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Company name The Pep Boys – Manny, Moe & Jack
Stock ticker PBY
Live stock price [stckqut]PBY[/stckqut]
Confident Investor Rating Poor

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

The Pep Boys-Manny, Moe & Jack provides shop and care for car. The Company’s stores are organized in a hub and spoke network consisting of Supercenters and Service & Tire Centers. Supercenters average approximately 20,000 square feet and combine do-it-for-me service labor, installed merchandise and tire offerings (DIFM) with do-it-yourself parts and accessories (DIY). The Company’s Supercenters also have a commercial sales program delivers parts, tires and equipment to automotive repair shops and dealers. Service & Tire Centers, which average approximately 6,000 square feet, provide DIFM services in neighborhood locations. The Company also operates a handful of legacy DIY only Pep Express stores.
Confident Investor comments: At this price and at this time, I do not think that a Confident Investor can confidently invest in The Pep Boys – Manny, Moe & Jack. It is not possible to confidently invest in a company that is not currently profitable.
If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor.

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Company name National Instruments Corp
Stock ticker NATI
Live stock price [stckqut]NATI[/stckqut]
P/E compared to competitors Fair

MANAGEMENT EXECUTION

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

ANALYSIS

Confident Investor Rating Poor
Target stock price (TWCA growth scenario) $40.44
Target stock price (averages with growth) $35.44
Target stock price (averages with no growth) $25.64
Target stock price (manual assumptions) $39.02

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

National Instruments Corporation (NI) is engaged in designing, manufacturing and selling tools to engineers and scientists. These industries consist of a diverse market for design, control and test applications. The Company provides graphical application software and modular hardware to create measurement, automation and embedded systems. Its segment is based on geographic regions, which include the Americas, Europe and Asia Pacific. It offers a line of measurement and automation products that provides engineers and scientists to create automated test, industrial control, and embedded design applications. The Company’s products consist of off-the-shelf application software and modular, hardware components together with related driver software. In May 2011, it acquired Phase Matrix, Inc. (PMI). In July 2011, the Company acquired AWR Corporation.

 

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

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.

How was this analysis of National Instruments Corp calculated?

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(access_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: $32.74
  • Growth: 0.14
  • Current EPS (TTM): $0.64
  • P/E: 51
  • Future EPS Calc: $1.23
  • Future Stock Price Calc: $62.84
  • Target stock price: $39.02

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

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Company name Southwest Airlines Co
Stock ticker LUV
Live stock price [stckqut]LUV[/stckqut]
P/E compared to competitors Fair

MANAGEMENT EXECUTION

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

ANALYSIS

Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $42.14
Target stock price (averages with growth) $63.74
Target stock price (averages with no growth) $49.44
Target stock price (manual assumptions) $42.64

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

Southwest Airlines Co. operates Southwest Airlines and AirTran Airways, passenger airlines that provide scheduled air transportation in the United States and near-international markets. As of December 31, 2012, the total fleet operated by Southwest and AirTran combined consisted of 694 aircraft, including 606 Boeing 737s and 88 Boeing 717s. Southwest principally provides point-to-point, rather than hub-and-spoke, service. AirTran principally provides hub-and-spoke, rather than point-to-point, service, with approximately half of AirTran’s flights originating or terminating at its base of operation in Atlanta, Georgia. AirTran also serves a number of markets with non-stop service from smaller bases of operation in Baltimore, Maryland; Milwaukee, Wisconsin; and Orlando, Florida. In December 2013, Southwest Airlines Co acquired 12 takeoff and landing slots at New York’s LaGuardia Airport being divested by American Airlines as part of its merger with US Airways.

 

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in Southwest Airlines Co 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. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.

How was this analysis of Southwest Airlines Co calculated?

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(access_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: $27.17
  • Growth: 0.2
  • Current EPS (TTM): $1.2
  • P/E: 23
  • Future EPS Calc: $2.98
  • Future Stock Price Calc: $68.67
  • Target stock price: $42.64

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