Sunday, June 16, 2013

"Who's the guy that is making recommendations that you buy stock in the face of these chilling 100 point DOW drop off days? Oh that would be me. BUY- Standard Motor Products Inc. (symbol SMP)."

Dow Jones Industrial Average 15,248.12 (UP)  Week ending 06-07-2013

I have been running behind by a week for the last few weeks. The time demands of the garden and family take over this time of year and you are always trying to catch up, but living is what it is all about, so you blog when and where you can.
     When things get dicey in the stock market, you can always go to one safe haven to buy stocks that will go up over time.  I am talking about - Auto Parts and Parts company stocks.  Names like AutoZone, O'Reilly Auto Parts, Gentherm Inc., Precision Cast Parts, Borg Warner, American Axle, Manufacturing Holdings Inc. and Genuine Parts Company have performed very well in the long term,  no matter what the stock market is doing in the short term.

So that brings us to today's pick:

Standard Motor Products Inc. (Symbol SMP, $ 34.42)

Standard makes all kinds of widgets for your car and truck. Engine, Ignition and Emission are their primary focus areas. SMP has a Return on Equity of 15.73% and has a PEG Ratio 1.22. My stats are coming from Yahoo Finance now because Smartmoney has shut down that section and forwarded you to MarketWatch. Not very helpful, folks.

SMP is projecting 2013 earnings per share of $2.28 and the 2014 is forecasted at $2.53 per share. The forward PE on the stock is 13.6.
Revenues for the company this year 2013 are looking like 995 Million dollars. The company has Zero Debt, which is always a nice feature. There are 23 Million Shares of the stock in total.

Year over Year Earnings growth has been 81.82%.
Gross Profit Margins have run 35.22%. 
The company pays a 1.28% dividend currently.
The one year Total Return on the stock has been 174.92 % 
but I do not expect it to be anywhere near as high next year, but still good.

So, when the VIX starts running wild, with sudden and dramatic shifts in the stock market landscape, you will be safe and happy with another one of the successful parts stocks companies that seem to always do well over the long term.

Buy SMP for a 3 -5 year investment in your portfolio.

Thanks and enjoy your weekend. Now I need to find a subject for this week's blog and maybe I will finally catch up!


No comments:

Post a Comment