Sunday, October 28, 2012

"Pre-Hurricane Sandy edition - a couple stocks for you before the electricity goes away and we are in the dark"

Dow Jones Industrial Average 13,107.21 (down)  Week ending 10-26-2012                                     

 Projected path - Hurricane Sandy
Well by the looks of this map us folks in the Philadelphia suburbs will get to experience what the people in Florida and Louisiana have to face all the time. Being in the cross-hairs of a killer hurricane. 

In this case, a hurricane that is going to take a big left hook and run straight into a double Low pressure area, another words a "Perfect Storm", smack into the jaw of the Mid-Atlantic States.

 So I better getting typing quickly to get these ideas up on the web. (I have never tried to blog on my Blackberry! and I will need the power in my phone to make phone calls). The PECO emergency number is 1-800-841-4141, my public service announcement.


Resmed Inc. (Symbol RMD, $39.92) just sold off Friday, after recording another excellent and record quarter.  The San Diego designer and manufacturer of medical equipment for treating, diagnosing, and managing sleep-disordered breathing and other respiratory disorders is projecting 2013 earnings of $2.12 per share and  projecting 2014 earnings of $2.36 per share. RMD has made a steady rise with 5 year annual sales growth of 12.76% and 5 year annual earnings growth of 28.72%.


Resmed has a PEG ratio of 1.10 and does not list there Return on Equity?. The company had almost 1.4 Billion in annual sales and has had steady increase in sales growth over the last 4 years. 

The company has provided a 1 year Total Return of 37.14% and a 3 year Total Return of 62.24% which are very nice numbers.

The second offering, may be my most favorite stock play going into next year. 



MasterCard Inc. Cl A (Symbol MA, $452.98) may sound like it is an expensive stock, but in fact it is incredibly cheap at this price.

MA has a PEG ratio 0.95 and a Return on Equity of 35.36%.

2012 earnings are projected at $21.88 per share. 2014 earnings per share are projected at $25.78 per share. That is a projected forward PE of 17.57 for a company that has had 5 year earnings growth of 17.22%. The company operates at Net Profit margins of 29.76%. 

The company is sitting on 5.5 Billion dollars in cash and has a squeaky clean balance sheet with zero long term debt. 

The company has a One year Total return of 27.80% and a 3 year Total return of 107.28%.  I am pretty sure that people are going to keep using their credit cards and Mastercard with definitely benefit in the new trends of Mobile Payment now paired up with Ebay's PayPal. This is a profit machine with very little capital expenses. 
Also there is lots of room for international expansion.
Make sure that you get out there and vote this week if you are in the USA.

Time to hunker down and wait for the Hurricane Sandy to arrive. 

Wish us Luck.    Freewilly




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