"Here is a double barrel super charged hemi pair of stocks, General Motors and Ford Motor Company, ready to rock your portfolio"

Dow Jones Industrial Average  12130.45  (Down)  Week ending 02-25-2011

I don't know who lent money to who, or if or when it will be paid back, none of that matters now. Water under the bridge. They pulled a "wall street", and got away with it, so be it. That is the former stockholders problem. The USA needs General Motors.

General Motors (symbol GM , $33.25) now is back with the pedal to the metal. This quarter, 3.7 Billion in earnings and $4,300 dollar bonus checks going to the working employees for productivity. This is the way that it used to work in the good old days. Everyone makes money. Everyone is happy.

Fueled by international sales, GM is projecting earnings in 2011 of $4.20 per share and 2012 earnings of $5.27 per share. There is only 9.6% institutional participation in the stock right now so there are allot of people asleep at the wheel right now who are managing pension funds and mutual funds.You actually need to go to the web page to see how staggeringly well they are doing in sales across all product lines. See GM sales-production . GM is a strong buy here after the oil scare discount applied last week.

Ford Motor Company (Symbol F, $15.07) the other barrel of this double shot pick didn't take any money from the government.If you haven't been paying attention Alan R. Mulally has delivered to stock holders a one year total return of 28.4% and a 3 year total return of 130.8%. The launch of the Ford Focus compact car on a shared platform, or underpinning, around the world allows the car to be made in Asia, Europe and North America using 80 percent common parts and 75 percent of the same supply base. North American sales of cars built from the Focus-sized platform, already expected to rise this year, will skyrocket if oil and gasoline prices spike to more than $4 per gallon as they did in 2008. Here is the full financial picture for Ford:  FORD Investor Overview. A look at the fundamentals shows Ford earnings for 2011 are projected to be $1.89 per share and for 2012 projects at $1.98 per share.  Another strong buy.

Just for the record and correctness I mentioned Hemi in my title which is totally associated with Mopar and Chrysler products. Pictured below is Mickey Thompson's 427 Ford/Hemi Engine - Mickey's Mystery Motor. Yes, It's A Hemi. No, It's Not A Chrysler. It's A Ford. This Rare piece was Created By Mickey Thompson 46 Years Ago. So get off your horse and settle down now.

That engine you could hear and it is a wonderful sound. They could record it and put it in the 2012 electric Ford Focus, that would turn heads!

Freewilly

"Our search for growth takes us to the IT and Managerial services companies, Gartner, Accenture, Syntel, and NCI information services"

Dow Jones Industrial Average 12391.25  (UP) Week Ending 02-18-2011

 The snow is finally melting here in southern Pennsylvania and the winds are rolling in which means Spring is just around the corner. This year 2011 is well underway and I am searching for areas where there is Revenue growth as well as Earnings growth. One area that looks good is the IT and Managerial services sector. No matter what is going on in the economy, data keeps growing at a rapid rate and needs to be managed. The first company I want to look at is Gartner Inc. (Symbol IT, $38.33) who just reported sales and earnings and had a very nice increase in cash flow. Gartner is projecting earnings in 2011 of $1.40 per share and 2012 of $1.76. Long term earnings are growing at 20% per year. One year Total Return on the stock is 61% and 3 year is 102.7 %, not too shabby.


The next information technology company is Syntel , (Symbol SYNT, $54.15) which has a 5 year revenue growth of 17.99%. This NASDAQ stock is projecting 2011 earnings of $2.86 per share and 2012 earnings of $3.31 per share. This stock seems pretty reasonably priced with a PE ratio of 19. Syntel Q4 revenue of $144.9M, is up 23% from year-ago quarter as just reported by GLOBE NEWSWIRE.

Accenture PLC Class A , (Symbol ACN , $53.61) is probably the most well known out of these picks because of their massive ongoing TV advertising campaign. This management service company had impressive revenues of 23.8 Billion last year, which is a big company. Earnings for 2011 are looking like $3.16 per share and 2012 is projected at $3.51 per share. This company boasts a 63.9% Return on Equity (ROE) and the Total 12 month return on the stock is 36.2% and the 3 year total return is 58%. The stock price is up  10.56% so far this year so there is still room for you.


 Now we move from large cap to small cap. Most investors are underweight the small cap sector in their portfolios out of some fear of their volatility. You need to have them in your portfolio because they will add a needed high growth dimension to your portfolio if you diversify with the right ones. I feel that small cap and mid cap stocks should be around 35% of your portfolio. Most professionals  would think that is  too high a percentage. NCI A (Symbol NCIT, $22.16) is one to include in. NCI Information Systems , Inc. has a five year revenue growth rate of 26%. The price earnings ratio on the stock is a very reasonable PE 12. Earnings per share for 2011 are looking like $1.85 per share and for 2012 are $1.99 per share. The stock had had a nice run from October 2006 to June 2009 and then has been in technical chart trouble since then. Long term earnings growth is 15%. For the fourth quarter of 2010, NCI reported record revenue of $171 million compared to $125 million for the fourth quarter of 2009, with a revenue growth rate of approximately 37%, so maybe we have turned a corner here.

I put a portfolio up on http://www.stockpickr.com/ website under the name FREEWILLY'S STOCKPICKER BLOG 2011, so I will add two of these names, ACN and NCIT, there as additions. You can also find a link to this page on the right side column in the Jim Cramer section of my page. It is a great community of ideas there with both pros and regular folk contributing.  Jim has taken what Lou Rukeyser started in investment TV and amplified it to the max. He does a lot of hard work.

Have a good weekend,

Freewilly

"Better look now because Ebay, like a long distance runner, has got its second wind"

Dow Jones Industrial Average   12,273  (UP)  Week ending 02-11-2011

My brother will be miserable after he reads this blog. He has held ebay (Symbol EBAY, $34.50) stock for years and years and finally dumped it in January this year. It appears that the stock went crashing through its upside technical resistance line this week, like Harold Abrahams exploding thorough the tape at the finish line. Harold of course is the  Olympic champion in 1924 in the 100 meters sprint, a feat depicted in the 1981 movie Chariots of Fire.

If comparing ebay to that infamous 1924 British Team of Olympic runners in Paris, then certainly ebay's PayPal franchise is the Eric Liddell of this ebay team. Eric often called the "Flying Scotsman", after the record breaking locomotive, could run really fast. At a certain point in the race Liddell would deploy an unorthodox running style as portrayed in the film. He would put his head back and have his mouth wide open and would burst into a whole new gear, speeding ahead and becoming unbeatable at that point. PayPal is about to go into this new gear of accelerated growth in revenues.

Assistant managing editor, Paul R. La Monica of CNN Money reported that, " Shares hit a more than 3-year high on Thursday. Chief executive officer John Donahoe of ebay boasted to analysts that revenue from PayPal could more than double from last year's totals to as much as $7 billion annually by 2013. If that happens, PayPal's sales could soon eclipse the revenue that eBay's bread-and-butter auction sites generate."

Ebay has lots of other stuff going on right now also. Ebay Motors, Rent.com, Half.com, StubHub, Bill Me Later, Tommmy Hilfiger direct sales, a minority ownership in Skype.


So if you are like me and cannot afford to buy stock in Mastercard (Symbol MA, $253 per share) from my Freewilly's recommended 2011 Top Ten List, this is probably a good way for you to invest in a financial transaction business.

Ebay's numbers look like this according to analysts:

Average earnings estimate per share for 2011 is $1.74 per share and for 2012 is $1.94 per share. The 12 month Total Return has been 49.9%.

Eric Liddell, born in China while his parents were doing missionary work, had worked with the China Inland Mission as a missionary from Scotland after the Olympics. In 1943 he was held by the Japanese who had taken over the mission and he continued his work there. Later, in 1991, a memorial headstone for Eric Liddell, made from Isle of Mull granite and erected by Edinburgh University, was unveiled at the former Mission and Internment camp site in Weifang, China.

A few simple words taken from the Book of Isaiah 40 :31 form the inscription on his memorial:

"They shall mount up with wings as eagles; they shall run and not be weary."

So add some ebay to your portfolio this week and grab some popcorn and pick up a DVD copy of the movie "Chariots of Fire" to watch, and become a true champion in your financial race.

Freewilly

"David Tepper of APPALOOSA MANAGEMENT LP owns a good chunk of DEAN FOODS, should you jump into the fray and join him? "

Dow Jones Industrial Average 12092.15  (UP) Week Ending  02-04-2011

David Tepper who leads the New Jersey based hedge fund Appaloosa Management LP had a very good 2010 in the stock market .Tepper's Appaloosa Management which manages approximately $13 billion, returned an impressive 132% last year, thanks to timely purchases of financial stocks. David was a head trader on the high yield desk at Goldman Sachs, and left to start his hedge fund investment firm Appaloosa in 1993. He is also a minority owner of the Pittsburgh Steelers.

     Appaloosa Management has started a brand new position in Dean Foods (Symbol DF, $10.35) for 2011 per a 13G statement filed with the SEC. The hedge fund has disclosed a 7.35% ownership stake in DF with 13,396,536 shares due to trading on December 28th, 2010.


According to the Dean Foods website
"Dean Foods is one of the leading food and beverage companies in the United States and a European leader in branded soy foods and beverages. The Company's Fresh Dairy Direct-Morningstar segment is the largest U.S. processor and distributor of milk, creamer, and cultured dairy products. These offerings are marketed under more than 50 local and regional dairy brands, as well as through private labels.

The WhiteWave-Alpro segment produces and sells an array of branded dairy, soy and plant-based beverages and foods. WhiteWave brands, including Silk® soy and almond milk, Horizon Organic® milk and dairy products, International Delight® coffee creamers, and LAND O'LAKES® creamers, are category leaders and consumer favorites. Alpro is the pan-European leader in branded soy food products."

The stock has run into major resistance here at the $10.00 level.  I decided to study up to see if I could discern where milk prices are going in 2011. What I can tell you from my research is that "Milk" is a very complicated business affected by a number of dynamic pricing factors. It is used as a "lost leader" to get people to go to the back of the supermarket which keeps the prices low. Contrasting that is worldwide food inflation in pricing. Some analysts are actually saying that the protest in Egypt is actually due to citizens fed up with their food prices going up.

This is what I think: Dean Foods stock price was $46.95 in March, 2007
and had made a steady descent down to $7.31 in December, 2010. The company annual sales are 12 Billion, the same as they were in 2007. That gives you $65.72 in sales revenue for every $10.40 share of stock and a lot of value. They are big enough that a Kraft Foods (46.5 Billion revenue) or a UNILEVER ADR (42.5 Billion revenue) or even Hershey Foods (5.5 Billion in revenue) might have an interest in getting together with them for a merger. The "Silk" category of beverage should have explosive growth this year and is certainly more profitable business than traditional milk sales.



Dean Foods will have its fourth quarter earnings conference call on February 16th. Wait till then to take action. If the stock goes down after that call, buy it and trade it back up to this current  $10+ price. If the call goes well, and the stock price moves up, it will have broken through this resistance level and should move to the $13 - $16 price level , a nice percentage gain, so buy it. If the stock does nothing, you should do nothing.

I send my best wishes out to all the American Dairy farmers in the US. The dairy farm is a beautiful sight when you ride down the road and go by them. I especially cheer the family dairy farms carrying on their long tradition. I appreciate your hard work and long hours and hope that your business is successful.


So try some International Delight with your coffee and buy some Dean Foods if the right conditions occur.

Freewilly