Hello Friends! Thanks so much for stopping by and visiting my blog, Stock Picks Bob's Advice! As always, please remember that I am an amateur investor, so please remember to consult with your professional investment advisers prior to making any investment decisions based on information on this website.
The weekend is almost over and I haven't written up my review. Let's take a look at the stocks I posted on this blog during the week of May 22, 2006. Each weekend I try to move ahead a week on this review which is now more like a year-and-a-half out, instead of a year. Last week I reviewed the picks from May 15, 2006.
These reviews assume a buy-and-hold approach to investing with equal dollar sized purchases of each of the stocks reviewed. In reality, I advocate and follow a fairly disciplined buying and selling strategy with my holdings including quick sales on stock declines and partial sales on stock appreciation. This difference in strategy would certainly affect portfolio performance but for the ease of this review, I assume a simple purchase of each stock discussed and an analysis is based on this assumption.
On May 25, 2006, I posted Toro (TTC) as a 'revisit' on Stock Picks Bob's Advice when the stock was trading at $47.89/share. Toro closed at $53.02 on November 23, 2007, for a gain of $5.13 or 10.7% since posting.
On August 23, 2007, Toro (TTC) reported 3rd quarter 2007 results. The company reported revenue of $478.7 million, up slightly from revenue of $477.9 million in the same quarter the prior year. Net earnings came in at $42.5 million or $1.02/diluted share, up from $40.3 million or $.91/diluted share the prior year.
The Morningstar.com "5-Yr Restated" financials page is intact, with steady revenue growth, earnings growth, dividend growth and free cash flow growth. The outstanding shares have been modestly declining and the balance sheet is solid.
TORO (TTC) IS RATED A BUY
Let's take a look at the 'point & figure' chart from StockCharts.com:
We can see that while the stock price momentum has recently been under pressure, the upward move of this stock is still intact.
On May 26, 2006, I posted Buffalo Wild Wings (BWLD) on Stock Picks Bob's Advice when the stock was trading at $39.42. On June 18, 2007, BWLD had a 2:1 stock split, making my effective 'pick price' actually $19.71. BWLD closed at $27.23 on November 23, 2007, for a gain of $7.52 or 38.2% since posting.
On October 30, 2007, Buffalo Wild Wings announced 3rd quarter 2007 results. Total revenue climbed 20.5% to $82.4 million up from $68.3 million. Same store sales increased 8.3% at company owned restaurants and 5.9% at franchised restaurants. Earnings per share for the quarter came in at $.24/share, up from $.20/share the prior year.
Unfortunately, the company missed expectations on earnings which per Thomson Financial had been at $.26/share. However, revenue beat expectations of $81.4 million.
On a positive note, the Morningstar.com "5-Yr Restated" financials page appears intact. The company shows steady revenue growth, earnings growth, and relatively stable outstanding shares since 2004. (up sharply from 5 million to 16 million shares between 2002 and 2004.) Free cash flow is positive and growing and the balance sheet is solid.
BUFFALO WILD WINGS (BWLD) IS RATED A BUY
Let's take a closer look at the 'point & figure' chart on BWLD from StockCharts.com:
We can see in the above chart how the recent correction in the market has been bringing the price of BWLD down. I suspect the latest quarterly report when the company came in a couple of pennies light on estimates of earnings is making a difference in the price movement.
So how did I do with these two stocks? Really not bad. In fact, they both appreciated in price and the average of these two stocks was a gain of 24.5%.
Thanks again for visiting! If you have any comments or questions, please feel free to leave them on the blog or email me at firstname.lastname@example.org. If you get a chance, be sure and visit my Stock Picks Podcast Website. Also check out my Covestor Page where Covestor has been analyzing my actual trading portfolio. And my SocialPicks page where all of my many picks from the first of the year have been evaluated.
Have a great week trading and stay well!