TRI Stock of the Day (FDG)
May 22, 2008
This year it may be beneficial to be on Santa’s naughty list which would result in receiving lumps of a smoking hot commodity in your stocking. Thats right you guessed it coal. Coal was one of the top performing commodities in Q1 08 and doesn’t seem to be slowing down one bit. Worldwide coal shortages and intense demand from China (which uses coal to power 70% of its country) has driven the price of coal upwards. Another factor is the increased demand for steel (of which coal is a main ingredient) as the BRIC countries continue their ramp up in infrastructure. Fording Canadian Coal Trust (FDG) finished the trading day up 4.68% to a closing price of $76/share. Fording has a dividend yield of 2.59% and rocks a PE of 43 and believe it or not has a forward PE of 9 which is computed from its 320% estimated 2009 growth rate. The stock is up roughly 90% year to date. Fording is an open-ended mutual fund trust and holds a 60% interest in the worlds second largest exporter of metallurgical coal. To give you an idea of the change in price in 2007 the average price for coal was $93/tonne vs. the 2008 forecast of $195-$205/tonne. A $10,000 investment in Fording 5 years ago would be worth $130,000 today.
To find out more click www.fording.ca
On a side note: For those looking for a good entry point for Visa (V) today may have been that day as it has pulled back to a very attractive price level. There was a 20 point gap between the 50DMA and the market price and now its just a matter of a few points. Also the shipping industry more commonly known as the dry bulk sector has had a huge selloff the past week with some of the names like TBSI and DRYS down 20% and 15% in the past week. Now may be an opportune time to establish a position or add to an existing position.
TRI Stock of the Day (ARD)
May 21, 2008
Look no further for your oil and gas play. Arena Resources, Inc. (ard) rose $4.27/share to achieve a closing price of $55.17/share on double the average daily volume (3 month). Arena Resources is an oil and gas drilling and exploration company and with a market cap of just under 2B it places the Tulsa, OK based company in the small cap category. Arena is coming off of a strong first quarter beating estimates by 13.3%. The company carries a PE of around 54 but has the earnings growth to back it up which is projected to come in close to 100% higher than what the company was able to report in 2007.
| ARD | Current Ratio | ||
| Dec. 06′ | 0.978 | ||
| Dec. 07′ | 1.517 | ||
| % change | 55.11% | ||
| EPS Estimate | Same Q Year Ago | % change | |
| 2nd Q 08′ | 0.54 | 0.25 | 116.00% |
| 3rd Q 08′ | 0.50 | 0.32 | 56.25% |
TRI Stock of the Day (TITN)
May 20, 2008
Titan Machinery, Inc. (titn) owns and operates 39 full-service agricultural and construction equipment stores in North America and 2 outlet stores. Titan’s closing price was $24.88/share, 2.43% below its 52-week high. The stock has a five year earnings growth rate of 25%. The company went public on January 7th, 2008 and closed at $12.75/share on that day the stock price has nearly doubled since then and continues to trend upwards.
TRI Stock of the Day (RIMM)
May 13, 2008
BlackBerry maker Research In Motion (rimm) closed up $9.20/share to $141.97/share an all time high for the Canadian company. Research In Motion released its first new product over the past year. “Bold” the companies new smart phone has a 624-MHz processor and has twice the screen resolution of the Curve. The company sports a PE of 63 and has a 08′ growth rate of 68%.
| 50DMA | $115.50 |
| 5yr. Growth rate | 33.86% |
| ROE | 40% |
TRI Stock of the Day (ATVI)
May 10, 2008
Activision, Inc. (atvi) finished the trading day up $3.94/share or 14.22%. For the fiscal quarter ended March 31st 2008 Activision reported EPS of .14/share vs. estimates of .04/share beating estimates by 250% and beating prior year same quarter EPS by $.19/share. Activision also increased revenue guidance by 3.24% above analyst estimates for the next quarter. Activision is the publisher of gaming hits such as Guitar Hero and Call of Duty. Activision operates in the multimedia and graphics software industry and has a five year earnings growth rate of 20.37%
| ATVI | % gain/loss |
| ytd return | 13.28% |
| 1yr return | 68.21% |
| 2yr return | 139.33% |
TRI Stock of the Day (GHM)
May 7, 2008
Graham Corporation (ghm) has been on a tear recently up 20% in the last month. The Batavia, NY based company that operates in the metal fabrication industry finished the trading day closing up $5.91/share or 10.72%. The company has a market cap of 302M which places it in the small cap category. Its involved in the manufacture and sale of vacuum and heat transfer equipment.
GHM is ranked #1 in EPS Growth, Rev Growth (both Qtrly YoY), and ROE compared to its competitors in the industry. The company also sports a modest PE of 21.40 vs. the industry average of 18.39. The 2008 earnings for Graham are expected to come in 134.2% higher than 07 earnings. A $10,000 investment in the stock one year ago would be worth $42,300 today.
TRI Stock of the Day (GMCR)
May 2, 2008
Starbucks move over Green Mountain Coffee Roasters Inc. (gmcr) has come to take the lead. Green Mountain Coffee Roasters finished the trading day up 12.42% or $4/share with a closing price of $36.20/share. Green Mountain’s stock price has posted an 80% return over the past year compared to Starbucks stock price decline of 45%. Green Mountain packages and distributes roasted coffee, hot cocoas, and teas to restuarants, hotels, universities, individual consumers, and various retailers vs. Starbucks who operates retail stores in which they sell their specialized coffee products. Green Mountain is trading at a much larger price to earnings multiple than sbux and peet but it also carries a higher growth rate and has a stronger history of beating analyst’s estimates.
Below is a link to a 2 year chart comparing gmcr, sbux, peet, and cbou
http://finance.yahoo.com/echarts?s=GMCR#chart2:symbol=gmcr;range=2y;compare=sbux+peet+cbou;charttype=line;crosshair=on;ohlcvalues=0;logscale=off;source=undefined
| Peet’s Coffee | Starbucks | Green Coffee | |
| (peet) | (sbux) | (gmcr) | |
| PE | 36.87 | 19.58 | 56.56 |
| Growth Rate 08 | 19.70% | -2.30% | 44.20% |
| Earn. Surp. Last Q | 0.00% | 0.00% | 9.52% |
| ROE | 6.10% | 28.80% | 14.31% |
| Profit Margin | 3.36% | 6.88% | 3.46% |
| Short % of Float | 17.10% | 4.90% | 23.80% |
