Sunday, November 24, 2013

"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





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