Investment Jungle

Readers’ Stock Picks

Know of a great stock? Why not share it with the rest of the community.

Please leave a comment with your stock pick. Is it a wonderful Rule #1 business? Is it selling at an attractive price?

Go ahead and we can analyze it together.

Also, if you would like to write your own article and submit it, I would be more than happy to post it for you. Please use the Contact Me to submit your article.

Thanks

Average Joe

If you liked this post, consider buying me a beer.

Popularity: 9%

Email This Page to a Friend Email This Page to a Friend

17 Responses to “Readers’ Stock Picks”

  1. 1
    hummingbirdeye Says:

    check LIZ, please!

    June 18th, 2007 at 4:13 am
  2. 2
    us_usr Says:

    Check FLML pls.

    June 20th, 2007 at 4:15 pm
  3. 3
    average_joe Says:

    us_usr:

    I took a quick look at FLML, and this stock is most definitely not a Rule #1 stock. All of the Big Five numbers are negative.

    I am not even sure if the valuation method can deal with a negative EPS. To calculate the future stock price, we need to grow the current EPS. And the current EPS is negative!

    June 21st, 2007 at 9:11 pm
  4. 4
    hummingbirdeye Says:

    I have two this time:

    Focus Media - FMCN and
    SEI Investments - SEIC

    Return on capital, PE and debt are promissing - I am not good of calculating the rest - I hope you would help!

    Thanks!

    June 22nd, 2007 at 12:57 pm
  5. 5
    average_joe Says:

    Hi Hummingbirdeye,

    It is your lucky day! I have already done SEI Investments just recently. So have a look there. I have added that one to my watch list.

    I’ll have a look at Focus Media.

    June 22nd, 2007 at 1:00 pm
  6. 6
    hummingbirdeye Says:

    average joe,
    you rock!

    June 22nd, 2007 at 1:04 pm
  7. 7
    average_joe Says:

    Hi Hummingbirdeye,

    I took a look at FMCN, but there is not enough data. To do a Rule #1 analysis, I must be able to have access to 10 years worth of data (or at least close to 10 years).

    For this particular stock, I think I was only able to find from 2004 and even that seemed sketchy.

    June 25th, 2007 at 9:02 pm
  8. 8
    tamaja Says:

    How about a couple transportation stocks?

    Heartland Express (Htld)

    C.H.Robinson (CHRW)

    Thanks

    July 4th, 2007 at 9:20 pm
  9. 9
    average_joe Says:

    Hi Tamaja,

    I will definitely have a look at those 2 stocks.

    Average Joe

    July 4th, 2007 at 9:34 pm
  10. 10
    Steve C. Says:

    Average Joe,

    MSN had an article that picked 10 stocks for second half of the 2007.
    Link:

    http://articles.moneycentral.msn.com/Investing/SuperModels/TenTerrificStocksForTheRestOfTwoThousandSeven.aspx

    I did quick checks on all 10. The only w/ acceptable ROIC is “PVG”, Penn Virginia GP Holdings.
    If I’m reading it right, (I may not be !, the 5yr ROIC is 34.2, 5yr equity 27.74. Alot of the earlier numbers on MSN say “N/A”.

    I had a hard time finding additional #’s. MSN always says my javascript is not enabled even though it is… so I can’t look at the income statements.

    July 7th, 2007 at 12:21 pm
  11. 11
    average_joe Says:

    Hi Steve,

    My favourite site to check the ROIC is at ADVFN Financials.

    On the Company Data page, it shows the current ROIC and the 5 year average. However, you can get the ROIC for each year by going to the Financials page and searching for ROCI (at ADVFN, they call is return on capital invested).

    Thanks for that article. I will have a look at it.

    July 8th, 2007 at 10:31 pm
  12. 12
    Babui Says:

    I have access to S&P’s CapitalIQ database. When I screened for Big 5 stocks using the Big 5 numbers, only 1 stock survived the screening. I started with all stocks listed on the US exchanges (some 22,000+). Then looked at stocks with 10 yr, 5 yr and 1yr CAGR greater than 9.99% for ROIC, SALES, FCF, TANGIBLE BOOK VALUE AND DILUTED EPS BEFORE EXTRA - in that order. Then I added a screen for stocks with a long term debt to FCF ratio of less than 5. The stock that survived all this was HWAY. Actually, by the time I got to FCF, there were only 5 stocks remaining. I have not run the Rule 1 sticker and MOS on HWAY yet. I like your blog. Thanks for taking the time to run the numbers for those of us to lazy to do the work. Regards

    July 11th, 2007 at 8:44 pm
  13. 13
    Josh Reid Says:

    Football season is coming around the corner. How about a look at a great sports apparel company, Under Armour. NYSE:UA

    Company Profile:

    From Yahoo Finance

    Under Armour, Inc. engages in the design, development, marketing, and distribution of a range of apparel and accessories utilizing various synthetic microfiber fabrications in the United States and internationally.

    Fundamental Analysis:

    Is a new company so we do not have 10 years of data to go on but looking over the last 4 or so we see the following.

    ROIC:
    2003 - 32%
    2004 - 53%
    2005 - 13%
    2006 - 18%
    Bouncing around a bit but all well above 10%.

    Cashflow has increased by 53% over the last four years. Sales have increased almost 108% over the last six years. EPS has grown 62% since 2000 and equity has increased by 130% since 2003.

    Stock Analysis:

    Obviously the numbers are skewed since it is a new fast growing company and there is no way they can sustain over 60% growth rate. The 5yr estimates place it around 25-26%. The 5yr avg P/E of 98 is too high too, so will go with twice the growth or P/E of 50.

    Giving a sticker price of $100 and a MOS of $50. Current price is $65 so is over priced.

    I am posting all this because I am curious if my estimates match what others would come up with. I am still learning the system and am curious how close I am. Thanks!

    August 23rd, 2007 at 2:46 pm
  14. 14
    average_joe Says:

    Nice analysis Josh! I love the format. :)

    I will try and run the numbers as well, but it will be tough without the 10 years worth of data. Hard to develop a trend over such a short period.

    August 23rd, 2007 at 9:04 pm
  15. 15
    Rohan Says:

    Hi,
    Can you do an analysis on NVidia (NVDA)?

    Thanks!

    September 24th, 2007 at 5:20 pm
  16. 16
    Teton Says:

    Can you do a comprehensive on Watson Wyatt Worldwide (WW)?

    Thanks.

    October 22nd, 2007 at 11:11 pm
  17. 17
    Debra Says:

    hi average joe,

    happy new year. could you take a look at UTX please? thanks!

    debra

    January 12th, 2008 at 9:21 pm

Leave a Reply

© 2010 Investment Jungle | Entries (RSS) and Comments (RSS)