Facebook Inc.

Company: FB (NASDAQ) – Facebook Inc. 

Overview: Recently, offering their stock on public markets, it is safe to say that Facebook Inc. has experienced some rough patches. The stock price has decreased around 44% since the company IPO’d on May 18, 2012 and now sits around $21. With the lockup restrictions being lifted, it will be interesting to watch the stock price as markets re-open on Monday morning.

Current Share Price: $21.18 (November 3rd)

While the stock price has significantly decreased, the future looks optimistic for those looking to invest in this social network at a lower price. With the successful mobile platform and huge advertising potential for developers, Facebook Inc. is definitely worth another glance when deciding on a future portfolio investment.

1. Lockup Restrictions Lifted: As these restrictions begin to expire, Facebook executives are quick to sell their shares of the company. Sheryl Sandberg, Chief Operating Officer, sold more than 350 000 shares worth $7.44 million on Friday. In addition, the company’s General Counsel and Chief Accounting Officer also sold over 400 000 shares combined. This piece of news worries investors especially since none of these insiders previously indicated that they would be selling their shares of the company. Repercussions of these actions are ultimately expected to have a negative impact on the stock price on Monday morning. Check out this article for more details!

http://online.wsj.com/article/SB10001424052970204846304578095364077160402.html

2. Low Stock Price:Like mentioned earlier, it is more than likely that the stock price will further drop due to recent turbulence with insider share holdings. This is a great opportunity for investors to invest in the company on a low and the stock price will increase in the future when developers are granted access to advertise their applications on the social network.

3. Facebook Mobile: This social network is without a doubt, leading the pact when it comes to mobile advertising. As smartphones are becoming a way of life, developers are now, more than ever, interested in marketing their applications via Facebook. With smartphone makers creating larger screens for more advertising space, it is only a matter of time before Facebook Inc. becomes one of the most sought-after platforms of online marketing.

With Facebook’s top executives being skeptical about the company’s future and selling their shares, this raises questions to the average investor about loaning their money to the social network giant. However, the company’s CEO, Mark Zuckerberg continues to be optimistic about the future and chose not to sell any shares when the lockup restrictions were lifted at the end of October. If investors have holdings now, it is recommended they sell at market open to minimize short-term losses and later repurchase to take advantage of the low stock price and future advertising potential.

Decision: Sell Monday, Buy later this week.

Coca-Cola Company

Company: KO (NASDAQ) – Coca-Cola Company 

Overview: Started in 1886 and headquartered in Atlanta, Georgia, this beverage giant is hard to miss when its being offered to you at every vending machine, restaurant and grocery store. With a brand selection of over 500 products and a brand name worth billions, Coca-Cola Company is more than just a red label on a green glass bottle.

Current Share Price: $38.34 (October 2nd)

Steady growth, multiple stock splits and decent dividend yields hardly go unnoticed by long-term investors. Currently trading at $38/share because of a recent stock split on August 13, investors have their eye on this stock.

1. Most Valuable Brand: Whether you live in metropolitan New York City or a suburb in India, speak English or Swedish, were born in the 19th or 21st century, chances are that you have seen the famous green glass bottle. While it did take over a century for the company to evolve, Coca-Cola’s mammoth market cap currently sits around $77B. Over the years Coke has been able to provide investors with stable gains without much volatility.

2. Product Umbrella: Over 500. Yes, Coca-Cola Company owns or licenses over 500 non-alcoholic beverages. When a company offers such a large variety of products, it caters to a rather large audience and ultimately diversifies its sources of revenue. If you have any idea about managing a portfolio, the number one rule is: diversification. This diversification can be directly linked to the reason why Coca-Cola has been so profitable despite tough economic times.

3. Worldwide Advertising: The international framework of Coca-Cola’s advertising has allowed them to tap into emerging markets. Growth continues to be generated from these developing nations and the Chinese and Indian markets represent major opportunities for Coca-Cola to further expand.

While Coca-Cola Company is not the stock to invest in if you are looking for a quick return, you should definitely consider it if you are looking for a long-term, low risk, investment. With multiple stock splits in its history, Coca-Cola makes its stock available to investors with portfolios of all shapes and sizes. The great brand name, huge product umbrella and  2.7% dividend yield are all great reasons for valuing Coca-Cola as more than simply a green glass bottle.

Decision: Buy for long-term growth.

Avon Products Inc.

Company: AVP (NYSE) – Avon Products Inc.

Overview: Avon, the world’s largest direct seller of beauty products, targets women in over 100 countries through over 6 million active independent Avon Sales Representatives.

Current Share Price: $15.93 (October 2nd)

Legal problems and poor financial performance over the past three years has driven the share price of Avon Products Inc. down by over 50%. Currently trading at only $16, shareholders have reason to be optimistic.

1. Legal issues dropped: Two weeks ago, the Securities and Exchange commission had decided to take no further action and drop the bribery allegations against the cosmetic giant.

2. New CEO: Amidst the company’s worst financial standing in mid 2012, the company hired Sheri McCoy, a former Johnson and Johnson executive, as it new CEO. Her plans are to improve Avon’s product lineup, market products more effectively, reward top sellers more, cut costs, and invest in technology. This strategic change may even be enough to bring Avon out of it’s 2-year slump.

3. Recession Proof: With the 2013 North American recession looming, cosmetics companies have little reason to be worried. Make-up is an inferior good, and women will continue to buy beauty products during a recession. Plain and Simple. Women WANT to look good. According to several sources including the New York Times, women even buy more beauty products in tough economic times.

Expect Avon’s share price to stay steady before you see any growth. Reaping the effects of a new CEO can take months for large companies. By putting the legal issues to bed, Avon can now focus on implementing it’s new strategy designed for stable growth.

Decision: Buy for long-term growth.