Back in early February, food firm Ralcorp (NYSE:RAH) spun off its cereal business into a new publicly-traded company. Post Holdings (NYSE:POST) now houses the namesake cereal brands and other familiar names including Pebbles, Grape-Nuts and Honeycomb. Post is just getting going on its own, but could be an interesting investing story as spinoffs generally have a solid performance track record.
May
08
Posted on 08-05-2012
Filed Under (Uncategorized) by ryan
When it comes to financial markets, investors can be sure of three things: that markets will rise, fall and at times remain the same. Everything else is essentially up to chance, though investors can employ a mix of strategies to attempt to prudently navigate the ups and downs in the markets. When it comes to investing in fixed income or bond markets, portfolios can sustain quite a bit of damage when interest rates are rising. They can even lose if expectations are that interest rates will increase in the future.
May
02
Pharmaceutical giant Eli Lilly (NYSE:LLY) reported decent first quarter results late in April 2012. Sales and earnings both fell, but investors have come to expect operational declines at Lilly and most of its key rivals. The above-average dividend yields have been the saving grace, and could be relied on for some time, until new drugs starting boosting industry prospects again.
May
02
Caterpillar reported solid first quarter results in late April 2012. Its operations remain a global bellwether for overall construction and industrial activity, and are quite reasonably valued right now.
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May
02
Posted on 02-05-2012
Filed Under (Uncategorized) by ryan
Defense giant Lockheed Martin (NYSE:LMT) kicked off its first quarter with decent sales growth, but stellar profit growth. The magnitude of the bottom-line improvement isn’t likely to be repeated steadily going forward, but the company should have no problem logging solid returns for shareholders going forward.
May
02
Specialty chemicals firm NewMarket (NYSE:NEU) reported another solid quarter of sales growth late in April 2012. Profit growth was above 30%, in line with the company’s trends over the past half-decade. These growth levels aren’t likely sustainable, but there is still appeal to considering investing in the stock.
May
02
May
02
Ball Corp (NYSE:BLL) makes cans, bottles and related metal containers for the beverage, food and personal care industries. This stable underlying demand has allowed Ball to grow steadily for more than a decade, and growth in emerging markets should allow it to continue to post visible, consistent growth going forward.
May
02
Apr
27
April 27, 2012 | Filed Under » Stock Analysis
Direct-selling firm Tupperware (NYSE:TUP) reported anemic sales growth during its first quarter, but a very solid earnings increase. Its business model of going direct to consumers continues to have huge potential in emerging markets. It also believes the developed countries will increasingly embrace its direct focus.
Apr
27
April 27, 2012 | Filed Under » Stock Analysis
Casual footwear provider Crocs (NYSE:CROX) reported first quarter results on Thursday and provided another indication that its namesake shoes and related accessories are more than a passing fad. The stock is also reasonably valued on and earning basis, and leaves room for upside surprises going forward.
Apr
26
April 26, 2012 | Filed Under » Stock Analysis, Stocks
For-profit educator DeVry (NYSE:DV) operates some nursing and healthcare education programs that are seeing steady trends, as enrollment at its more general schools experiences falling numbers. Brazil is also growing nicely, but the stock is unlikely to move much until domestic trends turn positive.
Apr
26
Medical device and technologies product provider C.R. Bard (NYSE:BCR) has posted steady, albeit modest growth trends over the last decade or so. Its founding goes back more than a century and provides sales and profit stability with a certain amount of downside protection. However, the richer valuation could handicap future upside potential.
Apr
26
April 26, 2012 | Filed Under » Stock Analysis, Stocks
Financial services and educational publishing firm McGraw-Hill (NYSE:MHP) finally decided to split its operations into two separately-traded public companies. The move was announced late last year. The market has awarded the stock with strong performance and calls into question how each new stock might trade once the split occurs.
Apr
25
Southeast regional bank SunTrust (NYSE:STI) reported an impressive rise in its first quarter earnings on April 23, 2012. There is likely further room for profit improvements, but the firm is not a very appealing operator in the industry.
Apr
25
Cleaning product firm Zep (NYSE:ZEP) continues to see tepid demand from its core customer base, but is laying the groundwork for what could be solid and sustainable growth going forward. The stock is trending back towards its low levels over the past year, which has put the valuation in more reasonable territory.
Apr
25
Posted on 25-04-2012
Filed Under (Uncategorized) by ryan
Constellation Brands (NYSE:STZ) (NYSE:STZ-B) recently closed out its fiscal year by reporting plummeting sales and a slight drop in profits. This masks a corporate reimaging program that has now left a number of higher-end wine and alcohol brands, as well as a very appealing joint venture with Mexican beer giant Grupo Model. With just a minimal level of growth going forward, the stock could move upward.
Apr
25
April 25, 2012 | Filed Under » Stock Analysis, Stocks
In recent years, Xerox (NYSE:XRX), traditionally known as a purveyor of copiers, printers and other related services, has been aggressively expanding its business process outsourcing activities. Given the growth that rivals have found in the space, Xerox appears to be on the right track. But for this year, trends look anemic.
Apr
24
The vast majority of investing consists of buying, or going long on a security with the intention of seeing it rise in price, after which it can be sold for a profit. A more specialized strategy is to do just the opposite, or sell a security “short” with the intent to have it fall in price so that it can be bought back later at a lower price.
Apr
24
Fast-food giant McDonald’s (NYSE:MCD) kicked off its first quarter in fine fashion. Sales and profits grew steadily, which has been the norm at the company for some time now. These consistent trends should continue indefinitely, and though the valuation isn’t compelling, the mix of predictability, growth, and income potential should appeal to investors.
Apr
24
Apr
24
Industrial conglomerate Honeywell (NYSE:HON) kicked off its first quarter in 2012 and reported steady sales and profit growth. Its operations have spent a few years in recovery mode, but it appears they are set for a sustained period of respectable top line expansion that management should be able to leverage into double-digit annual profit growth. Combined with a reasonable valuation, the stock is worth a close look.
Apr
24
Industrial conglomerate and financial services powerhouse General Electric (NYSE:GE) reported first quarter results on April 20, 2012 that consisted of many moving parts. On a reported basis, sales and profits fell, but by management’s estimations of its core operations, the trends were firmly in the double digits. The key consideration for investors is what GE’s growth will look like in future years, and given its size, it could prove difficult to move the needle on its top line.
Apr
24
Basic materials giant DuPont (NYSE:DD) reported first quarter results in mid-April 2012, that sales rose in the double digits but profits grew much more modestly. In the coming few years, the company plans to leverage similarly strong sales into even stronger profit growth. Combined with the reasonable valuation and solid dividend, investors should take note.
Apr
24
LabCorp (NYSE:LH), along with a main rival, control a high percentage of the domestic lab testing market. One would think this dominance would translate into solid growth potential, but challenging industry conditions could keep overall growth constrained going forward.
Apr
23
April 23, 2012 | Filed Under » Investing Basics, Investment, Portfolio Management
A figurative sacred cow usually refers to an individual, organization, institution or any other entity that is exempt from being criticized or questioned. A belief also qualifies in this category. In investing, a number of sacred cow conceptions exist, but they should be questioned as they qualify as misconceptions that could end up costing investors’ money. Below are five misconceptions in the industry today.
Apr
23
Medical device firm Stryker (NYSE:SYK) reported first quarter results earlier on the week that proved its underlying businesses remain sound and steady. It isn’t growing like it used to, but its stock has been unduly punished for the more modest trends.
Apr
23
It wasn’t that long ago that diversified healthcare giant Johnson & Johnson (NYSE:JNJ) could be relied on for double-digit sales and earnings growth. Patent expirations in its drug portfolio and a steady stream of product recalls have resulted in stagnant trends for roughly five years now. There is potential for a turnaround, but right now investors are favoring companies that are breaking into separate companies.
Apr
20
U.S. Bancorp (NYSE:USB), which qualifies as a super-regional bank in the United States, reported impressive first quarter results earlier in the week. Its shareholder returns and recovery from the depths of the credit crisis should serve as an example to investors and other financial institutions. Going forward, there is also room for further improvement in shareholder returns.
Apr
20
Global money center bank Citigroup (NYSE:C) started off the week on the right foot by reporting profits ahead of market expectations. It is still behind rivals in recovering from the credit crisis, but holds a collection of international assets that deserve more value than the market is currently awarding them.
Apr
13
Posted on 13-04-2012
Filed Under (Uncategorized) by ryan
By Ryan FuhrmannPublished 04/13/2012 – 11:30
The world economy [1] may be struggling to recover from the depths of the Great Recession [2], but there are still pockets of the market [3] that are seeing explosive growth. Demand for electronic gadgets held up amazingly well during the credit crisis, which suggests consumers consider their smartphone or tablet computer necessities along with food and shelter. In fact, the housing bust demonstrated that shelter isn’t worth all that much these days.
Apr
12
For many investors, buying a stock is much easier than deciding when to sell it. Buy recommendations are prevalent and stem from a wide variety of sources, including investment newsletters, analysts, stockbrokers and investment managers. However, few offer much advice on when it is best to sell a stock. Here are five tips on when it might be time to sell.
Apr
11
For investors, finding a stock to buy can be some of the most fun and rewarding activities. It can also be quite lucrative, provided he or she ends up buying a stock that increases in price. Below are five tips to help you identify stocks that have a good chance at making you money.
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Apr
09
Posted on 09-04-2012
Filed Under (Uncategorized) by ryan
For the most part, financial market participants have few qualms about the markets when prices are rising. This is because most investors are long in the market and make money when market levels increase. Commodity markets are a bit more complicated because although rising prices means greater profits for the underlying owners of those commodities, for many companies and underlying customers, it means costs have grown more expensive.
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Apr
06
Electronic payment processor Global Payments (NYSE:GPN) reported solid third-quarter results on Monday, but the company had its financial results overshadowed by a rather large breach of its processing systems in which up to 1.5 million consumer cards may have had their data compromised. Despite the severity of the unauthorized access, the matter looks to be a short-term blip in an otherwise stellar growth track record. Read the rest of this entry »
Apr
03
April 03, 2012 | Filed Under » Stock Analysis
Back in 2008, Cadbury Schweppes spun out Dr. Pepper Snapple (NYSE:DPS) to separate its confectionary business from the slower growing carbonated soft drinks (CSD) operations. Dr. Pepper’s stock has performed well since it became its own company, beating both of its larger rivals and the market as a whole by a fairly wide margin. Its performance confirms that spinoffs can prove lucrative for investors, and there is potential for more decent returns going forward.
Apr
03
Big-box electronic retailing giant Best Buy (NYE:BBY) closes its books on another difficult note on March 30. Its giant retail stores are becoming less relevant in an intensely competitive industry. However, Best Buy is generating impressively high cash flows and is likely to figure out how to stick around for many years to come.
Apr
02
April 02, 2012 | Filed Under » Stock Analysis, Stocks
As unlikely as it may seem, food and beverage giant PepsiCo (NYSE:PEP) has failed to return much to shareholders over the past five years. It pays a decent dividend yield above 3%, but its stock price has been nearly flat over this timeframe. Pepsi recently announced a couple of leadership changes and likely only needs a few tweaks to its business to boost growth a bit, and better compete with its archrival.
Apr
02
Spice and seasoning seller McCormick (NYSE:MKC) kicked off the first quarter of its fiscal year earlier this week. Sales growth was very encouraging and well ahead of historical levels, but profits fell, due to commodity cost pressures. Over the long haul, earnings growth has been firmly in the double digits, but the current valuation assumes many more years of similar growth trends.
Apr
02
Posted on 02-04-2012
Filed Under (Uncategorized) by ryan
April 02, 2012 | Filed Under » Stock Analysis, Stocks
Just prior to the end of 2011, online travel company Expedia (Nasdaq:EXPE) spun off TripAdvisor (Nasdaq:TRIP) into its own publicly traded company. The company recently issued its 10-K filing with the SEC, lending solid insight into its impressive recent trends. For more information, see Save On Planes, Trains And Automobiles.
Mar
30
Cascade Corp (NYSE:CASC) provides lifting materials for industrial lift trucks. Its underlying customer base operates on a global scale and includes many leading operators in the industrial space. As such, its business is a solid barometer on industrial activity across the world. Based on its recent results, many international economies remain on the upswing. Cascade’s own prospects going forward are much less certain.
Mar
30
Chesapeake Energy’s (NYSE:CHK) stated business strategy is to have one of the largest onshore natural gas and liquids resource base in the United States. Chesapeake was founded only in 1989, but already considers itself the second largest producer of natural gas behind Exxon Mobil (NYSE:XOM). The lowest gas prices in a decade are causing a shift in its near-term strategy, and the current uncertainty has masked the value of its exploration and production (E&P) assets. For more, see E&P Operators Drop Natural Gas PUD’s.
Mar
30
March 30, 2012 | Filed Under » Stock Analysis
Apollo Group’s (Nasdaq:APOL) reported second quarter results on Monday that demonstrated it is still working to find its footing, following increased industry scrutiny from regulators. An uptick in enrollment was an encouraging sign, though it could still be some time until total company sales and profits start moving steadily forward again.
Mar
30
March 30, 2012 | Filed Under » Stock Analysis
Mar
30
Posted on 30-03-2012
Filed Under (Uncategorized) by ryan
Angie’s List (Nasdaq:ANGI) helps facilitate the linking up of customers and businesses in local communities. It has a solid reputation for attracting the attention of dependable businesses that are likely to charge a fair price for their services and complete the work on time. The business has been around since 1995, but has grown rapidly during the past few years. Just last week, it issued shares to the public. Unfortunately, the valuation looks out of whack with what the business is currently delivering in terms of profits, or profit potential.
Mar
30
On March 22, email and social media marketer ExactTarget (NYSE:ET) completed its initial public offering (IPO). Since the firms’ founding in 2000, it has grown sales rapidly and is very optimistic about its ability to continue expanding in an overall rapidly growing market. At the current sales multiple, it is going to need substantial growth for the newest batch of public shareholders to make money in the stock. For related reading, see Investing In IPO ETFs.
Mar
30
Posted on 30-03-2012
Filed Under (Uncategorized) by ryan
March 30, 2012 | Filed Under » Stock Analysis, Stocks
New York-based Leucadia National Corp. (NYSE:LUK) operates a conglomeration of businesses across a wide array of industries. Leucadia has drawn comparisons to Berkshire Hathaway (NYSE:BRK.A) (NYSE:BRK.B) for its go-anywhere style, as well as the stellar performance track record it has built over the past three decades. A current share price trading near book value could end up being a solid entry point for prospective investors.
Mar
28
March 28, 2012 | Filed Under » Business, Investment
Apple Inc.’s stock recently hit a number of impressive milestones. The share price rose above $600 per share to reach record highs. Additionally, its market capitalization, or share price multiplied by shares outstanding, reached $500 billion. Not since the dotcom craze has a technology firm reached a market cap of a half trillion dollars.
Mar
28
Posted on 28-03-2012
Filed Under (Uncategorized) by ryan
By Ryan FuhrmannPublished 03/28/2012 – 11:30
Back in the fall of 2010, I touted technology giant International Business Machines (NYSE: IBM [1]) in the belief that its stock was poised to have a strong run. A key part of this bullishness was a bold prediction by its management team that it would double earnings per share (EPS) [2] from $10 to $20 by 2015.
Mar
28
In 2007, automotive giant General Motors (NYSE:GM) announced it was selling its Allison Transmission business to a group of private equity investment shops. In mid-March, these private equity players brought some of their stake in Allison Transmission (NYSE:ALSN) to the public markets. The stock hasn’t moved much during the past couple of weeks, but could if and once the company starts growing consistently.
Mar
28
March 28, 2012 | Filed Under » Stock Analysis, Stocks
Midsize investment banking firm Jefferies Group (NYSE:JEF) has seen its stock nearly double from lows last fall, just as European sovereign debt concerns were reaching a fever pitch. Prospective investors in Jefferies might want to hold out hope for a future wave of irrational market pessimism, because the stock looks to have returned to fair value. For related reading, see Wanna Be A Bigwig? Try Investment Banking.
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2012-05-18 16:02
