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IBM International Business Machines

Company name International Business Machines Corp.
Stock ticker IBM
Live stock price [stckqut]IBM[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

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

ANALYSIS

Confident Investor Rating Poor
Target stock price (TWCA growth scenario) $140.82
Target stock price (averages with growth) $184.37
Target stock price (averages with no growth) $185.92
Target stock price (manual assumptions) $165.02

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

International Business Machines Corporation (IBM) is an information technology (IT) company. IBM operates in five segments: Global Technology Services (GTS), Global Business Services (GBS), Software, Systems and Technology and Global Financing. GTS primarily provides IT infrastructure services and business process services. GBS provides professional services and application management services. Software consists primarily of middleware and operating systems software. Systems and Technology provides clients with business solutions requiring advanced computing power and storage capabilities. In October 2013, International Business Machines Corporation acquired Xtify Inc. In October 2013, the Company announced that it has completed the acquisition of The Now Factory, a privately held provider of analytics software that helps communications service providers (CSPs) deliver better customer experiences and drive new revenue opportunities.

 

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

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor.

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
[s2If current_user_can(s2member_level1)]
In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

Stock price at the time of the calculation: $179.68

Growth: 0.08

Current EPS (TTM): $14.47

P/E: 12.5

Future EPS Calc: $21.26

Future Stock Price Calc: $265.76

Target stock price: $165.01

I hope that this makes you a better investor. [/s2If]

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Company name Texas Roadhouse Inc
Stock ticker TXRH
Live stock price [stckqut]TXRH[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

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

ANALYSIS

Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $27.92
Target stock price (averages with growth) $39.61
Target stock price (averages with no growth) $36.51
Target stock price (manual assumptions) $27.69

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

Texas Roadhouse, Inc. (Texas Roadhouse) is a full-service restaurant chain. The Company offers an assortment of specially seasoned and aged steaks hand-cut daily on the premises and cooked to orders over open gas-fired grills. In addition to steaks, the Company also offers its guests a selection of ribs, fish, seafood, chicken, pork chops, pulled pork and vegetable plates, and an assortment of hamburgers, salads and sandwiches. As of December 25, 2012, the Company owned and operated 320 restaurants and franchised or licensed an additional 72 restaurants. Of the 320 restaurants the Company owned and operated at the end of 2012, 318 operated as Texas Roadhouse restaurants, while two operated under the name of Aspen Creek.

 

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.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor.
For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
[s2If current_user_can(s2member_level1)]
In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

Stock price at the time of the calculation: $25.38

Growth: 0.12

Current EPS (TTM): $1.1

P/E: 23

Future EPS Calc: $1.93

Future Stock Price Calc: $44.58

Target stock price: $27.68

I hope that this makes you a better investor. [/s2If]

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While you are enjoying the beginning of summer with a 3-day weekend. Please do not forget why you are not working today.

Remember those who served. All gave some and some gave all they had.

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This is a message to my StockTwits followers that is prompted by StockTwits’ change in policy that went into effect today, 3/1/2013.

To date, I have been communicating to my StockTwits followers primarily via Twitter. If I put a dollar ($) symbol in front of the stock symbol on Twitter, StockTwits would pick up that change and repost the tweet on StockTwits. StockTwits is a great service that is focused on stock information in its community. As of today, this linking between the Twitter and StockTwits seems to be turned off.

I have about 250 followers on StockTwits and over 15,000 followers on Twitter. I will try to cross-pollinate my comments across the two services but my first priority has to be Twitter. If you are following me on StockTwits and NOT following me on Twitter, you may wish to follow me on Twitter. I value my followers on StockTwits greatly and I will do my best to cross-pollinate posts but I am sure that some conversations will be lost.

My Twitter page is https://twitter.com/ConfidentInvest.

Here is the announcement that I received today from StockTwits:

Dear StockTwits Member,

This email contains an important product announcement that impacts your StockTwits account.

Effective today, March 1, you will no longer be able to post to your StockTwits account via Twitter by including a $TICKER or $$ in your message. All messages you want to share on StockTwits need to be posted directly to StockTwits at StockTwits.com, using our browser extensions or API partners.

We continue to work with Twitter in other ways, you can still automatically send messages you share on StockTwits to your linked Twitter account (or your linked Facebook and LinkedIn accounts).

Much has been written over the last several months about how Twitter has changed their developer rules and, like many other developers, these new rules have forced us to make changes in order to continue to deliver a great experience to you and all of our users.

We know this changes the way some of our members use our service – since we announced this change earlier this year we have helped many members set up tools like our Chrome or Firefox Browser Extensions or our HootSuite plug in to minimize any impact on the way they work, while ensuring their best stock and market ideas continue to be seen on StockTwits.

If you have any questions or we can help you please email us at support@stocktwits.com or contact any team member on StockTwits.

Sincerely,

StockTwits

 

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Company name McDonald’s Corporation
Stock ticker MCD
Live stock price [stckqut]MCD[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

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

ANALYSIS

Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $76.73
Target stock price (averages with growth) $92.68
Target stock price (averages with no growth) $82.48
Target stock price (manual assumptions) $81.17

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

McDonald’s Corporation franchises and operates McDonald’s restaurants in the global restaurant industry. These restaurants serve a menu at various price points providing value in 119 countries globally. As of December 31, 2011, of the 33,510 restaurants in 119 countries 27,075 were franchised or licensed (including 19,527 franchised to conventional franchisees, 3,929 licensed to developmental licensees and 3,619 licensed to foreign affiliates (affiliates)-primarily Japan) and 6,435 were operated by the Company. McDonald’s menu includes hamburgers and cheeseburgers, Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, several chicken sandwiches, Chicken McNuggets, Snack Wraps, French fries, salads, oatmeal, shakes, McFlurry desserts, sundaes, soft serve cones, pies, soft drinks, coffee, McCafe beverages and other beverages.

 

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.