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Company name Meredith Corporation
Stock ticker MDP
Live stock price [stckqut]MDP[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

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

ANALYSIS

Confident Investor Rating Good
Target stock price (TWCA growth scenario) $43.45
Target stock price (averages with growth) $50.16
Target stock price (averages with no growth) $37.74
Target stock price (manual assumptions) $40.71

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

Meredith Corporation (Meredith) is a media and marketing company. The Company is engaged in magazine publishing and related brand licensing, television broadcasting, digital and customer relationship marketing, digital and mobile media, and video creation operations. The Company operates two business segments: national media and local media. The national media segment includes magazine publishing, brand licensing, digital and customer relationship marketing, digital and mobile media, database-related activities, and other related operations. The local media segment consists primarily of the operations of network-affiliated television stations, related interactive media operations and video production related operations. In October 2011, Meredith completed its acquisition of Rachael Ray. In January 2012, the Company acquired FamilyFun from Disney Publishing Worldwide. In March 2012, the Company acquired Allrecipes.com, digital food brand.

 

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, in fact the company ranks as a Good company, but there are some concerns with the price of the stock. Namely the sales of the company are not growing at the rate that make me comfortable. I will not be adding this stock to my Watch List at this time.

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 The McGraw-Hill Companies, Inc.
Stock ticker MHP
Live stock price [stckqut]MHP[/stckqut]
P/E compared to competitors Fair

MANAGEMENT EXECUTION

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

ANALYSIS

Confident Investor Rating Poor
Target stock price (TWCA growth scenario) $32.04
Target stock price (averages with growth) $44.91
Target stock price (averages with no growth) $41.87
Target stock price (manual assumptions) $35.84

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

The McGraw-Hill Companies, Inc. is a global information services provider serving the financial, education, commercial and commodities markets. The Company serves its customers through a range of products, services and distribution channels, including digital data and information, integrated digital platforms, online via Internet Websites, as well as with printed books, magazines and newsletters, and conferences and trade shows. Its segments include S&P Ratings, S&P Capital IQ/S&P Indices, Commodities & Commercial (C&C) and McGraw-Hill Education (MHE). In July 2011, the Company acquired Steel Business Briefing Group. In February 2012, the Company’s S&P Capital IQ acquired R2 Financial Technologies. On July 2, 2012, S&P Capital IQ, a business line of the Company acquired London-based Credit Market Analysis Limited (CMA) from CME Group Inc. In August 2012, MHE acquired Key Curriculum. In November 2012, Platts, a division of the Company, completed its acquisition of Kingsman SA.

 

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

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 The Procter & Gamble Company
Stock ticker PG
Live stock price [stckqut]PG[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

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

ANALYSIS

Confident Investor Rating Poor
Target stock price (TWCA growth scenario) $57.89
Target stock price (averages with growth) $68.68
Target stock price (averages with no growth) $63.55
Target stock price (manual assumptions) $88.95

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

The Procter & Gamble Company (P&G), is focused on providing consumer packaged goods. The Company’s products are sold in more than 180 countries primarily through mass merchandisers, grocery stores, membership club stores, drug stores and high-frequency stores. As of June 30, 2012, P&G was organized into two Global Business Units (GBUs): Beauty and Grooming and Household Care. The GBUs contain a total of five segments: Beauty; Grooming; Health Care; Fabric Care and Home Care and Baby Care and Family Care. Sales to Wal-Mart Stores, Inc. and the affiliates represent approximately 14% of the total revenue during the fiscal year ended June 30, 2012 (fiscal 2012). On December 30, 2011, Helen of Troy Ltd. acquired PUR water purification products business (PUR) from the Company. Effective June 1, 2012, P&G announced that it has completed the sale of the Pringles business to Kellogg Company.

 

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

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 Spartech Corporation
Stock ticker SEH
Live stock price [stckqut]SEH[/stckqut]
P/E compared to competitors Fair

MANAGEMENT EXECUTION

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

ANALYSIS

Confident Investor Rating Poor
Target stock price (TWCA growth scenario) $16.06
Target stock price (averages with growth) $12.02
Target stock price (averages with no growth) $6.09
Target stock price (manual assumptions) $10.35

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

Spartech Corporation (Spartech) together with its subsidiaries, is an intermediary processor of engineered thermoplastics, polymeric compounds and concentrates. The Company converts base polymers or resins purchased from commodity suppliers into extruded plastic sheet and rollstock, thermoformed packaging, specialty film laminates, acrylic products, specialty plastic alloys, color concentrates and blended resin compounds. Spartech operates into three segments: Custom Sheet and Rollstock, Packaging Technologies, and Color and Specialty Compounds. Its products are sold to original equipment manufacturers and other customers in a range of end markets.

 

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

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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I have discussed mutual funds on this site before, but the term “bond” often appears. Most mutual funds have a combination of cash, stocks and bonds. Some funds specialize only in bonds. In order to be confident that you invest wisely, you should know the basics of bonds.

When a person wishes to purchase a house or car, the bank loans the money for the acquisition in return for an agreed interest rate and payment schedule. Just as people need money; so do companies and governments. A company needs funds to expand into new markets, while governments need money for everything from infrastructure to social programs. These large organizations typically require far more money than the average bank can provide at a reasonable cost as a loan. The solution is to raise capital by issuing bonds that are sold on a public market. Thousands of investors buy bonds to lend a portion of the capital needed.

Buying a bond is just like being a bank or a credit union and loaning money to someone. A bond is similar to an I.O.U. When you purchase a bond, you are the lender of money to a government, municipality, corporation, federal agency or some other entity. The organization receiving the money is known as the issuer. In return for the loan, you are promised an interest rate and repayment period for the principal.

Among the types of bonds you can choose from are:

  • U.S. government securities
  • municipal bonds
  • corporate bonds
  • mortgage or asset-backed securities
  • federal agency securities
  • foreign government bonds

You should maintain a portfolio that consists of bonds, stocks, and cash. Bonds typically have a predictable stream of payments and repayment of principal. Investing in bonds can provide reliable interest income.

Since a mutual fund may often have a portion of its holdings in bonds, you are taking advantage of this “loaning” of money. The precise blend of cash, bonds, and stocks that would be most optimal for you cannot be advised in a book or a website. I discuss this more in the last chapter of my book, The Confident Investor, where I talk about other things that you may want to research. In general, a bond will provide a more stable but smaller return than an investment in individual stocks.