Saturday, May 1, 2010

"Sometimes you only need to look as far as your Home and Garden for good stock ideas"

Dow Jones 11,009 (Down) Week Ending 4-30-2010

Did I mention that I recommended Apple and Coinstar In February 2010 and gave you Dendreon last July in my blog. I just wanted to see if you were paying attention. Those stocks have really taken off here. Lesson learned, everyone is allowed to own the winners.

Some people feed their lawn and garden better than they feed their kids. One of the beneficiaries of that phenomenon is Scott's Miracle Grow Company (Symbol SMG, $49.40). This company is projecting $3.13 for 2010 earnings and $3.54 for 2011. The price is up 45% in the last 12 months. The Scott company has a return on equity of 29.5%.

Everybody loves Tractor Supply Company (Symbol TSCO, $67.17). From one retail store in Minot, North Dakota, Tractor Supply Company is the now the largest retail farm and ranch store chain in the United States. The company operates more than 800 retail stores in over 40 states, employs more than 10,000 team members and is headquartered in Brentwood, Tenn. Earnings in 2010 projected at $3.70 per share and $4.17 per share in 2011. Earnings growth over 5 years of 11.91 % and a one year Total return of 67%. What's not to like!

... and last but not least Stanley Black and Decker (Symbol SWK, $62.15). This stock has a one year stock chart that looks like a climb up Mount Washington in New Hampshire. This company is like the "Proctor and Gamble" of name brands in the work tools area. In 2010, the two companies combined to form Stanley Black & Decker, to deliver the tools and solutions that industrial companies, professionals, and consumers count on to be successful when it really matters. Not to mention their acquisition of ADT France from Tyco Electronics in the security area. When they get all these assets in alignment and going in the same direction, watch out. This stock is a store house of value. Projected earnings for 2010 of $3.23 and $4.29 for 2011. I need to credit for providing invaluable statistics that I am often quoting here in this venue. I only have a staff of one, me. My daughter and wife (English majors!) act as editors to my ramblings.

So get your hands dirty in the garden and plant some growth stocks in your portfolio.

Sincerest Regards,


1 comment:

  1. Thursday, 5/6 . Jim Cramer is interviewing the CEO of Scott's Miracle Grow tonight on his show Mad Money after I just wrote about them this weekend. Odd coincidence, huh?
    Maybe we can be like "Julia and Julia" but in stock writing. I am reading his book right now Confessions of a Street Addict. Tremendous book. Very insightful. He is answering questions for me on being a stock writer.