January 30, 2009

Paychex is Cheap

The Fool reminds us that shares of Paychex is cheap and they give a few compelling arguments for buying the stock. The company will report earnings on March 25. Conservative investors may want to wait until then to see if the company gives out any bad news that may send the stock even lower.

January 28, 2009

Looking at Kinetic Concepts

The Fool has an article on Kinetic Concepts, a stock that they own shares of, but according to their disclaimer have not recommended it to any of their premier subscriber services such as Hidden Gems or Rule Breakers.

The author of the article notes that getting out of debt will be the key to grow earnings for the company. The debt incurred by acquiring LifeCell reduced net earnings for the year by $92 million.

The board has also authorized a share repurchase into the third quarter of 2009. Insiders have also been buying shares beginning in October through November.

January 26, 2009

Looking at Mobile Mini

The Fool has a small article on Mobile Mini, one of their official MF Stock Advisor recommendations. The company appears to have some debt issues and a lot of their storage products are tied to the construction industry. If the Obama infrastructure plan becomes a reality, this stock may benefit.

A Big Upside to Energizer

There are multiple articles out today on Energizer Holdings. First, Zacks says that there is a big upside to the shares and sets a target of just under $80 a share, which is roughly double the current share price.

Mario Gabelli of Barron's is out with a similar call on Energizer, saying that shares could "more than double."

UBS has downgraded the stock today, sending the shares down more than 6%. If you are thinking of picking up shares, today's haircut would be a great time to do so.

January 22, 2009

Buy a Perfume Manufacturer?

Seeking Alpha has an interesting article on Parlux, a perfume maker speculating that shares of the company could be bought out soon. The article points out a settlement that was generated two years ago where an interested party could not buy out the company until February 5, 2009.

Two years is a long time to ponder a buy out, and as we all know, a lot has changed since then.

Still, it may be worth investigating the company as an investment even without hopes of a buyout. Zacks ran a feature article on the company in November and had good things to say.

January 16, 2009

A Steal of a Steel Stock

Seeking Alpha has an article that mentions 10 stocks for under $10. One of them is AK Steel, where the author writes:

"ust a few months ago, AK Steel was rumored to be a takeover candidate for around $60 a share, and now, at $9.50, this is a steal of a steel stock. AK trades 1.9x trailing earnings, 0.13x sales, and 2.3x cash."

$9.50 a share translates into a P/E of just over 2 and a forward P/E of just over 6. This stock will also pay a 2% dividend while you wait for it to come back up.

January 15, 2009

New 52 Week Low for Mechel

The Fool has featured several articles lately that have included Mechel, a Russian coal and steel miner. Shares have been down over 90% from their 52 week high and are trading at nearly $3.00 a share. Why?

As explained here, the price of coal and steel as well for its demand have put pressure on shares. The low $3.00 may be a good entry point for this stock.

For what its worth, Cramer likes the stock up to $6.00

American Oriental Bioengineering Goes Shopping

AOB spent $70 million on a building yesterday, which sent shares down over 10% yesterday. The shares are down again today, close to their 52 week low. Authors at the Fool and Seeking Alpha have explained the move, which they believe was made in order to secure lowered tax breaks from the Chinese government.

The company still expects to grow income at a record pace into this year. Before you invest you must ask yourself if you trust the management team of the company. According to the articles, this has not been the first time that management has made questionable acquisitions. Still, at a price of just over $4.00 a share, this appears to be an opportunity to "buy cheap growth."

January 13, 2009

$4.00 Price Target on MIPS

Zacks is out with a $4.oo price target on MIPS, without giving a compelling argument. They simply state that the company has been "improving margins."

Still, the CFO was buying shares in November once at $1.28 a share and again at $2.60 a share.

January 12, 2009

Updating Landec

The Fool briefly mentions one of their Hidden Gems picks, Landec in an article today. I initially covered the stock here.

Shares are near a 52 week low (sound familiar?) as the company reported earnings earlier this month that did not meet expectations which led to analyst downgrades.

Still the company looks cheap on a valuation basis and it carries no debt. For the patient investor, this could be a good entry point.

January 7, 2009

Waiting for this Stock to go BOOM

Dynamic Materials is a MF Hidden Gems pick, which has been featured in several articles, most notably this one.

Another article at Seeking Alpha mentions the company, where they estimate that the value of the stock should be $35 a share.

On Middleby

Followers of the Fool know that they have recommended Middleby for years as one of its Hidden Gems selection. But, like a lot of stocks, it has been too pricey for me to buy...until now.

Investopedia mentions the stock briefly in an article here. The stock is trading with a P/E of 8 and a forward P/E of just under 8. It's PEG ratio is .37.

One note of caution: the company did just purchase the Turbo Chef company, but they had to take on debt to do so. This could have a negative impact on already decreased earnings and the stock price may suffer accordingly.

January 5, 2009

Keep Watch on Datawatch

Seeking Alpha has an article on a micro-cap company Datawatch where the author argues that the stock has been oversold. The company's most recent quarter was not strong as it saw a decline in EPS and revenue. But, a new version of their software was launched in October which has been well received. If users see this as a "must have" release, then this will surely contribute to their bottom line.