 Good day, fellow investors. We're approaching the end of the month and it's time for the free stocks to buy in September 2017 video. Now I always do new stocks and I'm very excited about this video because some things happen that lowered temporary short term the prices of great great stocks and I will discuss two great stocks and one cigar butt in order to see what a cigar butt is and perhaps you like the investment idea. So let's immediately start with the first stock I would recommend buying now in September 2017 and that is Nike. Let's first see what happened Nike performed extremely well in the last five years but then peaked two years ago and then traded sideways and now is at almost multi-year lows. Nevertheless the stock price is lower there hasn't been appreciation but the fundamentals have constantly improved in the last two years also. What happened is that food locker sent out lower numbers terrible numbers and now people are afraid that the atlaser trend is fading there will have been some negative stories around and stock price suffered. However the fundamental is still there let's dig into it. The problem is that analysts look only what happens in the short term and what happens in the US. However Nike is an international company less and less dependent on the US. If we look here Jeffries warned that there will be a disaster for Nike because the Edidas brand is rising so threatening Nike and there is less buzz about the near term pipeline. However the secular industry tailwinds still exist so what will happen what will improve in the long term so more than two quarters will be very very positive and they lowered the price target from 75 to 60 usually after lowering there will be improvements so a good time to buy. Let's now compare Nike's revenues with food lockers. Food locker sales dropped 6% okay but Nike's revenues were up 5% diluted earnings per share increased 22% whole 2017 revenues were up 6% and diluted earnings per share increased 16% inventories just up 4% even with revenue increasing 6% so Nike is just selling shoes elsewhere people are not buying in food locker but they are still buying shoes through different channels. Nike doesn't care where they sell their shoes if they say sell online with higher margins better than sell to true food locker so interesting short-term developments however trend is still there. In addition food locker has 1 billion dollars in cash they are still positive they are still operating they will still continue to buy Nike shoes so no threat there. Another piece of negative news is John Zolidis telling the world that the atleisure trend is down and Nike Lululemon Under Armour are going to be in severe trouble in the next few years. This just came with the last food locker news and the stock price suffered. However if we go back just a month ago to July 20 Morgan Stanley on the other side on the other hand says that Nike has to be upgraded price target goes from 56 to 68 which now implies 24% upside and of course North America sales will be stable however new products international business which represents 53% of sales remains very very strong. So if you look at the long term for Nike very positive but just the last months has been a sequence of negative news in the fundamentals in the sales nothing has changed the stock price dropped creating and buying opportunity. Let's take a look at the financials in the last 10 years Nike almost doubled revenue and the lower shares by about 15% so the earnings are divided through less shares thanks to buybacks the buybacks are continuing now the company expects to hit 50 billion in revenue in 2020 they are now at 34 billion if they grow two three billion per year in the next three years they will come to 40 45 billion that's not enough to reach 50 billion but who cares about the 50 billion you always have to shoot for the sun and then you'll hit the moon if you shoot them for the neighbors fence you'll hit the neighbors fence very probably so even if it's 45 billion that's 20 higher than now with the margins with the buybacks Nike's earnings per share will probably grow from the current 2.5 dollars to perhaps 3.5 dollars if we touch the same price earnings ratio of now for around 20 3.5 times 20 you are already at 75 which is a nice upside if Nike manages to grow faster then we're already talking much much higher levels but let's focus on the fundamentals and earnings there are positive catalysts for Nike that haven't yet come out those are 3d printing shoes i have been supervising a student that worked for Nike headquarters in the Netherlands for Europe and they have been developing 3d printing souls she didn't give me the measurements of Cristiano Ronaldo's foot but she has them and she they try to make souls 3d printed to make as fast as possible so we can expect disruption in that environment and Nike is investing very heavily in that disruption so we can expect something very positive in the future something will work something won't work but remember Nike is probably the company that's going to make it work further there is the Georgian brand and all other brands that are going to spread out into women's wear child children's wear whatever in order to increase revenue and finally the big plan is to conquer china like they did with europe and the us in the past from a fundamental perspective you can see here which brands are expected to grow how much until 2020 e-commerce especially globally around the world india is developing people are also buying nikes there because Nike has an extremely strong brand if everything develops in the long term i think Nike will hit earnings per share of four five in the next five years definitely with growth with the developing with more people entering the middle class around the world and buying Nike shoes so that's a very positive the brand is very strong everything they do is very planned very big they have a mode let's say because probably you have some nikes in your closet therefore eps of four just put the valuation you think and company growth company like nike that doubles revenues in the last 10 years should have and then you have your target price in the next three five years thanks to the negative news the stock price is lower making it a great buy the second stock i want to discuss is qualcomm now people expect linearity they expect that revenues will grow every quarter at the same pace but that doesn't work like that especially in the technology field where qualcomm operates new mobile phones new technologies there is boom and busts skip this stick to this then it explodes and i think qualcomm is in a negative trend with the lawsuit from apple and all those negative things however the business is very strong the fundamentals are strong the company is profitable and the stock price is much lower than it was which creates another buying opportunity similar situation as with nike strong secular tailwinds trends but negative short-term environment excellent buying opportunity such companies are usually the ones that you say oh why didn't i buy them when they recover with their stock price let's see the stock price you can see here how it was extremely high in 2014 then it dropped then it reached again a level almost 70 now we are at 52 the drop in stock price is due to revenue stalling in the last three four years however in the last 10 years qualcomm has triple bits revenue if you look at dividends they are four times what they have been the number of shares is also declining book value is doubled and earnings per share are also much much higher with the current temporary lower place the expected earnings are i think 4.5 dollars for 2017 and 3.8 for 2018 so you have a very low forward price earnings ratio but that's not it and you have a good dividend which will be discussed later nevertheless there is plenty more for qualcomm qualcomm produces and licenses its production of semiconductors for the mobile industry they have a licensing business 7.7 billion semiconductor business 15.4 billion in revenue their strategy is to be the leader in mobile wireless data transformation and in the automotive industry which is becoming more and more wireless more data more processing especially with the autonomous drive and all the trends that are going to become huge in the next 10 20 years and qualcomm is excellently positioned to take advantage of those trends they are trying to buy nxp semiconductors which is very big in the automotive industry and of course their revenue is expected to increase 50 thanks to the acquisition they're going to pay a lot for it nevertheless the synergies the combination should be very very good and nxp is not losing company that there is a turnaround they're already profitable what are they going to be when they combine a lot of infotainment safety everything that needs technology in a car on top of the mobile side the car development the next thing in the mobile environment and you want to position yourself now for that thing is the 5g technology we want more data i need more data i would love that this video as i'm filming it it's immediately online fast quickly not that i have to upload four hours on youtube because i need more data and that's why we all need it and 5g will be crucial in the development of the world in the next 10 20 years which company is the leader in 5g qualcomm emerging market mega trend china is still at 4g they skipped 3g and now they are going into 5g perhaps not yet but slowly they will definitely go especially when we need to connect all the data we have in order to take advantage of what the technology gives us on the fundamentals side qualcomm has 18 billion dollars in cash that they are going to use that cash in order to buy buy nxp semiconductors so okay they are buying something hopefully valuable especially valuable if you look at the future and the growth they have constantly been increasing the quarterly dividend their dividend yield now is around four percent or even a bit higher so you are buying a company that pays a nice dividend and expected to continue to do so in the future so you have a growth company exposed to big trends with the dividend yield therefore qualcomm if you think a little bit long term take advantage of the short term negativism around the company there are some lawsuits some licensing lawsuits but okay if they lose from apple they lose 1.5 or 1.2 billion that's nothing with the compared to the 18 billion they have on the balance sheet so think about that and think how short term think about the impact and the weight of the short term negative information in the long term automotive 5g trends mobile wireless and what everything was going on in the world so really think about buying qualcomm similar to nike so i'm very excited about this month's video the third company i want to discuss is a h bello it's a newspaper printing newspapers very old business declining negative trend you don't want to buy a newspaper why am i recommending it because i want you to buy the cash on the balance sheet and the building they have which is going to be sold so this is a cigar but according to benjamin graham you are buying you're picking a cigar but from the street but it has one or two puffs left in it that was from 1950s but it's interesting to see how still there are such opportunities i'll shortly discuss the stock so we wrote a seeking alpha article in 2015 about the company the stock price was where it was now then it went up almost to eight and now it declined to 4.7 again this is normal for the company because it takes time to sell the real estate there hasn't been a special dividend since 2014 but now is the time to do that because when they announce a special dividend which will be who knows last time was 2.2 dollars you can get 50% back of on your investment very very quickly what do they have they have the dallas news morning news and they have 80 million in cash or 3.63 dollars per share next they have this building behind me and they have two parking lots and another land lot in dallas which is now for sale they are moving their headquarters everything from the big building and they are transferring to a smaller building because paper printed is that let's say the value of this building and other buildings about 45 million expected plus the cash you are at around 5.68 dollars per share so when they sell it expected sale is about in the next 12 to 18 months there'll be plenty of cash and intention of the company is to pay out that cash to shareholders now there is a little catch there but that depends how you value the printed business printing newspaper and how you value the digital online marketing agencies that they have they have a few businesses the dallas morning news and are then some dallas morning media and other online platforms now those the dallas morning news has some pension liabilities 47 million but if the company could sell that for one dollar that's unlikely perhaps they will get 10 20 millions for the business for the digital side or something like that then that's upside however they will probably sell it for one dollar so what's left is 5.6 dollars of value plus that's the margin of safety plus there is always potential that they get more so if they get 20 40 40 billion that's one two dollars more from that so if you buy a h bello now you pay 4.7 for something that has the minimum value of 5.6 with potential to go to 7 to 8 that's called net net cigar butt investment idea i hope you like the free stocks to buy now very interesting companies really good opportunity to take advantage now of course everything can go negatively but that's the stock market be ready to average down because the companies are really really good strong brands strong modes strong technology and strong development expect except for a h bello which is a real estate play thank you for watching consider subscribing if you like the content every month i give three new stocks to buy the most interesting stocks that i find on the stock market click like if you like the content and i'll see you in the next video