be used.

There are of course other pressures on these specific companies. Facebook with it’s privacy concerns, Amazon with other retailers getting more competitive and Microsoft with cloud services and Carrols with McDonalds, but I believe at these prices all of these concerns are priced in and then some.

Here is my previous analysis on all three: