Sunday, September 28, 2014

"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.


No comments:

Post a Comment