Sunday, June 1, 2014

"With "Sell in May" ending, we need a few names to take with us through the summer. I like symbols GMCR, QCOM, and HAS. I will also add one speculative name: KEYW "

Dow Jones Industrial Average 16,606.27 (UP) Week Ending 05-23-2014
Dow Jones Industrial Average 16,717.00 (UP) Week Ending 05-30-2014

Keurig Green Mountain Inc. (Symbol GMCR, $112.78) is a company of which Coca Cola keeps buying shares, and at some point, they will need to own the whole thing. A little expensive here: this stock has a one year TTM return of 56%. This is a slightly speculative play, but Coca Cola is sitting with 12% ownership of the company and there may be some Berkshire Hathaway cash sitting in back behind Coca Cola. Like it on any dips.

Qualcomm (Symbol QCOM, $80.45)  A great stock in the past, present and future. QCOM has a PEG Ratio of 1.03: cheap for a jewel like this. The Return on Equity is 17.09%. Earnings per share for 2014 are $5.16 and for 2015 projected at $5.73 per share. Qualcomm basically gives you diversification within itself because its business spans over 8 major world industry groups, including auto, energy, and transportation. Buy it now. 

Hasbro Inc. (Symbol HAS, $53.70) They own:  TRANSFORMERS, NERF, LITTLEST PET SHOP, MY LITTLE PONY, BABY ALIVE, G.I. JOE, MONOPOLY, MAGIC: THE GATHERING, PLAY-DOH and PLAYSKOOL. The kids always need more toys and we keep buying them because we want them to be happy, happy, happy. HAS has a PEG ratio of of 1.63 and a Return on Equity of 20.77%. It will have 2015 earnings per share of $3.21 and out to 2015 earnings per share will be $3.54.
This one has a bonus of a dividend of 3.20%.

And now for one name for you to deploy some speculative $$$. This one was inspired by me watching three seasons of the Show Time Emmy winning TV series "Homeland," with Claire Danes, Mandy Patinkin and Damian Lewis, among other stars. An amazing series that gets you really thinking. Nations and companies will always be under the threat of Cyber attacks and will need security software and hardware systems to be defended.

So, the speculative stock name is KEYW Holding Corp., a stealthy name, (Symbol KEYW, $10.60). The KEYW Holding Corp. operates as a holding company, which through its subsidiaries, engages in providing cyber security, cyber superiority and geospatial intelligence solutions. The company offers its solutions to the defense, intelligence and national security agencies and commercial enterprises.  

KEYW lost ($.02) per share this year, but in 2015, they are projecting positive earnings of $0.51 cents per share. I see them as having an endless supply of business now and in the future. This is one to tuck away sometime this summer for next year.

It is tough to be away from the garden and this gorgeous weather and be inside writing, but I squeezed out some time.

Best wishes for a good week,


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