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Showing posts from February, 2014

Stock Analysis: Home Depot (HD)

Notes: Stock Ratings: 1 = buy at current stock prices, 2 = buy on a 5-10% dip in stock price, 3 = sell on a 5-10% increase in stock price, 4 = sell at current stock prices to raise cash

Home Depot is a home improvement retail chain located in North America (Canada, US, and Mexico).  It provides products to both retail customers as well as pros (contractors), which provides full spectrum of the people who need home building and remodeling, as well as landscaping products.  The stock had been surging the last couple years due to it's ability to consistently increase comparable sales numbers and the improving housing market.  As the market continues to improve, I foresee Home Depot's stock to continue to perform well.  At this point, it has created a market leader brand, taking share from competitors and creating demand that didn't exist by paying attention to what their customers want and delivering on it while still improving margins.

Past Year:
Home Depot's stock rose la…

Stock Analysis: NPS Pharmaceuticals (NPSP)

Notes: Stock Ratings: 1 = buy at current stock prices, 2 = buy on a 5-10% dip in stock price, 3 = sell on a 5-10% increase in stock price, 4 = sell at current stock prices to raise cash

NPS Pharmaceuticals is a budding biotechnology company focusing specifically on orphan drugs - drugs that are specialized for diseases and conditions that are exceptionally rare.  The Orphan drug market has an advantage because few companies put forth efforts due to lack of a strong market as well as the fact that the diseases typically are both very difficult to solve as well as very expensive to treat.  With all of these conditions, orphan drug companies have a pricing advantage as well as availability to patents that are much longer than more traditional drugs.  NPSP is focusing primarily on Short Bowel Syndrome and Hypoparathyroidism currently as well as issues related to these items.  A year ago, they launched the distribution of their first solo endeavor in North America - Gattex.  To date, this l…

Stock Analysis: Encana Corporation (ECA)

Notes: Stock Ratings: 1 = buy at current stock prices, 2 = buy on a 5-10% dip in stock price, 3 = sell on a 5-10% increase in stock price, 4 = sell at current stock prices to raise cash

On Thursday, Encana announce their fourth quater and fiscal year earnings.  As I stated the last time I discussed this stock, this quarter's earnings release could be a game changer and it appears as though that may be the case.  Production levels were in line on $400M less capital spend to accomplish it, cash flows ended up a bit higher than expected on the year.  For the quarter, earnings where at 31 cents per share, blowing away analyst estimates by 12 cents and helping beat my own annual earnings estimates by 10 cents.  This is partly attributed to favorable pricing in natural gas and liquids as December was the start to what has been a very cold winter (As a Minnesotan, coldest in about 30 years), resulting in higher demand, more draw on reserves and higher daily prices.  Indications have been …

Stock Analysis: Pepsico (PEP)

Notes: Stock Ratings: 1 = buy at current stock prices, 2 = buy on a 5-10% dip in stock price, 3 = sell on a 5-10% increase in stock price, 4 = sell at current stock prices to raise cash

As I'm sure anyone can guess, Pepsico is the parent company to the Pepsi brand of soft drinks.  Additionally, they also are the parent company of brands such as Lays potato chips, Tropicana juices, Quaker Oats, Mountain Dew, Aquafina bottled water, Gatorade sports drinks, and many other global and regional brands of consumer goods.  It is the number 2 soft drink maker to Coca Cola, and one of the most notable snacks makers in the world.  Pepsi is behind Coke in it's global distribution which is providing an opportunity for larger growth.  The company is led by a strong and reliable CEO by the name of Indra Nooyi.  Since I've started following this company over 3 years ago, she was at the front of recognizing the challenges of a culture that is quickly shifting to healthier eating and has bee…

Stock Analysis: John Deere (DE)

Notes: Stock Ratings: 1 = buy at current stock prices, 2 = buy on a 5-10% dip in stock price, 3 = sell on a 5-10% increase in stock price, 4 = sell at current stock prices to raise cash
On Wednesday, John Deere and company announced their Q1 2014 earning results.  In short, the results for the past quarter were spectacular.  They provided a thirty cent beat on $1.51.  Earnings were $7.65 billion where estimates were at $6.8 billion.  Considering the first quarter tends to be a bit weaker, these are strong results for the company.  As usual, though, the company provided rather down-trodden outlooks for 2014, but if there was anything positive to take from it, it would be the fact that the expectations aren't any worse than they were a quarter ago.  It's true, grain prices aren't as high as they once were - corn in particular.  But livestock prices are near all-time highs as well.  This smells a lot like a UPOD (under promise, over deliver) situation and the stock price actua…

Stock Analysis: On Semiconductor (ONNN)

Notes: Stock Ratings: 1 = buy at current stock prices, 2 = buy on a 5-10% dip in stock price, 3 = sell on a 5-10% increase in stock price, 4 = sell at current stock prices to raise cash

 This evening, On Semiconductor announced their fourth quarter and fiscal year 2013 results.  As I last talked, these results were really going to guide how I wanted to proceed with my stock ownership.  Unexpected by me, On managed to deliver $0.17 earnings on $718 million in revenues, beating on both the top and bottom lines.  This was truly impressive as the Sanyo Semiconductor division, now called Systems Solutions Group (SSG) managed to deliver break-even results, which wasn't expected.  Core focus areas for the company's products are in the automotive, smart phone, and select industrial areas and this focus appears to be panning out well for them at this point.  Their revenues from this area have been out performing their peers and they are expecting continued growth as they take share.  Gu…