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Company name Nike Inc
Stock ticker NKE
Live stock price [stckqut]NKE[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

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

ANALYSIS

Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $65.65
Target stock price (averages with growth) $77.19
Target stock price (averages with no growth) $60.66
Target stock price (manual assumptions) $68.79

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

NIKE, Inc. (NIKE) is engaged in the design, development and worldwide marketing and selling of footwear, apparel, equipment, accessories and services. NIKE is a seller of athletic footwear and athletic apparel worldwide. The Company sells its products to retail accounts, through NIKE-owned retail stores and Internet sales, and through a mix of independent distributors and licensees, in approximately 190 countries around the world. The Company focuses its product offerings in seven key categories: Running, Basketball, Football (Soccer), Men’s Training, Women’s Training, NIKE Sportswear (its sports-inspired products) and Action Sports. It also markets products designed for kids, as well as for other athletic and recreational uses, such as baseball, cricket, golf, lacrosse, outdoor activities, football (American), tennis, volleyball, walking and wrestling. In February 2013, it sold its Cole Haan affiliate brand to APAX Partners LLP.

 

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: $66.82

Growth: 0.105

Current EPS (TTM): $2.69

P/E: 25

Future EPS Calc: $4.43

Future Stock Price Calc: $110.79

Target stock price: $68.79

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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Jim Cramer has probably received more acclaim for helping individual investors than anyone. His show Mad Money is very popular and he gets praise for his Lightning Round segment. On that segment, callers ask him about a stock and gives a very quick answer as to his thoughts. I am not interested in criticizing Mr. Cramer for his quick appraisal as I think that this type of analysis is always a challenge. I am consistently amazed at his ability to give good advice on the fly.

I thought it would be interesting to compare my thoughts to Mr. Cramer’s Lightning Round. I am not going to do the full analysis like my traditional stock review posts but rather just say if I agree or disagree with him. Here are last weeks picks and my thoughts. If this article is well received, I may continue this as a regular feature.

The Lightning Round picks came from the Mad Money page on The Street.

Company

Date

Segment

Jim Cramer’s Call

Confident Investor Call
American Capital Agency (AGNC) 11/08

Not good enough
Align Technology (ALGN) 11/05

Not good enough
Yamana Gold (AUY) 11/05

Worth considering
Bristol-Myers Squibb (BMY) 11/09

Not good enough
Boardwalk Partners (BWP) 11/07

Not good enough
Caterpillar (CAT) 11/09

Already on Watch List
Chevron (CVX) 11/09

Worth considering
Changyou.com (CYOU) 11/08

Not good enough
CYS Investments (CYS) 11/08

Not good enough
Caesars Entertainment (CZR) 11/09

No- not profitable
Facebook (FB) 11/09

Not good enough
Frontier Communications (FTR) 11/07

Worth considering
SPDR Gold Shares (GLD) 11/05

I don’t analyze SPDR
Generac Holdings (GNRC) 11/08

Not good enough
Google (GOOG) 11/09

Already on Watch List
Harley Davidson (HOG) 11/09

Worth considering
Intel (INTC) 11/05

Worth considering
JC Penney (JCP) 11/07

No – not profitable
Nordstrom (JWN) 11/09

Worth considering
McDonald’s (MCD) 11/05

Not good enough
MGM Resorts (MGM) 11/05

No – not profitable
Microsoft (MSFT) 11/09

Not good enough
Matrix Service (MTRX) 11/05

Worth considering
Protein Design Labs (PDLI) 11/05

Worth considering
PPL Corp (PPL) 11/08

Worth considering
Sears Holdings (SHLD) 11/07

Not good enough
Skyworks Solutions (SWKS) 11/08

Not good enough
VIVUS (VVUS) 11/07

No – not profitable
Walgreens (WAG) 11/05

Not good enough
Wynn Resorts (WYNN) 11/09

Worth considering
Yahoo! (YHOO) 11/09

Not good enough

 

As you can easily see, I am a bit more conservative on my choices than Mr. Cramer.  I really want a company to be growing well and be profitable in order for them to be on my list.