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Author: SuperStocker (Page 9 of 16)

Starbucks is a Strong Bullish Stock

By

On June 29, 2012

In Super Stock

Who would have thought I’d turn bullish on Starbucks (SBUX).  This company has been making a ton of deals and all of them are associated with good companies that continue to follow their company’s beliefs: having a positive impact on communities they serve.  On their site, they state “we didicated ourselves to striking a balance between profitability and social conscience.  We continue to believe that the ultimate way to scale the power of brand is to share the good we do so that Starbucks and everyone we touch – can endure and thrive.”  I usually consider the small company first before giving my money to big conglomerates, but Starbucks continues to surprise me.  First, they are a big company and they continue to make bigger profits, but they have continued to be health conscience and follow methods that are healthy to society.
They don’t use any high fructose corn syrup.  They use healthy organic ingredients and they continue to make new businesses that do the same.  They are also contributing to local communities and following environmentally friendly practices.
Now, you wanted to hear why I am bullish.  Let’s start out with the most important things that happened recently.  First, they opened up a Tazo Tea store.  If you have been to any Teavana in the mall, you will notice teas going for up to $50/ounce.  You will notice that they give samples of teas to customers and with just a few sales they can make huge profit margins from these teas.  Starbucks owns Tazo Teas and it is a great line of flavorful teas.  By opening their own tea store, they are opening a new line of stores that will continue to be prosperous, healthy, and make a good amount of money for them.
Second, they also getting into the fresh juice business with Evolution Fresh juice stores.  This is a $50 billion world of business in health and wellness, and they can definitely enjoy a nice cut by just doing a small percentage in this business.  We will continue to monitor them as these new stores work into the market and start gaining traction.  Notable competitor Jamba Juice might have to open their eyes a bit wider when Starbucks starts moving into their business.  They are not in direct competition but both are in the fresh drink business.  McDonalds moved in with the smoothies and they have been doing quite well, so I won’t be surprised if Starbucks can be prosperous in this space also.
Third, Starbucks is adding crafted beers to their stores.  This can be a huge boon for them.  It will definitely attract a different group of people but I believe it will bring more traffic to the stores.  They are experimenting with a small sample of stores and they will continue to ramp up as it gains traction.
Fourth, Starbucks has partnered with Coinstar (CSTR) to bring coffee to the vending machine.  Coinstar will be working with Seattle’s Best Coffee, a coffee company owned by Starbucks, to put their coffee in vending machines across the nation.  I expect this will have a huge branding growth for the company and it is something that you haven’t seen yet in the United States.
Fifth, Starbucks has been revamping their pastries and baked goods by buying a bakery and bread company.  They are planning to expand their food business with a $100 million cash deal to buy Bay Bread LLC.  It is expected to close in the fourth quarter.  Starbucks hopes to popularize Bay Bread’s French Bakery La Boulange in all their stores.  This puts them in direct competition with Panera Bread (PNRA) which has been doing really well in the sandwich business.  You can definitely see this in their stock price also.
Currently Starbucks is trading a low of $52.09 at the close of June 28, 2012.  I definitely think it’s at a nice bottom and it would be a great time to pick some stock up and ride the wave up.  With all these partnerships I definitely see great things ahead for this company and I expect a lot more reward than risk.
Get in while it’s cheap and enjoy the ride up !

Stock Picks Doing Great!

By

On June 19, 2012

In Super Stock

If you have been following our blog and made the purchase on March 2010, you would be sitting on a nice 20% gain right now from Monsanto.  It’s hitting all-time highs and it continues to be a strong stock.  I suggest this as a keeper as it will continue to rise as food prices inflate.  I suggest selling it off when the economy finally starts improving but I doubt this will happen anytime soon.  It has bested the S&P 500 for the past year and this is definitely a good stock for the long-term.

Another great pick was Brookfield Infrastructure Partners at around $16.50.  It’s already surpassed that price to give current holders a nice 100% gain on the stock.

We will continue to look for great stocks that can help  your portfolio.  Please leave comments for stocks you want us to research!

Are we in for another drop in the stock market?

By

On May 7, 2010

In Super Stock

We saw a massive drop in the stock market yesterday – dropping as much as 1000 points. Today we see furthur markdown of the stocks. As more people get worried, I see better valued stocks and better bargains. This is a great time to start stock picking for valued stocks. We are at stock prices from 10 years ago. If you are playing the long-term, this is a great market. If you are playing the short-term, there’s still more downturn and you can play the short side.

I see support on the SPY at 106, but if that breaks, the next support is 102. If we break these supports, we are in for more drops in the stock market. While it can continue to go down, you know we have the support of the government to prop up wall street. I doubt we will see the lows of 2009 ever again.

Here’s a couple stocks to look at: IGOI and JMBA. JMBA has been falling down since hitting a high of $3.83. It’s at $2.70 currently and it has big support there. Jamba Juice also is making big strides to become profitable. Their smoothie business continues to improve, they have new offerings of teas & coffees, and should be a major player as the US economy improves.

IGOI is still pretty undervalued at these levels. It just had earnings announcement yesterday. It stated it will be fully in Wal-mart by the end of May, it has got into Office Depot and Office Max, and it is planning to get into international markets. Link to original article.

Hugoton Royalty Trust, a Dividend Play on Natural Gas

By

On May 5, 2010

In Dividend Stock

Hugoton Royalty Trust, HGT, looks like it is ready to break out. Plus in addition to that, you get a nice dividend of over 8%. The dividend changes depending on the market fluctuations. This stock is a play on natural gas. It has been going up since a huge downturn last year.

Why be bullish?

This company was started by XTO Energy. They spun it off and own a bunch of shares in this company: “It holds a 80% net profits interests in certain natural gas producing working interest properties of XTO Energy Inc.” This trust is always producing profit and giving the money back to the shareholders. When the price of natural gas goes up, they can give more dividends. They also use the money to look for more opportunities in drilling and producing more natural gas.

Recently inventories of natural gas has been going down. This is in part to the prices of oil moving up and just natural gas being at very low prices because of the high supply of inventories that have been built up. The price will continue to increase as natural gas producers slow down. The recent statistics on home sales increasing also gave a more positive outlook that natural gas demand will increase. OPEC is also cutting back on oil production which will furthur the demand for natural gas as a substitute.

Technically HGT hit a triple top at $18.60. It’s at $19.50 currently and it did not drop with the stock market the past couple days! The volume looks good and it appears it’s time for it to move up to new territory. Before this recession, the last time it hit these highs were in 2003. It continued to rise to $40 as commodities increased during the decade. I think this stock has reached a bottom. For those seeking stocks that are defensive and want to make a play on inflation, I’d definitely suggest this stock.

Gold Looks Good for the Future

By

On May 4, 2010

In Super Stock

Coure D’Alene, CDE, is a commodity stock play on the gold and silver market. Their past couple years of results have not been too lucrative as they have been holding lots of gold and silver as reserves and the prices went down the roof, but the future looks might brighter with the recent gains in commodity prices. They are currently stockpiling their reserves until they find a good time to sell. They do not hedge their commodities.

Earlier this year they significantly expanded the production at Palmerjo and started operations at the Kensington mine. If you know commodities, the average gold to silver ratio is 16:1 which would mean silver would have to multiply to at least 3x the current price. It has been stated that gold will move up to $5,000 over the next decade. Their new mining operations have break-even point at $900 gold and silver at $8.50 an ounce. These break-even prices are very conservative. If gold and silver never rise, they would still be profiting at the current mining costs.

Technically, the stock price is undervalued. It just broke out of support at $17.50. Other than the downturn in 2009, the last time was 2003 when it was in the $18 level. The volume continues to look good – It doesn’t look like it will be stopping anytime soon.

Currencies are looking negative. The world is running on debt. Greece needs money to prevent a default. California continues to be desperate to raise cash. PIGS is next in line to require a bailout. United States continues to print billions of dollars to make up for the mortgage crisis.

There is a bunch of problems right now but there is always a way to profit. Institutional investors like gold mining stocks. This includes George Soros and Jim Rogers. Invest like the big guys that make money and buy CDE.

Disclosure: I own CDE (of course!).

Berkshire Meeting 2010

By

On May 3, 2010

In Other Stock Tips, Stock

Last year I took the mini-van provided by Berkshire to the 2009 Berkshire Hathaway Meeting. I was staying in the middle of Omaha, NE. I thought I was running late when I left the hotel but the vans did not arrive yet and there was a bunch of people waiting outside. I ended up getting to the Qwest Center like 10 minutes before the meeting started. All the seats were taken and I had to stand for the first hour.

This year I rented a car and the goal was to get to the Qwest Center by 7:00 AM. I ended up getting there around 7:30 AM but there were still plenty of seats. I’d say it was at 60-70% full. I snagged a seat in the back of the arena in the top section. I figured most of the people that entered the arena would take the seats at the beginning. Apparently those seats are reserved for managers.

The setup is the same like last year. There are two seats for Warren Buffett and Charlie Munger. There are three big screens so we don’t have to squint our eyes on them the whole time. They talk from 9:30 AM – 3:30 PM and then have a half-hour business meeting. They added 2 more screens and more overflow rooms to manage the increase in stockholders.

This year’s meeting seemed more like a good basic approach to investing, answering the questions on Goldman Sach’s, and value investing. The meeting seemed very targetted to the new stockholders of Berkshire and showing them their philosophy to buying and holding companies with good fundamentals.

To sum up a few of the main points:
– China and India will continue to prosper and work hard to have the ‘American’ culture prosperity
– Berkshire Hathaway will not grow as fast as it has in the past. Reason is they are so huge in market cap now. However, they assured us they will always bring good shareholder value even when they pass on the company to other managers.
– Goldman Sachs was only an underwriter to the actual fraud charges that happened. They took contracts from banks that would insure the mortgage securities and took investors’ bets to short these CDOs. Here’s a good interview that explains it.

Generic Medication for Wins

By

On April 30, 2010

In Super Stock

Play the generic pharmaceutical market! President Obama recently passed healthcare reform in the United States. This requires everyone to get health insurance. One of the things the bill does to save money is to allow subsidies on drugs and medicines. An additional money saver is to allow subsidies on generic medication.

Lannett CO (LCI) is one of the few generic medication manufactures in the United States. They just recently got approved for their generic medication of Zofran, an injectable GlaxoSmithKline drug used to minimize nausua. Zofran sold about $58 million last year. Last year they mate their first profit after two years of disappointing earnings and getting FDA warnings for their generic drugs. Do you think out of that $58 million people will by willing to switch to a generic version that costs at least 20% less? You betcha! It’s pretty easy to see that their stock can easily double if they took 10% of that Zofran market share.

Other fundamental things that look good – cash is decent and debt is at a reasonable level. Technicals show a bottoming at $4.40 and there’s strong support going back 10 years. Their net income has increased for in a qtr-to-qtr basic for the past year. It also has doubled from the past quarter. With the low stock price and continuing drugs to come aboard the generic medication line, this might be a great time to get in.

Activision Does Not Disappoint!

By

On April 27, 2010

In Super Stock

Activision Blizzard continues to bring in good news. They received an upgrade from the street on last Wednesday. Here’s what they got to say: “Activision Blizzard has gained 18% during the past year, trailing major benchmarks. The stock trades at a price-to-book ratio of 1.4 and a price-to-sales ratio of 3.4, 73% and 48% discounts to peer averages. It’s also cheap based on projected earnings.” Link. – http://www.thestreet.com/_yahoo/story/10731104/1/honda-activision-mt-ratings-upgrades.html

World of Warcraft continues to make them millions of dollars. They must have the best marketing/sales/product team in the industry. In the past week, they created a new horse called the ‘Celestial Steed.’ They charged WoW players $25 to buy it. In just four hours, they made over $2 million dollars off it. It must have took the designer maybe 1-2 days to design the 3D horse model. Even if it took him a week, they still made tons more than the price to pay the designer to create it. I’m sure Activision will continue to find ways to monetize their games. It’s definitely a model that will be built into future gaming.

They also have a few big hits coming out at the end of the year. Star Craft II is planned to be released in the late summer or fall. Disablo III is planned to come out early next year. The next expansion to World of Warcraft is set to be released for the holidays. There’s still plenty of time to get in before all the action happens, but you can bet the second half of 2010 will be big for the company.

Gamestop is already selling pre-orders for Starcraft II. If you are an avid gamer, you can get into the beta just by pre-ordering the game. They will give you a beta key to start warming up your keyboard touches and mouse clicks. It has already been a hit on Amazon as a ‘Bestseller’ being ranked in the top 200 sellers in video games. They also still have Call of Duty: Modern Warfare 2 making tons of cash. It got recently rated ‘Best Successful Launch in Video Games’ by making over $400 million within one day. It surpassed Grand Theft Auto which had the record at over $300 million.

What can they do for the early part of 2010?

I’d hope they have started creating games for the iPad and moved into the mobile phone field. You can bet Electronic Arts is establishing themselves in these fields after lackluster sales from their console games. Activision has to continue to make strong games that sell. Short-term the outlook is cloudy, but the stock charts have shown strong support to keep the price up. Long-term this stock is a keeper. You have the most popular computer games being released from Blizzard. They will all sure be hits when they come out.

Let’s see what the earnings say on May 6th.

Disclosure: I’m in ATVI and I have puts in ERTS

iGo is Worth the Gamble

By

On April 26, 2010

In Super Stock

I apologize I have not been writing about specific stocks in a while. But I promise to make it up to you with this small-cap stock. It only have a market cap of 60 million but that means there’s much potential in it. The stock symbol is IGOI. The company is called iGo and they make chargers. Their website is at http://www.igoi.com.

Why do I like them?

The business is simple. They make chargers and sell them. You can read their SEC filings and you won’t find anything other than that.

They also hold lots of patents. One patent that has got a lot of news is their ability to protect against Vampire power. Check out www.vampirepowersucks.com to find out more information. Vampire power is the power that gets drained out of your devices even though they have already been recharged. This means you are wasting valuable electricity and paying higher prices because of your inefficient chargers.

They have received multiple accreditions from PC World and have won Best of CES 2010 for their green chargers. If you wish to invest in green energy, then you’ve found the company here. Think about if they were to get big companies to buy their iGo chargers. The companies would save a bunch on electricity and be “green friendly.” The government would be a proponent for that.

They also have tons of potential. To give you a little history, they used to be an OEM supplier of chargers. They actually produced chargers for other companies that would rebrand them and sell it. Targus was a major buyer of their products. Many of the new iGo chargers have similar functionality to the old Targus chargers, but with more functions and fixes. Their stock price plummetted in the past few years when their sales starting going down and Targus stopped buying their chargers. Management is doing the right thing – cut the middleman and sell it themselves.

iGo chargers are just beginning to get big. They already have some viral media out with their ‘Vampire Sucks’ videos. They also are giving iGo chargers away through shows like Bonnie Hunt. They need to continue to press social media and get the word out of their chargers. Being new to the game of selling their mechandise, if they can maintain high quality products and get those distributed, they will be a game changer in the recharger business. Exposure is a big thing going forward for them. I doubt many people have heard about this business.

Here’s one of the biggest things I see going forward: Wal-Mart. Yes, they have got accepted to Wal-mart after doing some small trial runs with them. Starting in the second half of 2010, you will see green chargers in Wal-Mart. iGo chargers are already being distributed to Radio Shack and Office Max. You can bet after it gets into Wal-Mart that other big good stores like Target will want to sell their brand.

Currently it sells for $1.73. It was at $1.68 earlier today. The stock was up at a high $2.06 this past month. I am sure the stock will be hitting new highs soon. There’s just so much reward to risk in this stock to pass this opportunity up. It has already broke the last resistance at $1.80. The next resistance would be at $3 which would give it almost a 50% gain from where it’s at right now.

Disclosure: I own IGOI

Brookfield Infrastructure Partners

By

On April 6, 2010

In Super Stock

BIP is a infrastructure stock with over a 6% dividend and a good way to play the growth of the global market.  If you think the market is at the bottom and that the world will continue to grow, this stock represents a great way to play the market.  They own eletricity transmission systems, timber, and social infrastructure around the world.

Their goal is to buy businesses cheap and sell them when they are in an overvalued market. They expect to find many bargains in the next couple years as countries like the UK and US need to sell off their infrastructure to pay costs.  They believe that privatization of utility companies will eventually happen.
Let’s take a look at some things they own:
  • Owns/operates transmission systems and timberlands in North and South America
  • 8,279 kilometers of transmission lines in Chili
  • 2,100 kilometers of transmission lines in Brazil
  • 550 kilometers of transmission lines in Canada
  • 634,000 acres of freehold timberlands on Vancouver Island
  • 655,000 acres of freehold timberlands in Oregon and Washington
  • Third largest port by tonnage in UK and largest in northeast England
  • One of the largest gas transmission pipeline and storage system in the US
  • Gas distribution in Isle of Man, Channel Islands with significant connections to UK
  • 5,000 km of rail in Western Australia
  • 600,000 sq. meters of exhibition space in Melbourne
  • Natural gas distribution in Tasmania
  • 135 bed forensic hospital, 85-bed prison hospital in Sydney
  • Portfolio of concession ports in European locations
This company is a spinoff of BAM (Brookfield Asset Management).  The CEO of BAM, Bruce Flatt, is given high regards for excelleng management and investment practice.  He is also known as the “Canadian Buffett”. The stock price right now is currently the same as it was 2 years ago.  It has already recovered from the 2009 market crash and there is plenty of room for it to move higher.

Technically the stock is in a great position.  The volume has been steady and it’s moving up slowly.  It took a dive a few days ago, but it has already recovered.  Long-term wise this is an easy play to make you money.  Just hold it, collect the dividend, and watch it move up.

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