Hello Friends! We made it through another week and now we have the weekend before us. Thank goodness for that. Last week I started a new review process...if you have any comments or questions about this or anything else on this BLOG, please email me at bobsadviceforstocks@lycos.com and I will try to respond. As always, please remember that I am an AMATEUR investor and that you should do your own investigation on ALL stocks discussed on this blog and consult with your PROFESSIONAL investment advisor to make sure they are timely, appropriate, and even profitable investment ideas for you!
The first stock "picked" that week was selected for Bob's Advice on May 19, 2003, at the price of $15.77. BDY closed on 5/21/04 at $22.52 for a gain of $6.75 or 42.8%.On April 29, 2004, BDY announced 1st quarter 2004 results. For the quarter ended March 31, 2004, net sales totaled $25.1 million, a 68% increase over the $14.9 million reported the prior year. Net income for the first quarter was $6.2 million, up $3.3 million or 117% compared to prior year figures. This company is STILL doing great!
Also on May 19, 2003, I listed Genentech (DNA) on Stock Picks at a price of $53.04, however, DNA split 2:1 on 5/13/04, so our adjusted pick price was actually $26.52. Genentech closed on 5/21/04 at $59.61 for a gain of $33.09 or 124.8%.On April 7, 2004, DNA announced 1st quarter 2004 results. Product sales were $763.7 million in the first quarter, up 28% over the prior year. Operating revenues increased 30% to $975.1 million from $749.7 million in the prior year (clearly there is a difference between operating revenues and product sales!). GAAP earnings per share came in at $.33/share fully diluted vs. $.29/share GAAP earnings the prior year. It does make me a little nervous with all of the "pro forma" and GAAP and non-GAAP numbers on this balance sheet as I am NOT an accountant and do not like seeing all sorts of footnotes...but DNA has done great in the market...and the market liked these numbers!
Home Depot was selected for Stock Picks on 5/20/03 at a price of $31.10. HD closed at $34.47 on 5/21/04 for a gain of $3.37 or 10.8%. How is Home Depot doing now? On May 18, 2004, HD announced 1st quarter 2004 results. Net sales were up 16% to $17.55 billion (topping estimates of $17.12 billion). First quarter net income came in at $1.1 billion or $.49/share compared with $907 million or $.39/share last year. Same store sales (those open at least a year) gained 7.7%, "...the highest first period growth in five years." These were great results!
On May 21, 2003, I selected Synovis Life Technology (SYNO) for Stock Picks at a price of $14.39. SYNO closed on 5/21/04 at $9.54 for a loss of $(4.85) or (33.7)%. Not EVERY stock on this blog makes money!On May 19, 2004, (just a few days ago), SYNO reported 2nd quarter fiscal results. Revenue came in at $13.7 million, DOWN 10% from the prior year's $15.3 million. However, this WAS a 19% sequential improvement from the prior quarter's results. Operating income was $644,000, vs the
$1.9 million the prior year. Net income came in at $483,000, or $.04/diluted share, vs. $1.2 million or $.12/diluted share the prior year. In addition, SYNO also CUT GUIDANCE for the upcoming year. This is NOT very good results, and this would not be the kind of stock I would be looking for to post on this website!
Enzo Biochem (ENZ) was posted on Bob's Advice on 5/22/03 at a price of $20.40. ENZ closed on 5/21/04 at $12.76 for a loss of $(7.64) or (37.5)%. On March 16, 2004, ENZ reported 2nd quarter 2004 results. Operating revenue for the second quarter of 2004 came in at $11.0 million, down from $13.1 million the prior year. Gross profit ammounted to $8.1 million, down from $10.4 million last year. Net loss for this quarter came in at $(1.5) million or $(.05)/diluted share compared to net profit the prior year of $1.4 million or $.05/share. These are not what I would call great results!
Over and over we can see for ourselves the relationship between good revenue and earnings news and good price movement. Bad news almost inevitably results in poor price performance!
I posted Dicks Sporting Goods (DKS) on Stock Picks at $29.75/share on 5/22/03. DKS split 2:1 in 4/04 making our effective stock pick price $14.88. DKS closed on 5/21/04 at $25.35 for a gain of $10.47 or 70.4%.On May 18, 2004, DKS reported 1st quarter 2004 results. Total sales for the quarter increased 20% to $364.2 million, with comparable store sales up by 4.6%. Net income zoomed 64% to $10.9 million and earnings per share increased 50% to $.21/diluted share from net income of $6.7 million or $.14/diluted share for the quarter ended May 3, 2003. The street was not so excited about DKS' statement on the upcoming quarter when they forecast same store sales growth in the range of 2-3%. We can see the importance of same store sales growth numbers in both the stock price performance and the actual financial performance of any retail company!
On May 22, 2003, I posted New Century Financial (NCEN) on Stock Picks at a price of $47.02. NCEN had a 3:2 split on 7/14/03 making our effective selection price $31.35. NCEN closed on 5/21/04 at $41.35 for a gain of $10.00 or 31.9%.
On 4/22/04, NCEN announced 1st quarter 2004 results: total revenues came in at $361 million, up from $181 millionlast year. Diluted earnings per share came in at $2.03 up from $1.23/share last year. These are great results for the quarter ended 3/31/04.
I selected NVR (NVR) for Stock Picks Bob's Advice on 5/23/03 at a price of $394.86. NVR closed on 5/21/04 at $434.50 for a gain of $39.64 or 10%.
On April 16, 2004, NVR announced 1st quarter 2004 results. Total revenues increased 18% to $879 million compared to $744 million in 2003 same quarter. Net income came in at $100.6 million compared to $87.8 million the prior year, and diluted earnings per share increased 25% from $10.10 last year to $12.58 this latest quarter. These were great results.
o.k. HANG IN THERE I AM AT THE LAST ONE!
Red Robin Gourmet Burgers (RRGB) was selected for Stock Picks Bob's Advice on 5/23/03 at a price of $17.00. RRGB closed on 5/21/04 at $27.29 for a gain of $10.29 or 60.5%.So is RRGB still selling burgers? Well on 5/20/04 Red Robin announced 1st quarter results. For the quarter ended 4/18/04, total company revenues increased 25.7% to $116.7 million, company-owned comparable store sales increased 8.4%, income from operations jumped 40.8% to $8.6 million, and diluted earnings per share increased 36.8% to $.32. These are very nice results in my opinion.
In SUMMARY, of these nine stocks selected the week of May 19, 2003, a year later seven were sporting gains ranging from 10.0% (NVR) to 124.8% (DNA); two stocks were losing money: SYNO (33.7)%, and ENZ (37.5)%. The average performance for these nine issues was a gain of 31.1%. Now that isn't too bad a performance considering even the week three months of this year!
Thanks so much for stopping by! Remember that past performance is NO guarantee of future performance. Of these stocks I currently have no shares of any of these issues. My children do own some shares of Home Depot. If you have any questions, comments or words of encouragement, AS ALWAYS, please feel free to email me at bobsadviceforstocks@lycos.com
Have a GREAT weekend everyone!
Bob