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Up one levelWe will regularly post a company report here, of a stock from one of our screens.
Digital River Added to GI Portfolio
Added 53 shares of DRIV at 37.25 on 08/10/2005 on a pullback to close gap and reversal back upwards, the stock having previously broken above $34 last month.
MCRI Stopped Out 07/27/2005
Unfortunately our MCRI trade was stopped out at $23.68 on Wednesday 27th when the 8% trailing stop was hit, for a gain of $72.40 or 7.34%. The annualized gain for this trade was 69%. Overall, the GI portfolio is up 34% in real terms, so we can't be too disappointed at this stage.
CECO Stopped out 07/19/2005
CECO was stopped out, after 8% trailing stop hit on 07/19 at $38.17 for a loss of $14.78 or -1.48%. Possibly on future trades we'll experiment with a wider stop, since these are meant to be longer-term trades. But the market may be telling us something.
PETsMART Buyback May Inspire Breakout (PETM) 07/26/2005
PETsMART, which appeared on our Intrinsic Value Screen is well known for having an excellent management team and it shows in their decision-making. On June 27th PETM announced a share buyback worth $270M which will take place through to the end of fiscal year 2006. The company generates enough cash flow to justify this as well as investing in its business and paying a dividend (albeit a small one).
06/27/2005 - Career Education Breakout? (CECO)
06/27/2005: A strong upward surge today on volume of approx 3.5 million shares versus long and short-term average volume of 2.3 and 1.9 million shares/day resulted in CECO closing up $2.02 or 5.56%. Today's action was in sympathy to the SEC Investigation coming to an end in ITT Educational Services Inc (ITT). The entire Educational Services Sector got a lift from this news.
A Digital River of Cash? (DRIV) 06/22/2005
06/22/2005: It's been quite a while since we profiled a new stock; sometimes it's hard to find anything that looks appealing. However, here's a gem of a company that keeps growing revenues and earnings, has a great product range, and an increasing number of big-name clients. It may not have the revenue or diverse range of product offerings of GSI Commerce, one of its main competitors in the e-Commerce arena, but it does have vastly higher profit margins and appears to be somewhat more nimble.
Cal Dive Looks to Have Broken Out
06/22/2005: Members who watch the profiled stocks will have noticed that Cal Dive (CDIS) finally broke upwards out of a Symmetrical Triangle early in June. When we profiled the stock, the triangle breakout point was around $49. In actual fact, the pattern developed further and made a new breakout point around $46. It pays to pay attention and watch the pattern develop since we have had a buy order executed at just over $49. With a little more attention to the pattern, we could have adjusted the order and got in at a much lower price at just over $46.
Share Buyback may give a lift to Great American Financial Resources (GFR) 04/29/2005
Great American is buying back around 3.5% of its stock. GFR is a subsidiary of American Financial Group, Inc. First-quarter earnings, announced April 23, increased nearly 5 percent year-over-year on improved results across all business lines.
Monarch Casino Breaks above $21 on Decent Volume
June 9, 2005: One of our recently-profiled Stocks, Monarch Casino & Resort (MCRI), today broke well above resistance at $21 on significant volume (444k vs 3 month average Volume of 262k). MCRI eventually finished the day up $1.57 or 7.65% at $22.08. Late in the trading session, we added it to our GI portfolio at $21.76.
Webex Communications Leads The Market in Online Meeting Technology 05/05/2005
An email from a member asking for an opinion on WEBX prompted The Graham Investor to investigate this purveyor of browser-based Online Meeting technology. The member in question wanted to know why it was showing up in the screens despite only having a Graham Number (NCAV) of around $3.69. It's important to understand the different types of stocks Graham was looking at. He would look at the NCAV for "bargain issues". More often than not, these have low Market Capitalizations, typically less than $100M, but sometimes higher.
Monarch Casino Hits The Jackpot In Q1
Monarch Casino & Resort (MCRI) are the number one stock in our intrinsic value screen, which probably reflects their future growth prospects. On the other hand, their prospective P/E is 16.55 while trailing P/E is 21.29, implying some current undervaluation. The stock closed at $19.86 today, May 18th.
Systemax (SYX) To Restate Earnings for 2004
Systemax have today (05/10/2005) disclosed that due to an accounting error in their TigerDirect operation, they will investigate and restate 2004 earnings. As a result of this announcement, SYX plunged 26%.
04/15/2005 Ceradyne Inc (CRDN)
Costa Mesa, CA based Ceradyne Inc ranked at No 8 in the Forbes' list of top Small Companies in 2004. And for good reason. CRDN has grown phenomenally but steadily from around $3.00 in 2003 to as high as $38.97 at the end of 2004. Currently trading at around $18.80 (04/15/2005), Ceradyne has been on a decline since. Let's look at the bigger picture.
04/20/2005 Systemax Inc. (SYX)
Systemax, a maker and distributor of computer hardware and related products who own the popular online PC and PC component retailer, TigerDirect, reported significantly increased earnings and a return to profit this month. SYX's quarterly income rose sharply to $8.3 million, or 23 cents per share, from a loss of $137,000, or break even per share last year. With that, the price gapped up from a close of $5.60 on 13th April to as high as $7.60 the following day. The price has since dropped back to under $7, but appears to be holding firm.
Why Cal Dive is Unlikely to Dive In Price (CDIS) 05/02/2005
Oil Services and Exploration outfit, Cal Dive International (CDIS), is a regular in our Intrinsic Value screen. It closed today (05/02/2005) at $46.10. Many oil stocks have had great runs in the last few years and CDIS is certainly no different. What's more, CDIS still looks like it has plenty of life in it yet -- especially if oil makes another run up in the coming months. Noticeable, also, is the fact that as oil goes down in price, CDIS does not seem to fall too much.
ELBO Acquired by GameStop
We profiled Video Game Store Chain Electronics Boutique (ELBO) at $42.55 on 03/24. Today it was announced that Gamestop would buy ELBO for $1.44 billion in cash and stock. As a result, ELBO gained 34% today, closing at $55.21 and is no longer appearing on our Intrinsic Value screen.
04/05/2005 Career Education Corp (CECO)
Our last profiled stock, Electronics Boutique, broke above the 52 week high only a couple of days after we profiled it. It has since been drifting lower on lower volume suggesting it may continue higher when volume comes in. Today we take a look at a stock that appears in our new intrinsic value screen. This is a screen of growth stocks with excellent prospects which are undervalued in terms of intrinsic value. The stock we are looking at is quality educational services provider, Career Education Corp (CECO).
03/24/2005 Electronics Boutique (ELBO)
ELBO turned up in our Advanced Screen several weeks ago and has been there ever since. Our attention was drawn to it because of the relatively high OCF and the large insider holdings. With almost 24M shares outstanding, the float is only 1.5M. Despite this, ELBO has not been as volatile as might be expected. The PEG value is below 1 which is a good sign. ELBO has been a little pressured for a while partly because of concerns over the gaming industry and delays in upgrades of the popular consoles such as the XBox.
02/18/2005 M&F Worldwide (MFW)
This value stock is trading a whisker under $14.00 but with a Book Value of over $17/share it is considerably undervalued. Having a strong cash position and cash flow it certainly makes money, plus being a niche player makes MFW an interesting Value proposition.
03/18/2005 CNA Financial Corp (CNA)
CNA Financial Corp, like ACGL is in the Insurance and Reinsurance business. Insurance may sound like a boring business, but it is certainly a money-spinner for Value Investors. After all, both Ben Graham AND Warren Buffett were heavy investors in Insurance - Geico in particular.
03/04/2005 Krispy Kreme Doughnuts Inc (KKD)
Krispy Kreme showed up in our Value Scan of the week ending Feb 18th 2005 at $5.54. The thing to remember about KKD is that it has been beaten down all the way from over $40 after an indisciplined and overly-aggressive growth strategy went awry, and anyone who invested in it at those levels will have gone through the proverbal wringer by now. There's a lot happening with KKD; SEC investigations, Investor Class-action suits, debt problems, defaulting, possible bankruptcy. It seems a little odd to mention such a tarnished stock here as a value candidate, but read on.
02/25/2005 Arch Capital Group (ACGL)
Insurance and reinsurance underwriter Arch Capital Group turned up in our Value Screen. It looks like a long-term value play. Although some slowdown is inevitable in the insurance business as reported by numerous sources (possibly contributing to Arch's current low valuation), it is unlikely to be drastic.
02/11/2005 Ulticom (ULCM)
Strong fundamentals and good support in the $12.50 to $13.00 range make ULCM worth watching.