Monday, September 19, 2011

Should You Buy the Dow — Boeing

Today, well look at Boeing (NYSE: BA ), the venerable aviation company now in
its 95th year of business. But Boeing does a lot more than just build planes.
The BMA segment engages in the research, development, production and
modification of manned and unmanned military weapons systems. The N&SS segment
involves the research, development, production and modification of products and
services to assist its customers in transforming their operations through
network integration, information, intelligence and surveillance systems,
communications, architectures and space exploration. The GS&S segment offers
logistics support functions for military platforms and operations. The BCC
segment facilitates, arranges, structures and provides financing solutions for
its commercial airplanes customers. The key driving factors regarding Boeing are
the defense budget and the overall health of the airline industry. Given that
the United States currently is involved in three conflicts, and that the defense
budget has not yet been touched despite arguments over the national debt, the
military component of Boeing's business seems likely to remain robust.
Commercial airlines also are doing just fine, and coming off the recession, the
demand for travel is increasing. That doesn't necessarily mean earnings will
soar, however. This is an expensive business to run, particularly regarding
labor, and there always is the concern that projects such as the Dreamliner will
fall behind, harming margins. There also are legitimate worries that the budget
super-committee will come back with big defense cuts, and those could filter
down to Boeing. Analysts looking out five years on Boeing see annualized
earnings growth at 13.2%, but that includes a 5% earnings decrease in 2011
reflecting those aforementioned issues, with a 25% increase expected in FY 2012.
At a stock price of $63, on FY 2011 earnings of $4.24, the stock presently
trades at a P/E of 15. Lockheed Martin (NYSE: LMT ) and Northrop Grumman (NYSE:
NOC ) are the closest competitors, with P/Es of 9 and 8, respectively. A look at
Boeings financials: The company carries $8.8 billion in cash, as well as $10.3
billion in debt at an interest rate of only 2%. Trailing 12-month cash flow was
$4.2 billion, so the debt service is no problem. The company also had 3.5 times
the amount of free cash flow necessary to pay its 2.7% dividend. So Boeing
appears to be on solid footing financially. There have been three insider
purchases of about 5,000 shares in the past year not a huge endorsement, but
better than nothing. Conclusion Placing a 13 P/E on Boeing, with projected 2015
earnings of $7.56 per share, gives us a price target of $98. Add in reinvested
dividends, and that suggests about a 70% total return. It is arguably overvalued
on this year's earnings, but fairly priced for next year. There's not a lot
of margin for error here, though, and the dividend isn't compelling enough for
retirement accounts. I'd say if you don't have Boeing already in your
portfolios, there are better choices elsewhere. If you do, though: I believe
Boeing is a hold for regular accounts. I believe Boeing is a hold for retirement
accounts. Lawrence Meyers does not own shares of Boeing.

Gold & Silver Prices – Daily Outlook September 19

Gold and silver prices bounced back on Friday from the sharp falls they have had
a day earlier. During September both metals didnt do much despite their high
volatility. What is next for gold and silver prices? Today, the minutes of the
last Monetary Policy meeting of Australias Central bank will be published. Here
is a market analysis and outlook of precious metals for today, September 19th:
Gold and silver prices –September Gold and silver prices sharply inclined on
Friday: Gold price rose on Friday by 1.87% to $1,814; silver price also bounced
back and inclined by 3.37% to $40.83. During September, gold price declined by
0.9% while silver price fell by 2.2%.

Todays Dow Jones Industrial Average DJIA Index DJX DJI Nasdaq S&P 500 Stock Market Investing News

The market closed on Friday with all the major market indexes trending in the
green. The Dow gained 75.91 points or 0.66% to 11,509.09. The Nasdaq increased
15.24 points or 0.58% to 2,622.31. The S&P 500 rose 6.90 points or 0.57% to
1,216.01. The positive push from the last session of the week boosted the
overall performance of the market up, marking a 5 day record for gains for the
first time since June. The weekly tally showed the Dow was up 4.7 %, The Nasdaq
gained 6.3% and the S&P 500 had increased 5.4%. Many question whether the market
will continue to rise or fall back as the new week reveals a mix of economic and
corporate reports scheduled for release. On the agenda for next week the
National Association of Home Builders Housing Market Index is due out on Monday.
The Commerce Department will report on Housing starts and building permits on
Tuesday. The Federal Reserve will begin a two day interest rate policy setting
meeting with a decision expected to be released on Wednesday. Existing home
sales are due out on Wed from the National Association of Realtors as well as
the Mortgage Bankers Association will release its index of mortgage applications
for the week ended September 17th. The weekly crude oil inventories is due out
on Wednesday as well. On Thursday investors will look for the Labor Department
to release the Initial Jobless Claims report and the Federal Housing Finance
Agency will release its July home Price index. The Conference Board will report
on the leading economic indicators for August. On Friday there are no major
economic events scheduled at this time. Corporate earnings reports of interest
this week include Oracle on Tuesday, Bed Bath & Beyond and General Mills on
Wednesday and Fed Ex and Nike on Thursday. All eyes will continue to follow the
developing progress in Europe as the debt crisis saga continues with the final
draft of a reform package agreed upon at a meeting of EU finance ministers on
Friday. Author: Pamela Frost

Sunday, September 18, 2011

Top 10 Small Cap Stocks of the Week: GLBL, FNDT, MCS, ISS, KH, KIOR, SIMO, JAKK, ELGX, ECYT (Sep 18, 2011)

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tdp2664 China Analyst Below are the top 10 best-performing Small Cap stocks for the past week. Two Chinese companies (ISS, KH) are on the list. Global Industries, Ltd. (NASDAQ:GLBL) is the 1st best-performing stock last week in this segment of the market. It was up 52.43% for the past week. Its price percentage change was 13.28% year-to-date. Fundtech Ltd. (NASDAQ:FNDT) is the 2nd best-performing stock last week in this segment of the market. It was up 43.17% for the past week. Its price percentage change was 43.71% year-to-date. The Marcus Corporation (NYSE:MCS) is the 3rd best-performing stock last week in this segment of the market. It was up 36.70% for the past week. Its price percentage change was -15.22% year-to-date. iSoftStone Holdings Ltd (ADR) (NYSE:ISS) is the 4th best-performing stock last week in this segment of the market. It was up 36.20% for the past week. Its price percentage change was -40.78% year-to-date. China Kanghui Holdings (ADR) (NYSE:KH) is the 5th best-performing stock last week in this segment of the market. It was up 30.12% for the past week. Its price percentage change was 33.98% year-to-date. KiOR Inc (NASDAQ:KIOR) is the 6th best-performing stock last week in this segment of the market. It was up 27.93% for the past week. Its price percentage change was N/A year-to-date. Silicon Motion Technology Corp. (ADR) (NASDAQ:SIMO) is the 7th best-performing stock last week in this segment of the market. It was up 25.70% for the past week. Its price percentage change was 217.65% year-to-date. JAKKS Pacific, Inc. (NASDAQ:JAKK) is the 8th best-performing stock last week in this segment of the market. It was up 24.94% for the past week. Its price percentage change was 8.89% year-to-date. Endologix, Inc. (NASDAQ:ELGX) is the 9th best-performing stock last week in this segment of the market. It was up 22.47% for the past week. Its price percentage change was 53.99% year-to-date. Endocyte, Inc. (NASDAQ:ECYT) is the 10th best-performing stock last week in this segment of the market. It was up 21.46% for the past week. Its price percentage change was N/A year-to-date.



Top 10 Advertising Stocks with Highest Momentum: VCLK, NLSN, FMCN, FORR, ARB, ECGI, OMC, MDCA, CHRM, CCO (Sep 18, 2011)

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tdp2664 China Analyst Below are the top 10 Advertising stocks with highest price momentum. Two Chinese companies (FMCN, CHRM) are on the list. ValueClick, Inc. (NASDAQ:VCLK) has the 1st highest price momentum in this segment of the market. It is trading at 88.0% of 52-week high. Its price change was 29.8% for the last 4 weeks. Nielsen Hldg NV (NYSE:NLSN) has the 2nd highest price momentum in this segment of the market. It is trading at 85.7% of 52-week high. Its price change was 6.5% for the last 4 weeks. Focus Media Holding Limited (ADR) (NASDAQ:FMCN) has the 3rd highest price momentum in this segment of the market. It is trading at 84.4% of 52-week high. Its price change was 15.3% for the last 4 weeks. Forrester Research, Inc. (NASDAQ:FORR) has the 4th highest price momentum in this segment of the market. It is trading at 82.8% of 52-week high. Its price change was 5.6% for the last 4 weeks. Arbitron Inc. (NYSE:ARB) has the 5th highest price momentum in this segment of the market. It is trading at 81.1% of 52-week high. Its price change was 14.2% for the last 4 weeks. Envoy Capital Group Inc. (NASDAQ:ECGI) has the 6th highest price momentum in this segment of the market. It is trading at 79.4% of 52-week high. Its price change was 1.2% for the last 4 weeks. Omnicom Group Inc. (NYSE:OMC) has the 7th highest price momentum in this segment of the market. It is trading at 77.7% of 52-week high. Its price change was 7.5% for the last 4 weeks. MDC Partners Inc. (USA) (NASDAQ:MDCA) has the 8th highest price momentum in this segment of the market. It is trading at 76.4% of 52-week high. Its price change was 25.4% for the last 4 weeks. Charm Communications Inc (ADR) (NASDAQ:CHRM) has the 9th highest price momentum in this segment of the market. It is trading at 73.8% of 52-week high. Its price change was -22.0% for the last 4 weeks. Clear Channel Outdoor Holdings, Inc. (NYSE:CCO) has the 10th highest price momentum in this segment of the market. It is trading at 71.6% of 52-week high. Its price change was 8.6% for the last 4 weeks.



Top Yielding Israeli Stocks

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dow2664 One of the top IPOs in the United States last year was SodaStream International Ltd. (SODA), an Israeli company, which went public at $20 per share and has more than doubled. Sodastream manufactures and markets home beverage carbonation systems, which can turn tap water into sparkling water and soda in just a few seconds. The product is marketed by Bed Bath & Beyond (BBBY), Macy’s (M), Sears (SHLD), Williams-Sonoma (WSM), and many other retailers. Unfortunately the stock doesn’t pay a dividend, so if you are interested in Israeli companies that pay dividends, there are several available. The payouts can help reduce volatility and speed up your return of capital. According to WallStreetNewsNetwork.com, there are more than half a dozen Israeli companies with high yields ranging from 2% to 15%. Elbit Systems Ltd. (ESLT), a manufacturer of defense systems and products, pays dividends quarterly and yields 4%. The company has been paying dividends since 1997. The stock trades at 7.3 times forward earnings and sports a price earnings growth ratio of 0.84. Cellcom Israel Ltd. (CEL) is a cellular communications provider in Israeli that yields 9.9%, with dividends having been paid payable quarterly since 2007. The stock has a price to earnings ratio of 6.7 and a PEG ratio of 0.60. Teva Pharmaceutical Industries Ltd. (TEVA), a developer and producer of generic and branded pharmaceuticals, has been paying quarterly dividends since 1997 and yields 2%. It trades at 6.8 times forward earnings and carries a PEG of 0.88. The dividend paying stocks from Israel that trade in the United States can be found in a free list at WallStreetNewsNetwork.com, which is available for download, sorting, and updating. Disclosure: Author did not own any of the above at the time it was written. By Stockerblog.com



Is Market More Volatile and Unpredictable Than Ever Before?

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tdp2664 InvestorPlace Volatility has certainly ticked up in recent years—and particularly in the last month—as the financial crisis and economic uncertainty has set in. But are we truly seeing the dawn of a new and more volatile era, or are investors so jittery we have lost perspective? A look at history shows the latter is the case. On Wall Street, there is very little new under the sun.



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