Finance Mod 2 SLP

Finance mod 2 SLP
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Yahoo finance- Novartis AG (NVS) stock price expectation and futures price of 100 shares
At the close of Thursday August 6, 2015 Novartis AG (NVS) stock price was $ 102.33 in the New York Stock Exchange (Yahoo Finance, 2015). I expect the stock price of the company to be higher ne year from now at $ 110 per share, since the company has diverse operations. Hence, the expected futures for 100 shares of NVG are $ 11,000. The company is most likely to take advantage of new patents, acquisitions and other drug development. In order to beat expectations then the company’s expectations need to increase at a faster rate.
Even though, there are concerns about the volatility of other major currencies outside US dollar including the Euro, this is not expected to weigh down the company’s earnings and growth forecasts. Even though, the company’s headquarters is in Switzerland it has various locations for research and development. The diversification efforts will prove vital to maintain the company’s competitiveness, relying on a wide distribution network globally, and low cost of operations in East Asia. Additionally, the debt levels are manageable and there is low risk of cash flow problem, hence the resources set aside for research and development are adequate.
Novartis AG (NVS) stock risk
The company’s stock has generally been on an upward trend in the last few years, and even when there have been concerns about negative growth, investors were confident in the company’s ability to rebound. Investing in the company’s stock is for the long-term since it has reported modest improvements in net revenue in the last few years, but there is no concern on Novartis AG (NVS) financing abilities. There is a solid foundation at Novartis AG (NVS) because of consistent financial performance and diverse operations, but better growth is essential for the company to improve its position in the health care industry. Given the scale of the company operations globally, co...