The three stocks I bought in June 2020
When investments are spoken about, there is so much to talk on and sometimes it can get overwhelming, especially for the newbies. The stock market is at a surprising best, even with the pandemic. In my post ‘2020’s stock market and economy: “why are they so different?” the economy has stayed healthy thanks to the government and hopeful big investors. I also believe that this is the best time to take advantage of this fluctuating stability in the stock market. Hello, I welcome you to my blog where I talk in-depth about all things investment, particularly in stocks.
My focus is always on the newbies to the stock market. I was once like you and understand how confusing it be in the beginning. I hope that after each video I make, you learn from my experience and have a splendid start in investing. I will base this post on my recent research into profitable stocks. I have come up with three I think are excellent and which I have already invested in. So I got these stocks just less than three weeks ago, and I am happy with them. And I hope they can be a guide for you when you choose your stocks. SO let’s get into the three stocks I bought in June 2020.
My stocks as of June 2020.
Arista Networks (NYSE: ANET)
At June 12, 4:15 p.m. This company sold at $222.78, $3.98 (1.8%). The world is just working its way out of the pandemic that turned it upside down. During the pandemic, the world saw a major shift to cloud-based activities, which meant that companies and individuals turned to operate as best as they could from remote setting. This shift benefited certain cloud-based companies like Arista Networks (NYSE: ANET). As a hardware and software company that sends network traffic to data centres, it is an essential part of internet use. For instance, if you go through your social media or even update basic Microsoft features, then you are most likely using their company.
What is so great about this company is that nearly 40% of their revenue is received from their major clients Microsoft (NASDAQ: MSFT) 23% and Facebook (NASDAQ: FB) 16.6%. This means that as long as those companies are thriving, which they are, then Arista Networks (NYSE: ANET) will thrive. A lot of companies, as well as Arista Networks (NYSE: ANET), are trying their best to cut their capital spending to a sensible level. This decline, in addition to the glitch in supply and demand, they recorded bad revenues for the first quarter of 2020. The result of this was the company seeing a decline of 12% in a few months alone, bringing their earnings to $523 million.
This will leave a bump in the overall result of the company at the end of this fiscal year. Many experts speculate that the year’s result will slide back to where it was in 2018. However, even with these issues and setbacks, the company still has a bright future, and as long as they get through this year, then they will be fine. How can I say this with confidence? So I always look at their products and how well they are as necessities to the everyday man. Take their product Cognitive Campus. This hardware and software product is an excellent tool for campuses to take their processing ability to a greater level. It was launched in summer 2019, and as of the first half of the year, the product has recorded a sale of nearly $100 million.
This is in less than a year but this is not the end, because the opportunities available to this product in the market is valued at around $10 billion. They also have their 100-gigabit Ethernet data centres, which are a thriving line. These centres alone use a speed of 400-gigabit, which isn’t a visible option for many other competitors in the next five years. With all these benefits I foresee that with their technological advancement, zero debt, operating profit of 32.6% and a great balance sheet of $2.64 billion in cash, the company is a brilliant catch to invest in this month.
CrowdStrike Holdings (NASDAQ: CRWD)
Sold at $93.12 -$1.92 (-2.0%) on the 12th of June, 4:30 p.m. The stock is selling at a significantly low price, which is not so bad. This is a cyber-security company which works with a cloud-based setting. Again, the concept of this company is predominantly about remote working and operation which is something to be happy about. The world is turning to this sector now and having a part of it from the early stage is a wise step for an investor. Investing in stocks is all about long-term growth and profit.
The company works to fight and find a solution for cyber attacks. This makes them a vital company for internet users. You can see that their customer rate is rising because in the last quarter of 2019 they made an 85% increase in revenue. They also have a subscription section for everyday internet users and this on its own surged up 90%. The most notable growth in this company is its subscription client rate, which increased not just 100% but 105%.
The company’s client list is also awe-inspiring, with over 50 big name companies listed in Fortune 100 companies depending on their services. Their product line is so diverse which you can see by the wide array of clients they already service and those who are joining in. Another point that makes this company worth thinking about is its management team. Their CEO George Kurtz is a wizard in business leadership and cyber operations. At 49 Kurtz, who is also the primary stockholder of the company, has a while to dedicate and commit to growing this company. With his skill, I foresee that the next 10 to 20 years will be good for the company and its investors.
Wex (NYSE: WEX)
This is a permanent card service provider that can cover corporate spending, vehicle fleets, health-care plans and much more. They are also a data collecting company that gives companies a way to measure and manage corporate spending. In simple terms, it’s a useful company mostly for corporate firms. What you get from using the Wex Fleet Card is a way to manage all your spending corporate wise. You get to set payment times, spending structures and more and get a thorough report on every penny spent and at what time.
The service gives you a stress-free, real-time experience from the comfort of your mobile devices. Their use and acceptance span 95% of fueling stations and over 45,000 maintenance centres in the USA. The company is on the road to massive expansion. They recently acquired four companies in 2019 that broadened their service segments. And in 2020 they acquired eNett and Optal travel segments which further expanded their reach.
Its origin is amazing; they began as a coal and heating oil business named A.R. Wright, in 1895. Then they rebranded or reformed, and by 1983 they became a payment solution business. The leadership chain through these periods is an excellently woven one with the right determination for success. They have such firm connections in Australia, Europe, Brazil, and the USA in the fuel network. But they are not stopping there; they have harnessed their payment technology to expand their branches into corporate travel and healthcare sectors. The amazing thing about this company is that even in the monumental challenges of 2020; they can still grow because they have experienced hard times and know how to get through it.
Even though they had a worrisome fall of revenue in 2009 at 19%, they could sail through and surpass that by 2010. From then on, they have been on a fast-rising success road, and the last decade has just been excellent for them. A notable strategy they have used during this period is seeing the good in the bad. The pandemic disturbed the economy, companies and the everyday citizen, but rather than do nothing; they acquired two companies. The companies they chose were from a sector they did not have under their umbrella allowing them to expand their portfolio.
I see outstanding things for a company that doesn’t just survive but conquers the toughest of situations. As a long-term investor, that is what I want, and I am glad to find it in this company. This innovative nature of the company assures me that even though they are still trading at 30% less than their February 2020 amount, they are ready for a fight for success no matter what the future holds.
Conclusion
This is what I bought in the last two weeks of June 2020, and I am pleased with it. From henceforth I will give you a monthly update on the stocks I am buying, so next month you will see my video concerning my purchase for July. What do you think about these companies; let me know in the comment section? If you found this useful, then kindly subscribe and like to get my July update and other useful videos.
For further reading, please refer to:
- MONEY Master the Game — Tony Robbins
- Unshakeable: Your Financial Freedom — Tony Robbins
- The Intelligent Investor — Benjamin Graham
- The Wealthy Barber — David Chilton
- Rich Dad Poor Dad — Robert Kiyosaki
