Tuesday, April 26, 2011
Monster
My pick for this quarter us Monster.com. We all know about the website that our Pike brother has created. My interest was peaked by an analyst on MSNBC so I decided to research. Monster has had steadily increasing U.S job postings and strong growth in Europe and Asia. The sector overall is also showing stronger performance. Unemployment is decreasing and companies are spending more money in 2011 on online recruitment than previously predicted. Monster just ended 2 for 1 promotions, replacing them with 25% off offers, which should increase revenue. They are currently trading at $17.78 per share.
Monday, April 25, 2011
Q2-AMD
My selection is AMD. AMD is a semiconductor maker that competes with companies like Intel, but is only about $8.70/share. They are sent to launch a set of microprocessors for their server market based on a new design that allows for more processing power to be packed on a single Chip. Right now, their market share for processing chips is very little, so even a modest gain of say 10% of market share could drive the bottom line much higher.
I read an article on Morningstar.com and the general consensus of the microprocessors from AMD is that they have a better design than their competitors like Intel, which could lead to AMD taking more market share than expected.
I think the play on this selection is more short term, 24 months or less and give it the chance to hit $16, maybe sell along the way if the market calls for it.
I read an article on Morningstar.com and the general consensus of the microprocessors from AMD is that they have a better design than their competitors like Intel, which could lead to AMD taking more market share than expected.
I think the play on this selection is more short term, 24 months or less and give it the chance to hit $16, maybe sell along the way if the market calls for it.
We Can Do It. You Can Help.
Home Depot caters to both the weekend warrior as well as the everyday contractor. With over 2,200 stores nationwide, Home Depot has a tremendous footprint and our portfolio lacks a solid retail store presence. In addition to the typical over the counter purchases you'd expect, Home Depot has also increased revenue through their installation services and credit card finance programs. At about $37/s, the stock pays a dividend and is 72% institutionally owned, which means investors believe in the company. As the spring turns to summer and people begin chipping away at punch lists, Home Depot's transactional business will thrive and fit perfectly into our well-diversified portfolio.
Mr. Trash Man
My pick for this quarter Waste Management (WM). They are the largest solid waste management company in the US. Good chance some of you have a barrel in your basement with their logo on it, so I'm sure most of you are familiar with their services (garbage collection, recycling, landfill storage, and waste to energy production). The majority of their revenue is from government and municipal contracts.
I was looking for an industry leader, a stock that has potential for return, but at the same time is stable. If you look at their stock prices during the recent recession, they did have much of a dip. The services these guys provide are always going to be needed, and they have a pretty sizable market share on this service which i don't see being overtaken any time soon. They are a well run company and profitable.
The stock is trading close to its 52 week high ($38.50), which can be a red flag. However, the warm weather typically means more profits for WM because of the increase in waste resulting from construction projects starting up - so now might be a good time to get in.
I will talk in more detail about it on Wednesday, but take a look and let me know your comments/questions.
I was looking for an industry leader, a stock that has potential for return, but at the same time is stable. If you look at their stock prices during the recent recession, they did have much of a dip. The services these guys provide are always going to be needed, and they have a pretty sizable market share on this service which i don't see being overtaken any time soon. They are a well run company and profitable.
The stock is trading close to its 52 week high ($38.50), which can be a red flag. However, the warm weather typically means more profits for WM because of the increase in waste resulting from construction projects starting up - so now might be a good time to get in.
I will talk in more detail about it on Wednesday, but take a look and let me know your comments/questions.
Still time to own a piece of Genzyme!
Back in March Sanofi-Aventis closed on it's $20B purchase of Genzyme (GENZ).. paying out GENZ stock holders about $74/share. For those that had purchased the stock in July 2010 when the rumors started flowing, that represented about a 50% profit on their purchase price - a nice payday.
Believe it or not there is still a chance for everyone else to own a small piece of Genzyme though! When Sanofi-Aventis purchased Genzyme they valued certain parts of GENZ business far lower than what GENZ did... so something called Contingent Value Shares (CVR's) were issued. These CVR's are directly tied into the success of certain drugs and technologies that GENZ is working on. If GENZ meets certain goals and milestones with a few of it's rare disease drugs and multiple scleroris drugs these CVR's will rise accordingly and give holders of each CVR an opportunity to share in profits and one-time payouts.
The CVR's are trading in the mid-2's under the ticker GCVRZ. This is a risky play, but it has substantial short-term potential payouts if Cerezyme, Fabrazyme, and Lemtrade earn profits beyond what Sanofi-Aventis valued them at. (as an example, Sanofi predicts Lemtrade will sell around 700k, GENZ estimated $3.5 Billion - big difference). Every dollar above $700k in revenue that Lemtrade produces will have a positive effect on GCVRZ share value.
A risky play for those of you that think Genzyme still had plenty of zip left in its step with these final drugs it was working on prior the acquisition.... there is plenty of reason for them to do everything they can to make them successful, and Sanofi has the money to make it happen.
Believe it or not there is still a chance for everyone else to own a small piece of Genzyme though! When Sanofi-Aventis purchased Genzyme they valued certain parts of GENZ business far lower than what GENZ did... so something called Contingent Value Shares (CVR's) were issued. These CVR's are directly tied into the success of certain drugs and technologies that GENZ is working on. If GENZ meets certain goals and milestones with a few of it's rare disease drugs and multiple scleroris drugs these CVR's will rise accordingly and give holders of each CVR an opportunity to share in profits and one-time payouts.
The CVR's are trading in the mid-2's under the ticker GCVRZ. This is a risky play, but it has substantial short-term potential payouts if Cerezyme, Fabrazyme, and Lemtrade earn profits beyond what Sanofi-Aventis valued them at. (as an example, Sanofi predicts Lemtrade will sell around 700k, GENZ estimated $3.5 Billion - big difference). Every dollar above $700k in revenue that Lemtrade produces will have a positive effect on GCVRZ share value.
A risky play for those of you that think Genzyme still had plenty of zip left in its step with these final drugs it was working on prior the acquisition.... there is plenty of reason for them to do everything they can to make them successful, and Sanofi has the money to make it happen.
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