February 19, 2009

The Fool Owns Cameco

According to this article, the Fool owns shares of Cameco, a uranium mining company that operates in four segments: uranium, fuel services, electricity and gold.

The Fool goes into more details on the company here and here. The second article notes that an estimated 80 new nuclear reactors will go online by the year 2017 and that Cameco has an extensive client list ready to sell them uranium. This may prove to be a great long term play.

February 13, 2009

Vital Images Selling for Less Than Cash

Vital Images makes medical visualization products that gives medical staff access to medical imagery over the web. The company recently signed a distribution and sales agreement with Toshiba. As this article points out, the company is selling for less than cash right now and it is buying back stock. However, the company is loosing money, but at a very low burn rate. If their distribution grows, so will their stock price.

February 11, 2009

KHD Humboldt Wedag International on Sale

The Fool is out with two articles that feature KHD Humboldt Wedag International (KHD). The first one notes that the stock is 70% off of its 52 week high. The second article goes on to explain why the stock has fallen and why it is trading at a value right now.

On a valuation basis, the company appears cheap with a P/E of under 5. Their calculated PEG ratio is .15. Another article I found at the Fool, notes that "The market cap is less than cash on hand and KHD is still cash flow positive."

The Fool appears to agree that this stock is cheap and is a screaming buy. The disclose that KHD is a Global Gains Recommendation and a Hidden Gems selection. The Fool also owns shares of the stock.

February 9, 2009

Four Stocks for New Parents

My brother and his wife are expecting their first child this summer. He isn't even here yet and already dozens of people have spent thousands of dollars in preparation for this blessed event. This article uses Peter Lynch's principle of "buying what you know" in order to make stock recommendations for first time parents.

Disney (DIS)

Why You Should Own It: Disney has a vast array of intellectual property backed by a marketing team more powerful than the government of a small country. There is a very high chance that my nephew will be exposed to a Disney product within days of being born. As he grows, he will no doubt receive and consume countless Disney products ranging from toys, books, movies, and trips to theme parks. As a parent, it is only a matter of time before you give The Mouse some of your money. It is best to own shares of the company as soon as possible so that you can maximize your return over the greatest number of years.
Why You Should Buy it Now: The last two quarters have been rough on Disney shares, as earnings have fallen short of analyst expectations. At under $20 a share, the company is trading at six year lows and slightly above book value. Disney also pays a 1.8% dividend, which may grow, though not as fast as a newborn.

Mattel (MAT)

Why You Should Own it:
Much like Disney, Mattel has a wide range of products that appeal to children of all ages. Starting from birth with Fisher Price to kids of all ages with Hot Wheels and Barbie. After our children were born, the decor in our house changed from "country casual" to "modern toddler" as an endless stream of plastic toys painted in primary colors were strewn down the hallway.
Why You Should Buy it Now: The company's last earnings release showed us that toys are not recession proof and as a result, the stock is down 50% from its 52 week high. However, long term investors will realize the value in this company as the demand by children for toys will not wane, just the parent's current ability to buy them. Like Disney, parents all around the world will spend some of their money on Mattel products. Let the company pay you back slowly, over time.

Kimberly-Clark (KMB)

Why You Should Own it:
One word.....diapers. Kimberly Clark of course makes more than Huggies, but your newborn becomes a consumer at birth, and one of the first things that they will consume multiple times on a daily basis are diapers. After the baby stage is over, KMB is ready to usher your toddler into potty training with Pull Ups and Little Swimmer diapers. They will also be there with their Kleenex tissues to wipe noses when they are sick and with their Scott paper towels to wipe up the cereal that was dumped out in the high chair.
Why You Should Buy it Now: Shares are near their 52 week low under $50 a share. The company is faced with rising raw material costs as well as competition in most each of their product lines. However, the company has implemented a cost savings program and has begun to repurchase shares in order to meet their EPS targets. Their historically low stock price coupled with a 4.6% dividend makes a for a compelling blue chip investment idea.

Costco (COST)

Why You Should Own It:
They sell diapers and formula in bulk. The new addition to the family is going to eat and ummm require "undergarment refreshment services"....a lot! While you are at Costco picking up these things for the little one, you may also be prone to picking up a mega-large bag of coffee to help you get through the sleepless nights.
Why You Should Buy It Now: Shares are near their 52 week low and they also pay a dividend. As the family grows, you will be buying more products in larger sizes. "Buy what you know" and get rewarded for your efforts.

Disclosure: Long shares of Disney

February 6, 2009

Loews is Undervalued

The Stock Advisors has an article on Loews the holding company (L) as opposed to Lowe's the hardware store (LOW). The author of the article estimates that shares of the company are trading at a 40% discount, based on the value of its holdings:

"We don’t see any rational reason for Loews to be so undervalued. So let’s buy some great assets, top management, a proven track record, and a pile of cash, all at a 40% discount to its value: buy Loews Corp."

The company reports earnings on Monday, so Mr. Market may discount the stock even further, depending what comes out in the earnings report.

February 3, 2009

More on Autodesk

According to this article, the Fool owns shares of Autodesk. I covered the stock in November when shares were trading in the low teens.

For more food for thought, Morningstar has an excellent article on the company's wide moat and competitive advantages.

The company reports earnings on February 26. While the stock has risen into the high teens since its lows of November, the company may still report lowered earnings and guidance. Prudent investors may want to see if the stock drops before snagging shares. Still, buying a quality company for under $20 seems like an excellent entry point.