Ethical Investing

Abbott Laboratories: Looking to Emerging Markets for Growth

2010-11-09T10:39:00.000-06:00

In an article dated October 18, 2010, I compared and performed relative valuation of 6 major drug companies. In this article, I will focus on Abbott Laboratories (ABT) and present my discounted cash flow analysis results for the company. ABT is primarily divided into 4 operating segments namely Pharmaceuticals, Nutritional Products, Diagnostics, and Medical Services. Although commonly seen

Analyzing Major Engineering and Construction Firms Using Relative Valuation

2010-11-07T12:14:00.000-06:00

The recent economic downturn had a major impact on the Engineering and Construction (E&C) industry with the cancellation and postponement of several projects. Things appear to be improving for the industry with several new projects on the horizon. I am optimistic about the infusion of fresh capital in highways and rail projects, power generation projects, and oil and gas exploration projects.The

Coach: Expanding Into Men's Accessories

2010-11-02T10:15:00.002-05:00

Coach (COH) released its earnings for Q1 2011 on October 26, 2010. The company reported stellar numbers with widening margins and gains in market share in all major regions where Coach operates. The $25 billion global luxury market for handbags and accessories (H&A) is projected to grow at an average annual rate of approximately 5% for the next few years. China is expected to be the major driver

Is Netflix Overvalued?

2010-10-29T11:01:00.004-05:00

Netflix (NFLX) is growing at an incredibly fast pace. The company which started out as a DVD-rental-by-mail company is now transforming itself into a video streaming company. While this business model has several advantages including reduced postage costs and better opportunities for international growth, the changed business model also reduces Netflix’s competitive advantages. These

Valuation of Three Major Rail Roads

2010-10-25T10:22:00.001-05:00

Ever since Warren Buffet acquired Burlington Northern Santa Fe (BNI), I have been keenly following the railroad sector in hopes of finding a quality company that could be a part of my long term portfolio. Railroads should be an attractive investment to most investors since the industry has high barriers to entry. This is slightly offset by the unionized nature of the business and competition

Hansen Natural: A Takeover Candidate with Growth Potential

2010-10-25T10:13:00.003-05:00

Recently, with the increased pace of M&A activity in the consumer staples sector, Goldman Sachs (GS) reported that Hansen Natural (HANS) is among the top candidates for takeover. The talk about potential acquisition of HANS is not new. Rumors about a possible takeover of HANS by Coke (KO) began as early as in 2006. Other rumors involving PepsiCo (PEP) and Anheuser-Busch (BUD) as likely bidders

Analyzing Major Big Pharma Players Using Relative Valuation

2010-10-18T10:20:00.002-05:00

According to IMS Health, the global market for pharmaceuticals is expected to grow at an annual rate of 5 to 8 percent and reach $1.1 trillion by the year 2014. Unfortunately, outside of some mutual funds, I do not have any exposure to this sector in my personal account. In addition to scope for capital appreciation (based on sector growth), many of the big pharma firms also offer an attractive

Intel: Trading at a Discount

2010-10-14T10:17:00.002-05:00

In the past few weeks, I have performed valuation analysis of market dominating companies such as Microsoft (MSFT), Google (GOOG), Apple (AAPL), Cisco (CSCO), Johnson & Johnson (JNJ), and Colgate Palmolive (CL). With this article, I am adding Intel (INTC) to this elite group of companies. Company BasicsIntel is the largest semiconductor chip maker accounting for more than 80% of worldwide

Colgate Palmolive: Capital Appreciation and Steady Dividends

2010-10-11T09:46:00.000-05:00

With the S&P 500 up by approximately 11% since the beginning of September, as I mentioned in previous article on Johnson & Johnson (JNJ), it makes sense to add defensive stocks that pay solid dividends as a way to protect ones portfolio from any impending correction in the stock markets. In this article I will attempt to determine the fair value of one such defensive company: Colgate Palmolive (

Going Defensive with J&J

2010-10-06T00:42:00.004-05:00

In my opinion, with the recent run up in stock prices during the month of September, the stock market is slightly overvalued. Therefore, investing fresh capital in defensive stocks would be the smart thing to do. In the next few articles, I plan on performing valuation analysis for solid dividend paying companies from various sectors and adding the most attractive names to my personal

Cisco: Almost a Compelling Buy

2010-10-05T09:45:00.001-05:00

In an article dated September 21, 2010, I commented that MSFT held a monopolistic position in the field of operating systems with a 90% market share. Well, Cisco (CSCO) is the Microsoft of the networking world holding a commanding 70% market share in Ethernet switching market and 50% market share in the routing market (Source – S&P Equity Research). The company also offers products in advanced

Offshore Drilling - Analyzing The Major Players Using Relative Valuation

2010-09-30T13:50:00.000-05:00

As the deep-water-drilling moratorium is about to end, I decided that it was an opportune time to analyze the major companies in the offshore drilling sector. This article presents the relative analysis results conducted for 7 major drillers namely Diamond Offshore (DO), Noble Corporation (NE), Atwood Oceanics (ATW), Transocean (RIG), Ensco (ESV), Pride International (PDE), and Rowan Companies (

FactSet Research Systems: Is Wall Street Correct?

2010-09-28T16:44:00.001-05:00

FactSet Research Systems (FDS) is a provider of global economic and financial data to investment management and investment banking professionals. Its applications are an integral part of the workflow of subscribing financial professionals. FDS recently declared financial results for FY 2010 modestly beating analyst expectations, capitalizing on improved spending on investment tools.Wall Street

Copart - Profiting from Damaged Cars

2010-09-27T14:07:00.001-05:00

Copart (CPRT) is a major provider of online auctions and vehicle remarketing services in USA, UK and Canada. The company serves as an agent to process and sell used vehicles over the internet using auctions.In the UK, in addition to acting as an agent, Copart also buys the used vehicles outright and sells them to interested parties. The company primarily deals with insurance companies helping

Battle of the Titans: Google vs. Apple

2010-09-23T17:15:00.001-05:00

Google (GOOG) and Apple (AAPL) are arguably the most popular companies in the U.S. and have made their long-term investors an incredible amount of money during the past six years. From the time Google went public in 2004, the stock has delivered a total return of 376% (as of September 22, 2010). During the same time period, Apple stock appreciated by approximately 1,770%. The two companies

Microsoft - A 15% Upside Potential

2010-09-21T00:50:00.003-05:00

Microsoft (MSFT) is one the largest software companies in the world with its Windows operating system running on more than 90% of the computers operating today. There are hardly any companies in the free world that enjoy a monopolistic position of this magnitude. In this article, I will attempt to determine the fair value of MSFT using discounted cash flow analysis and relative valuation.

Coach Betting on China

2010-09-21T00:32:00.001-05:00

During financial year 2010, Coach Inc. (COH) returned to double digit EPS growth rate by reporting an EPS of $2.33 compared to prior year EPS of $1.91. The company increased its total square footage by 8% in North America, 5% in Japan and 50% in China. For financial year 2011, the company plans to increase its total square footage by approximately 10% including an addition 60% retail space in

Investment Analysis of Proctor & Gamble

2010-09-13T23:28:00.000-05:00

Procter & Gamble (PG) is one of the largest producers of household goods and products in the world with presence in over 180 countries and revenues in excess of $78 billion. In this article, I will determine the fair value of PG using the two-stage dividend discount model. PG has a well established record of returning cash to the shareholders using dividends and it currently yields just over

Hansen Natural: Quenching Thirst With Record Profits

2010-08-18T14:45:00.000-05:00

It was a record quarter for Hansen Natural Corporation (Nasdaq: HANS). Hansen Natural announced financial results for the three-months ended June 30, 2010 reporting an EPS of $0.69 on gross sales of $415.3 million, beating the consensus estimate of an EPS of $0.66 on revenues of$324.98 million. The record sales and profits were primarily driven by the Monster brand which continued to outpace the

Dolby Marches Ahead

2009-07-30T21:51:00.000-05:00

It was another great quarter for Dolby Laboratories (DLB). Dolby announced the financial results for the third quarter handily beating analyst expectations. The company reported an EPS of $0.44 compared to an EPS of $0.40 a year ago. Analysts were expecting an EPS of $0.31 a share on revenues of $147.2 million. It should be noted that revenues in the quarter included approximately $22 million

Hansen Natural Should Energize Your Portfolio

2009-07-22T09:52:00.000-05:00

According to the Beverage Marketing Corporation, the alternative beverage segment is the fastest growing category of the beverage industry. One company from this segment that I particularly like is Hansen Natural Corporation (HANS). It develops, markets, sells, and distributes alternative beverage category natural sodas, energy drinks (including the popular Monster energy drinks), non-carbonated

Thompson Creek Raises Production Guidance; Pullback Is Buy Opportunity

2009-06-15T11:20:00.000-05:00

n an article dated June 7, 2009, based on the increasing demand for molybdenum, I predicted that Thompson Creek Metals Company (TC) would announce actual molybdenum production near the high end of its 2009 forecast. Just a day later, on June 8, Thompson Creek stated in a press release that it was making operational improvements and now expected to produce between 22 million and 26 million pounds

Diamond Offshore and Noble Corp: Drilling Profits

2009-06-08T12:02:00.000-05:00

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Thompson Creek: A Molybdenum Stock to Strengthen Your Portfolio

2009-06-07T12:58:00.000-05:00

Thompson Creek Metals Company (TC) is a Canadian mining company and is one of the largest pure molybdenum producers in the world. Molybdenum is alloyed with steel making the steel stronger and is widely used in the iron and steel industry. With declining steel demand owing to the global recession, the price of molybdenum fell from approximately $34 a pound to just under $8 a pound in the last

Dolby: Buying Opportunity in a 'Best of Breed' Sound Company

2009-06-01T17:56:00.000-05:00

On April 30, 2009, Dolby Laboratories (DLB) declared financial results for the second quarter 2009 reporting an EPS of $0.60 (Call Transcript). Not surprisingly, the results were ahead of street expectations of $0.46. Further, Dolby tightened the full year earnings outlook and now expects to earn between $1.76 and $1.91 a share. Previously, it had forecast an EPS in the range of $1.66 to $1.91.