Finance Portfolio Management In Healthcare Sector

Question: Describe about the Finance Portfolio Management for In Healthcare Sector. Answer: Description Of Stocks Sanofi-Aventis Sanofi is a leading company in healthcare sector established by Jean-Franois Dehecq in 1973. Management of the enterprise is engaged in manufacturing, research and development and marketing of pharmaceutical drugs. The current stock price of the company is $39.26 showing a previous change of negative 1.05%. The company is having strengthened financial position as there is an increase regarding revenue as well as profitability. Further, by considering long term, there is stability in the market, but short term trend shows high fluctuation in stock price (SANOFI-AVENTIS (S2NWZ6.EX), 2016). The market capitalization of the company is $102.4 billion with the average volume of 2.63M. By considering financial records of the entity, it can be noticed that management is providing a dividend of 1.66 with the EPS of 1.78. The company has high payout ratio which is attractive for the purpose of short-term investment. Market statistics shows that price-earnings ratio of the company is 22.15. By considering the market position of Sanofi-Aventis, the investor had purchased stock 73.01 on London exchange in total cost of $36505. Later there was an increase in price by 3.02 through investor was able to earn a profit of $1510 as the cost is an increase from $36505 to $38015. The increase in price is due to the better financial position of the company as there is a growth in revenue and profits. Apple Inc Apple is a technological company operating on a global level to sell consumer electronics, online services and computer software. The company was founded in 1976 by Steve Jobs, Ronald Wayne and Steve Wozniak. The stock price of Apple Inc is $111.23 with the price earnings ratio of 13.39 (Apple Inc. (AAPL), 2016). The company is providing a dividend yield of 2.28 with the EPS of 13.39. By considering a financial summary of the company it can be noticed that asset and equity of are increasing but sales and profitability has been reduced due to changing market conditions. Long term trend shows stability in stock price with the better return, but Short term trend shows an increase in stock price. The company had an excellent reputation in the market which gains investors trust regarding low risk and providing better returns. However, there is possible fluctuation to due to increasing competition in the market, and as a consequence, there is reduction loss to an investor of $5505.46. The investor had purchased 1000 stock of Apple Inc at an average price of 117.63 with a total cost of $108178.43. However, there was a reduction in the average price of 4.93 which make a reduction in total cost of $5505.46. Alphabet Inc Alphabet Inc is also an American Conglomerate company formed by the founder of Google in 2013 for the restructuring of Google. It is a collection of various businesses that can be seen in the following image: Figure 1: Company structure of Alphabet Inc The company do not have financial history but have background support of companies like Google and Nest. The stock of this company is suitable for aggressive investors who are willing to take high risks as the company has the potential to provide good returns, but there is no such certainty. The current stock price of the company is $760.99 shows steady trend till now (Alphabet Inc. (GOOG), 2016). Alphabet Inc has not declared dividend yet, but their market capitalization is quite strong. By considering the market position, the investor had purchased 135 stock in 816.51 from US stock exchange in total cost of $100214.01, and there was a reduction in price by 31.21. However, there was an increase in FXrate by .049 which had reduced the loss. By investing in the stock of Apple, Inc investors has to face the loss of $90.74 due to a reduction in stock price. However, in the long-term company can generate good returns. Johnson Johnson Johnson Johnson is operating in medical and pharmaceutical industry established in 1886. The company is offering a broad range of household products worldwide. The company has a market capitalization of 307.61 billion while a beta of .69. This shows that investment in the stock of JJ is beneficial for investors having the willingness to take the lower risk (Johnson Johnson (JNJ), 2016). The company is providing a dividend of 3.2 with an EPS of 5.7. Higher retention ratio shows that company has successful projects which can increase shareholders wealth shortly. By making an investment in JJ company investor had earned a profit of $1787.93. For short term investment stock is not beneficial as it has a declining trend which can cause loss to investors. Investment in short-term can merely for the purpose of speculation. The investor had purchased 900 stock of JJ at an average price of 117.72 in total cost of $96249.41. The price of stock was increased to 118.55 along with this there wa s an increase in FXRATE by .0104 which had made a profit of $1787.93. References Alphabet Inc. (GOOG). 2016. [Online]. Available through https://finance.yahoo.com/quote/GOOG?ltr=1. [Accessed on 21st November 2016]. Apple Inc. (AAPL). 2016 Available through https://finance.yahoo.com/quote/AAPL/?p=AAPL. [Accessed on 21st November 2016]. Johnson Johnson (JNJ). 2016. [Online]. Available through https://finance.yahoo.com/quote/JNJ?p=JNJ. [Accessed on 21st November 2016]. SANOFI-AVENTIS (S2NWZ6.EX. 2016. [Online]. Available through https://finance.yahoo.com/quote/S2NWZ6.EX/?p=S2NWZ6.EX. [Accessed on 21st November 2016]. Smith, A., 2016. Read this before you buy Apple stock. [Online]. Available through https://www.usatoday.com/story/sponsor-story/motley-fool/2016/11/21/read-before-you-buy-apple-stock/93965334/. [Accessed on 21st November 2016].