Stock Picks Bob's Advice
Monday, 21 July 2003
July 21, 2003 Simpson Manufacturing Co. (SSD)
Well the market is now closed with the Dow down about 90 points and the NASDAQ down 27. Earnings are coming in this week for the second quarter and some of these reports are good enough to give stocks a lift. Simpson Manufacturing reported and the stock is up nicely on a down day. I don't own any shares of Simpson and quite frankly, never heard of it before today when I came acrosse SSD on the lists of most up!
SSD closed today at $40.75 up $1.80 or 4.62% on the day. According to CNN.Money, SSD "...through its subsidiaries Simpson Strong-Tie Co. and Simpson Dura-Vent Co., designs, engineers and manufactures wood-to-wood, wood-to-concrete and wood-to-masonry connectors & venting systems for gas & wood burning appliances." (This does not sound like some of our other picks which are dot.com's!)
In the news today was the earnings report: net sales increased 18% to $146.4 million compared to $124.1 million for the second quarter of 2002. Diluted net income per share was $.71 vs $.60 last year.
Morningstar.com demonstrates that this 'low-tech' firm has pretty high quality growth. Sales were $279.1 million in 1998, $328 million in 1999, $369 million in 2000, $416 million in 2001, and $465 million in 2002. Sales should high over $500 million at the present rate if extrapolated for the next two quarters.
Free cash flow while not consistent has been positive: $16 million in 2000, $48 million in 2001 and $23 million in 2002.
The balance sheet looks pristine on Morningstar.com. They have $90.0 million of cash on hand against $49.6 million in current liabilities and $5.3 million in long-term liabilities. In addition, they report $205.9 million of OTHER current assets!
Per Yahoo.com, this company has a market cap of $957.6 million. There are 24.6 million shares outstanding while only 17.0 million float. No dividend is paid. The p/e is a very reasonable 17.29. Only 250,000 shares are out short....representing 4.90 days of daily trading volume.
There are a lot of things to like about this company and the fact that it is low-tech adds to the attractiveness in a balancing-out kind of way. I would love to own some shares of this issue...and may if the opportunity should arise.
Thanks for visiting and be sure to skim through the many other posts on this site....it is helpful to navigate via the calendar along the left hand side of the page.
July 21, 2003 DSP Group, Inc. (DSPG)
I owned a few of these shares a few years ago before the tech bubble broke. I don't own any DSPG shares at this time but the situation fulfills our criteria and is worth a second look.
DSPG is having a nice day today in an overall crummy market. The stock is trading at $25.23, up $2.29 or 9.98% per the NYTimes on the Web.
According to CNN.Money, DSPG "...develops and markets products and technologies that perform digital signal processing, the electronic manipulation of digitized speech and other digital signals, for use in a variety of telecom applications."
Earnings on this Santa Clara, California company were reported today and were the source of the nice percentage gain on a down day: for the quarter ending June 30, 2003, revenues gained 21% from $31,899,000 to $38,550,000. Excluding one-time charges and gains, 'pro-forma- diluted earnings per share increased 37% to $.26 from $.19 in the same period last year.
Even with the telecom bubble, DSPG maintained a steady record of revenue growth increasing from $51 million in 1998, $58 million in 1999, $87 million in 2000, $89 million in 2001, $125 million in 2002, and extrapolating the current quarter somewhere over $150 million in revenue in 2003.
Free cash flow has improved from $6 million in 2000, $23 million in 2001, and $32 million in 2002.
The balance sheet looks clean with $85.3 million in cash per Morningstar.com, more than enough to cover the $28.3 million in current liabilities and $4.1 million in long-term liabilities.
Yahoo reports that the market cap is $629.5 million with 27.4 million shares outstanding while 26.2 million float. No dividend is paid. The p/e is a little steep at 43.04. There are 670,000 shares out short which represents 2.6% of float or 1.76 trading days.
Overall, this is a nice stock if a little rich due to its p/e premium. Have a great afternoon!
Posted by bobsadviceforstocks at 1:52 PM CDT
Updated: Monday, 21 July 2003 1:53 PM CDT
July 21, 2003 IDEXX Laboratories (IDXX)
O.K. another lousy day in the market. We have had a very big run-up the last few months....and have profits to show for it and I suppose it is best to have a bit of a pull-back...but not too much, ok?
IDEXX Laboratories is having a nice day today. Currently per the NYTimes on the Web it is trading at $38.29 up $3.88 or 11.28% on the day.
IDXX according to CNN.Money, "...develops, manufactures and distributes products and provides services for veterinary, food and environmental markets."
The company reported their second quarter earnings today, and provided the impetus for the stock price appreciation: revenue increased 15% to $121.8 million from $105.7 million in 2002, earnings per diluted share for the quarter were $.47 vs $.37 for the quarter ending 6/30/02...an increase of 27%.
Morningstar shows a steady improvement in revenues reported from $263.0 million in 1997, $321.7 million in 1998, $358.4 million in 1999, $367.4 million in 2000, $386.1 million in 2001, and $413 million in 2002. The the current revenue rate, IDXX should be over $420 million in 2003.
IDXX is generating a lot of free cash and this has been improving since 2000 when $13 million free cash reported, $29 million in 2001, $88 million in 2002, and $94 million in trailing twelve months.
The company is also flush with cash with $175.4 million in cash dwarfing the $77.8 million in current liabilities and $5.8 million in long-term liabilities. In addition, they have $142.3 million of other current assets according to Morningstar.com.
According to Yahoo.com, there are 34.2 million shares outstanding and 32.4 million that float for a market cap of $1.18 Billion. The p/e is a moderate 24.06 and there are a few shares out short....3.06 million as of 6/9/03. This would amount to 10.74 trading days activity for the shorts to cover their borrowed shares.
I don't own any shares of this company, but I like this stock a lot...there isn't much NOT to like on this issue...and would be happy to add some to my portfolio...
Have a Happy Monday everyone...perhaps the Dow will trade UP this week? Remember, if you have any questions, comments, or words of encouragement drop me a line at firstname.lastname@example.org or leave a comment right here on the website!
Friday, 18 July 2003
"How are we doing?"..a look back on the picks of June 9, 2003
Hello friends. It is a weekend again, thank goodness and time to look back on our progress or lack of progress. I do not claim that this is a 'get rich scheme' but rather a reasonable method of picking 'quality stocks' that will appreciate over time. Let's see how our June 9th picks are doing.
First pick was Accredited Home Lenders (LEND) on June 9, 2003 when it was trading at $19.58. Currently as of close of trading on July 18, 2003, LEND is at $20.10, a gain of $.52 or 2.65%.
On June 10, 2003, we selected Caremark Rx (CMX) at $24.66. Currently CMX is trading at $25.13, a gain of $.47 or a gain of 1.9%.
June 10, 2003, also found us looking at Packeteer (PKTR) at $15.10. PKTR had a TERRIBLE day today....yikes...down $2.59 to $13.67. This is overall a loss of $1.43 from our purchase price or a loss of (9.47%).
Pediatrix (PDX) was selected on June 10, 2003, at $38.80. Currently PDX is trading at $39.70, a gain of $.90 or a gain of 2.31%.
June 11, 2003, we selected WebEx Communications (WEBX) at $14.41. WEBX closed today (7/18/03) at $15.19. This is a gain of $.78 or 5.4%.
Our next pick was Lennar (LEN) at $75.45. The homebuilders have been under a lot of pressure the past few weeks as mortgage rates have been reflating. (is that a word?) Anyhow, LEN closed at $68.35, a loss of $7.10 or a loss of (9.4%).
Charles River Associates (CRAI) was picked on 6/12/03 at $27.95. CRAI closed on 7/18/03 at $31.05 a gain of $3.10 or (11.09%).
Oshkosh Truck (OSK) was picked on 6/12/03 at $62.50. OSK closed today at $58.60 or a loss of $3.90 or (6.2%).
The final pick that week was Lannett Company (LCI) which was selected at $21.53. LCI closed today (7/18/03) at $20.50 a loss of $1.03 or a loss of (4.78%).
This was overall a mediocre performance for this group of stocks. Hopefully long-term we shall see improved performance....but the jury is out and we'll continue to monitor our performance to see if we need to change our rules of investing!
Regards to all of my friends....
July 18, 2003 Bio-Rad Laboratories, Inc.
Hello friends! Back again with a last minute post before the market closes. If I had some cash, I would probably buy some of these shares but I do not have any cash available and do not own any shares of these nor anyone in my family.
Bio-Rad Laboratories, Inc. (BIO) is an AMEX issue that according to Cnn.money, "...manufactures and supplies the life science, analytical chemistry and healthcare markets with a broad range of products and systems used to separate complex chemical and biological materials, and to identify, analyze and purifty their components."
BIO is having a great day (aren't they ALL when they make this list!)....trading at $60.15 up $3.35 or 5.90% on the day. This apparently is in ANTICIPATION of their earnings release (?) coming on July 28, 2003.
First quarter results, for the quarter ending March 31, 2003, were reported on April 29, 2003. Results included an overall sales increas of 17% for the quarter to $246.0 million from $210.2 million last year. "Basic" earnings were up 38.7% to $1.04/share from $.75/share last year.
Morningstar.com shows a nice growth in revenue from $426.9 million in 1997, $447.9 million in 1998, $555.4 million in 1999, $725.9 million in 2000, $817.5 million in 2001, and $893 million in 2002.
Extrapolating the present quarter would get a revenue figure just shy of $1 billion for 2003.
Free cash flow has improved nicely the last few years from a negative $7 million i 2000 to positive $56 million in 2001, and $63 million in 2002.
Looking at the balance sheet we find $27.7 million in cash and $438.1 million in other current assets....more than enough to cover the $222 million in current liabilities and $115.6 million in long-term liabilities.
This company has a market cap of $1.44 Billion with 25.4 million shares outstanding with only 17.7 million that float. The p/e is a reasonable (to me) 19.70, no dividend is paid, and outstanding short sales total 589,000 shares or 2.08 trading days as of 6/9/03.
I actually like this company a lot....I fall in love EASILY with stocks!.....but do not have available cash to go buy some....so if YOU do...you might take the plunge with BIO...I think you will be glad you did.
July 18, 2003 Hansen Natural Corp. (HANS)
Here is a refreshing natural foods corp for you to munch on! I do not own any shares of this company nor do any of my family members. Hansen Natural Corp. (HANS), according to CNN.Money, "...markets, sells and distributes alternative beverage category sodas, fruit juices, fruit juice Smoothies, ready-to-drink iced teas, lemonades, juice cocktails, functional drinks and still water." Quite a mouthful and of course it is "still water"...jk.
Anyhow, HANS is having a great day today. (I am always in a more upbeat mood when the market is moving UP.) Currently Hansen is trading at $5.38 up $.56 on the day or an 11.62% increase. I usually avoid the under $10 stocks because of the increased volatility that has more than once 'shaken us out' with an 8% loss within days of a purchase. (8% of a $5 stock is just under a half-point!)
On May 13 2003, Hansen reported their first quarter results for the period ending March 31, 2003: Gross sales for the second quarter increased 23.1% to $27.7 million from $22.5 million last year. (Net sales increased only 18.8% to $22.1 million from $18.6 million a year ago)per the NYTimes on the Web.
Operating income advanced 43.3% to $1.1 million from $765,000 last year....net income increased 54.2% to $633,000 or $.06/share from $411,000 or $.04/share last year.
Apparently the big news for the quarter was the introduction of Monster Energy....this must be some kind of Generation X drink....
Morningstar.com shows a nice sequential growth in revenues for this small company from $54 million in 1998, $72.3 million in 1999, $79.7 million in 2000, $92.3 million in 2001 and $101.6 million in the trailing twelve months.
Free cash flow while small is still positive with a negative $2 million reported in 2000 to a positive $5 million in 2001 and $2 million in 2002.
HANS has $0.5 million in cash and $20.4 million in other current liabilities as opposed to $6.0 million in current liabilities and $6.1 million in long-term liabilities.
The market cap of this stock is TINY at $49.4 million with 10.3 million shares outstanding and only 5.90 million shares that float. The p/e is a reasonable 15.40...no dividend is paid.
If you are looking at a SMALL share price with a SMALL cap company Hansen may be the drink that refreshes! Always be careful of the small companies with the small floats due to volatility....but otherwise the stock looks nice and the numbers appear quite attractive!
Happy Friday everyone! I will try to do an update later this weekend to bring my trading portfolio and current prices up to date!
Thursday, 17 July 2003
July 17, 2003 ITT Educational Services, Inc. (ESI)
This one I do not own any shares but when reviewing the information is certainly very attractive. ITT Educational Services, Inc. (ESI) is "...a leading provider of technology-oriented postsecondary degree programs."
ESI had a GREAT day today in the midst of what anyone except a short-seller would call a lousy market. They closed today at $36.13 up $5.81 or 19.16% on the day.
It is earnings season and ESI reported their second quarter figures today: Revenues increased 15.2% from $108.3 million in 2002 to $124.8 million in 2003. Operating income was up 52.0% to $15.5 million from $10.1 million last year. Net Income jumped 45% to $9.8 million from $6.8 million last year. On a per share basis, earnings jumped 50% to $.21 from $.14 last year. Not too shabby indeed!
Morningstar.com shows a steady growth in revenues from $291 million in 1998, $316 million in 1999, $348 million in 2000, $411 million in 2001, $465 million in 2002 and if we extrapolate the second quarter we will get somewhere near $500 million in revenue for 2003.
Free cash flow while not consistently growing has been positive ranging from $27 million in 2000, $26 million in 2001, $93 million in 2002, and $50 million in the trailing twelve months.
The balance sheet is pretty even with $134.7 million in cash against $137.2 million in current liabilities. In addition there is $20 million in other current assets enough to cover the reported $15.4 in long-term liabilities.
Per Yahoo, ESI has a market cap of $1.36 Billion with 44.8 million in shares outstanding and 40.7 million shares float. There ARE 1.28 million shares out short...representing 3.77 days of trading so this is a positive insofar as these sellers are waiting in line to purchase sales to replace their borrowed shares they have sold.
All in all a nice stock...p/e is a moderate 30.50 and no dividends are paid.
Technically the stock looks nice as well....but I am not a technician and do not want to get into reading charts lol. Regards to all of my friends and visitors.
July 17, 2003 Closure Medical (CLSR)
As I noted in the previous post, this is a stock that I purchased shares in today! Things were moving quickly and I bailed out of my ORCC shares and jumped into CLSR. Let's take a look at Closure and I think you will appreciate this company!
CLSR, according to CNN.Money, "...develops, commercializes and manufactures medical tissue cohesive products based on its proprietary cyanoacrylate technology to be used for human & veterinary wound closure."
Closure had a GREAT day today (in a down market!) closing at $23.40 up $4.25 or 22.19% on the day.
What triggered this jump was the earnings report that came out this morning: total revenues for the quarter jumped 50% to $8.5 million from $5.7 million for the same period last year. Net income was $1.7 million or $.12/share compared to the prior year adjusted net income of $590,000 or $.04/share.
Closure works closely with Johnson & Johnson in the Band-aid brand liquid bandage product and with Colgate Palmolive with 'soothe-n-seal' Orabase medication. These are great partners for a small company!
Looking at Morningstar.com, we find sequential growth in revenue from $1.6 million in 1997, $9.6 million in 1998, $13.4 million in 1999, $13.7 million in 2000, $19 million in 2001, and $24 million in 2002. Extrapolating the current quarter we would get about $34 million in revenue for 2003.
Free cash flow has improved from 0 in 2000 to $3 million in 2001, $5 million in 2002 and $6 million in the trailing twelve months.
Closure's balance sheet as summarized on Morningstar looks excellent. They have $16.4 million in cash on hand (not counting $8.1 million in other current assets)...compared to $4.0 million in current liabilities and only $1.9 million in long-term liabilities.
Looking at Yahoo we find that this is a small company with a market cap of only $261.8 million with 13.7 million shares outstanding and of those only 6.80 million float. The trailing p/e is a reasonable 23.47 and there are only 134,000 shares out short so we cannot count on a short squeeze.
Overall, I like this stock a lot. In fact, enough to buy 250 shares this morning. The special relationship with JNJ is important and recalls to me the similar arrangement that SRDX has with JNJ as well....In that case the technology source behind the coated cardiac stents....but THAT is another story!
Regards to all of my friends and visitors here!
July 17, 2003 Trading Transparency CLSR for ORCC
The market really has taken it on the chin today! My Online Resources (ORCC) dropped down where it was at a 14% loss for me so we sold it out of our trading portfolio. CLSR (Closure Medical) showed up on the lists of most advancing issues. This is a long time favorite of mine although I haven't owned it previously, so I went ahead and picked up 250 shares for the portfolio. More details to follow! Bob
Wednesday, 16 July 2003
July 16, 2003 Pharmaceutical Resources (PRX)
Thanks for stopping by! I have another generic drug company to offer you today. I don't own any shares of this and haven't looked at this before....so here goes! By the way, the other companies on this site we have looked at include AAII, ELAB, and LCI. To this we add Pharmaceutical Resources (PRX).
PRX "...is a holding company which, through its subsidiary Par Pharmaceutical, Inc., manufactures and distributes a broad line of generic drugs.." per CNN.Money.
The stock is having a GREAT day trading at $52.83 up $2.27 on the day or 4.49%. (as reported in the NYTimes on the Web.
Last quarter's results were reported April 23, 2003, for the quarter ending March 30, 2003: total revenues increased 32% to $106.4 million compared to $80.5 million in 2002; net income and diluted earnings per share was $22.4 million and $.67 compared to $20.8 million and $.63 per share in the first quarter of 2002. (last year's quarter included a one time gain of $.09 or $2.9 million due to a legal settlement with BMY.
Looking at 5 year financials on Morningstar, we see revenue growth from $76 million in 1998, $80 million in 1999, $85 million in 2000, $271 million in 2001 and $382 million in 2002. Extrapolating the current first quarter 2003 out to all four quarters finds us anticipating in excess of $400 million for the year 2003.
Free cash flow, while not linear, is positive with a negative $6 million in 2000, to $69 million in 2001 and $25 million in 2002. Current cash reported at $65.1 million with $145.9 million other current assets dwarfing the liabilities of $74.7 million in current liabilities and $6.0 million of long term debt per Morningstar.com.
The company has a market cap of $1.69 Billion with 33.3 million shares outstanding and almost all float with 33.2 million shares reported as float. The p/e is a reasonable 20.75 per Yahoo...and there are only 1.48 million shares out short...representing only 2.01 trading days of shorts....a new thing I like to look at since it is reported right in Yahoo Profile!
This is another great generic drug company that is worth your while. I do not anticipate buying any shares right now since I already own AAII and ELAB...(see my trading portfolio on bobsadviceforstocks.tripod.com)....
Have a GREAT Wednesday....only two more days to the weekend! Thanks for stopping by and come back and visit often. Please feel free to drop me a line with any question, comment, or as I always like to read...words of encouragement at email@example.com.
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