| How Japan Profits From China's Plans Japanese train builders and parts suppliers stand to benefit from China's purchase of high-speed rail technology. forbes.com |
Keep Your Portfolio Chugging Along with Monro Muffler Brake Invest With An Edge submits: Some experts think the U.S. economy is beginning to show signs of recovery. Possibly, but with so many folks still unemployed and access to credit at its lowest levels in years, consumers and businesses alike are tightening their purse strings. Over the past year, we’ve highlighted frugalpalooza opportunities for investors looking to profit from the widespread development of penny-wise consumers. Today we offer an interesting auto-related play. One consequence of recession is that drivers often hang on to their cars longer. To keep an older vehicle in good working order, you need to spend money on maintenance and spare parts. Those factors make Monro Muffler Brake (MNRO) a compelling play on the thrifty consumer. New York-based Monro offers an array of mundane auto services from oil changes to brake repair. They’re a sizeable company with 710 stores in 17 states.Complete Story » seekingalpha.com |
Boeing: Taking Airline Production Stocks for a Ride Trader Mark submits:I've been watching this move in Boeing (BA) for a few months in awe; this is definitely the definition of "cyclical". On the plus side, this is one thing still made in the USA, so any good news for Boeing is good news for the general economy.The aircraft maker reported Q4 sales rose 42%, year over year, to $17.9 billion, yielding profit per share of $1.75; that was ahead of analysts’ average $17.6 billion estimate on the top line and way, way ahead of $1.36 on the bottom line. (Click to enlarge) The halo effect is now rubbing off on the entire industry as many suppliers are surging right along with the giant. Today, Precision Castparts (PCP) - a stock that was on fire in 2007 - was upgraded by Goldman Sachs.Complete Story » seekingalpha.com |
Earnings Scorecard: L-3 Communications Zacks.com submits: L-3 Communications Holdings Inc. (LLL) reported better-than-expected first quarter 2010 (ended Mar 26, 2010) results on April 22, 2010. In the reported quarter, the company achieved earnings of $1.87 per share (excluding a tax provision of $0.04), beating the Zacks Consensus Estimate of $1.77 and the prior-year earnings of $1.66. The upside mainly came from the Command, Control, Communications, Intelligence, Surveillance and Reconnaissance (C3ISR) and Electronic Systems segments.First Quarter HighlightsComplete Story » seekingalpha.com |
DryShips: Come Aboard, Just Make Sure You Have Your Sea Legs Daniel Long submits:When the rumor mill gets going about a potential buyout target, investors can generally become interested for one of two main reasons. The first is when the potential target has a strong foothold on technology, staff or demographics that the potential suitor perceives as essential to its future earnings growth or even survival. When this is the case, shares for the firm being bought will often have high multiples due to big R&D and other costs relative to current earnings. The buyer in this case will likely be overlooking the value concerns just to get their hands on what they so desperately need, and a bidding war can easily ensue. Because of this, however, the stock tends to rise quickly, well before any buyout is announced, and can often trade higher than what is ultimately paid.The other less exotic scenario occurs when a company has great long term fundamentals, but has been beaten down by short term forces. The buyer of these types of companies is generally looking for a solid investment to add to their balance sheet, something that will generate income right away. When this happens, the stock will likely see less action leading up to a deal, and a premium is often paid. This is because traders believe that the potential suitors will be more likely to low-ball any offers, and will have plenty of time to wait. The financial condition of the prey in this case is often the determining factor as to what price is paid. As different as the results can be for investors of these two scenarios when the sitting ducks are eventually acquired, a further divergence in results can occur if the companies are in fact not bought out. When something that was in dire need suddenly is not, chances are it will be left on the curb. Investors holding a value play, on the other hand, may benefit from the strong fundamentals that kept them from being overtaken in the first place.Complete Story » seekingalpha.com |