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

Company name Ultratech, Inc.
Stock ticker UTEK
Live stock price [stckqut]UTEK[/stckqut]
P/E compared to competitors Fair

MANAGEMENT EXECUTION

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

ANALYSIS

Confident Investor Rating Good
Target stock price (TWCA growth scenario) $45
Target stock price (averages with growth) $75.42
Target stock price (averages with no growth) $73.64
Target stock price (manual assumptions) $42.36

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

Ultratech, Inc., develops, manufactures and markets photolithography, laser thermal processing, and inspection equipment. The Company manufactures for manufacturers of semiconductor devices, including advanced packaging processes and various nanotechnology components, such as thin film head magnetic recording devices (thin film heads or (TFHs)), laser diodes, high-brightness light emitting diodes (HBLEDs) and atomic layer deposition (ALD) for customers located throughout North America, Europe, Singapore, Japan, Taiwan, Korea and the rest of Asia. The Company supplies step-and-repeat photolithography systems based on one-to-one (1X) imaging technology to customers located throughout North America, Europe and Asia. In December 2012, it purchased certain assets of Cambridge NanoTech, Inc. (Cambridge).

 

Confident Investor comments: Ultratech is a relatively small company so you should be cautious how many small companies that you have in your portfolio. If you are looking for a small company to add though, 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.
 

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

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

MANAGEMENT EXECUTION

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

ANALYSIS

Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $160.13
Target stock price (averages with growth) $188.97
Target stock price (averages with no growth) $130.37
Target stock price (manual assumptions) $141.23

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

FedEx Corporation (FedEx) is a holding company. The Company provides a portfolio of transportation, e-commerce and business services under the FedEx brand. Federal Express Corporation (FedEx Express) is an express transportation company, offering time-certain delivery within one to three business days and serving markets. FedEx Ground Package System, Inc. (FedEx Ground) is a provider of small-package ground delivery service. FedEx Freight Inc (FedEx Freight) is a provider of less-than-truckload (LTL) freight services. FedEx Corporate Services, Inc. (FedEx Services) provides the Company’s other companies with sales, marketing, information technology, communications and back-office support. In June 2012, the Company acquired olish courier company Opek Sp. z o.o. In July 2012, the Company acquired TATEX. In July 2012, the Company’s, FedEx Express business unit, acquired Rapidao Cometa, a transportation and logistics company.

 

 

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.

By:
On:
In: Commentary
With: 0 Comments

Stock buybacks, in which companies take their own shares off the market by buying out the investing public don’t always pay off for shareholders.

Companies must find ways to put their excess cash to use. When the market price of a company’s stock is lower than the “intrinsic value” of its business—the present worth of the cash it will generate in the future—then the company should buy back all the shares it can.

But buybacks are far from an exact science. At their worst, buybacks can be a form of corporate cannibalism. Often the unspoken motive is to use extra cash to boost earnings per share by reducing the number of shares among which the company’s profits are divided. But that can be a slippery slope.

But are investors better off? Imagine two companies, each with $100 in cash and 10 shares of stock. The intrinsic value of each is $10 a share. But the stock market undervalues one company’s shares at $5 apiece and overvalues the other at $20. Each company decides to buy back $10 worth of stock. The undervalued company gets to buy back two shares at $5 each, leaving $90 in assets spread across eight shares. That raises the intrinsic value of each share to $11.25. The overvalued company uses $10 to buy back half a share, leaving the same $90 in assets spread across 9½ shares. That lowers the intrinsic value of each remaining share to $9.47.

So how can you spot a bad buyback? Here is a red flag: If cash is dwindling as buybacks are growing, the firm may be starving future growth to pay off present shareholders. That is fine if you sell into the buyback. But it is bad if you hang onto your shares. Owning a bigger piece of a corporate cannibal may leave you hungry in the long run.

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

Company name Ritchie Bros. Auctioneers (USA)
Stock ticker RBA
Live stock price [stckqut]RBA[/stckqut]
P/E compared to competitors Fair

MANAGEMENT EXECUTION

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

ANALYSIS

Confident Investor Rating Poor
Target stock price (TWCA growth scenario) $13.77
Target stock price (averages with growth) $19.71
Target stock price (averages with no growth) $19.25
Target stock price (manual assumptions) $15.75

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

Ritchie Bros. Auctioneers Incorporated and its subsidiaries sells industrial equipment and other assets for the construction, transportation, material handling, mining, forestry, petroleum, marine, real estate, and agricultural industries at its unreserved auctions worldwide. The Company’s principal business activity is the sale of industrial equipment and other assets at auctions. Its customers are both buyers and sellers of equipment, trucks and other industrial assets. The majority of its buyers are end users of equipment (retail buyers), such as contractors, with the remainder being primarily truck and equipment dealers, rental companies and brokers (wholesale buyers). Consignors to its auctions represent a mix of equipment owners, the majority being end users of equipment, with the balance being finance companies, truck and equipment dealers and equipment rental companies, among others. On May 15, 2012, the Company acquired AssetNation LLC.

 

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: Good company, Stock analysis
Tagged:
With: 0 Comments

Company name Vale SA (ADR)
Stock ticker VALE
Live stock price [stckqut]VALE[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

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

ANALYSIS

Confident Investor Rating Good
Target stock price (TWCA growth scenario) $8.82
Target stock price (averages with growth) $14.75
Target stock price (averages with no growth) $15.01
Target stock price (manual assumptions) $47.27

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

Vale SA (Vale) is a Brazil-based metals and mining company. The Company services are divided into four segments: Bulk Material, including the extraction of iron ore, manganese and ferroalloys, as well as pellet production; Basic metals, comprising the production of non-ferrous minerals, including nickel, copper and aluminum; Fertilizers, including the production of potash, phosphate and nitrogen; and Logistic services, including cargo transportation for third parties divided into rail transport, port and shipping services. Additionally, Vale is active in investments in joint ventures and associate in other businesses. The Company operates in more than 38 countries, including mineral exploration activities in 21 countries. As of December 31, 2011, the Company operated through 18 subsidiaries and three jointly-controlled entities, incorporated in Brazil, Peru, Indonesia, Chile, Australia, Austria, Canada, Colombia, Switzerland, Mozambique, New Caledonia, Oman, Singapore and the USA.

 

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.