You Are Ahead of the News As a Valuentum Member
December 20, 2012
Remember When We Said Economic Prognosticators Were Off Their Rockers? From the September 2012 edition of our Best Ideas Newsletter (see page 2), released September 15, 2012: “Could you imagine if you had listened to bond-king Bill Gross (please note he is not the equity king), Marc Faber (author of the Gloom, Boom & Doom report) or the Economic Cycle Research Institute (ECRI), which called for a recession in September 2011 – some 30% in the S&P 500 ago (yes, 30%!). Aside from being incorrect, bearish economic prognosticators fully admit that their expectations have little to do with what may happen to the equity markets in the future (as Bernanke’s unlimited QE has shown). Still, such admissions do not stop
Best Idea EDAC Tech Falling Prey to Profit Taking…Nothing More
December 20, 2012
We continue to like EDAC Tech (EDAC) and peg its fair value north of $20 per share. The stock has been roughly a triple for our members. We think the recent sell-off is a result of nothing more than profit taking in advance of the potential for capital gains taxes to increase next year. ”In the aerospace market, we are very bullish. Boeing has announced in their earnings reports that their order book is extremely high. We are facing a time of unprecedented growth in the development of new aircraft engines.” Source: EDAC Tech CEO Dominick Pagano (Wall Street Transcript), November 12, 2012. << Read the full Wall Street Transcript Interview with EDAC Tech’s CEO Dominick Pagano
The Shorts Are Attacking Intuitive Surgical…It’s A Small Position for Us
December 20, 2012
To read the full report, please click the link below. We’re not budging with our position. “Short-seller” reports are quite common, but they can and do impact a firm’s price in the near term: http://www.citronresearch.com/wp-content/uploads/2012/12/isrg-final.pdf
Leucadia: Berkshire Light?
December 20, 2012
After acquiring the remaining shares outstanding of Jefferies (JEF) a few months ago, Leucadia (LUK) has come into the spotlight. This under-the-radar holding company has been compared to Berkshire Hathaway (BRK.A) in the sense that it owns several unrelated companies and uses the cash flows to invest in different businesses. However, calling the two firms similar is a bit of a misstatement given Berkshire’s enormous insurance operations, and a slightly different investing style. Unlike Berkshire, which has an enormous “elephant gun” able to acquire relatively large companies with ease (Berkshire also tends to concentrate on reliable, large cap companies with strong balance sheets), Leucadia concentrates on deep value in struggling or unloved companies and industries. Interestingly enough, the companies are
Oracle’s Second Quarter Is a Bright Spot in Tech
December 19, 2012
Enterprise technology giant Oracle (click ticker for report: ) reported solid fiscal year 2013 second-quarter results Tuesday afternoon. Revenue jumped 3% year-over-year to $9.1 billion, easily exceeding consensus expectations. Earnings per share, on a non-GAAP basis, jumped 18% year-over-year to $0.64 per share, also better than the consensus forecast. Not surprisingly, the increase was largely driven by a jump in new software licenses and cloud subscriptions of 17%, to $2.4 billion, as the company continues to win new enterprise contracts. President and former HP (click ticker for report: ) CEO Mark Hurd cited share gains versus SAP (click ticker for report: ) in Europe as a strong growth driver, acknowledging that the company only started investing in its European business
Ford Is Our Favorite Automotive Stock
December 19, 2012
Please select the image below to download our 16-page stock research report (pdf) on Ford (F). Ratings as of the time of the writing of this article, December 19, 2012.
GM Repurchasing Two Hundred Million Shares from the US
December 19, 2012
Wednesday morning, US auto giant General Motors (click ticker for report: ) announced that it will repurchase 200 million shares from the US government for $5.5 billion. The US government also announced that it will sell its remaining 300 million shares opportunistically over the next 12-15 months. The sale will leave the US with a loss, but for the purpose of investing, the loss means little to us. Though the price GM will pay—approximately $27.50 per share—exceeds the current market value, it is still lower than our median fair value estimate. More importantly, however, it removes the worry (overhang) that the government-owned shares would be dumped on the market, putting downward pressure on the share price. We like the move for both reasons,
Johnson & Johnson Is One of Our Favorite Dividend Growth Ideas
December 19, 2012
Please select the image below to download our 16-page stock research report (pdf) on Johnson & Johnson (JNJ). Ratings as of the time of the writing of this article, December 19, 2012.
We Think Google’s Shares Are Worth Over $900 Each
December 19, 2012
Please select the image below to download our 16-page stock research report (pdf) on Google (GOOG). Ratings as of the time of the writing of this article, December 19, 2012.
Intel Is A Steal With Its 4.4% Annual Dividend Yield
December 18, 2012
Please select the image below to download our 16-page stock research report (pdf) on Intel (INTC). Ratings as of the time of the writing of this article, December 18, 2012.
