Martin Zweig, famed Wall Street investment guru, dead at 70. One of the great Wall Street Week regular guest.

February 18th , 2013  -   Marty Zweig. One of the great and admired market legends has passed away.

WASHINGTON, February 20, 2013 – Wall Street legend Martin Zweig, who gained national fame for his televised prediction of a market crash just before Black Monday in 1987, has passed away according to word from his New York-based firm, Zweig-DiMenna Associates LLC. Born in Cleveland, Ohio in 1942, he slowly evolved from academia to become one of the most respected stock market analysts of the modern era. The cause of his death was not provided by his firm.

Read more: http://communities.washingtontimes.com/neighborhood/prudent-man/2013/feb/20/martin-zweig-wall-street-investing-guru-dead-at-70/#ixzz2LV3QfS00

http://communities.washingtontimes.com/neighborhood/prudent-man/2013/feb/20/martin-zweig-wall-street-investing-guru-dead-at-70

Freewilly 

"NBC-Universal is now off the table so it is time to take a look at CBS and Viacom from the media content smorgasbord"

Dow Jones Industrial Average 13981.76 (Down) Week ending 02-15-2013

Comcast bought up the other 50% of NBC Universal
that they didn't already own in a week with lots of 
M & A activity, including Warren Buffet and 
Berkshire Hathaway along with 3G Company 
acquiring H.J. Heinz Company. So I decided to take
a look at a few of the other interesting media and TV
content companies that might be possible targets for
buyout, but that also met my Return on Equity and 
PEG Ratio measures for excellent fundamental
stocks. These are the two.

CBS Corp. CL B (Symbol CBS, $44.64)
has a Return on Equity of 15.57% and a PEG ratio of 
1.09. The current dividend yield on the stock is 1.08% 
and the current PE is 14.98. 



CBS currently has a large collection of popular TV shows including,
NCIS, The David Letterman Show, and the Big Bang Theory. The 2013 earnings 
are per share of $2.97 and CBS is projecting 2014 earnings of $3.37 per share. 

Revenues for 2013 look to be about $14.52 
billion dollars and for 2014 it is looking like $15.39 
billion dollars. Gross  Profit Margins quarterly are
 running 46.14% (according to Y-Charts).

The one year total return on the stock has been 
50.86% and for 3 years the Total Return has 
been 230.77% , so it has been a been a big time 
winner. I like this one the best of the two stocks 
discussed. 

Viacom Inc. CL A. (Symbol VIA, $62.15) 
has a Return on Equity of 29.53% and a PEG Ratio of 0.91. 
The good news at Viacom is that the company is becoming  ever more 
profitable and they have very diverse programming`that match up well
 with the changing demographics of North America. The bad news at
Viacom is that the revenues per quarter continue to decline which is
not a great sign. Sumner Murray Redstone the media magnate is now 89, and owns a majority of the stock in Viacom. 

Sumner does not want to sell his stock, but eventually he will need to retire. The stock pays a dividend yield of 1.77% and has a PE of 12.66. 

VIA is projecting 2013 earnings per share of $4.70 and 2014 earnings per share of $5.40. The company has 5 year Earnings growth of 16.85%. Revenue is $13.89 per year but has been declining over the last few years.

The company currently has 19 Strong Buy recommendations and 1 Overweight. Also the stock has already been successful and has a One year Total return of 13.43% and a 3 Year Total Return of 102%. 

CBS seems like the more logical pick as an immediate purchase with Viacom being more of a long term accumulate. But both stocks are viable picks.


So put a little "Big Bang Theory" in your portfolio, and add another diversified investment with CBS this week. 




 





Freewilly

"Things are heating up in the oil patch, so I decided to pick out an oil service stock to help you prosper from the trend"

Dow Jones Industrial Average 13,992.97 (Down) Week Ending 02-08-2013

 
I apologize for not writing about stocks that trade at prices of $25.00 a share or below, which I know that people would like to read about. I cannot seem to find allot of fairly priced low priced stocks that fit my criteria, although I will continue to search for them.



 

In regards to the Oil  Patch, to bring you an under $25.00 stock I would have to had brought you Weatherford International (Symbol WFT),  which may be a good Speculation for some upside, but would not pass my financial safety guidelines.  

 

You would be better served and take on less risk by buying the stock of

HollyFrontier Corporation ( Symbol HFT, $56.26).  This is one of the stocks that the institutions and ETF's will purchase to participate in the oil services sector.

 

HollyFrontier Corp. has a Return on Equity of 29.40% and PEG ratio of 2.88. I am OK to accept that PEG ratio because the forward PE on the stock is a low 6.5 compared to the rest of the market.                                               
2012 earnings per share were $8.63 per share and the 2013 earnings are projecting out at $6.89 per share. The stock pays a dividend yielding 1.42% annually.

The One year Total Return on the stock has been a marvelous 67.44%. 5 year sales have been running 44.44%  and 5 year earnings growth has been 22.96%.                                    Another name in this space with good financials would be Haliburton (Symbol HAL) which has also had a nice runup in the last three months. 

 

So, get all your snow shoveled up, start working on your tax returns, (hopefully you have capital gains to declare), catch up on your back episodes of Downton Abbey, then settle in for an afternoon of watching golf at the Pebble Beach Country Club down near Carmel by the Sea, in California.

 

 

 

 See you on the beach,    Freewilly



"Looking for Value? You don't have to look far to find these two stocks for your Superbowl Portfolio"

Dow Jones Industrial Average  14,009.79 (UP) Week ending 02-01-2013

Dow Jones 14,000. The folks that are on the sidelines with their pile of cash are steamed up because they have missed the rally. The folks that are in the market are happy for their gains, but are scared because they think back to 2007 and wonder if the swoon could happen again. Where am I at? 70/30. 70% in stocks and 30% in cash. 

So what do you do here early February? Continue to pick up stocks that are good values based on their growth, and only take partial positions. Start also taking off partial positions in stocks that have not performed well in the last two months. If they have not moved up during the rally, they are probably not going to.

So what are these value stocks that you can be adding here at these lofty heights?  Tractor Supply Co. (Symbol TSCO, $103.96) Return on Equity 26.53% and PEG Ratio 1.04

Tractor Supply is a solid retailer which is expecting earnings per share of $4.43 for 2013 and $5.18 per share for 2014. Analyst have 13 strong buy and 3 buy recommendations on the stock. The company has had 5 year sales growth of 11.01% and has had a bold 5 year earnings growth of 49.50%. Currently long term earnings growth is projected at 17.90%

TSCO has generated a 1 Year Total Return of 23.38% and a 3 year Total Return of 312.78% . I would take that return all day and all year. If you buy the stock maybe they will send you one of these fun trucks pictured.

So you are wondering what the second "Value" stock is?
How about Apple Computer (Symbol AAPL, $453.62.). This thing is going to churn around a while up and down in a range. But when the dust clears, presto-chango, AAPL goes from the momentum stock camp to the value stock category with a new group of investors and starts its slow ascent back up in price.  Down in this price range here are the numbers on this stock. First, my standard measure, the Return on Equity for AAPL is 37.96% and the PEG ratio is 0.49. These are great numbers. 

  Here are some other numbers on the stock that will probably not repeat going forward.
5 year sales growth of 76.04%. 5 year earnings growth of 144.7%.  A PE ratio of 10.19 for Apple Computer!

The One year Total Return right now is (-1.32%) because of the recent contraction in price. The 3 Year Total Return is 132.08%. 

It even pays a dividend currently of 2.34%.

These guys still have great products being delivered and more new technologies on the way including more smartphone models, Apple I -TV and the streaming content market which is a hot area. 

Earnings for 2013 will be $44.45 per share an $50.73  per share for 2014. Those are big numbers. 

Here are the sales numbers for 2012. Sales 156.5 Billion dollars. Gross Profit 68.6 Billion dollars. 2012 Net Profit was 41.7 Billion.

Analyst have proclaimed 39 Strong Buy recommendations and 3 Overweight recommendations on the stock.

I just wanted to put down all these numbers so that people could see them in print to realize the potential of this company. You may not return 100% a year going forward but I think you will easily return 25-30% on your investment once we get out of this price churn period. Another words, a good 1 year to 3 year investment.

So pick these stocks up in small increments and Show Me the Money!       


Freewilly