Johnson And Time Warner Comparison Paper

Comcast Corporation is the nation's leading provider of cable, entertainment and communications products and services, with 24.1 million cable customers, 12.4 million high-speed Internet customers and 3.5 million voice customers. Comcast is principally involved in the development, management and operation of broadband cable networks and in the delivery of programming content.

* Stock Beta: Exhibit 5 shows a detailed measurement of the company’s stock returns in relation to the rest of the market through 5-year historical price and index data. The analysis includes monthly returns of both the NYSE and the S&P 500 index in order to capture a comprehensive view of the market return. In each comparison, the monthly returns of the Target stock and market are plotted on Y-axis and X-axis respectively to get the regression line’s slope or beta. The analysis arrives at an average beta of 0.988 which indicates a similar movement of Target stock’s returns in comparison to the whole market over time.

In the Fama & French paper, they found that: 1) stocks with high beta did not have consistently higher returns than low-beta stocks; 2)

Some of important components to be familiar with when deciding on investing in a company is its competitive advantages, valuation, dividend payouts and sustainability, and earnings consistency. Financial statements of Johnson & Johnson prove that their overall financial condition is good and is worthy of investing. For example, Johnson & Johnson has a market value of $211 billion and has over $67 billion in sales over the last 12 months. As of Dec. 31, 2012, Johnson & Johnson had $21.1 billion in cash and short-term investments, which can be easily converted into cash. Over the last 12 months, they paid out $6.61 billion in dividends, which works well with a free cash flow of $12.5 billion (Harry, 2015). Additionally, Johnson & Johnson has noticeably improved its profits over the last four years with a reported annual revenue of $74,331 million ending 2014. The current ratio of Johnson & Johnson is 1.90, which means the company can meet financial commitments short-term in the event of a disruption of its operations due to natural disaster etc. After reviewing the most recent balance sheet, it can be determined that the financial condition of Johnson & Johnson is a very good one and has prospects of growth over time. They have made several advantages towards growth in the coming years. For example, “in 2014 it had 20 new extensions approved and filed an additional 20. Also it started 23 Phase 3 trials and initiated eleven Phase 2 trials and currently is poised to yield ten potential new product filings between 2013 and 2017. With these developments, the company will be able to launch outstanding products in its pharmaceutical business in the days ahead” (GuruFocus,

Comcast beats competition by providing excellent products and services to its customers. This is especially important in a fast-pasted changing world that leans more on technology every day. Comcast has been the leader in being up-to-speed in the latest advances in technology and options for its customers.

Here we choose VW NYSE, AMEX, and NASDAQ data as market returns, because it’s value weighted and more reliable. The results show CSC’s equity beta = 2.27, QRG’s equity beta = 1.79.

Over the past decade, significant changes in regulations, advances in technology, and shifts in competitive dynamics began transforming the cable industry. Companies within the industry were forced to adapt by acquiring economies of scale and scope. American Cable Communication was seeking to acquire AirThread Connections for three reasons. The two companies could help each other become more competitive in an industry that is moving toward bundled package service offerings. The acquisition would help both companies expand into the business market, and lastly American Cable was in a unique position to add value to AirThread’s operations. They could obtain a significant amount of

Historical context and comedic elements often are perceived to be terms that do not usually go hand in hand when it comes to literary works. However, authors like Jonathan Safran Foer have attempted to seamlessly piece these concepts together through works like Everything is Illuminated, which combines the story of a young man who travels back to Ukraine in search of his ancestors with the history of the Holocaust. Writers who attempt to address or incorporate the Holocaust into their stories are faced with a divide between “the relatively comfortable Jewish American present” and “the dark European past” (Belham 56). Although some might criticize Foer for his usage of slapstick and comedy with such tragic events, the stark contrast of his dark

By using the company return and the Value Weighted Returns of the Market, we derived the companies’ levered equity betas and then unlevered them.

employees and annual revenue of $ 14.6 billion in 2014. Lack of company’s concerns for

But, unfortunately due to the enormous cost and very little public interest and demand Time-Warner decided to pull the plug on its nationwide change over to digital lines. This shows that the cable companies are surpassing the consumer demand for technology, making this industry a very hard one to market.

The regression that we performed in excel for both stocks yielded a beta of .73576 for Reynolds, and a beta of 1.4198 for Hasbro. In question 2 we learned that although Reynolds stock was riskier independently, adding it to the portfolio made it more diversified compared to adding Hasbro, due to the fact that it was less correlated to the market portfolio. Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. Therefore, since the beta of Reynolds is lower than Hasbro, our beta calculations align with the fact that Reynolds stock makes the overall portfolio less risky. This finding is also intuitive when considering the nature of the companies; Reynolds is a Tobacco company meaning that is should be less sensitive to changes in market conditions than a toy company like Hasbro.

For estimation of betas, the above equation was run for the period from Jan, 2003 to Dec, 2006. Based on the estimated betas we have divided the sample of 63 stocks into 10 portfolios each comprising of 6 stocks except portfolio no.1, 5 and 10 having seven stocks each. The first portfolio 1 has the 7 lowest beta stocks and the last portfolio 10 has the 7 highest beta stocks. The rationale for forming portfolios is to reduce measurement error in the betas.

The next study that is examined was the Five Competitive Forces. This shows the industry’s competitors, threats of new entrants and substitutes, and the power of the customers and suppliers. The main rival competitors within the TV service providers industry are Dish Network, Direct TV, Comcast Cable, Time Warner Cable, and Atlantic Broadband. The rivalry of these competitors could lead to lower profits due to price competition and new technology as each is trying to stay competitive in the industry.

The SWOT analysis also reveals another weakness, “fickleness.” Fickleness of cable and satellite customers is based on the low brand loyalty and high churn rates. In order to reduce customer defection to competitors TFC must develop brand loyalty and not only attract new customers but retain those that it already possesses. The opportunity facing TFC is the fact that it is in a position to address its market