Company name GeoResources, Inc.
Stock ticker GEOI
Live stock price [stckqut]GEOI[/stckqut]
P/E compared to competitors Fair

MANAGEMENT EXECUTION

Employee productivity Good
Sales growth Good
EPS growth Good
P/E growth Good
EBIT growth Good

ANALYSIS

Confident Investor Rating Good
Target stock price (TWCA growth scenario) $57.6
Target stock price (averages with growth) $49.13
Target stock price (averages with no growth) $31.77
Target stock price (manual assumptions) $56.24

The following company description is from Google Finance: http://www.google.com/finance?q=geoi

GeoResources, Inc. is an independent oil and gas company engaged in the acquisition and development of oil and natural gas reserves through a diversified program, which includes purchases of reserves, re-engineering, development and exploration activities primarily focused in Texas, the Gulf Coast and the Williston Basin areas of the United States. The Company is the operator of properties containing approximately 75% of its proved oil and gas reserves. As of December 31, 2011, the Company was focused on three plays, being the Bakken and Three Forks formations in the Williston Basin, the Eagle Ford trend in Texas and the Austin Chalk trend in Texas. Production during the year ended December 31, 2011, totaled 1,924 MBOE or 5,270 barrel of oil equivalent (BOE) per day, of which 64% was oil. On February 29, 2012, it acquired producing wells and acreage in the Austin Chalk trend of east Texas in the Brookeland field area.

 

Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in this stock.

Company name PAR Technology Corporation
Stock ticker PAR
Live stock price [stckqut]PAR[/stckqut]
Confident Investor Rating Poor

The following company description is from Google Finance: http://www.google.com/finance?q=par

PAR Technology Corporation (PAR) conducts business in two business segments: Hospitality and Government. The Hospitality segment offers integrated solutions to the hospitality industry. These offerings include hardware and software applications for restaurants, hotels, resorts and spas. This segment also offers customer support, including field service, installation, twenty-four hour telephone support and depot repair. The Government segment performs complex technical studies, analysis, and experiments, develops solutions, and provides on-site engineering in support of advanced defense, security, and aerospace systems. The Company’s subsidiary PAR Springer-Miller Systems, Inc (PSMS), provides guest-centric property management solutions to hotels, resorts, spas, casinos, and other hospitality properties worldwide. On January 12, 2012, PAR completed the asset sale of its subsidiary, PAR Logistics Management Systems (PAR LMS), to ORBCOMM Inc.
Confident Investor comments: At this price and at this time, I do not think that a Confident Investor can confidently invest in this stock. It is not possible to confidently invest in a company that is not currently profitable.

Company name OmniVision Technologies, Inc.
Stock ticker OVTI
Live stock price [stckqut]OVTI[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Fair
Sales growth Fair
EPS growth Good
P/E growth Poor
EBIT growth Good

ANALYSIS

Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $23.02
Target stock price (averages with growth) $37.99
Target stock price (averages with no growth) $35.27
Target stock price (manual assumptions) $19.06

The following company description is from Google Finance: http://www.google.com/finance?q=ovti

OmniVision Technologies, Inc. (OmniVision), incorporated in May 1995, designs, develops and markets semiconductor image-sensor devices. The Company’s main products, image-sensing devices, which it refers to as CameraChip image sensors, capture an image electronically and are used in a number of consumer and commercial mass-market applications. OmniVision’s CameraChip image sensors are manufactured using the complementary metal oxide semiconductor (CMOS), fabrication process and are predominantly single-chip solutions that integrate several distinct functions including image capture, image processing, color processing, signal conversion and output of a fully processed image or video stream. It has also integrated its CameraChip image sensors with wafer-level optics, which it refers to as CameraCube imaging devices. In March 2011, the Company acquired certain image sensor-related patents and patent applications from Eastman Kodak Company.

 

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in this stock as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns.

 

Company name Omega Protein Corporation
Stock ticker OME
Live stock price [stckqut]OME[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Good
Sales growth Poor
EPS growth Poor
P/E growth Poor
EBIT growth Poor

ANALYSIS

Confident Investor Rating Poor
Target stock price (TWCA growth scenario) $0.65
Target stock price (averages with growth) $1.56
Target stock price (averages with no growth) $2.92
Target stock price (manual assumptions) $19.37

The following company description is from Google Finance: http://www.google.com/finance?q=ome

Omega Protein Corporation is a nutritional ingredient company. The Company is a vertically integrated producer of Omega-3 fish oil and specialty fish meal products. The Company is a producer of protein-rich meal and oil derived from marine sources. The Company’s products are produced from menhaden, and include regular grade and value-added specialty fish meals, crude and refined fish oils and fish solubles. The Company produces and sells a variety of protein and oil products derived from menhaden, a species of wild herring-like fish found along the Gulf of Mexico and Atlantic coasts. It markets several grades of fish meal, as well as fish oil and fish solubles. Its fish meal products are primarily used as a protein ingredient in animal feed for swine, aquaculture and household pets. Its fish solubles are sold primarily to bait manufacturers, aquaculture feed manufacturers and for use as an organic fertilizer. On September 9, 2011, the Company acquired InCon Processing, L.L.C.

 

Confident Investor comments: At this price and at this time, I do not think that a Confident Investor can confidently invest in this stock.

 

I recently read an article on CNN Money advising investors to invest in consumer product goods (CPG) companies. The logic was that CPG companies, as a group, have several features that should be appealing to investors:

  • Predictability – these companies can predict how much of a product can be sold in the short-term so they control pricing and inventory well.
  • Dependability – these companies are not going to see massive drops in revenue since consumer purchase their products regardless of the economic climate.
  • Pricing power – due to their brand loyalty, these companies can put forward regular price increases with little negative market reaction.
  • Global reach – while most of CPG companies get the bulk of their revenue in the western world, many have made significant investments in emerging markets.

The problem with the article is that the cited companies were fair at best, and some were poor. Instead of the CPG companies in the article, I suggest that you look at good companies such as Coach [stckqut]coh[/stckqut], Decker [stckqut]deck[/stckqut], Boston Beer [stckqut]sam[/stckqut], or Fossil [stckqut]fosl[/stckqut] (all of these companies are currently on my Watch List). If you want to own one or two of the companies in the article, P&G [stckqut]pg[/stckqut] (the stock symbol is not PR as cited in the article) or Unilever [stckqut]ul[/stckqut] are decent candidates – both companies are very well run.

Settling for companies that are familiar to you and you see on the grocery shelves may not be a good investment strategy.  I suggest that you focus your portfolio on companies that have more upside potential but are still very well run.