Great Stocks In October 2012

Asian stocks rose for an eighth week, with the regional index capping its longest streak of weekly advances since 2005, after the U.S. jobless claims unexpectedly dropped and Greek political leaders struck a deal on a package of austerity measures.

 

Li & Fung Ltd., the world’s biggest supplier to Wal-Mart Stores Inc., gained 2.9 percent this week in Hong Kong. Toyota Motor Corp., Asia’s biggest carmaker by market value, climbed 5.6 percent in Tokyo. Tohoku Electric Power Co. surged 29 percent after resuming operation of a unit damaged by Japan’s March earthquake. Cosco Pacific Ltd., the terminal arm of China’s biggest shipping group, rose 5.2 percent in Hong Kong after a gauge of cargo rates snapped its seven-week decline.

 

"You had increases in most equity markets across Europe and a very small increase in the U.S. It’s a good point for Asia,” said Stephen Halmarick, Sydney-based head of investment markets research at Colonial First State Global Asset Management, which oversees about $150 billion. “Greece reached some sort of agreement, but it’s still up for negotiation whether the rest of the European authorities will accept that agreement.”

 

The MSCI Asia Pacific Index climbed 0.4 percent to 124.85 this week, extending its winning streak to the longest since December 2005, after both the unemployment rate and jobless claims unexpectedly dropped in the U.S.

 

European finance chiefs’ refusal to deliver the bailout reflects frustration with Greece’s bickering politicians and the prospect that they may again backtrack on austerity measures not yet passed into law. Prime Minister Lucas Papademos agreed with political parties on budget cuts required for the 130-billion- euro ($172 billion) financing package. The deal has yet to be voted on.

Great Stocks In October 2012:Homeowners Choice Inc. (HCII)

 Homeowners Choice, Inc., an insurance holding company, provides property and casualty insurance in Florida. The company provides property and casualty homeowners? insurance, condominium owners? insurance, and tenants? insurance to individuals owning property. It serves approximately 59,500 policyholders primarily through independent agents. The company was founded in 2006 and is headquartered in Tampa, Florida.

Great Stocks In October 2012:Medallion Financial Corp. (TAXI)

 Medallion Financial Corp., through its subsidiaries, operates as a specialty finance company in the United States. The company engages in originating, acquiring, and servicing loans that finance taxicab medallions and various types of commercial businesses. It offers commercial loans to finance the purchase of the equipment and related assets necessary to open a new business, or the purchase or improvement of an existing business; asset-based loans to small businesses; and secured mezzanine loans to businesses in various industries, including manufacturing and various service providers. The company also raises deposits; originates consumer loans for the purchase of recreational vehicles, boats, motorcycles, trailers, and hearing aids; and conducts other banking activities. In addition, it provides other debt, mezzanine, and equity investment capital to companies in various industries. The company was founded in 1995 and is headquartered in New York, New York.

Great Stocks In October 2012:Connecticut Water Service Inc. (CTWS)

 Connecticut Water Service, Inc., through its subsidiaries, operates as a regulated water company in Connecticut. It operates in three segments: Water Activities, Real Estate Transactions, and Services and Rentals. The Water Activities segment supplies drinking water. The Real Estate Transactions segment involves in the sale or donation of its real estate holdings. The Services and Rentals segment provides contracted services to water and wastewater utilities and other clients, which include contract operations of water and wastewater facilities; Linebacker, an optional service line protection program that comprises repairing or replacing leaking or broken water service line, curb box, curb box cover, meter pit, meter pit cover, meter pit valve, and in-home water main shut off valve before the meter; and providing bulk deliveries of emergency drinking water to businesses and residences through tanker trucks. This segment also engages in leasing and renting residential and commercial properties. As of December 31, 2009, Connecticut Water Service, Inc. served 88,534 customers in 54 towns in Connecticut. The company was founded in 1956 and is headquartered in Clinton, Connecticut.

Great Stocks In October 2012:El Paso Pipeline Partners LP (EPB)

 El Paso Pipeline Partners, L.P. engages in the ownership and operation of natural gas transportation pipelines and storage assets in the United States. The company holds a 100% interest in Wyoming Interstate Company, Ltd. (WIC), an interstate pipeline transportation company located in Wyoming, Utah, and Colorado. It operates approximately 800-mile WIC interstate natural gas pipeline system with a design capacity of approximately 3.5 billion cubic feet per day. The company also owns a 58% general partner interest in Colorado Interstate Gas Company, which operates an interstate natural gas pipeline system with approximately 4,300 miles of pipeline with a design capacity of approximately 4.6 billion cubic feet per day; and associated storage facilities with 37 billion cubic feet of underground working natural gas storage capacity. In addition, it owns a 60% general partner interest in Southern Natural Gas Company that operates an interstate natural gas pipeline system with approximately 7,600 miles of pipeline with a design capacity of approximately 3.7 billion cubic feet per day; and associated storage facilities with a total of approximately 60 billion cubic feet of underground working natural gas storage capacity. Further, the company owns interests in Elba Express Company, L.L.C., which operates an approximately 200-mile pipeline with a design capacity of 945 million cubic feet per day; and Southern LNG Company, L.L.C. that owns a liquefied natural gas receiving terminal with a storage capacity of 11.5 equivalent billion cubic feet. It serves natural gas distribution and industrial companies, electric generation companies, natural gas producers, other natural gas pipeline companies, and natural gas marketing and trading companies. El Paso Pipeline GP Company, L.L.C. serves as the general partner of the company. The company was founded in 2007 and is based in Houston, Texas. El Paso Pipeline Partners, L.P. is a subsidiary of El Paso Pipeline LP Holdings, L.L.C.

Great Stocks In October 2012:Cumberland Pharmaceuticals Inc. (CPIX)

 Cumberland Pharmaceuticals, Inc., a specialty pharmaceutical company, engages in the acquisition, development, and commercialization of branded prescription products for the hospital acute care and gastroenterology markets. The company offers Acetadote, an intravenous formulation of N-acetylcysteine indicated for the treatment of acetaminophen poisoning; Caldolor, an intravenous formulation of ibuprofen for the treatment of pain and fever; and Kristalose, a prescription laxative administered orally for the treatment of constipation. It has collaboration agreement with Vanderbilt University for developing a palliative treatment for fluid buildup in the lungs of cancer patients; collaboration agreement with the University of Mississippi for developing a highly purified injectable anti-infective used to treat fungal infections in immuno-compromised patients; and a collaboration with the University of Tennessee for developing a novel asthma therapeutic designed to prevent remodeling of airway smooth muscle to reduce asthmatic reaction in pediatric patients. Cumberland Pharmaceuticals, Inc. was incorporated in 1999 and is headquartered in Nashville, Tennessee.

Great Stocks In October 2012:Kimberly-Clark Corporation (KMB)

 Kimberly-Clark Corporation, together with its subsidiaries, engages in the manufacture and marketing of various health care products worldwide. The company operates in four segments: Personal Care, Consumer Tissue, K-C Professional & Other, and Health Care. The Personal Care segment provides disposable diapers, training and youth pants, and swimpants; baby wipes; and feminine and incontinence care products, and related products. It offers its products primarily for household use under various brand names, including Huggies, Pull-Ups, Little Swimmers, GoodNites, Kotex, Lightdays, Depend, and Poise. The Consumer Tissue segment offers facial and bathroom tissue, paper towels, napkins, and related products for household use under the Kleenex, Scott, Cottonelle, Viva, Andrex, Scottex, Hakle, and Page brands. The K-C Professional & Other segment offers facial and bathroom tissue, paper towels, napkins, wipers, and a range of safety products for the away-from-home marketplace under Kimberly-Clark, Kleenex, Scott, WypAll, Kimtech, KleenGuard, Kimcare, and Jackson brand names. The Health Care segment offers disposable health care products, such as surgical drapes and gowns, infection control products, face masks, exam gloves, respiratory products, pain management products, and other disposable medical products under the Kimberly-Clark, Ballard, and ON-Q brand names. The company sells its products to supermarkets; mass merchandisers; drugstores; warehouse clubs; variety and department stores; retail outlets; manufacturing, lodging, office building, food service, and health care establishments; and high volume public facilities. It markets its products through wholesalers, distributors, and direct sales. The company was founded in 1872 and is based in Dallas, Texas.

Advisors' Opinion:

  • By JON C. OGG At 2011-12-6

    Kimberly-Clark Corporation (NYSE: KMB) is at $64.07 and analysts have a consensus price target objective of $70.46.  It carries a 4.4% dividend yield and the stock is down 6.4% from its 52-week high.  The price to book value is about 4.  S&P carries a “A” rating on its local long-term system.  Kleenex, Huggies, Kotex, Depend, and on… Hard to live without.

  • By Chuck At 2011-10-28

    Kimberly-Clark Corporation (KMB), together with its subsidiaries, engages in the manufacture and marketing of various health care products worldwide. The company operates in four segments: Personal Care, Consumer Tissue, K-C Professional & Other, and Health Care. The company has raised distributions for 38 consecutive years and yields 4.20%. The company is attractively valued at the moment at14.30 times earnings.

  • By Jeff Reeves At 2011-10-21

    Kimberly-Clark Corp. (NYSE: KMB) is a paper products giant, best known for brands such as Kleenex, Scott, Huggies and Kotex. It sells products in more than 150 countries.

    Current Yield: 4.1% ($2.80 a share annually)

    Dividend History: In July 2010, Kimberly-Clark paid a quarterly dividend of 66 cents a share. This July, it will pay 70 cents, or a 6% increase. Also, the company has paid dividends since 1935.

    Dividend Outlook: According to Bloomberg, the three-year expected dividend growth rate of KMB is 5.6%.

    Recent Performance: Kimberly-Clark has tracked the market so far in 2011, but has been rallying strongly in the past 30 days. KMB stock is up against a new 52-week high as of this writing.

    Strong Outlook for Shares: Part of the reason Kimberly-Clark has been on a tear is because it raised revenue guidance in its April 25 earnings report. The company’s global reach grants it stability, and its big brand names and connection with consumers means KMB products will be in demand even if the economy sours.

Great Stocks In October 2012:Under Armour Inc. (UA)

 Under Armour, Inc. develops, markets, and distributes performance apparel, footwear, and accessories for men, women, and youth primarily in the United States, Canada, and internationally. It offers products made from moisture-wicking synthetic fabrics designed to regulate body temperature and enhance performance regardless of weather conditions. The company provides its products in three fit types: compression (tight fitting), fitted (athletic cut), and loose (relaxed) extending across the sporting goods, outdoor, and active lifestyle markets. Its footwear offerings comprise football, baseball, lacrosse, softball, and soccer cleats; slides; performance training footwear; and running footwear. The company also provides baseball batting, football, golf, and running gloves, as well as licenses bags, socks, headwear, custom-molded mouth guards, and eyewear that are designed to be used and worn before, during, and after competition. Under Armour sells its products through retail stores, as well as directly to consumers through its own retail outlets and specialty stores, Website, and catalogs. The company was founded in 1996 and is headquartered in Baltimore, Maryland.

Advisors' Opinion:

  • By Fernandez At 2011-10-24

    Under Armour designs, develops, markets, and distributes performance apparel, footwear, and accessories for men, women, and youth primarily in the United States and Canada.

    You’ve probably seen the company’s “Protect This House” or “Click-Clack” commercials, and probably seen anyone from the weekend warrior to professional sports teams wearing the company’s moisture-wicking synthetic fabrics, which are designed to keep perspiration away from the skin, and regulate body temperature regardless of weather conditions.

    I must admit for full disclosure that I am an Under Armour nut, and own about 20 pairs of their shorts, shirts and shoes.

    I can attest from personal experience as a natural bodybuilder and athlete that the Under Armour apparel are the best workout clothing I have ever worn, and they look pretty darn cool too.

    Now let me make a clear distinction between a great company, and a great stock.

    Up until recently, Under Armour was the former, but not the latter.

    It has now entered into a zone where the valuation metrics, even in the face of a consumer slowdown, is looking more and more attractive.

    In fact, Under Armour just released earnings Monday.

    They were pretty much in line with analyst’s expectations, and then Under Armour slightly lowered their forward guidance for the remainder of 2008 based on those same consumer headwinds.

    The market liked what it heard sending shares up 20% (of course, the overall market was up 10%, so…). Shares have since rebounded further are now up almost 50% from their lows just last week!

    This leads me to my investment thesis in shares of Under Armour.

    I believe that Under Armour represents one of the quintessential brands of this decade when it comes to sports apparel, the way Under Armour’s fiercest rival Nike (NYSE: NKE) dominated the 90’s.

    Until now the valuation of the company was not commensurate with the projected profit and growth, which I thought were way too high, and still might be, along with certain inventory related problems that the company now seems to be getting a handle on.

    Still, with the spike in share price, along with the uncertainty in the market and overall economy, I feel that we will still be able to purchase shares of this great company at a great price in the near future and that we’re seeing a bit of a short squeeze in shares of Under Armour.

    Why I Like the Company: One of the quintessential brands of this decade; Valuation is reaching reasonable to “cheap” levels depending on direction of consumer market and Under Armour’s stock price; Dedicated and fully invested founder with over 77% voting power via class B shares; Improved business fundamentals via better inventory controls and operational structure, and new product offerings; Further expansion available outside the U.S.; Relatively higher margins than competition

  • By Roger At 2011-9-11

    Under Armour (NYSE:UA), a maker and designer of apparel, footwear and accessories that target sports enthusiasts, has more than doubled in one year. But despite the advance, many research firms still have a “strong buy” recommendation on the stock. And S&P recently revised its annual target to $93.

    Technically UA has advanced on a series of stair steps, sometimes called “base moves.”? These are very bullish formations that resemble cups. UA reversed up recently following a signal from our proprietary Collins-Bollinger Reversal (CBR) indicator. If the recent pullback to its 50-day moving average (blue line) holds, then the next move up should break the prior high with a target of $85.

    Traders could take risk positions now with a target of $85 to $90. But be careful and use stop-loss orders to protect against a violent reversal, which could drop prices back to support at $62 where this volatile stock could be bought again.

  • By Hesler At 2011-8-26

     

    Current Price: $27.27 12-month target: $37

     

    1. I see potential in opportunities for new product adjacencies, and expanding distribution worldwide.
    2. Footwear growth will continue to increase. Revenues for these products have increased over 69% in 2009.
    3. Adding to this I still see growth in Under Armour’s apparel sales, which are up 8%.
    4. Under Armor had yet to even break into the international market, which offers a plethora of new opportunities for this growing brand.
    5. I believe sales will rise drastically in 2010 driven by international sales, new women’s clothing line, and expansion within their own footwear line.

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