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Category: Super Stock (Page 9 of 11)

Electronic Arts Continues to Impress

By

On March 8, 2010

In Super Stock

Electronic Arts continues to grow to a better tune. They have just released Battlefield Bad Company 2. It ranks #6 on the top sellers right now on XBox. Playstation 3 is in the top 25. They also have Mass Effect 2 on the top 100. Dante’s Inferno is at the bottom, but still in the top 100. Final Fantasy XIII is ranked the top game, but many players like specific genres and not everyone is into RPG games.

ERTS looks good going forward. They have a bunch of good games coming out. Their positioned for a strong upturn for the next quarter.

Let’s take a look at their daily chart:

This small chart shows the past month.  Each candle represents one day.  There might still be a tiny drop coming, but look at that consolidation.  This stock will have a big gap up or a drop, but I think the bottom is already in.

Fluor Corporation

By

On March 4, 2010

In Super Stock

For those looking for exposure into a global marketplace, look no furthur than Fluor Corporation (FLR). This stock has reached lows on daily and weekly stoichastics and it’s primed to go up. The stock has been stagnant for 5 years. It reached highs in June 2008 but has continued back down to it’s 5 year lows. The financials on it look good. It has continued to increase earnings per share. The total net income has continued to increase every year.

Let’s take a look at what they do. If we read the finance summary on Yahoo’s Finance, it states it provides “engineering, procurement, construction, maintenance, and project management services worldwide.” It has multiple streams of income: oil & gas, industrial & infrastructure, government, and power. Their business seems quite complex. It’s a lot of logistics, engineering, and project management. However, it’s not any Enron. They are busy fudging numbers to get things looking good. They are providing a productive business that will create more industries. Engineering = good.

March 2, 2010, they were awarded a project valued at $450 million from Debswana Diamon Company Ltd. Here’s from the press release, “Jwaneng Cut 8 is at the forefront of a number of projects being developed by Fluor as part of a portfolio which includes a new diamond processing plant at the Orapa Diamond Mine and the expansion of the Morupule Coal Mine.”

February 28, 2010, they were awarded a project with the Singapore LNG Terminal Project. The plan is to have the terminal produce 3.5 million tons of LNG annually. I like these projects. They bring in a valued asset and Flour has a huge global presence.

Let’s take a look at their fourth quarter transcript. We’ve already reviewed their earnings so I’m looking for their guidance in the future and an explaination of waht they plan to do to keep up the growth. They have a huge backlog of mining projects including one with BHP Billiton’s Rapid Growth Project. In the United States and Europe, they are focusing on road and rail opportunities. They also are building wind farms in the coast of Scotland. They have continued contracts with Department of Energy and Defense.

Their guidance is very conservative at $2.80 to $3.20. They reduced it from $3.20 to $3.60. I think they can easily beat their numbers, but they are planning for the worse. It’s good to see a company that doesn’t exaggerate their numbers.

This looks like a good long-term hold. I’d suggest others to do their own due diligence. Boring companies like these never get heard of, but they continue to make money. I like the global presence and exposure to the US government. You are betting on US infrastructure and global growth. Both look good for the long-term. It can’t waddle at the $40s forever. I expect it has bottomed already, but if it does go furthur down, what’s keeping you from buying more of a bargain?

Markel – The Next Warren Buffett Stock

By

On March 2, 2010

In Super Stock

For people looking for similar to Berkshire Hathaway, I suggest Markel (MKL).  It’s like a little baby Berkshire with a stock price in the three digit range.  Actually when you purchase this stock you are purchasing Berkshire Hathaway since the fund invests heavily on good stocks.  The CEO follows the value investing theories of Warren Buffett and Benjamin Graham.  The price is at $353 which is close to the 5-year low.  At this price, it is a definite bargain and it won’t be there for too long.

What does Markel do? They are a insurance company, but they do ‘niche’ insurance. You won’t find them providing insurance for automobiles or health care. They insure weird stuff like derby horses, commercial buildings against disasters (hurricanes, earthquakes), high-value motorcycles, personal watercraft, airplanes, and even energy-producing activities.

If you look at the stock price, you’ll notice a huge drop in 2008. There was the immediate effect of wall street that brought the price down. In addition, there was the losses from insuring the buildings covered against the Hurricane Ike and Gustav. However, it still managed to pull off a profit for 2009. The secret sauce is lots of the company is just like Berkshire. They invest in other companies.

Tom Gayner, Chief Information Officer, follows the Warren Buffet philosophy. He looks for companies that are long-term profitable, high return on equity, and a low stock price. About $1.3 billion of the company consists of a large portfolio of big name stocks – 3M Co. (MMM), Abbott Laboratories (ABT), Campbell Soup Co. (CPB), The Walt Disney Co. (DIS), General Electric Co. (GE), International Business Machines Corp. (IBM), PepsiCo Inc. (PEP), The Procter & Gamble Co. (PG), and Wal-Mart Stores Inc. (WMT). Markel’s largest holding is probably Berkshire Hathaway (898 Class A shares valued at about $91 million and 31,418 Class B shares, worth about $106 million). With a market cap is $3.46 billion, their stock portfolio makes up a huge source of their business.

For those that are looking to buy long-term stocks , Markel might be a good one to look at. You don’t need to do the research of individually picking the stocks. You got a financially savvy stock guru that holds billions of dollars to back up your investment. If you read their latest 4th quarter report, Gayner states that his company is ready to handle the rising inflation. He’s prepared for the future and I’m willing to bet some money to agree with that.

Berkshire Hathaway and Warren Buffet’s 2009 Annual Shareholder Statement

By

On March 1, 2010

In Super Stock

Warren Buffett has again given us his great knowledge into the future and all things beyond.  His 2009 statement provides his thoughts on the future of the United States, which is positive and his thoughts on the events that have occurred at Berkshire Hathaway for the past year.  He’s positive for the future of the US economy.  He even states that his company Clayton Homes will become more profitable.  His theory is that the amount of ‘housing starts’ has bottomed out.  He shows the amount of homes being built has decreased largely for the 2009 year.  This means the housing inventory is kept stable allowing for the foreclosed homes to be bought.  This stabilizes the housing prices and keeps current home owners from turning off their house.

Since the 50-to-1 split, Berkshire Hathaway has been making a sudden move up.  The price of the stock makes it an easy buy for index funds and mutual funds to add it in their profile.  As the stock improves, it will eventually move into the S&P 500.  This in turn will make S&P funds purchase more of it.  Hence you see the price moving up even with this bad economy.

I’ll be posting another article in the next day of a company that performs similarly to Berkshire Hathaway. They follow the same philosophy and are a pretty ‘unknown’ company to many. It should be a good investment opportunity for people that want a safe investment.

MetroPCS at Bargain Prices

By

On February 8, 2010

In Super Stock

MetroPCS has reached decade low prices.  It already reached the March 2009 lows being at $5 currently.  If you take a look at its earnings, they have continued to bring in profit quarter after quarter.  The Super Bowl ad shows it’s pricing power – for $40 you get unlimited phone minutes, text, and web access.  AT&T is the only closest competitor at $70.  We’re at a recession right now and it’s surprising to see their stock price keep dropping even though they keep bringing in more subscribers.

Investors are selling because they believe Verizon and AT&T have the edge with the biggest network.  However, I seriously doubt they would drop their prices to MetroPCS’s prices.  Their profit margin would be seriously cut if they did.  MetroPCS has a big niche.  It markets to urban cities and it markets a very competitive price and it remains profitable.  I think the current price of $5.88 is a bargain.  There’s a lot more reward vs risk in this stock.


Nuclear Energy is in Obama’s Policy

By

On January 28, 2010

In Super Stock

Obama is talking currently in his State of the Union address.  He’s endorsing a lot of spending programs to stimulate the economy.  He wishes to cut taxes for small businesses and large businesses alike.  He will give incentives for companies to move their offshore businesses in-house.  He also re-iterated his commitment to alternative energy.  This includes solar, wind, and nuclear energy.

He stated to continue the clean air act that we needed better clean energy programs.  The first topic he stated was building more nuclear energy plants.  I already have endorsed two companies that look good for this, EXC and USU.  Both companies have been dropping since their has not been any news on nuclear programs, but Obama has finally rung the bell to nuclear.  There will be loan funding for nuclear plants in the future and I believe these two companies are great plays.  Exelon has multiple nuclear power plants already in the United States.  They are a profitable nuclear energy company.  Obama would want more of these plants to bring more jobs in the US.  He knows infrastructure will be important to moving forward.  Look for them to continue to grow in the future.

USU, USEC, is a play on the government funding.  They have already been given exclusive access to old nuclear warheads to extract uranium.  They have also been doing extensive R&D to create new nuclear power plants.  I think this company is in great position to be given loan fundings. They already have done their research to create the next nuclear plants through their American Centrifuge program.

Nuclear Energy is the Future after Cap and Trade

By

On November 24, 2009

In Super Stock

I’m taking a gamble with this play but the risk vs reward looks really good. I’ve been researching the uranium business and it seems like now is a great time to play it. Stockpiles are very high and the demand for uranium is picking up with the future to be nuclear plants. The recent cap and trade proposal will cut many emissions including the coal power plants and oil industries. This will put furthur pressure for alternative energies and nuclear energy. These energy alternatives are very clean and will still be within the bounds of carbon emissions.
I’m looking at USU. It’s the only company currently working with the government. The government is supplying uranium to USEC throught old nuclear warheads. This is the only company getting this benefit. Not only is this helping the environment but it brings over $5 million dollars worth of uranium and helps remove the stockpiles of nuclear waste. Look for this company to get more financing from the government. They also have the new nuclear technology American Centrifuge to utilize for the future US nuclear power plants. All they need is the funding of the Department of Energy. They stand a great chance at getting this loan.
The construction of new nuclear plants would put many unemployed people back to work. It also would be part of Obama’s plan to use clean, renewable energy. France already utilizes 90% of it’s energy from nuclear. China is set to produce more than 10 nuclear power plants. We won’t be caught out of a bright future for cheaper and more clean energy. Expect the US to join the global effort for cleaner energy and USU to be one of the main companies in the United States to bring it.

USU stands at $3.62. The possibility of dropping furthur is really slim. They could get bought out at these prices. Once they get the loan expect this stock to skyrocket to $6. Great long term play!

Stocks to Look at for 7/6/09-7/12/09

By

On September 7, 2009

In Dividend Stock, Super Stock

Sorry for not posting for a while, I’ve been out-of-the-country and on my own stock research sabattical researching short-term trading and swing trading.  Now we can get down to business and make more money than just doing value investing.  I’m not to fond of big drops in the market.  If we want to make cash, we ogtta be able to swing our trades no matter what the scenario.

The past week we bottomed out at the market at 9200.  The only next point of resistance is at 10,500.  We have a lot of bull to go and the stocks that I am posting below all have an advantage to gain for the next couple weeks.

ETFC, E-trade, is a online broker company and mortgage financing company.  They trade at $1.55 but ran up to $1.92 last week before hitting a low of $1.50.  A lot of institutional investors have been trading this stock.  Citadel investment put out a press release stating they will not be selling their shares of stock.  They are the largest holder with 120 million shares!  Goldman Sachs bought over $38 million and Barclays bought over $60 million worth of shares.  There has been recent buying by Vanguard, IShares, Equity Advisors, and other mutual funds.  Companies like Vanguard continually buy more shares through 401k programs.  I see this company as a very safe trade at these levels.  There is also a ton of shorts in this stock.  I definitely see it breaking $2 just by the short-covering alone.  Great stock to get in now!

CMO, Capstead Mortgage Corporation, is a mortgage REIT that invests in residential and commercial properties.  It makes money by investing in mortgage loans.  The last quarter is gave a whopping .58 dividend.  This comes out to a yield of 17.34%.  The company makes money by profitting off the spread on interest rates.  Since the United States is at all time lows on interest rates it is making tons of cash right now.  Just last week the interest rate for short-term loans went down furthur this will add to its profitability.  The only way this company will lose is if the interest rates go up; however, this only happens when the FED wants to slow the growth of the country.  We have the highest unemployment rates for the past 27 years and tons of mortgages that will be going into foreclosure for at least the next year.  I highly doubt interest rates will be rising anytime soon.  Technically, the daily stoichastics are at the lowest its been for the past few weeks.  The risk is low right now.  Buy now at $13.35 and hold it long-term for at least a year.  Easy dividends and easy cash.  Nothing to lose.

FSLR, First Solar, has low stoichastics.  It has already started a move up from hitting a low of $112.  It currently trades at $121.47 and I see it moving up to $145-150 range.  After that depending on market conditions it can either move up or drop.  This is a very easy trade right now with the current bullish market conditions and solars at all-time lows.  If you want to play with more leverage, JASO, JA Solar Holdings, moves up a lot more.  I don’t know what the long-term trend for solars will be but for the short-term they both look like fine plays.

BSTK is a penny stock with a lot of potential.  This stock currently increased 100% from .12 and it was at a low of .05.  I see it moving it .50 cents before it hits strong resistance.  Another great short-term play!

Good luck!

Western Refining Looking Good

By

On June 18, 2009

In Super Stock

Continuing the oil play, I introduce you today to Western Refining (WNR).  This stock is a great long-term play with the rising price of oil.  They recently got a 50% haircut when there was high speculation that they will not be able to pay off their high debt.  Last week, they announced that they were making a stock offering that would generate the necessary revenue to get rid of the debt.  Worse case scenario, we’re looking at them surviving another 5 years.  Best case scenario, this thing is gonna move up high and I expect doubling within the next year.

Technically, the stoichastics look good.  It’s past the bottom 20 right now.  It’s had a huge drop and we have a strong support coming in at $7.35.  The stock also doesn’t reflect the market very well which works to our advantage when this market could drop again below 7,000 on the dow or continue its move up.  There was great insider trading buying in at $9 after the money came in.  I’d suggest getting in soon.

Add Some Electricity to Your Profile

By

On May 20, 2009

In Super Stock

Mirant (MIR) is a business that makes money through the transportation and selling of electricity.  They recently had a very successful quarter by hedging their electricity.  Their reasoning was to secure them for 2009 and 2010 from lowering electricity prices.  This was definitely a good bet.  They have the lowest PE of any of the electricity companies at 1.48.  The next companies all rank of PEs of 8+.  They have over $2.4 billion of cash.  So much that many people arguably would like them to give it away as a dividend.  However, management is smart enough to utilize this money and use it to make the company even better.

Long-term wise, this stock can only appreciate in value.  Inflation will continually make this stock move up.  Everyone needs electricity.  Electric cars will eventually come out and you can bet this industry will continually be utilized as its a cleaner source of energy than others.  In the short-term, there are rumors of it getting bought out.  With the cash on hand of at least $10 in stock and its business operation, I wouldn’t see a sell unless the price was at least $20.  This is a worth-while stock at $14 and I’d suggest taking some shares while at this level.

For you dividend players, Consolidated Edison (ED) is the perfect choice with a dividend of over 6%.  They have been giving their dividend consistently for over 35 years.  They provide electricity to New York probably the safest bet in any utility location.  As a regulated industry, you will not see much downfall in this stock but I’d definitely see a lot more gain in it.  In the mean time, collect a nice dividend. 😉

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