December 5, 2003 Medical Action Industries (MDCI)
Hello Friends! Thanks for stopping by. I hope you enjoy your visit here and please remember to always consult with your investment advisor before taking any action regarding my posts here as they may or may not be suitable or profitable for you!

I came across this stock this morning scanning the lists of best gainers. Medical Action Industries, Inc. (MDCI) is having a nice day today trading as I write at $17.25 up $1.20 or 7.48% on the day. I do not own any shares of this stock.

According to Money.cnn.com, MDCI "...develops, manufactures, markets & distributes disposable surgical-related products, including disposable laparotomy sponges, towels and related products to physician, dental and veterinary offices."

On November 10, 2003, MDCI reported results for the three months ended September 30, 2003. This was reported by Yahoo.com and picked up from BUSINESS WIRE. Net sales for the second quarter were $32.36 million an increase of $8.78 million or 37% over the $23.58 million the prior year. Net income for the period increased 33% to $2.38 million or $.23/diluted share compared to $1.79 million or $.18/diluted share last year.

Looking at Morningstar.com, we find a fairly nice record of increasing revenues starting with $58 million in 1999, $71 million in 2000, $75.4 million in 2001, $82.8 million in 2002, $104.8 million in 2003 and $112.9 million in the trailing twelve months.

Earnings/share have grown steadily from $.21/share in 1999 to $.85/share in the trailing twelve months.

Free cash flow has been a bit erratic but has stayed positive lately ranging from $4 million in 2001 to $6 million in the trailing twelve months.

Balance sheet wise, the company does not have much cash at $200,000 reported on Morningstar, but DOES have $28.2 million in other current assets, more than enough to cover the $10.5 million in current liabilities and also make a dent on the $27.1 million in long-term debt.

This is truly a small-cap firm with a Market Cap currently at $173.0 milllion. The trailing p/e is reasonable at 19.31, with a forward p/e (fye 31-Mar-05) at 15.74. The PEG is nice at 1.07, and price/sales also dirt-cheap at 1.31.

Yahoo statistics goes on to report 9.97 million shares outstanding with 8.00 million of them that float. There are only 82,000 shares out short representing 1.367 trading days.

I actually like this stock a lot. If I get some cash somewhere today, might considering buying (that is, if I have to sell some stock at a loss lol)...the valuation is excellent, I like the field they are in...that is medical/surgical disposables...and the steady trend of revenue growth is exciting as well. Latest quarter was a blow-our quarter for them.

Something to think about don't you think? Thanks again for stopping by. If you have any questions, comments, or words of encouragement, please feel free to contact me at bobsadviceforstocks@lycos.com

Bob

December 4, 2003 Pogo Producing (PPP)
Hello Friends! It is getting late and I need to get up early tomorrow. Wanted to post a quick note on Pogo (PPP) and explain why it caught my eye. As always, please check with your financial advisor before investing in anything mentioned here.

Pogo Producing (PPP) had a nice day today closing at $46.66 up $3.38 on the day or $7.81%. According to money.cnn.com, Pogo "...and subsidiaries are engaged in oil and gas exploration, development and production activities on its properties located offshore in the U.S. and Canada and internationally in the Gulf of Thailand and the U.K."

On October 14, 2003, per PRNewswire-First Call as picked up by Yahoo.com, PPP reported their third quarter results for the period ended September 30, 2003: Revenue in 2003 was $277.9 million vs $207.8 million last year. Net income was $67 million vs $31.6 million last year, and on a per share basis was $1.07/share vs. $.52/share last year.

Morningstar.com shows a steady rise in revenue from $200 million in 1998 to $300 million in 1999, $500 million in 2000, $600 million in 2001, $800 million in 2002 and $1.0 billion in the trailing twelve months.

Earnings have grown from ($1.14)/share in 1998 to $3.72/share in the trailing twelve months.

Free cash flow has improved from $92 million in 2000 to $297 millin in the trailing twelve months.

Balance sheet is slanted in favor of liabilities with $229.8 million in cash and $170.1 million in current assets, plenty to cover the $204.8 million in current liabilities however, the $1.1 billion in long term debt does appear manageable in light of the improving free cash flow.

Pogo is reasonable priced with a p/e of 12.34, and a yield of 0.43%. For more infomation, check yahoo for statistics. I liked this stock today, and especially with a little better diversification in the portfolio, I decided to buy some shares!

Thanks for stopping by!

Bob

"Trading Transparency" PPP
Good Afternoon my friends! Having unloaded two stocks today at 8% losses, was down to a 24 position portfolio...so coming across a new stock in a different area that fit our criteria, I thought I would give it a chance. I purchased 200 shares of Pogo Producing at $46.93/share today. I will follow this post later with a bit of a profile on PPP and why I liked it! Thanks for stopping by!

Bob

"Trading Transparency" PRAA
Well the market is doing o.k., barely in the green on the NASDAQ with the Dow up a few points, but our stocks...lol MY stocks...are pulling back a bit. Portfolio Recovery Associates, a relatively recent purchase, hit the 8% loss and was sold today at $24.84. (I manually watch the stocks and don't have STOPS placed which would in fact be helpful.) We purchased 150 shares of PRAA just a month ago on 10/28/03 for $26.99 cost per share. Easy come and easy go I guess. Have to stay with the 8% loss limit so that we don't let our losses accumulate (my losses lol) too fast!

Thanks again for stopping by and will keep you posted if KNSY hits that stop as well!

Bob

December 4, 2003 Gevity HR, Inc. (GVHR)
Hello Friends. Thanks for stopping by. Our heady gains the last week or so was making me feel a bit invulnerable to any correction. What is that old saying? 'pride cometh before the fall." Must be Shakespeare (?). Anyhow, we have backed off a bit and have sold some Odyssey Healthcare shares this morning on a bit of a pullback. This shows how while p/e is not necessarily a good indicator of future performance, a relatively steep p/e may put a stock at a bit of risk in corrections. Remember, always discuss with your financial advisor any information you may glean from this website as it may or may not be a suitable investment for you!

Came across Gevity HR, Inc. (GVHR) today. I do not own any shares but it is an interesting stock. Currently GVHR is trading at $23.87, up $1.46 on the day or 6.51%. According to money.cnn.com, Gevity "...provides professional employer services, including payroll administration, risk management, benefits administration, unemployment services and human resource consulting services, typically to small and medium-sized businesses."

On October 23, 2003, Gevity reported their third quarter results for the quarter ended September 30, 2003. This was picked up from PRNewswire-FirstCall via COMTEX, and placed on the internet where I viewed it on NYTimes on the web. In this report, they related that revenues in the third quarter increased 8.9% to $102.8 million compared to $94.4 million in the third quarter of 2002. Net income increased 307.1% to $4.1 million in the quarter compared to $1.3 million in the third quarter of 2002. On a per share basis, this was $.16/diluted share compared to $.06/diluted share last year. Very nice results!

Reviewing Morningstar.com, we find steady revenue growth from $256.2 million in 1998, $286.7 million in 1999, $322.3 million in 2000, $332.8 million in 2001, $374.7 million in 2002 and $395.5 million in the trailing twelve months.

Earnings/share, however, while increasing from last year have been quite erratic with $.97/share reported in 1998 dropping to a loss of ($.76)/share in 2001, but improving steadily since then to $.39/share in the trailing twelve months. Extrapolating the current quarter would get us to $.64/share in 2003.

Free cash flow has stayed mostly positive but is also a bit erratic from $35 million in 2000 to ($3) million in 2001, back positive at $34 milion in 2002, and $10 million in the trailing twelve months.

The balance sheet looks fine with $134.2 million in cash and $100.9 million in other current assets vs $13.8 million in current liabilities and $173.2 million in long-term liabilities.

Checking Yahoo.com for "key statistics" on this company, we find that the market cap is only $453.6 million. The trailing p/e is a bit rich at 48.34 but the forward p/e (for fye 31-Dec-04) is only 27.00. This reasonableness in the price is reflected in the PEG which is a bit over 1.0 at 1.36, and the price/sales very reasonable at 1.05.

Yahoo reports 19.0 million shares outstanding with 12.20 million of them that float. Currently there are only 605,000 shares out short as of 11/10/03, representing 1.551 trading days. The company does pay a small dividend of $.20/share yielding 0.89%.

This is an interesting stock. I certainly don't have a place for it in my portfolio...remember I have to stay at 25...the stock is doing well, has grown its revenue consistently, has a reasonable PEG at 1.36, but its p/e is a bit rich although appears to be dropping quickly. It is certainly a stock for me to consider!

Thanks for stopping by! Please email me at bobsadviceforstocks@lycos.com if you have any questions, comments, or words of encouragement!

Bob

"Trading Transparency" ODSY
Well I am back to 25 positions anyhow. ODSY, the hospice company, that we actually briefly talked about in the stock club as well, as dropped sharply the last two trading days and hitting our 8% stop, was sold this morning at $31.62. I had just recently purchased ODSY at $35.54 on 11/24/03. Well, that is one rule I have kept to at least...selling on the 8% stop. Unfortunately, yesterday's purchase, KNSY, is also flirting with a 5+% loss...so that may go soon as well!

Bob

December 3, 2003 Kensey Nash (KNSY)
Hello Friends! Thanks for stopping by. Please feel free to make yourself home here and browse through the various posts that you can find through the calendar on the left...just click on the dates and enjoy! Almost sounds like some kind of financial theme park? Anyhow, please do remember to discuss any ideas you may extract from this website with your financial advisor as it may or may not be suitable for your investment needs, and may or may not be profitable!

First, I got around some of the sitebuilder issues yesterday and sat at the iMac at my local coffee house and updated the main website. You can click on the link to the left of the BLOG to get there. Secondly, as my previous post reveals, I broke my resolve to stay at 25 stocks and purchased 400 shares of Kensey Nash this morning. Don't worry, it is actually DOWN a bit from where I bought it as I write, so my timing isn't perfect, and if after consultation, you feel you would like to buy some, looks like you may get and even BETTER price than me!

Currently KNSY is trading at $22.20 up $.63 or 2.92% on the day. According to money.cnn.com, KNSY "...designs, develops, manufactures and processes biomaterials products for the orthopedics, cardiology, drug/biologics delivery, dental and wound care markets."

On October 15, 2003, KNSY reported their first quarter results. This was carried by PRNewswire-First Call and reported by Yahoo.com. For the quarter ended September 30, 2003, total revenue was $12.4 million vs $8.9 million last year. Operating Income was $3.0 million vs $1.8 million last year and earnings/share were $.20 vs $.13 last year. These are all nice results from my perspective.

Looking at Morningstar.com for the "5-Yr Restated" results, we find that revenue has grown from $16.2 million in 1999, $19.8 million in 2000, $23.2 million in 2001, $29.0 million in 2002 and $44.0 million in 2003.

Earnings, however, have grown less rapidly from $.43/share in 1999 to $.76/share in 2003.

Free cash flow has been improving recently from $2 million in 2001 to $10 million in 2003. The Balance sheet looks beautiful with $15.0 million in cash per Morningstar, more than enough to pay off both the current liabilities of $6.1 million and long-term liabilities of $0.2 million combined. In addition, they report $50.4 million of other current assets.

Looking at Yahoo.com, we find that this is a small company with a market cap of $251.05 Million, the trailing p/e is reasonable at 26.29 (in my opinion), and the forward p/e (based on year ending 6/05) is at 21.79. However, with the fast growth rate, we find that the PEG ratio is at 0.90. Price/sales a bit steeper at 5.16.

There are only 11.45 million shares outstanding and 10.30 million of them that float. There are a LOT of shares out short as of 10/10/03 at 1.07 million, representing 10.4% of the float or 5.487 trading days. This is actually an improvement from the prior month when 1.12 million shares were reported out short per Yahoo. No dividend is paid.

I like this stock a lot. The growth is there, and the p/e is reasonable in the 20's with a PEG under 1.0. I am concerned that the stock price has not been as strong as the numbers seem to warrant and we shall certainly stay with our 8% stop and unload if the stock does not move in the right direction. As I have already noted, I am now a stockholder of this company, having purchased 400 shares this morning!

Please remember to consult with your investment advisor prior to taking any investment decision based on information presented on this website. You know I worry about you guys!

Thanks again for stopping by and if you have any questions, comments, or words of encouragement, please drop me a line at bobsadviceforstocks@lycos.com

Bob

December 3, 2003 "Trading Transparency" KNSY
O.K. so I broke my rules again. Now I know I am only Human...I guess. So was scanning the lists of greatest gainers and came across Kensey (KNSY) a cardiovascular equipment maker....and I liked what I saw...will detail shortly...and bought 400 shares today at $22.50. More details later. Remember to consult with your investment advisor before making any transactions based on information on this site. Have a great Wednesday everyone. (How did I break my rules?....I added a 26th position...that is how, was going to stay with 25!)

Bob

December 2, 2003 Thomas Nelson, Inc. (TNM)
While not exactly growing at a blockbuster rate, Thomas Nelson, Inc. (TNM) has been a steady performer and is worthy of this list. Welcome back to Bob's Advice! As always, please consult with your investment advisor before taking action on any stocks we discuss here. I do not own any shares of TNM, nor do any members of my family.

Thomas Nelson (TNM) had a nice day today, closing at $19.91 up $1.41 or 7.62% on the day. According to money.cnn.com, TNM "...publishes, produces, and distributes Christian oriented books. TNM also designs, manufactures, and markets a broad line of gift and stationery products."

On November 5, 2003, according to the NYTimes on the Web, as picked up on BUSINESS WIRE, TNM reported second quarter results for the quarter ended September 30, 2003. Net revenue grew 3% in the quarter reaching $63.8 million this year vs. $62.1 million last year in the same period. Net income gained 61% to $6.6 million from $4.1 million last year. Diluted income/share was $.45 compared to $.28 in the same period last year.

Reviewing TNM on Morningstar.com, we find that revenue has grown steadily, although slowly, from $173.9 million in 1999, $182.0 million in 2000, $214.1 million in 2001, $215.6 million in 2002,and $217.2 million in 2003. Earnings/share have grown during this period from $.58 to $.75 per share.

According to Morningstar, free cash flow has grown from ($2) million in 2001 to $52 million in the trailing twelve months.

The balance sheet looks nice with $8.9 million in cash and $103.4 million in other current assets vs. $49.6 million in current liabilities and $23.6 million in long-term debt.

Checking Yahoo.com for "key statistics" we find that the Market Cap is a modest $286.5 million and the trailing p/e is reasonable at 21.41 with a forward p/e of 14.68. The PEG ratio isn't bad at 1.23, and the price/sales also reasonable at 1.21.

There are only 14.39 million shares outstanding with 10.40 million of them that float. As of 11/10/03, there were 119,000 shares out short representing 1.725 trading days.

Overall, the company is a nice value. I am not too excited about it however, as the growth rate is actually very modest although steady. I do not think TMN can support much of an expansion in multiples.

Thanks for stopping by! Again, always remember to discuss everything we write here with your investment advisor! If you have any questions, comments, or words of encouragement, please feel free to write me at bobsadviceforstocks.lycos.com

Bob

"Trading Transparency" ANN
With the market up strongly this morning, and with my full 25 position trading portfolio, I looked for some stock that I could sell that was close to my sell point so that I could reduce margin. Currently at 42% equity, I sold 50 shares of ANN at $40.46. I had purchased 200 shares at $32.77 on 10/1/03, this was a 23.5% gain in about two months on these shares...so close to the 30% gain I was looking for, I sold the shares and dropped my margin balance a tad. In my son's account I picked up 50 shares of MTLG...my first shares in that company.

Remember, please consult with your investment advisor before acting on any information on this site. Investments discussed may or may not be appropriate for you! Regards to all of my friends!

Bob