Waste Management’s Q3 Profit and Revenue Beat Expectations (WM)

http://www.dividend.com/blog/?p=39019

KOG

My pick this quarter is KOG. I was going to go with my other pick from two weeks ago, but it appears we missed the boat on that. I came across a pretty cheap that has a lot of upside. I was purchasing this stock in our portfolio challenge and it did very well for me. This company sits on what could be the largest shale found on our continent that will produce oil and natural gas. Here is a great article I found.... http://oilshalegas.com/bakkenshale.HTML

I think we should set a buy price of $4.50-$5. I think we should buy about 200-250 shares. This way if the stock shoots up from $5 to $7.50, we stand to make $625. This stock is at $7 now, so we just have to wait for the right drop, buy and then set a sell price we all like. I think this plan only works if we buy at least 200 shares, but we certainly could use an opportunity to get $625! This stock is only a few months old so I think we I'll se the drop we need.

You've got Mail!

I know, I know - they are the laughing stock of the tech industry.  Their outdated dial-up service is a joke, and they have missed the boat on nearly every new trend in the past decade.

All jokes aside, however, the company is still very profitable, and still owns some precious dot-com real estate.  Word on the street has been that they are an ideal buyout candidate.  One confirmed potential buyer is Yahoo - and the reason such a merger/buy-out would be beneficial is that as one unit, the companies would save $1.5 Billion a year alone in costs due to redundant tech needs.

Currently trading at under book value and being a takeover target in a market like this, I like AOL for a short-term holding, but I don't like it at current prices.  I'd look for a pullback to the low $14's as an entry point.

No, not boobs

Tata Motors (TTM), based in India, manufactures and sells compact cars and commercial vehicles internationally. With corporate offices in England, South Africa, Korea and Spain, they generated $27b in revenue worldwide last year. They have 5.9m cars on the road in India today, in addition to being the world's fourth largest truck manufacturer and third largest bus manufacturer. Their vehicles sell throughout Europe, Africa, Asia and the Middle East. Domestically, Tata's presence in the U.S. is primarily through Land Rover and Jaguar, two brands they bought from Ford at the start of the recession in 2008. The stock currently trades below $20 and is categorized in a sector that we have never purchased.

3rd Qtr Picks

I have two picks I'd like to bring to the table for discussion Tuesday. The first one is Mueller Industries (MLI). Ryan sent over a good article a week or so back regarding the construction slow down in China and the subsequent drop in demand of construction material (copper in particular). Pat brought up a good point that a drop in the cost of copper would equal profits for companies that use a lot of copper in their products. One company came to mind - Mueller. They are the largest supplier of plumbing and HVAC piping and fittings in the US and the majority their sales are copper pipe and fittings. I would bet that most of the plumbing pipe and fittings in your house are supplied by Mueller. The stock has risen considerably the last few weeks in response to this news regarding china - so we are obviously not the only ones who think Mueller stands to benefit from this. They are already a profitable company to begin with and have solid financials. I would want to see if the price drops off a bit before we get in as right now they are close their 52 week high of $47. If the stocks dips back to around 40, i think that would be an ideal entry point. Mueller is in the same sector as Alcoa, so we would have to look at the exact numbers to make sure we don't overload, but i think its a great opportunity.

The other stock I wanted to bring back to the table was CAT. As you guys know - I've been a big fan of CAT for a while now. Their stock took a little bit of a hit the last quarter with the market slip, but they just announced earnings this week and they killed it. As a result their stock has shot up a bit. They expect to do even better next year as demand for their equipment is expected to rise. Since we have some extra money in the money market - I think now would be good time to put some into CAT. I would wait for a drawback and try to get in below $90 if possible, but I would be happy getting where it stands now as i think the stock will rise going forward.

I look forward to hearing everyone's feedback on Tuesday.

My Picks

Hey guys. First of all thanks for taking care of some issues last night without me. I think it was a good that you did that so we are clear heading to the meeting tomorrow.

My Pick for this quarter is AO Smith Corporation (AOS). This company is right up my alley. They are a leader in the residential and comercial water heating equipment. My company only uses AO Smith water heaters on any of our jobs (unless we are attaching an indirect hot water heater to a boiler, in that case we use the same manufacturer as the boiler).

They offer every type of water heater from gas to solar to electric, and they come in a wide range of efficiencies. The gas coompanies are offering up to $1,000 in rebates right now for people who are putting in high efficient equipment. We have sold a ton this year.

Right now it is trading at $38.15 per share and everything I have read since I started watching this stock is that it will outperform the market.

I said "picks" because I also like Chimera Investment Corp. (CIM). I heard about this stock from Mark's friend whos father is a hedge fund manager. I havent had too much time to research, but he said its a long term stock. The best thing about it is that it pays a 17% dividend! It is trading at $2.91 per share.

Chimera Investment Corporation is a specialty finance company that invests,
either directly or indirectly through its subsidiaries, in residential
mortgage-backed securities (RMBS), residential mortgage loans, commercial
mortgage loans, real estate-related securities and various other asset classes.

This is something that you hold on to for your kids college education...

AKAM

We shoud keep a close eye on this stock. It is down a lot this year but has technology that other companies (google) are very interesed in. Could be on course for a buy out.

Sent from my Verizon Wireless BlackBerry