Month: February 2018

Mutual funds can increase returns by buying high risk investments, which have high returns.

For example, a mutual fund may expect to get higher than normal returns by investing in FANG stocks (Facebook, Amazon, Netflix, and Google).  The fund managers are chasing high returns.

This strategy can work well as long as the high risk stocks are giving high returns.    The problem with the strategy is if the stock market or high risk stocks take a large hit, reduction in price.  At this point, the mutual fund return can quickly become negative.

Therefore, at this point in the stock market cycle, investors should make sure to adequately diversify their portfolio, and review the stock portfolio which are in any mutual funds which they own.  A mutual funds is only as good and safe as its underlying investments.

If you have lost money from investing, and need assistance with securities arbitration, please feel free to contact

Attorney Robert M. Singer
2572 Whitney Avenue, Hamden, CT 06518
203-248-8278
rsingerct@yahoo.com

Drugged driving can be from both illegal and prescription drugs.

According to the 2016 National Survey on Drug Use and Health (NSDUH), 20.7 million people 16 and older drove under the influence of alcohol in the last year and 11.8 million drove under the influence of illicit drugs.

Not surprisingly, marijuana is the drug most often found in the blood of drivers involved in motor vehicle accidents.   Tests are available to determine the level of THC in a driver’s blood.  Unfortunately, in many cases, drivers used not only marijuana but also alcohol or other drugs.

In addition, drivers sometimes used prescription drugs before driving.   Commonly, the drug used is a pain reliever.  Unfortunately, there is many people in the U.S. with opioid problems.   Therefore, until the opioid epidemic is under control, we can expect to see more accidents related to pain killers.

 

If you or someone you know has been injured because of an accident from a driver who was high on drugs, please feel free to contact

Attorney Robert M. Singer
2572 Whitney Avenue, Hamden, CT 06518
203-248-8278
rsingerct@yahoo.com

 

 

Netflix has had a long, upward ride, in its stock price.

In 2008, Netflix’s stock  could be purchased for under $4.  In May of 2010, a share of stock could be purchased for $14 per share.  In 2012, the share price went down to under $12.  The share price is now $252, on 2/2/2018.   On 8/29/2017, the share price was $165, for a gain of almost $90 in approximately 7 months.   This is nothing less than incredible.

The price-earning ratio is now almost 100 (92.74).  I looked at an estimate of the 5 year earnings growth rate of Netflix, which is 26.67%.   Watch out for any miss on the earnings growth.

We have past data, for the years ending 12/31/2014 to 12/31/2017.  In that period, revenue went from approximately $5.5 billion to $11.7 billion, approximately double.  Net Income increased from $226.8 million to $559 million.

The risk with Netflix stock is if earnings growth is not as expected, the stock returns to a normal price-earnings ratio.  The industry average price-earnings ratio is under 12.

If you have lost money from investing, and need assistance with securities arbitration, please feel free to contact

Attorney Robert M. Singer
2572 Whitney Avenue, Hamden, CT 06518
203-248-8278
rsingerct@yahoo.com

 

The stock performance of Amazon stock is nothing less than amazing.   From a price of under $2 in 1997, the stock is now valued at $1,339.60.

However the road to this price was not always up.  In March of 1999, Amazon’s stock price was in the $80 range.  In November of 2008, the stock sold in the $50 range.

The stock price has really exploded since 2010.    What is amazing is the price gain.   Amazon stock now sells for over 200 times earnings (p/e ratio).

One of two things have to happen with Amazon stock – either the stock price has to drop, to get to a normal price earnings ratio, or there needs to be a rapid increase in net income, so that the price earnings ratio reaches a sane level.  Interestingly, in 2008, amazons p/e ratio was 34.8.  If Amazon’s stock goes back down to a p/e of 40, the stock’s value is $328.

I use Amazon and like Amazon.  However, everyone already knows about Amazon, so it is difficult to see how Amazon can increase its customer base.   I don’t know anyone who has told me that they are going to increase his or her purchases from Amazon (so that revenue at Amazon will increase sharply).

Mr. Bezos may know this.   In August of 2016, Mr. Bezos sold a large number of Amazon shares, apparently to diversity his own portfolio.

Many companies who cannot grow internally, try to grow by buying other companies.   In 2017, Amazon purchased Whole Foods.   This places it in direct competition with Walmart.

Recently, there is talk that Amazon will be offering a delivery service to business, in competition with UPS, FedEx and USPS.   Peter Lynch had a word for this – diworsification, expanding into areas which a business has no expertise.

Watch out for a big drop in Amazon stock.    Even if there is a reduction in big box stores, such as Macys, there is no guarantee that Amazon will get all of the lost business from big retail.

 

If you have lost money from investing, and need assistance with securities arbitration, please feel free to contact

Attorney Robert M. Singer

2572 Whitney Avenue, Hamden, CT 06518

203-248-8278

rsingerct@yahoo.com

 

 

 

 

General Statutes § 17b–265 (a),1 provides in relevant part that the

Department of Social Services (department) “shall be subrogated to any

right of recovery ․ that an applicant or recipient of medical assistance ․ has

against an insurer or other legally liable third party ․ that is ․ legally

responsible for payment of a claim for a health care item or service,”

authorizes the department or its designated assignee to seek

reimbursement from a Medicaid recipient for medical costs that the

recipient has recovered from a liable third party.

 

The department has the right to be subrogated to any right of recovery that

the Medicaid [recipient] may have against a third party. Relying on § 17b-

265 (b), which provides that the department may assign its right to

subrogation to a designee or health care provider participating in the

Medicaid program, the court concluded that the department properly

assigned its statutory rights to [Health Net]. § 17b–265 permitted [Health

Net/assignee] to bring an action against the plaintiffs (Medicaid recipient)

to recover its collateral source payments. Rathbun v. Health Net of the

Northeast, Inc., 304 Conn. 905, 38 A.3d 1201 (2012)

 

Under Connecticut law, [Health Net], as the assignee of the department,

was not required to bring a separate action against [a third-party]

tortfeasor to recover the medical expenses expended on behalf of the

Medicaid [recipient]. Further, the court found that [Health Net’s right to]

reimbursement was limited to the amount of Medicaid funds expended by

[Health Net] and identified as part of any settlement or judgment.”

(Footnote altered.) Rathbun v. Health Net of the Northeast, Inc., supra, 133

Conn. App. at 204-207, 35 A.3d 320.

 

If you have any questions concerning state subrogation rights, regarding a personal injury claim, please feel free to contact

Attorney Robert M. Singer

2572 Whitney Avenue

Hamden, CT  06518

203-248-8278

rsingerct@yahoo.com