TOP PICK
2nd largest theatre chain in the US. 400 theatres and 5,000 screens. Growth industry. Digital and 3D are coming on, which are premium products for them. 4.6% dividend. Trading at about 13X next year’s earnings.
TOP PICK
Well diversified global industrial with 50% of revenues from outside of North America. Do Otis Elevators, Carrier air conditioners, Pratt & Whitney engines and control almost 40% of the jet business. Reasonable multiple.
PAST TOP PICK
(A Top Pick Nov 11/09. Down 27%.)Business consulting in bankruptcies, forensic accounting, etc and the assumption was that do well in any kind of market. Didn’t make as much money as expected. Coming back and still likes.
PAST TOP PICK
(A Top Pick Nov 11/09. Down 5%.) Home health care and were affected by health care reform. Long term a good company and industry.
PAST TOP PICK
(A Top Pick Nov 11/09. Up 8%.) Expect they will earn $21.50 in 2011 so trading at a very low multiple. No debt and lots of cash.
COMMENT
Just reported very disappointing results. Guided down on the back of the US domestic market, specifically consumer and government sector.
BUY
Mining equipment, especially in coal. Chinese operation is going full bore. Loves this one and continues to be good value. Expect they will earn $5-$5.35 next year.
BUY
Had an issue with smoke in a cabin in a Dreamliner. This airplane will be around for many decades and this is the time to take advantage of a weaker stock price. 737 is in a new refresh cycle. Expect they will grow earnings 15%-20% per year.
BUY
Suffering a little on their consumer product lines. Good value longer term. Will probably earn $5.25-$5.35 this year and are trading at about 11X. Solid dividend.
BUY
Share price has risen quickly but earnings have grown just as fast if not faster. Wonderful opportunities into the future.
DON'T BUY
Have done very well recently but are trading at 31X earnings. Not a believer in momentum investing because it is dangerous.
DON'T BUY
Lost its ability to grow because of its size. Lipitor represents 20% and it goes off patent next year so they’ll be competing with generics.
DON'T BUY
More of a defensive Hold. Managed their business very well. Potential to grow at 10%-12% but are trading at a fairly high multiple of 16X 17X earnings, so a little expensive..
COMMENT
Biggest of the semi-conductors. High margin business in the 60% range. Good dividend. Reasonable multiple. Prefers others.
BUY
Coal. An absolutely terrific time to Buy coal companies. Commodities are going to do well in this environment. Likes Alpha Natural Resources (ANR-N).