Sabtu, 21 Agustus 2010

"It's request weekend at Freewilly's Stockpicker blog . I have intial 4- pack request , but ask away via the comment section"

John Jacob Astor

Dow Jones 10,214 (Down) Week ending 08-20-2010

I am not as rich as John Jacob Astor was
so I cannot purchase every stock that I mention in my blogs. John when asked when he was dying if he would have done anything differently said "I would have bought every square inch of Manhattan".
       I however did purchase Potash (symbol POT ), from my own recommendation from my blog two weeks ago, before  BHP Billiton made it's buyout offer last week . I had said that the stock was worth $150.00 per share based on the projected earnings. Well the stock is now at $149.75 (Up 35% in two weeks) so I guess some folks in Australia, where BHP is, must be reading my blog.
     Although you do not see a lot of comments on my blog, a lot of folks contact me through email and FACEBOOK directly about stocks. I have a  4-Pack request this week for the stocks of  RIMM, MSO, MHS, and IACI.
 
RESEARCH IN MOTION (symbol RIMM, $48.75) is the first stock asked about and it faces the battle of the "Buzz" on the street. Even though they have 60.54% sales growth over the last 5 years and have zero long term debt, the Apple I-phone and the Google Android  Smartphone buzz on the street has completely drowned out the opinion on this stock and has drawn downgrades from the likes of Morgan Stanley. The quarter by quarter numbers still show revenue growth but not at a 60% clip , but are we supposed to hate 30% growth? The stock is projecting earnings of $5.56 in 2011 and $5.92 in 2012 a PE of 8.
 RIMM also has another Ace up it's sleeve , Security. Any company that has the Saudis complaining that it's network is too "secure" for them to spy on, you gotta like.  You can see how important security is this week with Intel Corp buying out McAfee the web security company. Also this company would be a very good buyout candidate for someone like Nokia or Dell who are also being drowned out by the "Buzz". I would say you can start buy/accumulate it here, i.e. buy into it in stages.

Martha Stewart
    
MARTHA STEWART LIVING OMNIMEDIA (Symbol MSO, $4.75)
is the creator of one of the few magazines that we receive that actually has good content in it. The company has tremendous franchise value in name. Unfortunately their 5 year sales growth is running at 3.95% . The company also competes head to head with the likes of Sherwin-Williams in the paint business where the "painters" seem to go. Their partnership with Home-Depot is a plus and the new addition of their show to the Hallmark channel is also a plus. Because their SGA is always going to be high to maintain the quality of their product, profits
are going to be more hard to come by.  I would say to buy their products which are high quality but as a stand alone company the MSO stock is going to continue to struggle, so any money put into it would be in the category of Speculation .


Medco Health Solutions Inc. (Symbol MHS, $45.26) , this is an
easy one. Health cost containment is a major focus of the US government and MHS will be a major beneficiary of this. The projected 2010 earnings are $3.38 per share and 2011 $3.92 per share. 15.67 % projected earnings and lots of analysts like the stock. This is a BUY at a discount at present levels.

Barry Dillar
IAC/InterActiveCorp. (Symbol IACI, $23.75)  is a company run by Barry Dillar a dynamic builder of Internet franchises and John Malone the large owner at Liberty Media Holdings (Symbol LCAPA).  The problem here is Barry wants to make more acquisitions and John Malone wants to split the company up to get the value out of it. The stock has done nothing for 5 years and you would have lost 50% of your money during that time period. There are also alot of other ways to play this space, like Blue Nile, Amazon, and Ebay. I would take a pass on this one until John Malone get's his way and they split it up. The only thing in the way is Barry Dillar's ego.

A shout out to my best buddy Mark, who is an excellent basketball player in Jersey. Here are the recommendations from your old coach and friend.

Send in your request via Comments,

Thanks,

Freewilly  

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