"The search for value brought me to a stock that both Google and Comcast are invested in. Time Warner Cable buyout talk has this media sector heating up"

Dow Jones Industrial Average 16.065 (UP) Week ending 11-22-2013

Arris Group Inc. (Symbol ARRS, $19.89) purchased Motorola Home, a cable and modem box company, from Google this year. 

Arris's website states: ARRIS is a global communications technology company specializing in the design, engineering, and supply of broadband network services for residential and business subscribers around the world. The company gives broadband operators the tools and platforms they need to deliver reliable telephony, demand driven video, next generation advertising and high speed data services."

ARRIS Group Inc., with its headquarters in Suwanee, Georgia, has its stock up 44.78% over the TTM, (Trailing 12 Months).  The stock has moved up from $6.00 per share in 2009 to its current price up near $20 in 2013.

Depending on which stats you look at, the company has a PEG Ratio of between 0.52 and 0.62 and this is what I like best about it.

The company has a Current Ratio of 2.48 to 1. The company Return on Equity is 5.70%, which may be a number in flux because of the Motorola Home purchase.

ARRIS is projecting 2013 earnings per share of $1.56 and for 2014, earnings per share of $1.96 a share. That is a forward PE of only 9.42. The expected earnings growth is 24.3%.

Revenue for the trailing 12 months  is $2.766 billion dollars. 2012 Revenue growth rate was 24.3%. The year to year EBITA growth rate is 133%.

This company has a book value of $9.31 per share. Free cash flow for the company is $4.059 million dollars.

I have thrown out a bunch of numbers here, but the plain English story is that you have a dynamic company here in a growing media segment that is going to earn almost $2.00 per share in 2014 and is only trading at $19.89 per share currently.  That is a good value here with the DOW at 16,000 +. Throw in the fact that Google and Comcast both own some ARRIS shares, and you have a pretty good investment opportunity idea here.

So it's the countdown to Turkey Day, Thanksgiving this Thursday. I got a new coffee maker today. I am ready to eat, drink and watch NFL football this week on Turkey Day.

Gobble, Gobble ,       Freewilly

"With all of the confusion over the Affordable Care Act deployment and a steady rise in employment, a company like ADP should do well in 2014"

Dow Jones Industrial Average 15,962.00 (UP) Week ending 11-15-2013
Dow Jones Industrial Average 15,761.78 (UP) Week ending 11-08-2013

 .... and up and up we go! I got skittish and sold my MasterCard (MA) stock at the nosebleed price of 692.00. It closed on Friday NOV 15th at 752.00 per share. Such is the meddle of this market.

Federal Government liquidity and speculation money combined with very healthy company balance sheets provide a powerful tonic to keep this stock market ascent going.

I tried to stand back and look at this whole Affordable Care Act process and what businesses may benefit from the attempt to organize this whole "collection of the premiums" process for it and how it will all work. I thought of two companies that are experts in this area Automatic Data Processing Inc. (Symbol ADP) and Paychex (symbol PAYX). I decided that for total return, ADP would be a better investment at this time for the next two years.

Automatic Data Processing Inc., (Symbol ADP, $77.33, was $75.21 when I started this article last week,) is in very good position to benefit from these developments.
ADP has just recently increased their dividend by 10% to a 2.5% dividend yield, always a good sign of a healthy company. The company has a 5 year expected PEG ratio of 2.57 and a Return on Equity of 22.27%.

Earnings per share for 2013 is looking like $3.17 per share and for 2014 earnings are projected at $3.50 per share. The company has 0% long term debt and the insider's purchasing looks favorable.

The company did 11.5 Billion in Revenues last year and currently has a Price to Earnings Ratio, (PE) of 21.67.

Automatic Data Processing stock price is up 37.25 percent over the trailing 12 months. (TTM). ADP year over year quarterly growth is  7.70%. Investor's Business Daily EPS rank for ADP is 65, so very favorable.

The stock is fairly valued at this price, so, perhaps, look for a tax time sell-off correction to jump in and pick some up.  Everything looks fairly valued with the Dow at 15.962, but I think this is still a good Total-Return story for you for the next two years.


I like the actual shares of stock on paper with their great lithographs. I don't know if people hold stocks long enough to actually receive the stock certificates, but they are wonderful works of art.


So, I hope you get to keep your health insurance policy and your doctor. It's going to be fun getting this thing all working right.  I hope the people that actually needed the help getting insurance are served by this ACA plan.

Peace,  Freewilly

"Enough of the gloom and doom. Let's have some fun with this recreational vehicle company that has been pinning the needle for months. Polaris Industries"

Dow Jones Industrial Average 15,615.55 (UP)  Week ending 11-01-2013

             Polaris Industries (Symbol PII)

This is Blog #200 today, so a small personal milestone for me on Freewilly's Stockpicker Blog. I am much better at picking winning stocks now than I was in my early years of blogging.

Two of my defined stock picking screening criteria that have emerged over the years are: I love stocks of companies that have PEG ratio's under 1.5 and also that have a Return on Equity above 15%.  I have found these stocks to be very dynamic and have produced very good stock returns.

Polaris Industries Inc. (Symbol PII, $131.09) is a prime example of one of the stocks that fit these criteria perfectly. Polaris has a PEG of 1.093, well below my 1.5 criteria, and an amazing Return on Equity of 46.68%.  The stock chart and price have been on a straight line and going up for months.

Polaris Industries is an American manufacturer that designs, engineers and manufactures off road vehicles and on road vehicles.  Its products include side by side vehicles, terrain vehicles, victory motorcycles, Indian motorcycles, snowmobiles, GEM electric apparel accessories and polaris defense.  Polaris is based near Minneapolis in Medina, Minnesota, USA.  The company did $3.594 Billion on sales last year.

Polaris is projecting earnings per share for 2013 of $5.37 and is looking like $6.44 per share for 2014.

The stock of PII is up 52.71% YTD.  Analysts have 9 buy and 2 Overweight recommendations on the stock.

The company pays an annual 1.28% Dividend. The forward PE on the stock is 19 with year over year quarterly growth of 19.55%.





I know the stock market is at all time highs, so you may need to be patient to find a spot to buy in on this one.

The description below is from Polaris's website.

"Polaris Creed"

At Polaris, making great products is not just a job - it is a way of life. That is why our creed is etched in steel at the entrance at each of our locations. Our employees are not only building and designing our machines, they are also enthusiastic riders. This gives us the competitive edge as we work together to make the riding experience better."

I really like this pick. A perfect growth stock for a diversified IRA Portfolio.


Talk to you next weekend,  (or as always, I invite you to comment during the week, even if just to let me know you are reading. All questions will be answered. This site is for the novice and expert investors. The only money I make off of this site is by following my own investment advice and using the good ideas of other investors that I sometimes bring to light on this site. )

Freewilly