February 28, 2018

Sun Hydrolics

Long time MF pick Sun Hydraulics reported a good quarter where they beat estimates, but they also bought another company that had debt on its books.  Still, the future looks bright for the company as it executes its 2025 plan of reaching $1 billion dollars in sales. 

February 27, 2018

More on Expedia

Value and Opportunity has a nice write up on Expedia, noting that the shares are cheaper than last year and the #2 online travel site is looking to capitalize on growth.  It may take time for this to play out though (3 years or so). 

February 26, 2018

One Company Will Now Process 40% of America's Student Loan Debt

Interesting article on student loan processor Nelnet.

On Beazer Homes

Beazer Homes is a small cap homebuilder that has several positives going for it:

  • Last quarter would have been profitable, it the company did not decide to pay down its debt.
  • Revenue is up and the company has made progress on its backlog of orders.
  • It is acquiring property
  • Book value is around $18.00 according to this article and has an intrinsic value of $34.34.
  • This article has a $22 price target on the stock. 

Morningstar's Ultimate Stock Pickers

Morningstar has 10 high conviction stock picks listed here.  Interesting picks include CVS, Expedia, and TJ Max.   

February 22, 2018

On Healthcare Services Group

Taxes ate into last quarter's profits, causing shares to be down.  The stock pays a nice dividend and should reward patient investors in the coming quarters. 

February 14, 2018

The Mystery of Electro Scientific Industries

Electro Scientific Industries was highlighted as a "home run stock" by Zacks before they reported earnings in January.  The company had a stellar quarter and even raised guidance, but the shares dropped as pointed out by this MF Article.  Zacks has pointed out that its PEG ratio is .55.  Undervalued and growing like a weed?  This stock should be taking off, not tanking. 

February 13, 2018

On Control 4

Control 4 is a home automated control company that is growing very quickly.  It was recently added to the S&P 600 Small Cap Index, which played a large role in its stock price run up this year.  The company is profitable and seems like it has plenty of room to run. 

February 9, 2018

Merrill Lynch Sees Value in Homebuilders

In a new research report from John Lovallo, who covers homebuilders at Merrill Lynch, he makes the case that the industry is on sale as the group was hammered recently over fears of rising interest rates. Lovallo feels that 2018 is lining up well despite the probability of rising rates, and he feels the pullback in the top stocks is providing a huge opportunity, especially for the firm’s top picks:

D.R. Horton:  ML Target:  $71  WS Target:  $56.80  Current:  $44.55
Lennar:  ML Target:  $90  WS Target:  $78  Current:  $59
Pulte:  ML Target: $42  WS Target: $35.75  Current:  $28
Toll Brothers:  ML Target: $60  WS Target:  $64.11  Current:  $43.75

February 5, 2018

Starbucks Will Grow in China

Interesting MF article about stagnant growth in the US for Starbucks, but it will continue to grow in China.  Shares are also fairly cheap right now. 

The Long Case for Ebix

Interesting SA article on the long case for Ebix. 

On Opko Health

Insidearbitrage noted that the CEO and Chairman of Opko Health bought shares last week.  The Fool has a write up on the company here and here and speculate that this small company may have its best years ahead of it, but it doesn't look like the company is a pick for any of the MF newsletters.