By:
On:
In: Poor company, Stock analysis
Tagged:
With: 0 Comments

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.

By:
On:
In: Poor company, Stock analysis
Tagged:
With: 0 Comments

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.

By:
On:
In: Poor company, Stock analysis
Tagged:
With: 0 Comments

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.

By:
On:
In: Commentary
With: 0 Comments

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.

By:
On:
In: Good company, Stock analysis
Tagged:
With: 0 Comments

Company name Tractor Supply Company
Stock ticker TSCO
Live stock price [stckqut]TSCO[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

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

ANALYSIS

Confident Investor Rating Good
Target stock price (TWCA growth scenario) $143.95
Target stock price (averages with growth) $184.04
Target stock price (averages with no growth) $123.61
Target stock price (manual assumptions) $145.75

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

Tractor Supply Company is an operator of retail farm and ranch stores in the United States. The Company operates retail stores under the names Tractor Supply Company and Del’s Farm Supply and operate a Website under the name TractorSupply.com. The Company’s stores are located in towns outlying metropolitan markets and in rural communities, and offer a selection of merchandise, which include equine, pet and small animal products, including items necessary for their health, care, growth and containment; hardware, truck, towing and tool products; seasonal products, including lawn and garden items, power equipment, gifts and toys; maintenance products for agricultural and rural use, and work/recreational clothing and footwear. The Company operates at farm and ranch retail sales segment, both at its retail locations and online.

 

Confident Investor comments: At this price and at this time, I 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.