Three stocks i'm buying in October

        Historically the month of October has been one of the worse months in the calendar for people invested in the stock market. Going back to the panic of 1907, black Tuesday, Wednesday and Thursday of 1929 the repeated black Monday of 1987 and even more recently the black Swan event in 2001 and 2008.
        Which just means that it's a good time to buy at a discount, there are three companies I'm looking to add shares to. Two are already staples in my portfolio and the third is an old school company with a nice dividend.

       
       The first company I'm going to be buying more shares of it ETSY (ETSY- $48.92)- I already wrote about ETSY in a previous post so I won't go crazy on this post.

  
       Etsy is a marketplace for people that make, sell or manufacture hand made goods. With over 2 million active sellers and 35 million buyers (80% of which return and buy a second item) - they have exploded over the last year.  Up over 200% YTD  CEO Josh Silverman has lead this company to the top. Since he became CEO in early 2017- cash and cash equivalents are up 73%, assets are up 18%, net income is up 370% total revenue is up 20% and debt has actually decreased by 11%.

       During their recent earnings call, they announced they will be raising the seller for from 3.5% to 5%- a 40% increase on their biggest revenue. If sellers don't over react to this increase it would be massive for the company.

Here's the full version of why I'm buying more shares

http://modernstockinvesting.blogspot.com/2018/09/why-etsy-has-become-my-biggest.html

       Proctor and Gamble (PG-$84.40) are a staple for any long term blue chip stock investors. Boasting a 3.43% dividend yield they have been able to pick up steam again in recent months. Up 10% in the last 90 days- they have really picked it up.

       For those that don't know who P&G is- I promise that you probably used on of their items today. They own a massive slew of brands from Tide, Bounty, Cascade, Head and Shoulders, Crest, Oral-B, ,Charmin, Olay, Cover girl and the list goes on. They are even partnered with Lacoste and Hugo Boss.



       The diversity of items has really allowed them to prosper. Since 2014 assets are up 107%, net income is up 254%, gross profits are up 109% and total revenue has increased by 106%. They have been effectively cutting costs, with an operating margin of 20%- they are able to out perform other competitors such as Kimberly Clark (KMB) and Unilever(UN).

      In recent news, they unveiled a new product- Beard care products. Already owning more then 60% of the market share when it comes to shaving products this could be a massive complementary item for them to continue to push profits.

        


       The last company I'm investing in is one of the most recognizable brands in the world- Facebook (FB-165.41)
       


          Facebook is one of the most popular websites of all time, with other 2 billion active users on the Facebook platform alone- over 1.5 Instagram users, 2 billion Whatsapp users and 1.5 billion Facebook messenger users it's no secret how they have amassed such a heavy cash stream.  Up 250% in the last five years, I think the next five could be even better now that Instagram and Whatsapp are starting to be monetized more and more.

         The reason I like them is simple- advertisement money. For the first time ever in 2017 digital ad revenue has surpassed TV ads. Facebook being one the major beneficiary of those ads (Google was the other massive beneficiary) there's no secret why companies would rather advertise on social media. The ads are far, far, far, more effective. It takes on average $7 for a TV ad to reach 1000 people- It takes Facebook just $0.25. These ads even hit targeted audiences better too.. You are able to target a specific location, age group, gender and even filter people by life events such as new relationship status, new job and even online purchases.



         But it goes beyond the ads, there is a massive project that they are working on.. one that will not only change the company but change the world. Over 60% of the world does not have regular access to the internet.. that's 6 out of 10 people.  Facebook wants to change that.. they are testing out drones that can hover in a specific spot for years that give of a Wi-Fi signal so people that don't have access to the internet will be able to finally use it. It's going to be a long and expensive trial, but if they figure this out the number of Facebook users could pop. It could literally double in the matter of a year.


Here is the full 7 reasons why I plan on buying Facebook shares
http://modernstockinvesting.blogspot.com/2018/09/7-reasons-to-buy-shares-of-facebook.html

       
        





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