Recommended US Shares October 2019

Value is what you Pay.

Welcome to my Recommended US Shares October 2019. The trade war for the US and China have gone for far too long. If you observe the Nasdaq for Dow Jones Index, the US equity market simply hit a stagnating growth. Many would argue that it is not a good time to buy. However, I would disagree.

In this article, I shall share my Recommended US Shares for October 2019 to invest in, since they are at a good value entry point.

Start of October 2019, global market started with a bearish outlook as the global manufacturing PMI data shows deterioration which signals the start of a recession (scaremongering news).

However, home/personal investors need a more positive outlook.

I’ve always stick to the principals of buying good value companies as long term investments.

Ground Rules

My regular readers know how much I love these HOT stocks and always buy them when I can afford. However for this article, I promise not to mention any of these stocks shown in the diagram below. This include the glorious 2019 Unicorn IPO stocks.

The top 4 Recommended US Shares October 2019

The following Recommended US Shares October 2019 are shares which I have personally invested in after research. My strategy is to build a significant portion of these shares over the period of 12 months. Always buy in stages to ensure we get the average price as low as we can. Focus on the company fundamental values against their current price.

1. Morgan Stanley [MS]

Morgan Stanley is one of the top four largest investment banks in the world. With the non-recovery of EU banks in the last decade since the banking financial crisis. American companies have surpassed their EU rivals and dominating in the new growth of technology and emerging markets.

Excellent increasing dividend company who pays every quarter. It would be wise to reinvest these dividends to ensure maximum long term growth yield is captured.

Morgan Stanley has a healthy balance sheet and cash flow. Business is expanding with reducing high paying staff by adopting more autonomous systems in the workflow. This is one of the key reasons US investment banks are far superior to the EU counterpart.

Own this in your portfolio, if you lack the financial and growing dividend-paying companies.

2. Netflix [NFLX]

I have ignored Netflix for a long time. Previously I bought it at $70 and sold it at $150.

Disney and Apple have recently joined the streaming market with existing Youtube, Sky, NOWTV, HBO and Amazon Prime. In the midst of new emerging companies trying to fight a share of this pie, why I am recommending this stock (BONKERS!)???

The market is wrong to sell Netflix because of 3 key fundamental reasons

  1. Netflix has established internationally in multiple countries in Asia individually. China has its TV series produced by Netflix. Japan has its TV series produced by Netflix. South Korea has is own TV series produced by Netflix. The list goes on. No TV channel or online streaming is creating content for specific countries individually.
  2. Paying for Netflix is a normal household expense today. Paying for Disney and Apple would be a bolt-on or good to have. Netflix may not have everything, but it is enough for a family or individual content to binge on. The interface, the specific AI content pre-selection and hardware available are standard to users. If Disney or Apple decides a different layout, then it would be out of the ordinary.
  3. Moving into the 5G generation will require an additional boost in their network which they need to upgrade their 4k content. The subscriptions paid by users will be reinvested for growth globally. New subscriptions for 5G network users will be rolled out to gain long term younger generations viewers.

The wall street is wrong about using subscription numbers to judge Netflix’s growth. I am taking advantage of the dip and getting back on the Netflix bandwagon.

3. Square [SQ]

The story of Paypal entering China market makes it very attractive. Everyone has ignored Squares entering into the EU market for a lower cost for merchants and smaller business owners. This undercuts all other existing EU cashless transaction services. Square is one of the most volatile stock on the market simply because of their flamboyant CEO impacting the share price.

Square focuses on its core low-cost business transaction. Easy to deploy cash card and card machine with simple wifi connectivity helps many simple start-ups to utilise their equipment. I am not expecting Square to take over the world and dominate everyone.

There is a huge market in the cashless transaction market in the developed world (UK, EU, Japan and US) and Square is out there to grab shares from Visa, Amex and Paypal. Square.

4. VMware [VMW]

VMW is a cloud computing company focusing on desktop virtualization and cloud data centre for large companies corporation moving their assets into the digital era.

2019 is not a great year for cloud computing. Seem like a mini bubble pop somewhere after a great 2017/18 run. Even Amazon shares are stagnating as their majority profits come from their AWS sector.

Stocks looking on the decline, but technical business cash flow and revenue are growing. The share price and business are going in the opposite direction. This is the best time to buy an establish cloud company and VMware is the best valued among the top 5 cloud kings (Adobe, CRM, Splunk, Red Hat)

This is the last opportunity to own this company under $170

Final Words

Personally I have purchased these four stocks since September 2019. If you are a regular reader you would know about me selling more than 50% of my US shares back in June 2019. Sold a large collection of my portfolio at the peak and now finding value again. During the last 3-4 months I have been saving and hustling money on the side to build my cash pile.
 
These four recommended US companies are also different sector industry which I am looking to diversify away from the typical tech stock portfolio. As mentioned in my earlier 2019 article, this year is a key year to diversify as much as I can.
 
I hope you find this article useful and support your journey to financial flexibility.

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