|
Pupule's Top 10 stock boomers!
Posted at 06:53 PM
Yep, it's another Top 10, but maybe not what you might expect. Just think healthy fruits, a noun that has become a verb, funky fuscia sandals, chassis kings, fertilizer, "smart" tech, a sales force, online ad takeovers, Mexican food and recycling restaurant cooking oil.
By Paul Honda
paul@hondareport.com
Wednesday, May 30, 2007
Some people went to the beach, barbecued at least three kinds of animals and fully enjoyed Memorial Day.
Me? I went over the numbers for 33 stocks. Whoopeee . . .
But honestly, I enjoyed it. Memorial Day was the first Monday in ages (one year) when I did not have a high-school Top 10 poll (or two) to work on. Maybe my brain is addicted to looking at numbers each Sunday and Monday. I dunno.
So below I have a list of the top stocks out of those 33 I studied. These are the ones that graded out at A- and B+. None made straight A, by the way. And I'd show you the exact stats I used to measure these stocks, but there's not enough space on a Word document or on this page to make it worth reading. (It would be really tiny and strain your eyes.)
Anyway, here goes. And before anyone scolds me, I must caution that the market is due for a pullback. If you didn't know that, well, you were probably gonna send me an irate e-mail after it happens. So there, you've been warned. Wait for the pullback, then maaaaaybe build some small positions in your favorite stocks.
Here are mine.
> > >
Big cap. Small cap. All I care about is GROWTH, and ascending growth over at least 3 years at that. I can live with a radically high P/E. Just give me growth, whether it has to do with funky lime green sandals or gross, used restaurant cooking oil or damn cool Gen Z necessities like iPods.
Filtering the good from the bad, the truth from falsehood and fact from fiction. If you scoured through the numbers of 33 stocks on Memorial Day, you'd be pretty keyed up, too.
Apple Inc. (AAPL)
GRADE: A-
Delay? What delay? I don't really mind whether the iPhone is on time or not. This is a great company with great products and great Cool Factor. AAPL trading at $114 going into today's session. How much upside is left in its remarkable run?
Google (GOOG)
GRADE: A-
Dominator near and far. Well, except in China, but I have an idea about that (see below). Still plenty of growth ahead. Pps is $487, waiting for liftoff as passengers get impatient. Could be mercilessly thumped in a correction, but I'll be running onboard at full speed with a happy, slightly crazed look.
Crocs (CROX)
GRADE: A-.
The growth prospects are insane: 216% operating margin, 287% earnings growth. Compare that to a P/E of "only" 38 and a market cap of just $3 billion, and this really could become the next Nike. Or rather, Nike's really funkycool niece. Pps is en fuego at 77, looking for a breather here, maybe get in around 72 with a little help from abroad.
Spartan Motors (SPAR)
GRADE: A-.
I have no clue how a chassis works, but these guys at Spartan Motors are BAD ASS! 60% earnings growth keeps the run rollin' ... from 25 to 34 in just a few months. CEO promises greater days ahead, to boot. P/E has a bit of froth (37), but the float is small (19 mil). I'll be looking to get in on a pullback from the current pps ($34)
Potash Corp. of Saskatchewan (POT)
GRADE: B+.
Potash of Saskatchewan ... whaaaaat? Masters of Fertilizer, which in turn fuels the booming agriculture industry, i.e. ethanol subsidies. Earnings growth: 57%. POT's pps ($203) could use a breather, but this is a winner worth watching on a pullback.
Akamai Technologies (AKAM)
GRADE: B+.
How do you beat the No. 1 company in digital storage? You don't. You join them. A wee bit pricey at $41, but these guys rule. Major ascending growth from year to year, along with quarterly revenue (53%) and earnings growth (66%).
Salesforce.com (CRM)
GRADE: B+.
A lot of "experts" really don't get what it is Salesforce does. Neither do I. I just know that quarterly revenue is up 55% and this company has ample room to grow. Pps is $46 with major upside.
Valueclick Inc. (VCLK)
GRADE: B+.
Solid fundamentally, especially with 90% earnings growth. Even if a takeover never happens, they are the leader in their field. Pps is $32 and going up one way or another.
Chipotle Mexican Grill (CMG)
GRADE: B+.
Chipotle Mexican Grill could be the fastest growth chain in the nation. 56% earnings growth with a P/E of 62. Pricey, indeed, but my love for Mexican food is real. I think America is ready to lift CMG up into the hallowed rafters of other great chains. Pps is $85, would be nice to collect on a pullback.
Darling International (DAR)
GRADE: B+.
Darling International takes your restaurant's used cooking oil and does miracles with it. Insanely good growth numbers outweigh a P/E of 49. Pps is quite undercooked at $9.07, but I'll wait for a summer lull before backing up the truck.
Disclaimer: I do not own any of these stocks. I hope I will soon, though.
Previous Article: Champion 'Cats proved doubters wrong
Next Article: In or out? The market is crazy
Comments
Post A Comment
© Copyright 2003 HondaReport.com/Leahi.Net
|