"Pre-Hurricane Sandy edition - a couple stocks for you before the electricity goes away and we are in the dark"

Dow Jones Industrial Average 13,107.21 (down)  Week ending 10-26-2012                                     

 Projected path - Hurricane Sandy

Well by the looks of this map us folks in the Philadelphia suburbs will get to experience what the people in Florida and Louisiana have to face all the time. Being in the cross-hairs of a killer hurricane. 

In this case, a hurricane that is going to take a big left hook and run straight into a double Low pressure area, another words a "Perfect Storm", smack into the jaw of the Mid-Atlantic States.

 So I better getting typing quickly to get these ideas up on the web. (I have never tried to blog on my Blackberry! and I will need the power in my phone to make phone calls). The PECO emergency number is 1-800-841-4141, my public service announcement.

Resmed Inc. (Symbol RMD, $39.92) just sold off Friday, after recording another excellent and record quarter.  The San Diego designer and manufacturer of medical equipment for treating, diagnosing, and managing sleep-disordered breathing and other respiratory disorders is projecting 2013 earnings of $2.12 per share and  projecting 2014 earnings of $2.36 per share. RMD has made a steady rise with 5 year annual sales growth of 12.76% and 5 year annual earnings growth of 28.72%.


Resmed has a PEG ratio of 1.10 and does not list there Return on Equity?. The company had almost 1.4 Billion in annual sales and has had steady increase in sales growth over the last 4 years. 

The company has provided a 1 year Total Return of 37.14% and a 3 year Total Return of 62.24% which are very nice numbers.

The second offering, may be my most favorite stock play going into next year. 

MasterCard Inc. Cl A (Symbol MA, $452.98) may sound like it is an expensive stock, but in fact it is incredibly cheap at this price.

MA has a PEG ratio 0.95 and a Return on Equity of 35.36%.

2012 earnings are projected at $21.88 per share. 2014 earnings per share are projected at $25.78 per share. That is a projected forward PE of 17.57 for a company that has had 5 year earnings growth of 17.22%. The company operates at Net Profit margins of 29.76%. 

The company is sitting on 5.5 Billion dollars in cash and has a squeaky clean balance sheet with zero long term debt. 

The company has a One year Total return of 27.80% and a 3 year Total return of 107.28%.  I am pretty sure that people are going to keep using their credit cards and Mastercard with definitely benefit in the new trends of Mobile Payment now paired up with Ebay's PayPal. This is a profit machine with very little capital expenses. 

Also there is lots of room for international expansion.

Make sure that you get out there and vote this week if you are in the USA.

Time to hunker down and wait for the Hurricane Sandy to arrive. 

Wish us Luck.    Freewilly

"Spooky Friday, but the Dow ends UP for the week. Keep buying quality stocks and stay the course (for now)"

Dow Jones Industrial Average 13343.51  (UP, in spite of an ugly end of week) 10-19-2012

Whew! It's a good thing I didn't blog about Chipolte Mexican Grill or Google in the last few weeks! Some guy at RR Donnelly presses a wrong button and releases an 8K report early on Google and it turns the whole stock market on it's ear!

  People that know I write a stock blog will come up to me this weekend and tell me "hey, what happened to the stock market on Friday down 209 points" . Well it was triple witching options expiration what did you expect to happen? You should have bought some PUT options. The fact is that the stock market ended up for the week!

Also The Dow Jones Industrial Average since the beginning of 2009?:

" The markets were closed on New Year's Day, but the Dec 31, 2008 close was 8776.39 and Jan 2 , 2009 closed at 9034.69." That is UP 34.27%, not bad.

Sometimes you just need to look at the signs to see what stocks to buy.

Kohl's Corp. (Symbol KSS, $52.93) 

Return on Equity 16.30%  PEG ratio 0.88

Kohl's is a relentless advertiser doing TV, US mail, newspaper, Internet web, and  email non-stop.

Kohl's  is projecting 2013 earnings per share of $4.61 per share and 2014 earnings of $5.13 per share. The stock has not done much in the last 3 years being down 8%. It has been kind of storing up energy for the next big push on the stock price.The stock does pay a dividend of 2.42%.

Long term earnings growth on the retail stock is 9.57%.  The forward PE on the stock is 11.48 so priced very reasonably. KSS has an operating margin of 10.60 which is good for a retailer. They turn their inventory over 3.41 times a year which could probably be improved on. They have almost $10.00 per share in cash on the books.

There are 10 strong buy recommendations on the stock right now. This is just a nice, low risk, low volatility, steady performer that should give you a 12 to 15% annual return with the dividend and let you sleep at night. 

This from Kohl's media department,  "Based in Menomonee Falls, Wis., Kohl's (NYSE: KSS) is a family-focused, value-oriented specialty department store offering moderately priced, exclusive and national brand apparel, shoes, accessories, beauty and home products in an exciting shopping environment. With a commitment to environmental leadership, Kohl's operates 1,146 stores in 49 states. In support of the communities it serves, Kohl's has raised more than $208 million for children's initiatives nationwide through its Kohl's Cares(R) cause merchandise program, which operates under Kohl's Cares, LLC, a wholly-owned subsidiary of Kohl's Department Stores, Inc." 

So if you want a reasonable place to shop for the holidays that gives you family friendly pricing and fairly good quality, Kohl's Department stores may be the place.

Freewilly

"Looking for that pot of gold at the end of the rainbow? Maybe it leads to Grand Canyon Education (LOPE)"

Dow Jones Industrial Average 13328.85  (Down) Week Ending 10-11-2012

Grand Canyon Education Inc. 
(Symbol LOPE, $23.89)

 Return on Equity % 34.96     PEG ratio  0.91

My search for good stocks for you with my new rules applied on Return on Equity and PEG ratio has narrowed the sphere of stocks that I can bring to you. But I think that will be a good thing as the markets reach new heights and you will need this added discipline to stay out of trouble and avoid nasty equity losses.

Two areas in the US that have continued to grow and has delivered gains in jobs are health care and education. Education has become extremely important as international candidates vie and compete for fewer and more specialized jobs as they come available. So folks are loading up on education. 

Grand Canyon Education Inc. is a regionally accredited provider of post secondary education services which is focused on offering graduate and undergraduate degree programs in core disciplines of education, business, health care and liberal arts.

LOPE has taken full advantage of these conditions with 5 Year sales growth of 65.93% 

and 5 year earnings growth of 622.29%. Projected long term earnings growth is 19.16%.

The one year total return on this stock is 44.00%, so plenty of growth going on here. The company does not pay a dividend 
so is susceptible to some shorting by the
 market with a 8.14 short interest. The 
company carries very little long term
debt.


Earnings per share for 2012 are projecting at $1.41 and for 2013 they are 
looking like  $1.60 per share. 10 analyst have strong buy recommendations on the stock.

So make a Grand investment in the company that will bring you a great education and also a great return on your investment dollar. I do not see growth slowing here anytime soon.


Hope you are enjoying this beautiful fall day. 


Freewilly

"Buckle up your chin strap and grab a stock that has a little grit and can tough it out"

Dow Jones Industrial Average 13,610.15 (UP) Week ending 10-05-2012

Starbucks Corp. (symbol SBUX, $48.74) 

 Return on Equity - 28.81%     PEG Ratio - 1.21

When you get into October, and the skies start getting grey and the days start getting shorter, you need to be like those guys in the NFL and buckle up the chin strap and get those players on your team that are going to help you to have a winning game and portfolio.

 Starbucks is that steady quality player that you need. It meets our new tenet of "Return on Equity of 15+% and a PEG Ratio of less than 1.50". SBUX has a One year Total return of 19.61% and a 3 Year Total Return of 146.35%. (All stats. from Smartmoney.com)

The company has 5 year earnings growth of 17.06% and pays a small 1.39% dividend. Starbucks Corp. is the premier roaster, marketer and retailer of specialty coffee. Earnings per share for 2012 look to be $1.78 per share and 2013 earnings forecast at $2.15 per share.

One of the big holders of SBUX is the Fidelity Select Leisure Fund and it is 15.53% of that funds holdings. I was in a Starbucks today and every seat was filled. People are conducting business and interviews there. They seemed very busy. They also have very little long term debt.

So grab a Latte and give your broker a call from your local Starbucks and order up some SBUX.

This stock with an international presence can be the tough guy you need to get you through October in good shape. You can go watch your football game now and relax! 

Better drink decaf, if you are watching the NY Jets!

Freewilly