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Category: Super Stock (Page 8 of 11)

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.

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!).

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.

Recent Stock Picks Doing Well

By

On March 16, 2010

In Super Stock

MKL – $353    –>  $366
FLR – $43       –>  $45.52
ATVI $10        –>  $11.62
WU –  $16.30 –>  $16.51
PCS – $5.86   –>  $6.75
T – $25            –>  $25.828

These are the recent stock picks posted on the blog.  I wanted to see how the recent stock picks are doing.  They are all short-term and long-term trades.  Short-term wise, you should be selling them and taking in the cash.  Long-term, the stock market is moving up and you’ll continue to have more appreciation in these stocks.  They all started at a very low price so they are quite safe and should continue to make gains for quite a while.  They all have long-term value and are all profitable and gaining EPS by quarter.

Time to Invest in China

By

On March 15, 2010

In Super Stock

While the United States continues to waddle in the recessionary times, we will see the global economy grow.  The best way to play the future is through countries that have people working and growing rapidly.  China is the main country with this type of growth.  Jim Rogers stated that China would be the next future to boom.  He stated United States ‘time is over’.  The question is how do we invest in China.  The country being overseas and in a foreign language make it hard to learn about stocks.  However, I have done a little research and I found a gem that’s a good play.

CPHI, China Pharma Holdings, Inc., is at a low $3.50 price.  It has dropped recently from a high of $4.  There was a lot of jumping in after their annual report.  Now, it’s a nice bargain price to get in for a long run.  They are a generic Pharmaceutical based in China.  They have a low PE at 7.31.  They have had increased EPS for the past 10 years.  The past 4 years have been positive EPS.  They have no debt.  They also sell nutritional supplements.

What to look forward to?

They have reported 23% growth in sales year-over-year.  They have a 70% growth in EPS.  As China continues to grow, more people will buy supplements and medicines from their local pharma companies.  This is a micro-cap stock so there is a bit of volatility, but it seems like a pretty safe play in the long-term.

Here’s some quotes from their annual report from early March 2010:

“Clear Strategy for Growth – We are positioned in a rapidly growing industry in the fastest growing economy in the world. Within the Chinese economy, as medical care expenditures represent only about 4.5% of the Chinese GDP (compared to 15% in the United States), the healthcare segment will experience faster growth. Furthermore, the recently announced Healthcare Reform in China implies significant additional revenue opportunities for pharmaceutical enterprises supported by government initiatives. The increase in demand from these sources should allow us to grow organically at a healthy pace. Aside from our current portfolio of products, new products from our pipeline (such as Candesartan and the generic version of Crestor, or Rosuvastatin) present us with very healthy growth opportunities once these products come on line.
Finally, the Healthcare Reform will change the current landscape of the Chinese pharmaceutical industry which we think will create many attractive acquisition opportunities. We plan to use these opportunities to the fullest extent possible and hope to continue our rate of growth in the future.”

“Gross profit for the 12 months period ending December 31 2009 was $25.65 million and the gross profit margin was 42%. For the same period in 2008 gross profit was $25.29 million with gross margin being 50%. From a product-sales structure perspective, we sold more lower-margin products in 2009 compared to 2008, including products that are listed on the EDL. Going forward we expect gross margin to balance out more evenly as some of our higher margin products (such as newly launched Tiopronin and Omeprazole Sodium) achieve higher sales volume as they ramp up.”

Monsanto, food food and more food.

By

On March 11, 2010

In Super Stock

Monsanto (MON) could be the next big thing.  They are a food producer.  A major global food producer that gets revenue from farmers who use their seeds.  A lot of the vegetables and fruits in your market originated from a agricultural lab of Monsanto.  They are one of the largest global players in the agriculture market.

How do they make money?

They sell seeds to farmers.  When farmers make money, Monsanto makes a percentage of that cash.  The funny thing is their crops spread to whoever is next to it.  This gives their the ability to put lawsuits on other farms.  They claim the other farms are using their patented seeds without paying for it.  This is probably kind of unethical, but they do make lots of money doing this.

Why do people buy their seeds?

They have genetically modified their seeds to give the most abundant, freshest, and sweetest product.  Their seeds are made to protect against bugs and weeds.

They also have many agricultural products.  Many of them are used for crop protection. “Once a year farmers make a decision about which seed to plant. At Monsanto, we work everyday for that opportunity to serve farmers.” – Hugh Grant CEO.  ` They also sell pesticides.  Their most popular is ‘Roundup’.  You might have seen their commercials back in the day.

Here’s a video on Monsanto:
http://www.youtube.com/watch?v=OXpWR3zrT1I

Let’s do some technical work on this company.

The stock has reached it’s low point.  It’s bound to move up from here. If you read the latest SEC filings, you’ll find that many of the big management has been buying their stock recently.  There were hugh purchases made on March 2, 2010, January 20, 2010, and November 2009 by insiders.  Their purchases were in the range of $71-$76.  They have been buying since early 2008.  March 9, 2010, the John Hancock Trust fund bought $259,815,600 worth of stock.  Many of these institutional funds buy on the cheap and sell when it gets high.

I’d like to put my money with the big institutional buyers and insiders.  If the stock breaks $70, I’d be willing to sell and get rid of it, but the stock charts show that this should easily go pass $80 giving you more than a 10% gain.  This is a great short-term play.  For those playing long-term, they have EPS growth for the past 10 years.  The last two years have a huge jump on the EPS and they always make a profit every quarter.  This is another boring stock company that does not have much news, but whenever you eat, you should know that Monsanto has a little bit to making that food.

That’s my stock tip for today.  Enjoy! Happy Trading!

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