Saturday, January 16, 2010
That Energizer Bunny keeps going and going ...... for consistent profits.
I must have batteries on the brain! Portable Energy Storage Devices. The storage and movement of energy with electricity, liquefied natural gas including Methane and Hydrogen, Wind, Solar, Water Hydro, Geothermal, and Nuclear will be important and large businesses in this new decade. Monitoring the movement of this energy is something the company I work for, Numerex Corp.,(Symbol NMRX), does very well, with Device, Application, and Network services brought together and offered as a combined solution.(D-N-A).
The disciples of Charles Tandy, John Roach, Bernie Appel and Lew Kornfeld at Radio Shack Corp.,(Symbol RSH), are forever inventing new electronic gadgets for you to put batteries into. Boom boxes, electronic toys, musical keyboards, home fire alarms, TV remotes, flashlights and the list goes on ad infinitum. Warren Buffett, at Berkshire Hathaway (symbol BRK.B) even figured out how to put a battery in a disposable razor blade to get the little hairs on your chin to stand on end! So where is all this leading to you ask?
Energizer Holdings Inc.,(Symbol ENR), the company engaged in the business of manufacturing batteries, flashlights and personal care products in the wet shave, skin care, feminine care and infant care product categories. It has a 12 month total return of 33.6%. The PE ratio is 13.48 based 2009 earnings of $4.72 a share. Projected 2010 earnings per share $5.30 share, 2011 is $5.89 per share. Gross margins are 49.73% overall. It is frankly a somewhat boring business. 10% projected sales growth. I think it will be a winner in what I think will be a tumultuous 2010 trading market as the Fed starts to slowly drain liquidity out of the markets. Caution is the watch word for 2010 trading.
So recharge your batteries and get back into the fray!