"It's time for Wall Street and investors to stop hating on the electronics hardware stocks. Hardware sales generate large profit revenues and hardware companies employ lots of people, which is what all countries need right now. We should support them"

Dow Jones Industrial Average  13075.66 (UP) Week ending 07-27-2012

Hewlett Packard Co. (Symbol HPQ, $18.57), according to Smart money's website, employs  349,600 worldwide. They generate $355,403 in revenues per employee. HPQ turns their inventory over at a very efficient 12.79 times a year. 


Yet HPQ,  that does gigantic hardware sales, (Over 127 Billion dollars in revenues 2011), and other companies like them, get no love from wall street investors. In fact, the company's stock is down 48.76 percent for the year. 


Stop the Hating!  First of all , HPQ is provider of products, technologies, software, solutions and services. Second, this particular company is run by a new dynamic CEO, 
Meg Whitman.

Meg has this company poised to earn $4.06 per share in 2012 and $4.39 cents a share for 2013. Not bad earnings for a company whose stock is trading at $18. In fact, the book value on the stock is currently $19.40, so you are below book value. 


The forward PE on this stock is 4.58. The PEG ratio is 0.80 so plenty of room to grow the stock price. Also add in a 2.84% dividend to add to your total return on the stock.


Meg isn't sitting on her hands either. HPQ is fully involved in the "cloud" and increasing margins with technology in that area. Hewlett Packard will be providing the cloud solution for Alcatel-Lucent's new LightCube breakthrough in antenna tower technology. This will be very important with the rapid growth in the SmartPhones and the escalation of mobile data use.

The big thing here with this stock is that they still produce over 7 Billion in net profit yearly while employing 349,000 hard working people who can go out and buy other goods and services. Companies like these should be rewarded to add further to their employment roles. 


Doesn't that make sense?


So go buy some HPQ this week, insiders were buying it at $22.00 per share, so you have to be in a pretty good area here at $18 and change. 


I mean the gentleman below started the "Silicon Valley". Show a little respect for HPQ.

Stanford alumni David Packard and William Hewlett in their Palo Alto garage, later dubbed "the Birthplace of Silicon Valley." 

  Have a fruitful summer. Go start a Blog and write about something that you are interested in. You will learn much about yourself.

Freewilly

"Is it time to get back in the game in some of the the Oil and Oil Service names?"

Dow Jones Industrial Average 12,822.57 (Up) Week ending July 20, 2012

I started this blog last Saturday and just never made it out of the starting gates.  I feel like we have had a wild ride in the market this week down and then up. So I will give you the abridged version this week with just the names and symbols that I like in this group. 


 The first is Devon Energy (Symbol DVN) which has great earnings numbers.

The second is is Ensco PLC (Symbol ESV)
up nicely today and a favorite.of hedge fund manager Wilbur Ross. Also has great earnings numbers.

Then of course the two "work horses" of the group, Baker Hughes (Symbol BHI) and Halliburton (symbol HAL). For full disclosure I already own shares of Halliburton.  


Rounding out the choices, I have
Continental Resources (Symbol CLR),
Marathon Oil (Symbol MRO), and Noble Corp. (Symbol NE).

Any of these picks should do well for you as Oil heads back to $100 per barrel for West Texas crude.


Keep on drilling for good stock picks!


Freewilly

"With the Dow Jones Industrial Average ending the week at 12,777 like a slot machine that hit on 777, I took that as an omen that I should write about a gambling stock"

Dow Jones Industrial Average 12,777 (UP)  Week ending 07-13-2012 

Well, when the Dow Jones Industrial Averages last week ended up landing on "777", it was like the Sun lining up at StoneHenge in June for the Summer Solstice and Indiana Jones with his headpiece to the staff of Ra, locating the Ark of the Covenent, it was in fact a message which came directly to me. I needed to write this week about the "best Casino stock" with the "best potential fundamentals".

What with Jamie Dimon and his band of JP Morgan synthetic traders, and Bruno Michel Iksil -- nicknamed "the London Whale", this week announcing they lost a cool 5.8 Billion $$ at the Global trading casino known as derivatives trading, it just seemed the right thing to do to talk about a casino stock and taking a position on the "house" side of the gambling equation.

So who better to look at then Wynn Resorts Ltd. (symbol WYNN,$96.22). It appears that because the world is all sad here about Europe and various economies slowing down, that you can pick up this "best of the best" stock here at a real bargain price.  The stock has traded as high as $ 172.58.  It currently has a PEG ratio of 0.71 which is an extreme bargain basement price to earnings growth. 

So let's look at some other numbers and make you the dealer at the table. WYNN is projecting 2012 yearly earnings of $5.80 per share and 2013 earnings of $6.84 per share.WYNN has 5 year annual sales growth of 19.22%. The five year annual earnings growth is running around 22.61%. The Return on Equity on this stock is a cool 29.47%. That is because this company is run by one of the best businessmen in the United States, Steve Wynn. The outspoken endorser of everything that is good and American and Republican,  is also a champion of running a business correctly.  

The stock also kicks in a dividend yield of 2.08% percent, so you get a paid a little while you wait. Amazingly you can buy this stock this year with a Total Return of down -38%, so there is plenty of margin for safety here. The 3 year Total return on the stock, even being down this year, is up 217% overall.  As far of holders of the stock, the very successful -  Ivy Asset Strategy funds owns 5+ percent of it , and have owned it as a long term investment. 


Goldman Sachs analyst Steven Kent thinks the stock could have a 30% upside from here. He has a target price of $136.00.  This is a great long term purchase to make right here on this under valued casino and resorts stock. The stock has been under pressure recently because Macau Wynn casino revenue estimates have been too lofty and Wynn's wife Elaine has been offering shares for sale.

So to sum up, this stock market here has been acting like the actress Zooey Deschannel in the movie "500 days of Summer", first flirting with you then running away.  Zoe's picture on the site will bring lots of extra hits to the blog!

 Hopefully this market will head to Shoo-Shoo-Shoo, Shoo-Shoo-Shoo, Shoo-Shoo-Shoo-Shoo-Shoo - Sugar Town and make you some decent money!


Adios Amigos, 


Freewilly

"We have come to a fork in the road where we either need to stay aggressive with growth or seek shelter from the storm with safe stocks with good fundamentals"

Dow Jones Industrial Average 12,772.42 (Down) Week ending July 06, 2012

The Road Not Taken by Robert Frost

Two roads diverged in a yellow wood,
And sorry I could not travel both
And be one traveler, long I stood
And looked down one as far as I could
To where it bent in the undergrowth;
Then took the other, as just as fair,
And having perhaps the better claim,
Because it was grassy and wanted wear;
Though as for that the passing there
Had worn them really about the same,
And both that morning equally lay
In leaves no step had trodden black.
Oh, I kept the first for another day!
Yet knowing how way leads on to way,
I doubted if I should ever come back.
I shall be telling this with a sigh
Somewhere ages and ages hence:
Two roads diverged in a wood, and I-
I took the one less traveled by,
And that has made all the difference.

Frost decides to take the road lest traveled and it works out for him. In this case, I believe this would be to stay with an `aggressive growth policy, but I will leave you solutions for both paths, so you have the freedom to choose. 

Mellanox Technologies Ltd. (Symbol MLNX, $73.72) would be the "Aggressive path" to take on your continuing road of investment. 

"Mellanox Technologies Ltd. provides supply semiconductor-based interconnect products that facilitate data transmission between servers, communications infrastructure equipment and storage systems."  Investors Business Daily gives Mellanox a 99 rating which means it has outperformed 99% of the stocks tracked over the last 12 months.  

 Mellanox Technologies is projecting 2012 earnings per share of $2.33 and on to 2013 it is projecting earnings of $2.69 per share. The PE here is high, 31.91, but can be justified by 5 year sales growth of  41.67%. Also the long term projected earnings growth is 44.60%. The PEG ratio is 1.37, which reflects the interest in the stock. 

The One year Total Return on this Yokneam, Israel stock is 144.11%. The 3 year Total Return is 512.29% , so definitely the aggressive less traveled path.

One blip in the stats on a quarterly basis in this kind of market could violently send the this stock price careening way lower or way higher. So keep an eye out for Bears and Wild Boars on your woodsy aggressive path to investment success!




For those of you that are not as adventurous and want to arrive at your destination without anticipating to much dangerous travel should probably do best to purchase: 

Hershey Co. (Symbol HSY, $72.24) .

Hershey actually has an IDB rating of 97 , so no slouching off here in performance. I can recall a few years back that stockholders were banging the table and demanding better performance and management is delivering it. 

HSY is projecting 2012 earnings of  $3.21 per share and 2013 earnings of $3.54 per share. 5 year earnings growth has been running at 39.13%. This path should be fairly safe as long there are no supply problems with Cocoa beans. I think the cows should continue to produce Milk out there in Pennsylvania Dutch country.

(Amish do not like having their pictures taken because they consider it vain.)

Hershey is not really super cheap here with a PE of 22.43 and a PEG ration of 2.14, usually a danger zone. But they have delivered and improved earnings consistently. They have a Return on Equity of 73.76%. They also offer a 2.10% dividend yield right here as an added appreciation bonus.

Consistency. HSY has delivered a One Year total return of 26.31% and a Three Year total return of 109.60%. This is the more traveled path to take for your investment. 

(Lancaster County in PA is beautiful by the way.  We spent our Honeymoon there, and it is the location of the Hershey Amusement Park, Dutch Wonderland for the little kids, and the Strasburg Railroad and the PA. Railroad Train museum for the big kids.)

 Robert Frost

So which ever path you decide on, you and Robert Frost can contemplate whether it is the right one. One usually has a sense about these things.

For me, I just like being on the mountain road where ever it goes to!

Freewilly

"If you get indigestion when you look at your IRA account totals, then maybe you just need to "GOOGLE IT", (symbol GOOG)", to settle your stomach"

Dow Jones Industrial Average 12,800 (UP) Week ending June 29th

 "The old days??"

The great thing about writing a stock blog when you are not associated with any particular news organization or company is that you have the leeway to write anything you want anytime you want and give your own opinion without any political or other influences on it. 


Thank you Blogger, an invention of Google, to allow individuals such freedom of speech.  

So, just from a kind of random common sense survey, I went into my 401K plan to see what had done well since January 1st, 2012 to the half way mark. What I found was that all the Large Cap funds had done best and Capital Appreciation funds had done the second best.


So being a regular Sherlock Holmes, I decided to look at the largest holdings in these funds and it turned out to be Google (Symbol GOOG) and Apple (Symbol APPL) in every case.

I know that most of us don't think we can afford $580.00 per share for a stock in their portfolio but Google Inc. Class A (Symbol GOOG, $580.07) may be a must have for your IRA account. So you buy 5 or 10 shares. In your 401K account you may want to pick out the large cap fund that holds the largest percentage of Google stock in it.

So, lets take a look at the sexy numbers for this amazing stock!
How about: projected earnings per share for 2012 of $43.25 per share and projecting for 2013  $50.55 per share. $100 stocks usually earn about $4.00 or $5.00 per share , so this shows you how incredibly CHEAP this sock is at $580.00. This stock could trade at $1000. dollars per share. The PEG ratio on the stock is 0.71.

How about: Gross Operating margins of 64.82%, kind of like the old "glory days" of Intel, in their hayday. The Net Profit margins are running 27.13%.


5 year earnings growth of 24.77% with the PE on the stock at only 13.48.

How about: 5 year Sales growth of 25.63% , or a 3 year total return of 42%. What about the fact that they just came out with a a 7" Tablet device to compete with the Nook for $199. Or what about the fact that they purchased Motorola Mobility Solutions along with their whole portfolio of mobile patents. How about the potential value of Google's software applications?


How about: A Current Ratio of 5.84 to 1.

How about:  Cash and Short Term investments of 49,316,000,000 on the balance sheet.

Well I hope I have your attention now! Google hires people who are smart and have ability.

They have a little thing to keep employees happy besides the stock. They allow employees 20% of their work time to work on their own creative individual projects. What a great idea. And here's the guys that put it all together from Google's company page!

  "Founders Larry Page and Sergey Brin met at Stanford University in 1995. By 1996, they had built a search engine (initially called BackRub) that used links to determine the importance of a individual webpages"

 
Best of luck investing in the second half of the year. Don't buy stupid stocks, but smart ones! (Like GOOGLE!)

Freewilly