Sunday, December 18, 2011

"Spice up your holiday season with a few shares of HMS Holding (Symbol HMSY)"

Dow Jones Industrial Average 12,184 (UP) Week ending 12-09-2011
Dow Jones Industrial Average 11,866 (Down) Week ending 12-16-2011 

Well I finally threw in the towel on trying to catch up to the weeks.
So this week you get a twofer, since I am too busy to catch up. So I posted both "end of weeks" together on one post, a first. I hope it is not confusing. So I will offer up a growth stock and a fundamentals stock. The one thing that they both have in common is that their stocks have both had "3 for 1" stock splits this year. The first is the stock of the health cost containment company  HMS Holdings Corp. ( Symbol, HMSY, $31.15). This would be your growth stock with a five year earnings growth rate of  45.31%.  Put that together with a 5 year sales growth rate of 31.38%  and you have quite a dynamic company and a great opportunity for investment. The company has offered up a one year total return of 44.3% and a three year total return  of 196.5%. We can certainly live with those returns in our portfolio. There job is cost containment in health care, who doesn't want that.

The second half of the doubleheader appropriately is the rail transportation company, CSX Corp. (Symbol CSX, $20.41).
CSX is expecting 2011 earnings per share of $1.69 and 2012 earnings of $1.93 per share. Analyst love this stock with 17 Strong Buy recommendations on it. Rail is still the cheapest way to move stuff. The company pays a 2.35% dividend and has a Return on Equity of 20.70%.  You can buy the stock here because it is off a little bit this year. Note the three year Total Return on the stock is 97.7%.


On more important news, the last US Troops left Iraq at 2:30 AM this morning and exited to Kuwait.  Job well done. 4487 of our soldiers gave their lives for the fight to end terrorism. The world and our country is a safer place because of their hard work and ultimate sacrifice. 







If you want to help the folks coming back, you can find a variety of avenues on this website. Networkforgood.org . Christmas will be special this year for allot of families.  


So, I think these two stocks will give you good returns over the next year. Have a blessed holiday no matter what religion that you believe in, and keep your family healthy and safe.

Freewilly

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