Daily Market Blog: Google's "one trick" still working

20-OCT-14

"As you can see, the majority of the business is still very much based on advertising. The third segment is called Other Revenues and accounts for $1.84bn or 11% of total sales. This includes Googles many side businesses which either direct traffic to their site (Android) or does something completely different to it's current model. Businesses such as Motorola, Nest, Android, Driverless Cars, Google Glass, Google+ Gmail and YouTube. The list goes on. I really like this innovative side to Google, they are going to hit the jackpot soon with one of these."






To market, to market to buy a fat pig. The JSE (and world markets) finally had the sizable rally that market trackers have been hoping for. The JSE closed up 2% on Friday and the S&P 500 was up 1.3%. Could this be the turnaround and the start of the market recovering the 10% that it has lost over the last couple weeks? Or is this as traders will say, "dead cat bounce", which essentially is a temporary recovery followed by more pain.

I can't tell you what the market is going to do today, let alone a week from now, but what I am certain enough of , enough to put my money into these stocks, is that quality companies will continue to grow and still be around a decade from now. If I had given you the current market prices a month ago, you probably would have jumped at the opportunity to buy? Who remembers the correction that happened at the beginning of the year? Not many people, which will be the case for this current correction in a year's time.


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Stocks which we currently recommend

Amazon.com is the world's leading online retailer.

Apple is global leader in tablet and smartphone technology.

Aspen is a rising global star in generic pharmaceuticals.

BHP Billiton is the world's largest industrial commodity mining company.

Bidvest is a diversified services company, which may re-organise its portfolio.

Cerner provides IT solutions in the healthcare industry.

City Lodge is a growing mid-priced hotel group in urban areas of SA.

Discovery is a healthcare services administrator and life insurer.

Famous Brands is SA's largest quick-service restaurant group.

General Electric is a diversified investment holding company.

Google is the world's biggest search engine and online advertising platform.

Johnson & Johnson is the largest consumer healthcare and pharma company.

L'Oreal is a world leader in the manufacturing and sale of beauty products.

Luxottica is the world's largest branded sunglass maker and retailer.

MTN Group is an emerging markets mobile telecoms giant.

Massmart is a big-box discount retailer in Africa, now 51% owned by Wal-Mart.

Mediclinic owns hospitals in SA, the UAE and Switzerland.

Naspers is an in emerging markets company focussed on digital TV & Internet.

Nike is a global designer and retailer of sporting equipment.

Omnia is a fertiliser and explosives producer.

Richemont is a luxury brands company expanding in Asia.

Sasol is a global player in chemicals and fuels technology.

Starbucks is a roaster, marketer and retailer of coffee.

Stryker makes hip and knee joint replacements and hospital beds.

Tiger Brands is a basic and branded food producer, expanding through Africa.

Visa is a global payments technology company.

Woolworths is SA's leading organic food retailer & clothing business.

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