"Bill Gross's shocking departure from PIMCO to join Janus Funds this week caused Janus stock to go up by 43%. So I decided to look around in the sector for other good mutual fund stocks to buy."

Dow Jones Industrial Average 17,113.15 (Down) Week Ending         09-26-2014

I guess that you will all be very happy to hear that I am not writing about another $60 or $80 dollar stock this week. It seems like many of the great growth stocks fall in that price area right now.

So I thought it would be a nice change of pace to recommend a low price stock that you could possibly maybe buy 100 shares of.

Hennessy Advisors Inc. (Symbol HNNA, $18.50) has $5 Billion dollars under management in their mutual funds. A small company among giants in that regard but very well managed and profitable. The IBD rating on this one is 98-99-98 so a real flyer.

 Hennessy does well with my main two investment criteria with a Return on Equity of 21.72% and a PEG Ratio of a very low 0.1776.

HNNA had 32 Million dollars in revenue on an annual basis and the company trades at a PE of 15.85. Earnings for the last quarter was $0.35 cents per share.

 Neil Hennessy

The company has quarterly free cask flow of $2.39 Million dollars.
HNNA pays an annual dividend of 0.86% so a little revenue kicker.

The great news on Hennessy is that the return on your invested stock has been great. Year to Date Return has been 57.45%. The 1 Year return was 105.6% and for the 3 year return it is 516.7%. 

So this company is small and growing and has a great future to look forward to. You can buy the stock right here, or buy it in small increments.

So have a great fall and don't get scared out of the market but always be cautious. If you have a bad feeling, then sell off a little of some stuff that hasn't worked this year, and raise a little cash.

Have a great October, and look to buy stocks that you want to own going into 2015.

Freewilly 

"Well the big Alibaba roadshow and public offering is underway. I say if you want to buy a Chinese stock for $60.00 + a share, you would be better served purchasing China Mobile LTD (Symbol CHL)"

Dow Jones Industrial Average 17,017.00 (UP) Week ending 09-03-2014
Dow Jones Industrial Average 16,987.51 (Down) Week ending 09-12-2014


Well the big Alibaba public offering is coming this week. What you should know is that Alibaba is already 34% owned by the Japanese telecom company Softbank and also another 24% is owned by Yahoo. (Yahoo is selling off 5% of their shares in the public offering).  So there is no chance that any other company will try to buy them out. It is looking like the public offering is going to price out at $60- $65 dollars per share. I would not be a buyer of it on the public offering.

A much better idea, (if you want to buy shares in a Chinese company stock), would be to purchase shares in China Mobile LTD ADR (Symbol CHL, $63.86). 

CHL is the largest cellular phone service provider in the world. Start out with a dividend of 3.06% (the People's republic will tax part of that on the way in), but still not bad.

Zach's has the stock rated as a Strong buy. Analysts have the stock rated 11 Buy, 4 overweight and 4 neutral. The stock trades at a PE ratio of a very fair 13.94.

The company is holding $73.31 Billion dollars in cash and short term securities, so they can buy stuff. The ROE on the company is 16.15% and I cannot find the PEG ratio anywhere. 

Revenues for the company are $105.97 billion dollars and Net Income is 18.91 Billion dollars. 3 year sales growth has been 12%

Earnings for 2014 are projected at $4.44 per share, (down from last year a bit, and for 2015 are projected at $4.43 per share. 3 year earnings growth has only been 1%. IDB earnings growth rating is 48 , but remember the size and scale of this company.

The best numbers on this stock is that the YTD, (year to date), return on the stock has been 24.13%. the one year return has been 17.53%. The three year return has been 28.89%.

China Mobile is the Number One cellular carrier in the largest population cellular market. Seems simple enough to me. It is a much better idea to purchase rather then speculating on a high priced Alibaba stock. It is by the numbers a more conservative investment with lots of upside especially on the data service side. 

So keep on talking on your cell phone and surfing the web with it, and have a great week.

Freewilly

"So I have overcome my fear of buying tech stocks as the bubble of 2000-2002 fades in my memory. Just make sure that the company has lots of cash on board like the stock I will talk about today, F5 Networks, (FFIV)"

Dow Jones Industrial Average 17.001.22 (UP ) Week ending 08-22-2014
Dow Jones Industrial Average 17.098.45 (UP ) Week ending 08-29-2014

Nobody likes to talk about about the Tech bubble of 2000 - 2002. March 11, 2000, NASDAQ at 5132.52 to Oct. 9 2002, NASDAQ at 1108.49. $5 Trillion dollars lost in market value. 78% of the value of the NASDAQ lost. In the middle of it all, the worst attack on American soil since Pearl Harbor with the attack of the World Trade Center at 8:46 AM on 9-11-2001.  A lot of dot.com companies with no real business and a lack of cash went down. The good stocks with real businesses went down too. CISCO declined 86%. Amazon went from 107 down to 7, (then back up to 400!). If you were not diversified and all in tech,  then you were crushed. Could it happen again? Sure. But am I worried right now. No. Will we forget the World Trade Center attack? Never.

F5 Networks (Symbol FFIV, $124.19) is a company that provides application delivery networking, (ADN), technology that secures and optimizes the delivery of network based applications. The issue with the above tech crash was that companies had no liquidity, no cash. F5 Networks, as of last quarter, has $611 Million dollars in cash. The security threat on our international bank systems and other vital businesses makes F5 Networks a very important company with very important products in 2014 and forward.

Here are the rest of the numbers. F5 Networks has a PEG ratio of 1.43 and a Return on Equity Ratio of 20.10%. The company does $1.7 Billion dollars in Revenue and produces quarterly free cash flow of $132.72 Million. 

F5 Networks has 74.42 Million shares outstanding and has a Market cap of 9 Billion.

F5 operates at a quarterly Gross Profit Margin of 81.85%. The current Price Earnings ratio is 23.3. The 1 year EPS growth is 17.7% and the 3-5 year EPS growth has been 23.2%.

According to CBSMarketwatch website, the earnings per share for 2013 were $4.52 per share. 2014 is projecting out at $5.35 per share and for 2015 it is looking like $6.25 per share. 

Stock price appreciation has been very good here. The YTD return so far for 2/3 of the year is 36.68%.  The one year Total Return for the TTM , (trailing twelve months) has been 47.63% .
The 3 year Total Return is 57.76%. The company currently pays no dividend.

This market will need to consolidate gains for the last third of the year , but you will need a percentage of good quality growth tech names in your portfolio and F5 Networks should be one of them.  I would just nibble here, until you get a little dip to commit more resources to FFIV. Geo-political events are also cranking up a bit here, so I would be very cautious with deployment of assets to the market for long term growth positions. 

So here in the USA, we are off today for Labor Day, a holiday to celebrate working men and woman and to give them a well deserved day off.

 Phillies and Braves today in major league baseball. A pitchers match-up between the Braves-Teheran and the Phillies - Cole Hamels. Great pitchers. I will be watching and cheering for the Philadelphia Phillies.

Have a great week and last third of the investing year,

Freewilly