Stock Picks Bob's Advice
Tuesday, 11 May 2004
"Happy Birthday Stock Picks Bobs Advice"
Hello Friends! It is hard to believe it but tomorrow marks ONE YEAR of blogging for me! If you have any birthday greeting, comments, or words of encouragement, please email me at firstname.lastname@example.org and I will share them with the rest of the blognerhood. (Is that a WORD???). Anyhow, Again THANKS for stopping by and I look forward to another year of blogging and posting out here in cyberspace!
May 11, 2004 Rayovac (ROV)
Hello Friends! As always, I am greatly appreciative of your visit here today. Remember to always do your own investigation of any stock discussed on this website and please consult with your investment advisors to determine whether investments are appropriate and timely for you!
Rayovac (ROV) made the lists today for one of the top performers on the NYSE. This stock is not a "perfect" fit on this blog, but I like it better than most of the others on the gainers list today. ROV closed today at $27.20, up $2.10 or 8.37% on the day in a market that rebounded from the past week's correction. According to Yahoo, Rayovac "...is a global branded consumer products company with market positions in two product categories: consumer batteries and electric personal care products."
On April 22, 2004, Rayovac announced 2nd quarter 2004 results
. Second quarter net sales were $278 million, up from $202.3 million the prior year. Sales were positively impacted by the
acquisition of the Remington acquisition. Net income for the quarter ended March 28, 2004, came in at $2.6 million compared to $300,000 the prior year. (Pro forma net income came in at $6.7 million vs. last year's $4.5 million). Pro format earnings per share came in at $.19/share, a 36% increase over $.14/share the prior year. This is a more accurate result than the reported eps of $.08/share vs $.01/share the prior year. Pro forma, as I understand it, takes into consideration acquisitions in comparing results to give a more realistic review of the results. In either case, earnings and revenue were up nicely!
If we look at a "5-Yr Restated" financials
from Morningstar.com, we can see what appears to be fairly flat revenue performance between 1999 and 2002, and then substantial growth in revenue in 2003 and in the trailing twelve months.
Earnings/share have also been erratic but have improved nicely the last 18-24 months. Free cash flow, per Morningstar, was $(2) million in 2001, improved to $51 million in 2002, $50 million in 2003, and $73 million in the trailing twelve months.
The balance sheet shows $25.6 million in cash and $609.7 million in other current assets, enough to easily cover the $392.4 million in current liabilities and to pay off some of the $917.3 million in long-term liabilities.
Looking at "Key Statistics"
from Yahoo.com, we can see that the company is a "mid-cap" corporation with a market cap of $926.89 million. The trailing p/e is nice at 22.30, but the forward p/e (fye 30-Sep-05) is even nicer at 12.95. The PEG is beautiful at 1.06, with a price/sales VERY reasonable at 0.72.
There are 34.08 million shares outstanding with 29.60 million of them that float. Interestingly, there are 2.64 million shares out short as of 4/7/04, representing 8.93% of the float or 5.723 trading days. This is a large short balance, in my opinion, whenever the days short exceeds 3 or 4. We may be witnessing a bit of a short "squeeze" in here!
Yahoo reports NO cash dividend and no recent stock split.
If we take a look at a "Point and Figure" chart from ROV:
, it appears that the stock price which has been heading "sideways" or lower since mid-2000, broke through a resistance level on an upwards move in June, 2003, at a bout $14 and has been heading higher since! It looks nice to me imho.
What do I think? I kind of like this battery and shaver company. I do not own any shares or options, but IF I were in the market to buy some shares, this one might be on my short list. The recent growth in revenues and earnings demonstrates the capability of this management team to integrate acquisitions in a positive fashion (I believe that the term used is that the acquisitions have been "accretive" to earnings!). I like the PEG at just over 1.0. The Price/sales UNDER 1.0 is nice. And the large short interest is an interesting plus. I only wish they paid a dividend (LOL) or that their revenue growth record was a bit longer than just the past couple of years.
Thanks again for stopping by! If you have any comments, questions, or words of encouragement, please feel free to email me at email@example.com
Monday, 10 May 2004
May 10, 2004 Hewitt Associates (HEW)
Hello Friends! O.K. it is another LOUSY day in the market. But what can I say about that? My stocks in my trading account are doing lousy. I had to send over some cash from my savings as the margin was getting a bit borderline and I didn't want a forced sale....that should teach me. But none of our stocks have yet hit a sell point...so I will hang in there. And I am also SORRY about not posting a retrospective review this weekend. Boy am I ever apologizing today!
It is interesting that Hewitt Associates (HEW) made the list earlier today with a gain of $.61 or 2.06% at $30.26 as I write. But the numbers look nice so here goes! According to Yahoo, HEW "...is a global provider of human resources outsourcing and consulting services." I do not own any shares nor do I have any leveraged positions.
On May 4, 2004, HEW announced Second Quarter 2004 results
. For the second quarter ended March 31, 2004, revenue was up 14% to $546.3 million from $478.1 million last year. Net income came in at $30.4 million or $.31/diluted share, vs $23.5 million or $.24/diluted share the prior year, for an increase of 29%.
If we look at the "5-Yr Restated" financials
on Morningstar.com, we can see that revenue has grown steadily from $1.1 billion in 1999 to $2.1 billion in the trailing twelve months. Earnings have increased from $.97/share in 2003 to $1.12 in the trailing twelve months. Free cash flow has been solid, with HEW generating $261 million in 2001, $192 million in 2002, $235 million in 2003, and $211 million in the trailing twelve months.
Looking at the balance sheet on Morningstar.com, HEW reports $250.7 million in cash and $529.8 million in other current assets, easily covering the $455.8 million in current liabilities and making a "dent" in the $454.1 million in long-term liabilities if needed.
How about valuation? Looking at "Key Statistics" from Yahoo
, we can see that the market cap of HEW is $2.98 billion. The trailing p/e is 25.57 with a forward (fy3 30-Sep-05) p/e of 19.73. The PEG isn't too bad at 1.44, and the price/sales is nice at 1.35.
Yahoo reports 98.24 million shares outstanding with 38.40 million of them that float. Currently there are only 192,000 shares out short representing only 0.50% of the float or 1.466 trading days...so this does not appear to be an issue. Yahoo does not show any dividend on this stock, nor any recent stock split.
Looking at a point & figure graph on HEW:
we can see that HEW has been trading recently above its support level but longer-term mostly moving in a rather horizontal fashion (how is that for a 'sophisticated' technical analysis...lol)....moving sideways...but NOT looking overextended to me!
Overall, this is a nice selection in a company that is not overvalued, has steady growth, and reasonable technicals. No dividend though...if that is important!
Thanks so much for stopping by! If you have any questions, comments, or words of encouragement, please feel free to email me at firstname.lastname@example.org
Friday, 7 May 2004
May 7, 2004 Provide Commerce (PRVD)
Hello Friends! Thanks so much for stopping by! I am so glad it is Friday, it is sunny outside, and not too hot. A beautiful day in Wisconsin! I hope you are having nice weather also. As always, I must insist that you do your own investigation on all stocks discussed on this blog before making any decisions, and please discuss this with your investment advisors as I am an amateur investor and cannot be expected to advise you regarding the suitability and profitability of any investment idea!
And THAT was a LOT of exclamation marks!!!
I came across Provide Commerce (PRVD) today while scanning the lists of greatest % gainers on the NASDAQ. I do not own any shares nor do I have any leveraged or option positions. PRVD is currently trading at $20.16, up $1.95 or 10.71% on the day. According to Yahoo, Provide "...operates an e-commerce marketplace for perishable goods that delivers products direct from the supplier to the customer." I guess that includes flowers...and not to remind anyone or anything but guess what is coming up this next Sunday....Mother's Day!...so this is our Mother's Day stock :)
On May 4, 2004, PRVD announced record third quarter 2004 results
. Net sales increased from $28.8 million in the quarter ended March 31, 2003, to $40.7 million in the same quarter this year. Net income, on a fully diluted basis, increased from $.22/share in 2003 to $.30/share this year, same quarter.
If we take a look at the Morningsar.com "5-Yr Restated" financials
we can see a rapid increase in revenue from $3.9 million in 1999 to $88.7 million in 2003. Net income has turned positive from negative and the free cash flow which was $(4) million in 2001, improved to $0 in 2002 and $7 million in 2003, with $6 million reported in the trailing twelve months.
Balance sheet-wise, this company looks fine, in my humble opinion, with $6.5 million in cash and $2.1 million in other current assets with $7.7 million in current liabilities and NO long-term liabilities at all.
Looking at "Key Statistics" from Yahoo
we can see that this is a SMALL cap stock with a market cap of only $228.66 million. The trailing p/e is only 17.20, but the forward p/e is 32.87 (???). That part I just don't follow. As the PEG is only 1.30 and price/sales at 1.87. Probably some kind of error that forward p/e...(?).
Yahoo reports 11.40 million shares outstanding with 4.30 million of them that float. There are only 11,000 shares out short as of 4/7/04, representing 0.5 trading days or just 0.26% of the float...so this is not an issue. No dividend is reported and Yahoo does not report any stock dividend either recently.
Taking a look at a chart:
We really do not have much of a chart to hang our hats on but overall the stock price is appreciating, but currently under a resistance level. Maybe you can get a better take on this one.
What do I think? The stock is interesting to me. The results and rapid revenue growth are impressive, the balance sheet is nice, and the valuation does not seem unreasonable. And it is ALMOST Mother's Day. So Happy Mother's Day all you MOMS out there!
If you have any comments, questions, or words of encouragement, please feel free to email me at email@example.com
Thursday, 6 May 2004
May 6, 2004 Diebold (DBD)
Hello Friends! It is NOT a very pretty day on the street today. For the record, as I write, the DJIA is trading at 10,220.82, down 90.13 points (0.87%), and the NASDAQ is trading at 1,931.76, down 25.50 points (1.30%). Nothing much to write home about I guess unless you are short the market.
Diebold (DBD) is having a nice day today. It is interesting that the latest news on Diebold has been marginal at best in the "media" with stories running about problems with their voting machines in California. However, their business is otherwise doing just fine, and hopefully they will get the bugs out of the electronic machines and still get the business without any lawsuits, etc. This is certainly a potential risk for this firm.
As I am writing, DBD is trading at $46.95, up $1.26 on the day or 2.76%.
On April 20, 2004, Diebold announced first quarter 2004 results
. Revenue grew 21.5% to $498.3 million, diluted earnings per share grew 11.1% to $.40/share compared to $.36/share in the first quarter of 2003.
Taking a look at "5-Yr Restated" financials
on Morningstar.com, we can see that revenues have grown steadily from $1.3 billion in 1999 to $2.1 billion in the trailing twelve months. Earnings, however, have been a bit erratic, with $1.85 reported in 1999, climbing to $1.92 in 2000, dropping to $.93 in 2001 and then climbing steadily since then to $2.40 in the trailing twelve months. DBD has also raised its dividend each year from $.60/share in 1999 to $.68 in the trailing twelve months.
Free cash flow has also been solid, increasing from $86 million in 2001 to $137 million in 2003.
The balance sheet is also very clean with $176.1 million in cash and $929.1 million in other current assets, more than enough to cover both the current liabilities of $618.7 million and the long-term liabilities of $133.6 million.
What about valuation? If we take a look at "Key Statistics"
on Yahoo.com, we can see that DBD has a market cap of $3.42 Billion, a trailing p/e of 19.28 and a forward p/e of 15.44. These numbers are not overly inflated especially in light of latest quarterly results. However, the PEG at 1.74 is under 2.0, but I would prefer to see it closer to 1.00 to say that the stock is cheap. Price/sales also at 1.52 isn't bad but not actually cheap.
Yahoo reports 72.91 million shares outstanding with 71.30 million of them that float. There are 1.65 million shares out short, which is pretty high at 2.31% of the float or 3.233 trading days...as of 4/7/04...and is up from the prior month's level of 1.19 million shares out short. Is suspect that a lot of investors are betting on the voting machine problems becoming a true fiasco!
The company does pay a small dividend of $.74/share yielding 1.62%, and the latest stock split reported on Yahoo was a 3:2 split in February, 1997.
What about technicals? Taking a look at a recent "Point and Figure Chart" on DBD:
we can see that the company is still trading above its support level and unlike some of the stocks we have looked at, really appears not to be over-extended...at least in my humble opinion!
Where does that leave us? I guess the big question on this stock is the voting machine question. However, this is a company that is big in ATM's and likely will benefit from a large voting machine business in the future as the quirks get figured out. Meanwhile, the valuation isn't bad, the earnings are nice, and the company even pays a dividend! I do not own any shares or have any leveraged positions in this issue. As always, please discuss this and all stock market investment ideas with your investment advisors and do your own investigation as I am an amateur investor!
Thanks again for stopping by! If you have any questions, comments, or words of encouragement, please feel free to email me at firstname.lastname@example.org
Thoughts on disciplined trading.
Hello Friends. Yesterday I was in love with IPXL and was thinking about breaking trading rules to buy a little. Today the market is pulling back and BOY AM I GLAD I DIDN'T BUY! I was waiting for the market to TELL ME to buy with a signal of a partial sale on a stock that was doing well....How do you like that? I don't need to go to the blackboard....now if I just could get the stock market to cooperate a little!
Anyhow, will be looking for some new stocks to consider....thanks so much for stopping by!
Wednesday, 5 May 2004
May 5, 2004 Impax Labs (IPXL)
Hello Friends! I am going to TRY to add some images to these posts...let's see how this works! As always, PLEASE remember to do your own investigation of all of these investments discussed on this website as I am an AMATEUR investor! So remember to consult with your own investment advisors prior to making any decisions, to make sure investments discussed are timely and appropriate for you!
I came across Impax Labs (IPXL) this morning. Quite frankly, it is not a perfect fit for this blog, but I suspect if I get TOO picky, we will all miss out on some great companies...let's see how it goes. IPXL is trading currently at $24.95, up $3.95 or 18.81% on the day. According to the Yahoo profile
, IPXL "...is a technology-based specialty pharmaceutical company focused on the development and commercialization of generic and brand name pharmaceuticals, utilizing its controlled-release and other in-house development and formulation expertise."
And guess what? What drove this stock higher was an outstanding earnings report
that was released this morning (5/5/04) before the opening of trading. Check out these numbers: revenue for the first quarter ended March 31, 2004, came in at $38.5 million, up more than 240% from last year's $11.4 million in the same quarter. Now even more impressive, was the point that revenue grew more than 131% from the PRIOR quarter's revenue of $16.8 million! Net income came in at $9.05 million or $.14/diluted share compared to a LOSS of $(3.2) million or $(.07)/share the prior year. These numbers BY THEMSELVES are so interesting I may JUST go buy some shares...if I can find something to sell...hmmmm.
If we check the "5-Yr Restated" financials
on Morningstar, we can see that revenue has grown a bit inconsistently from $1.2 million in 1999 to what Morningstar was reporting at $50.4 million in the trailing twelve months. However, this obviously does not include the current quarter.
Morningstar.com also shows a decreasing loss from $(.73)/share in 1998, to $(.25)/share in the trailing twelve months. This company is JUST turning profitable.
Free cash flow, unfortunately, is also negative but improving with $(34) million in 2001, $(30) million in 2002 and $(22) million in the trailing twelve months.
The balance sheet looks quite adequate, imho, with $22.5 million in cash, $28.7 million in other current liabilities, and $31 million in current liabilities with $27.5 million in long-term liabilities.
Looking at "Key Statistics"
on Yahoo.com, we can see that the Market Cap is at $1.45 billion, the trailing p/e is not meaningful (due to earlier losses) but the forward p/e isn't bad at 21.40, with a PEG (5-yr predicted) downright reasonable at 1.14.
Price/sales is downright expensive however at 20.68.
IPXL has 57.93 million shares outstanding with 36.40 million of them that float. Currently, as of 4/7/04, there were 3.66 million shares out short, which is quite a big number, representing 10.04% of the float or 3.296 trading days. I suspect that today's sharp spike in the price represents a 'squeeze' of the shorts who are scrambling to cover their borrowed shares as the price climbs.
No cash dividend is reported and Yahoo does not report any stock splits either.
How about Technicals? Looking at a
IPXL Point and figure chart, we can see that this stock broke out strongly in mid-March 2003 and has headed higher from the $4.75/share level to its current level.
What do I think? This is an INTRIGUING stock. I do not currently hold any shares or leveraged positions, but would be happy to buy some. I may even check my trading portfolio to see if there is any way to add a few shares! Thanks again for stopping by! If you have any questions, comments, or words of encouragement, please feel free to email me at email@example.com
Monday, 3 May 2004
May 3, 2004 Province Healthcare (PRV)
Hello Friends! Thanks so much for stopping by. As always, remember that I am an amateur investor who writes about stocks...so please do your own investigation of all stocks mentioned on this website and please consult with your investment advisors to make sure that stocks and methods discussed are appropriate and timely for you!
I had a pretty good weekend...hope you did too. It is amazing how the market literally gets into your system and you can feel yourself feeling "down" when the market goes down and "up" when the market soars. Hmmmm....maybe I am taking this too far??
Anyhow, was scanning the lists of market movers this noon, and came across Province Healthcare (PRV). I do not own any shares nor do I have any leveraged positions in this company. PRV, as I write, is trading at $16.80, up $.81 or 5.07% on the day. According to the Yahoo "Profile"
, Province "...owns and operates acute care hospitals located in non-urban markets. The Company owns or leases 20 general acute care hospitals in 13 states with a total of 2,284 licensed beds."
Wednesday, after the close on 4/28/04, Province reported 1st quarter 2004 results
. Revenues from continuing operations increased 9.9% to $204.9 million compared to $186.5 million the prior year. Net income came in at $11.6 million vs $9.9 million the prior year or $.23/share vs $.20/share the prior year. These results are just fine!
The picture looks even nicer long-term. If we check the "5-Yr Restated" financials
on Morningstar.com, we can see that revenue has grown very nicely from $238.9 million in 1998, and increased steadily to $766.4 million in the trailing twelve months.
Earnings have been a bit erratic increasing from $.40/share in 1999 to $.69/share in the trailing twelve months. Free cash flow, which was negative at $(11) million in 2000, dropped to $(34) million in 2001, then increased to $46 million in 2002 and $52 million in the trailing twelve months.
This company does have some long-term debt, but the cash is adequate at $38.8 million and other current assets total $149.2 million, more than enough to cover the $71 million in current liabilities and make a small dent in the $498.8 million in long-term liabilities.
What about valuation? Looking at "Key Statistics"
on Yahoo.com, we can see that the market cap is a mid cap $817.5 million. (I always forget the cut-offs for these classifications...for your review Ameritrade has a nice reference on capitalization
...small cap under $500 million, Mid-cap: between $500 million and $3 billion, and Large-cap: over $3 billion.)
The trailing p/e is at 0, but the forward p/e is at 15.25 with a PEG (next 5 years estimated) at only 1.10. So valuation really isn't bad. There are 48.72 million shares outstanding with 47.40 million of them that float. Interestingly, there are 2.19 million shares out short representing 6.254 trading days as of 4/7/04, or 4.62% of the float. We may be in the midst of some coverage of this short position...or a bit of a squeeze.
No cash dividend is paid...and no stock dividend is reported on Yahoo.
Looking at a "Point and Figure" chart
we can see that the stock broke through a resistance level in September, 2003, and has been trading higher since. This looks nice and not over-extended in my opinion.
Overall, I like this stock just fine. With all of the politics over healthcare, I am never particularly enthusiastic about hospital stocks, but the numbers scream for our attention, and I try very hard to put aside personal bias and look at the company's performance. Of course, I am waiting to sell a portion of a stock at a gain before I can dip my toes back into the investing waters!
Thanks again for stopping by! If you have any questions, comments, or words of encouragement, please feel free to email me at firstname.lastname@example.org
Happy Monday everyone!
Sunday, 2 May 2004
"A Reader Writes" What about RHI?
Hello Friends! It is Sunday evening, and I am off to get some sleep in a minute...just checking the mail and had the good fortune to receive another note from Jason M. If you or anyone else has questions or would like to start a discussion on this blog, please write me at email@example.com In any case, Jason M. writes:Hey Bob,
I just read the article on the CNBC website on job
growth and companies that make money helping other
companies hire workers. the article made a lot of
sense to me.
Anyhow on with the point. One of the stocks they
mentioned in the article was RHI. The charts looked
pretty decent on this stock. What do you think of it?
Also, how does News articles like this effect a stock?
Jason, I found the Jim Jubak article
you referred to in the email. Jim is a very smart professional and I of course defer to his judgement. Some of the stocks he mentioned included Robert Half (RHI), Administaff (ASF), Labor Ready (LRW), Gevity HR (GVHR), and Manpower (MAN). Of these stocks, I have only posted Gevity HR on my blog on March 29, 2004.
But let me take a look at Robert Half (RHI) as well!
As you probably know, the first thing I like to do is to look at the latest quarterly earnings report. On April 22, 2004, Robert Half (RHI) reported 1st quarter 2004 earnings
. Revenues rose nicely to $572.3 million from $473.2 million in the same quarter in 2003. In addition, earnings came in at $15.4 million or $.09/share vs a loss of $(3.4) million or $(.02)/share last year. This was a nice quarter for RHI. (so far so good!)
The next place for me to check a stock is Morningstar.com. On that website, I check under the "5-Yr Restated" financials. For RHI, this is located here.
Now what I do, is not necessarily the only way to assess a stock, and my picks do NOT guarantee success nor do I claim to be better at stock picking than the next person. However, looking at the revenue picture long-term for RHI, we can see that the company peaked in 2000 at $2.7 billion and then dropped to a low of $1.9 billion in 2002. They have stayed at that level in 2003 with $2.0 billion in revenue. Personally, I like to see a steady increase in revenue over the last five years. Like I said, a turn-around may result in a large price appreciation, but that is more speculative than I prefer to be, and like to see STEADY growth year after year! So on this point, RHI doesn't make the cut.
What about earnings? Again RHI peaked at $1.00 in 2000, and dropped all the way to $.01/share in 2002, improved to $.04/share in 2003, but still is way BELOW peak earnings levels.
The company IS generating a nice level of free cash flow and has a beautiful (!) balance sheet, which per Morningstar.com, shows $376.5 million in cash and $322.1 million in other current assets vs. a moderate $188.9 million in current liabilities and $2.3 million in long-term debt. THESE numbers look great!
So again, RHI might be a GREAT investment at this time, especially if it is turning itself around and becoming more profitable. However, it is just NOT my style...so I am unable to endorse it. That does NOT mean you shouldn't buy any, it just means it doesn't fit into our criteria for picking stocks.
Indeed the "Point & Figure" chart
on RHI looks nice as well!
Certainly, good media coverage DOES help propel a stock upward. I do not think that just a plug in a story is enough to continue the price move. I believe strongly that good fundamentals underlying the stock price are what determines the long-term price action of any company.
Thanks again for stopping by! If you have any additional questions, comments, or words of encouragement, please feel free to email me at firstname.lastname@example.org
"Seven Months Ago" A longer term view examining the week of October 6, 2003
Hello Friends! It is great to be kicking back and enjoying the weekend! I hope you are having a wonderful Sunday as well! First, the disclaimer: Please remember to do all of your own work on stocks discussed as I am an AMATEUR investor, and also, PLEASE consult with your investment advisors as I am not one, and the investments discussed on this website may or may not be timely, profitable, or even appropriate for your investment needs! There, I just wanted to get that out of the way! As I like to do on weekends, this is an opportunity when the market is closed to pause and reflect, to see how the picks that I have made in the past have ACTUALLY performed! This week, I am up to the week of October 6, 2003. Soon (!) I will be blogging for a year and will need to see if I drop the seven week follow up and stay with about a 7 month, 12 month review. If you have any suggestions, or other comments, as always, please feel free to email me at email@example.com
Back to business.
The first selection that I posted on Stock Picks Bobs Advice
that week was Inter Parfums (IPAR) which was listed at $10.98 on 10/6/03. IPAR closed at $22.00 on 4/30/04 for a gain of $11.02 or 100.3% during this period!
Insofar as recent news, IPAR 4th quarter 2003 results
on 3/9/04. Net sales rose 33% (23% when adjusted for currency exchange rates) to $49.2 million from $37.1 million. Net income increased 34% to $3.7 million from $2.8 million, and diluted earnings/share increased 29% to $.18/share from $.14/share. This company is doing just fine!
The second stock picked that week was Fargo Electronics (FRGO) which was posted for the Blog
on 10/6/03 at a price of $14.28. FRGO closed 4/30/04 at $9.65 for a loss of $(4.63) or (32.4)%.
On April 21, 2004, FRGO reported 1st quarter 2004 results
. Net sales for the quarter ended March 31, 2004, were $15.6 million compared with net sales of $15.5 million in the same quarter in 2003. Net income for the quarter was $1.4 million or $.11/share vs $1.3 million or $.10/share the prior year. The results were at least steady if not spectacular growth.
I posted Regis (RGS) on Stock Picks Bobs Advice
on 10/7/03 at a price of $35.17. RGS closed at $43.42 on 4/30/04 for a gain of $8.25 or 23.5%.
On 4/20/04, RGS announced 3rd quarter 2004 results
. Consolidated revenues increased 14% to $481 million from $422 million during the quarter ended March 31, 2004. Earnings increased to a record $25.6 million from $20.9 million or $.55/diluted share compared to $.46/diluted share last year. On a same-store sales basis, they reported a 2.8% increase in same-store sales. These, in my humble opinion, are all solid results!
O.K., three down and four to go!
On October 7, 2003, I also posted CVS Corp (CVS) on the blog
at a price of $33.57. CVS closed at $38.63 on 4/30/04 for a gain of $5.06 or 15.1%.
Looking through the news for the latest earnings report, CVS announced 4th quarter 2003 results
on 2/12/04. During the quarter, net sales increased 18% to $7.45 billion with same-store sales increasing 7.4%. Same-store pharmacy sales were up 9.1% during the period and earnings came in at $263.4 million or $.64/share up from $.49/share the prior year. These were nice results!
Ceradyne (CRDN), the armor manufacturer, was posted on Stock Picks Bobs Advice
on 10/8/03 at a price of $30.50. CRDN split 3:2 on 4/8/04, thus our "pick price" was $20.33. CRDN closed on 4/30/04 at $28.71 for a gain of $8.38 or 41.2%.
On 4/22/04, CRDN announced 1st quarter 2004 results
. Sales for the quarter ended March 31, 2004, jumped 91.3% to $36.7 million from $19.2 million the prior year. Net income was up 231.5% to a record $5 million or $.31/diluted share from $1.5 million or $.11/diluted share the prior year. The average # of shares increased to 16.3 million compared to 13.4 million the prior year due to the "follow-on public offering" in July, 2003. Clearly, the additional shares were NOT enough to water down what appears to be SPECTACULAR results!
Hang in there...two to go!
On October 9, 2003, I posted NetGear (NTGR)
on the blog at $17.88. NTGR closed on 4/30/04 at $10.85 for a loss of $(7.03) or (39.3)%.
On 2/12/04, NTGR announced 4th quarter 2003 results
. Net revenue increased 20.7% to $86.8 million. Fourth quarter net income dropped to $.12/share from $.15/share, although overall net income was up to $3.9 million from $3.4 million, the number of diluted shares ballooned to 31.6 million from 23.3 million the prior year. Apparently, this stock issuance and the resultant watering down of otherwise nice results is putting a damper on this stock!
On October 7, 2003, I selected Infosys Tech (INFY)
for the blog at $77.40. INFY closed at $80.74 for a gain of $3.34 or 4.3% during this period.
On April 13, 2004, INFY announced quarterly results
for the period ended March 31, 2004. Net profit grew 30% to 3.37 billion rupees ($77 million) from 2.59 billion rupees. They expect net sales also to grow 30 to 31% for the year ended March 31, 2004.
NOW, looking at ALL of the stocks for the week, I had an average gain of 16.1% for the week, with the gains supported by the large 100.3% gain on IPAR, and dragged down by the strong losses in FRGO (32.4)% and Net Gear (39.3)%. CRDN had a nice gain of 41.2% as did Regis at 23.5%. The other stocks had smaller gains.
Thanks again for stopping by! If you have ANY questions, comments or words of encouragement, please feel free to email me at firstname.lastname@example.org Have a great Sunday everyone and a profitable week trading next week!
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