Using the demo-generator: shares with advice (+ or -) and BP

For the next posts and graphs, to be presented during the upcoming weeks, we will go with some positive and negative advices to be found on the Internet. I prepared a couple and will present the most relevant financial values from their annual reports in AnRep3D graphs. mentions some high yield stocks to avoid and among them are: BP, GSK, AstraZeneca, Ericsson and Telefónica. We will use their 2016 annual reports. presents the worst stocks to invest for 2017: US Steel, AK steel, Wells Fargo, Amazon and Facebook will be reviewed but Tesla Motors was already in one of the earlier blogposts. Of course we don’t know about 2017 yet, but we can go for 2016. The first half of 2017 would be an option, but with only half a year of profit it’s not a fair comparison. Talks about shares being the best for the first half of 2017. Too late to be bought now, but let’s have a look at their AnRep3D properties: G4S  and Rolls Royce are two examples. Easyjet was, like Tesla, covered for in an earlier presentation.

Some other option are the risky stocks: Alibaba, Bluebird Bio and Elbit Systems were presented in this article.

This time we will have a look at BP. The annual report 2016 says (but you should check yourself!): Total revenue $ 186,606 MM, Net profit $ 172 MM (before taxation a loss of  $ -2,295 MM), Equity $ 96,843 MM and Total assets $ 263,316 MM

In the parameter- and only input-line for the demo-generator I wrote:

1, 1, 5, 20, 4

BP, 2016, 186.6, 0.172, 96.8, 263.2

By the way: the fourth value in the parameter-line (first line) is meaningless. It says 20% extra space between the “buildings” should be added, but there is only one in the demo-generator. By keeping this position the structure of the input-file for the demo-version remains equal to the structure of the real generator and an input-file for the real generator can be used for the demo. But only the first data-line (second line) will be interpreted as the others are ignored in the demo-generator.

We can compare the graph with Shell – a company in the same (energy) business, but we cannot tell which company is larger and even not which of them earns more money as the two graphs are stand-alone so size of the “buildings” cannot be compared. Yet from the shape we can tell BP has a higher gearing as the equity is smaller in comparison to the total assets. We can also see that BP generates more revenue compared to its equity than Shell does, but then with BP the profit is rather thin (literally, in the graph).

BP 2016

Shell 2016 BP comp

Clicking on the image will start the real 3D graph in your default browser (both Javascript and WebGL should be enabled). If you don’t trust the connection, download the .htm file first, using right-click. Have a look at the file and start it locally by double clicking it in Windows Explorer.
The 3D-graphs can be manipulated in real-time: clicking left and moving the mouse will tilt the graph in different directions (or move the observer’s viewpoint around a fixed graph – it’s relative of course). Double clicking in the graph translates it and moves the centre at the same time. As a result the way the graph tilts will change. Just try it. If you don’t know how to get the normal position back, just refresh the graph.

Of course there is no obligation to choose the net profit (as we could replace other values as well). Taking the profit before taxation would show a very different graph for BP, but then we should create an alternative set of the other (reference-) graphs as well because we should not compare apples and oranges. If you like, try it yourself as it is easy.

This was only one company again, but the other links provide a lot of companies for us to look at in the near future. Of course you can have a look for those annual reports already and enter the relevant values (Revenue, Profit, Equity and Total Assets) in the free 3D-graph generator package. Then you will even see the graphs before we do. Good luck!

About AnRep3D

AnRep3D is the new company, founded after the handover of Scientassist (together with VRBI) to one of my sons. From now I will focus on three-dimensional graphs for the financial markets, showing the main figures from annual reports in comparison. As per 2021 a second product is available: EnRep3D. It is meant to visualise energy. Although the engine is the same, the texts, manual, website and examples (including blogposts) are focused at energy.
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