To beat the NASDAQ market I need to invested in some shares. This time I invested in Fiserv Inc company. Take a look why I've bought just these shares.
As usual I've answered 10 questions every investor should answer befor buying shares.
Provider of financial services technology.
2. Competitive Advantage
Hard to say about competitive advantages in this industry because it is highly competitive. It looks like they do great in these conditions.
3. Chief Executive Officer (CEO)
Jeffery Yabuki since 2005
4. Revenue Growth
Less than 10% y/y.
5. Net Income
Grows more than revenue. Small drop last year.
6. Profit Margin
~14% last quarter. Between 10 and 20% before.
7. Debt-to-Equity Ratio
1.6 (very high!)
8. Price-to-Earnings Ratio (P/E)
33 (quite high)
Fiserv Inc operates really agressively.
Agressive style of doing business, highly in debt, quite expensive, higly risked in my opinion
There are many things about Fiserv Inc which told me not to invest in these shares. But I liked positive net operative cash flow and negative net investing cash flow. It means that Fiserv both earn cash from their business and invest money to grow in the future. That's why I liked these shares and invested in.
Do you guys think Fiserv will beat the NASDAQ market?