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zyne: ZYNE Issue 3 - Top 500 companies revenue analysis , revenue is mind anchor!

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                                            Edited by jack@zyne.com

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6/01/2017  ZYNE Issue 3  - Top 500 companies revenue analysis ,  revenue is mind anchor!


---Greetings :-D --------- 
Happy Memorial day! To all the veterans that have fought for our freedom! Thank you. 50% discount on all of our future products :D
Welcome all new readers! We have a decent issue this week, its short and sweet. Hopefully to make a point. 
Lets make more money!
    Jack Meister


---General <><  -- Market consolidation & fortune 500 review
 Nothing is happening, either we are going up or we are going down, Who knows? 
Going up or down doesn't mean its time to invest. Zyne is fully in cash.


 I did a quick database on the selected Fortune 500 companies for your review

Company name      Revenue / Market Capitalization        Revenue 
(low is expensive) 

1 Alphabet          .11x              74 Billion
2 Microsoft         .17x             236 B   
3 Twitter           .20x               2 B 
4 Amazon            .21x             100 B 
5 McDonalds         .20x              93 B
6 J&J              .20x               70 B
7 Coke                .22x            44 B
8 Apple              .29x            238 B 
9 Disney             .30x             52 B
10 Intel             .32x             55 B
11 Nike              .41x             30 B
12  Goldman Sachs    .44x             39 B
13  JD.com           .49x             28 B
14 Citibank         .50x              88 B 
15 HSBC             .51x              89 B
16 UPS              .60x              58 B
17 Midea            .66x              22 B
18 TsingTao Beer     .63x              4 B
19 Exxon             .70x            246 B
20 Pingan Insurance        .90x      110 B
21 Great Wall Haval Cars   1.0x       14 B
--------------------------------------------- Average 1.0x ------------
22 Dell                   1.15x       55 B
23 Belle                  1.3x         8 B
24 Sony                   1.4x        67 B
25 Hewlett-Packard           1.5x     48 B
26 Dongfeng Motors       1.8x         17 B  (nissan, peugeot, honda JV in china)
27 CVS Health            1.9x        153 B  
28 Walmart               2.0x        482 B  (#1 revenue)
29 SAIC Motors           2.0x        106 B  (Volkswagen ,General Motors JV in china)
30 Kep Electric          2.1x         51 B
31 Glencore              3.1x        170 B 
32 Volkswagen            2.9x        236 B
33 Lenovo                6.2x         43 B



Interesting list I conjured up by hand and paper, Points:

1. Twitter @ $18 is actually in line with the other companies now, 
this is fascinating considering it has fallen from $40 to $18,
it is still priced at a premium compared to the rest of the markets. 
Twitter doesn't look as cheap as Ballmer says it is, but of course he bought an NBA team for 4 billion. 
 SourceLink: http://www.nba.com/clippers/steve-ballmer-completes-purchase-los-angeles-clippers

2. Car companies on the cheap, the whole industry is selling at a discount, 
this industry may be due for an upswing.  

3. Fortune 500 companies are 66% on the dot more expensive then the average 1.0x ratio. 

4. Lenovo is #1 in PC market share @ 22.9% , cheapest stock in the fortune 500.
         2015 Revenue      2016 Revenue     2017 Revenue
Lenovo   46 billion USD       44.9 billion     43 billion
          <------------------------------------------- Shrinking

5. Volkswagen is #1 in Car market share in the world.

	           2014 Revenue      2016 Revenue     2017 Revenue	
Volkswagen 	   222 billion USD   234 billion      238 billion 
                   --------------------------------------> Growing

6. Auto industry's ETF for diversification investing:


CARZ (NYSE 36.49USD 6/1/2017)  Fund Expense: .70%  (A little high) ,  Div Yield: 2.25%  
Top 5 holdings: 
Daimler AG  8%
Toyota   7%
General Motors  7%
Honda       7%
Ford        7%
Tesla       5%
Volkswagen   4.5%


For a cheaper diversification , Save the .70% annual fee ,  take $10,000 split into 3 parts,  
$3333  into Tesla,  $3333 into Volkswagen $3333 into Ford.
Tesla Auto electric, Auto #1 Volkswagen maker, and Ford A.I , you are very diversified.



---Theory *_* ----- Revenue is mind anchor

People often look at revenue like its a waste of space. Give me net income. True true, 
but in reality revenue is important, Market mindshare , mind anchor. 
A Market doesn't exist in a vacuum, there are many players in support of every single industry, 
government stability , chip supplier , technical support, marketing, materials support, 
competitor's market (takes multiple competitors to make a market, 
imagine a flea market with one plant vendor, nobody would visit that flea market).

$100,000,000,000  in revenue but with a net margin of 2% 
   2,000,000,000  in net income

At first glance this is either a horrendous company or a company made for non-profits, 
 But the ecosystem between the net income and the revenue is enormous, 
it might have supplied up to 200,000 jobs worldwide, 20-30 supplier companies , 
government taxes @ 30%  , 2-3 marketing companies each with 30 employees. On the supply side.

On the buyer side, it might have given in value over at least $70,000,000,000 worth of value 
(figuring a 30% premium pricing) This means people feel whatever they bought was worth 
$70 billion dollars in tangible value. If it saved peoples time like transportation, 
it would have saved 30 minutes a day for 100 million customers. People don't buy things for kicks!

Revenue is one of the top ways to judge how much the company is effecting the market (society) in whole.


---Ask Me Anything ?_? jack@zyne.com --

My worst performers have been state companies and my best performers have been small caps, Why?
- K. Krause

State companies are not great to invest in, the excess profit never reaches the balance sheet, 
its usually gifted out in bonuses and sorts. 
Things that ends up on the balance sheet and stay there usually requires taxation.
For private companies, there is motivation to increase revenue and strengthen balance sheet, 
for lending purposes and all around bragging rights. 


Until next week or the week after... Zyne Letters.



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