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Thanks, Tina! That's solid guidance in troubled times. I wish they had put that out last week instead of the generic 8-k warning we got that appears to have been an early xmas present to the short sellers here.
I think we saw the worst of it today.
Unfortunately, I saw it twice...lol.
Good to see 6's when I came in from the window ledge, though. Somehow I came out ahead today. I wish I could say as much for my fingernails!
I love the pincher board and have added the chart to the ibox.
GL!
MEA @ 5.00!!!
I guess I better get some of them too...
col (crying out loud)
Has anyone found ANY info regarding their alleged new potential customer that they have "received final approval" from?
"Geltz-Brunderlock Estates"
Is that in Scotland? Is it a private estate? What is the future sales potential with this unknown entity?
I have not been able to find anything on them and would appreciate any information that ya'll have dug up to verify their latest mystery customer.
tia
gl
MEA @ 6.10!!!
I've got to get me some of them.
FSIN...Fushi Copperweld (10.00)
Bargain days comin,imo.
PRGN...Paragon Shipping (12.89)
9 month daily:
CAT...Caterpillar
The Three Musketeers
An Introduction to GARP Investing
by Sarah F. Roach
http://jvbruni.com/commentary-musketeers.htm
...excellent article,imo
TXT...Textron (38.92)
Large cap...armored vehicle manufacturer.
SBH...Sally Beauty Holdings (8.64)
A little outside my GARP criteria but I'm letting Sally in because she's all that and a JerriCurl.
imo
TSL...Trina Solar (27.39)
I expect this to revisit the more reasonable $26 area soon.
So there's that.
imo
ANEN...Anaren (10.76)
SPAR...Spartan Motors (4.31)
from Morningstar: Growth at a Reasonable Price
Managers who seek growth at a reasonable price (GARP) try to strike a balance between strong earnings and good value. Some managers in this group find moderately priced growth stocks by buying the rejects of momentum investors; often, these stocks have reported disappointing earnings or other bad news. GARP managers also look for companies that have been ignored or overlooked by market analysts and that are therefore still selling cheaply. Like value investors, GARP investors try to find companies that are only temporarily down and out and that have some sort of catalyst for growth in the works. Because many GARP managers are sensitive to high price tags, this group of growth funds often features lower-than-average price multiples than the flat-out growth funds we discussed in the preceding section. As a result, these funds can land in the blend column of the Morningstar Style Box. GARP funds also tend to have lower turnover rates than pure-growth funds and are therefore generally more tax-efficient than more aggressive growth offerings. Prominent GARP funds include T. Rowe Price Growth Stock PRGFX and Gabelli Growth GABGX.
Growth at a Reasonable Price
Managers who seek growth at a reasonable price (GARP) try to strike a balance between strong earnings and good value. Some managers in this group find moderately priced growth stocks by buying the rejects of momentum investors; often, these stocks have reported disappointing earnings or other bad news. GARP managers also look for companies that have been ignored or overlooked by market analysts and that are therefore still selling cheaply. Like value investors, GARP investors try to find companies that are only temporarily down and out and that have some sort of catalyst for growth in the works. Because many GARP managers are sensitive to high price tags, this group of growth funds often features lower-than-average price multiples than the flat-out growth funds we discussed in the preceding section. As a result, these funds can land in the blend column of the Morningstar Style Box. GARP funds also tend to have lower turnover rates than pure-growth funds and are therefore generally more tax-efficient than more aggressive growth offerings. Prominent GARP funds include T. Rowe Price Growth Stock PRGFX and Gabelli Growth GABGX.
http://news.morningstar.com/classroom2/printlesson.asp?docId=2989&CN=com
MEA...Metallico
From the recent 8-k(9/8/08):
The Company has observed rapid and significant reductions in commodity pricing for many metals during the third quarter, particularly Platinum Group Metals from catalytic converter recycling. This trend, coupled with anticipated exposure on unhedged metal, is resulting in a negative impact on the Company's revenues and margins in the quarter to date. Although the Company does not provide specific guidance or interim financial information during quarters, it acknowledges it may need to confirm these recent trends in the commodity markets in the course of the presentations to be made at conferences in New York and Boston this week and related question-and-answer periods.
http://biz.yahoo.com/e/080908/mea8-k.html
No big deal. I just said that it was misleading and that they should refence the author of the statements that they copy into their prs. Defending plagiarism has become a key aspect of ANVH's investor awareness campaign,imo.
Previously it was claimed the PRs were the result of a "lazy IR" employee that had since been fired. It seems like he left his scissors and glue behind. IMO
GL2A
Considering management's history of copying PRs from other companies, I had to give todays pr a close parsing. One particular statement seemed out of context and highly misleading:
FEMA officials had asked for a rough estimate, as a potential starting point for the damage costs.
http://biz.yahoo.com/bw/080912/20080912005306.html?.v=1
Huh? Asked who? ANVH? Highly unlikely,imo.
Then I found this blog entry from an Orlando Sentinel reporter, Ludmilla Lelis from LAST MONTH:
FEMA officials had asked for a rough estimate, as a potential starting point for the damage costs.
http://blogs.orlandosentinel.com/news_weather_hurricane/2008/08/brevard-count-4.html
The blurb from Volusia coastal division director Joe Nolin is also from that posting; they should have referenced Ludmilla Lelis' work when they used it to hastily release the hurricane fluff today. Taken out of context, one might surmise that FEMA contacted ANVH when they actually contacted Brevard County three weeks ago.
Will this cost another "lazy IR" employee his job? I certainly hope not.
Caveat emptor,imo.
FYI: Domain owner of thebullpick.com has been compensated in the sum of 150,000 shares for a one week investor relations contract for ANVH -paid from 3rd party No shares have been sold. These shares may be sold at any time in the open market.
http://thebullpick.com/compensation.html
Coffee Holding Co., Inc. Reports Third Quarter and Nine Month Results
BROOKLYN, NY -- (Marketwire) -- 09/11/08 -- Coffee Holding Co., Inc. (AMEX: JVA) today announced its operating results for the three and nine months ended July 31, 2008. In this release, the Company:
-- Reports net sales of $17,598,572 for the quarter and $50,730,554 for
the nine months ended July 31, 2008;-- Reports sales growth of 26.0% for the quarter and 24.4% for the nine
months ended July 31, 2008 compared to the three and nine month periods
ended July 31, 2007; and-- Reports net income of $551,259 for the quarter and a net loss of
$1,310,654 for the nine months ended July 31, 2008.
The Company had net income of $551,259, or $0.10 per share (basic and diluted), for the three months ended July 31, 2008 compared to net income of $370,656, or $0.07 per share (basic and diluted), for the three months ended July 31, 2007. The increase in net income primarily reflects increased net sales, which resulted in an increase in gross profit.
The Company had a net loss of $1,310,654, or $0.24 per share (basic and diluted), for the nine months ended July 31, 2008 compared to net income of $1,019,248, or $0.18 per share (basic and diluted), for the nine months ended July 31, 2007. The net loss reflects increased coffee prices and hedging losses when the price of coffee surged to a ten year high and subsequently collapsed during a 45 day period in February and March of 2008.
Net sales totaled $17,598,572 for the three months ended July 31, 2008, an increase of $3,633,765, or 26.0%, from $13,964,807 for the three months ended July 31, 2007. Net sales totaled $50,730,554 for the nine months ended July 31, 2008, an increase of $9,936,262, or 24.4%, from $40,794,292 for the nine months ended July 31, 2007. The increase in net sales reflects both increased amounts of green coffee, branded coffee and private label coffee sold as well as increased sales prices compared to the third quarter of fiscal 2007. The increase in net sales also reflects the price increases we implemented in the fourth quarter of fiscal 2007 and the first quarter of fiscal 2008 in response to higher green coffee prices.
"Following last quarter's unacceptable results, we are pleased that this quarter is more representative of the health of our overall business.
Although many challenges remain in the overall macro environment in which we operate, we believe that we have taken the necessary steps to achieve the desired results as reflected by our performance in this past quarter," said President and Chief Executive Officer Andrew Gordon.
"A 26% increase in sales as well as a 48% gain in net income can be attributed to the determined efforts of our management and employees to strengthen our company and increase shareholder value. We will continue to monitor our core business as well as scrutinize the profitability of individual accounts to ensure they meet the criteria designed to achieve similar results going forward and we will not hesitate to make adjustments as we deem needed."
"With coffee prices having stabilized and the Entenmann's rollout fully underway, we anticipate further growth in sales and profits in the months ahead," concluded Mr. Gordon.
About Coffee Holding
Coffee Holding is a leading integrated wholesale coffee roaster and dealer in the United States and one of the few coffee companies that offers a broad array of coffee products across the entire spectrum of consumer tastes, preferences and price points. Coffee Holding has been a family operated business for three generations and has remained profitable through varying cycles in the coffee industry and the economy. The Company's private label and branded coffee products are sold throughout the United States, Canada and abroad to supermarkets, wholesalers, and individually owned and multi unit retail customers.
Any statements that are not historical facts contained in this release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. It is possible that the assumptions made by management for purposes of such statements may not materialize. Actual results may differ materially from those projected or implied in any forward-looking statements. Such statements may involve risks and uncertainties, including but not limited to those relating to product demand, pricing, market acceptance, the effect of economic conditions, intellectual property rights, the outcome of competitive products, risks in product development, the results of financing efforts, the ability to complete transactions, and other factors discussed from time to time in the Company's Securities and Exchange Commission filings. The Company undertakes no obligation to update or revise any forward-looking statement for events or circumstances after the date on which such statement is made.
COFFEE HOLDING CO., INC. CONDENSED CONSOLIDATED BALANCE SHEETS July 31, October 31,
2008 2007
------------ ------------
(unaudited) (audited)
- ASSETS -CURRENT ASSETS:
Cash $ 767,783 $ 890,649
Commodities held at broker 986,941 3,468,530
Accounts receivable, net of allowance for
doubtful accounts of $127,464 and $136,781
for 2008 and 2007, respectively 6,567,245 7,130,467
Inventories 4,718,773 4,472,097
Prepaid expenses and other current assets 283,393 502,240
Prepaid and refundable taxes 322,812 236,406
Deferred income tax asset 850,000 279,000
------------ ------------
TOTAL CURRENT ASSETS 14,496,947 16,979,389Property and equipment, at cost, net of
accumulated depreciation of $4,878,850 and
$4,542,490 for 2008 and 2007, respectively 2,901,232 2,651,960
Deposits and other assets 513,692 765,368
------------ ------------
TOTAL ASSETS $ 17,911,871 $ 20,396,717
============ ============ - LIABILITIES AND STOCKHOLDERS' EQUITY -CURRENT LIABILITIES:
Accounts payable and accrued expenses $ 5,958,568 $ 6,791,690
Line of credit 2,328,562 897,191
Income taxes payable - 9,161
------------ ------------
TOTAL CURRENT LIABILITIES 8,287,130 7,698,042Deferred income tax liabilities 64,000 145,000
Deferred compensation payable 414,212 351,332
------------ ------------
TOTAL LIABILITIES 8,765,342 8,194,374
------------ ------------
MINORITY INTEREST - -COMMITMENTS AND CONTINGENCIESSTOCKHOLDERS' EQUITY:
Preferred stock, par value $.001 per share;
10,000,000 shares authorized; none issued - -
Common stock, par value $.001 per share;
30,000,000 shares authorized, 5,529,830
shares issued; 5,452,716 shares outstanding
for 2008 and 5,514,930 shares outstanding
in 2007 5,530 5,530
Additional paid-in capital 7,327,023 7,327,023
Retained earnings 2,091,245 4,946,467
Less: Treasury stock, 77,114 and 14,900
common shares, at cost for 2008 and 2007,
respectively (277,269) (76,677)
------------ ------------
TOTAL STOCKHOLDERS' EQUITY 9,146,529 12,202,343
------------ ------------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 17,911,871 $ 20,396,717
============ ============ COFFEE HOLDING CO., INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited) Nine Months Ended Three Months Ended
July 31, July 31,
2008 2007 2008 2007
------------ ------------ ------------ ------------
NET SALES $ 50,730,554 $ 40,794,292 $ 17,598,572 $ 13,964,807COST OF SALES 47,927,963 34,581,004 15,002,037 12,027,277
------------ ------------ ------------ ------------GROSS PROFIT 2,802,591 6,213,288 2,596,535 1,937,530
------------ ------------ ------------ ------------OPERATING EXPENSES:
Selling and
administrative 4,282,961 4,270,646 1,363,607 1,360,846
Writedown of
amount due from
dissolved joint
venture - 242,000 - -
Officers
salaries 461,076 384,302 161,376 149,853
------------ ------------ ------------ ------------
TOTALS 4,744,037 4,896,948 1,524,983 1,510,699
------------ ------------ ------------ ------------INCOME (LOSS) FROM
OPERATIONS (1,941,446) 1,316,340 1,071,552 426,831
------------ ------------ ------------ ------------OTHER INCOME
(EXPENSE)
Interest and
dividend income 49,253 102,226 5,594 35,650
Equity in loss
from dissolved
joint venture - (91,340) - 2,600
Writedown of
investment in
dissolved joint
venture - (33,000) - -
Management fee
income - 12,026 - -
Interest expense (95,740) (87,530) (34,307) (31,124)
------------ ------------ ------------ ------------
TOTAL OTHER INCOME
(EXPENSE) (46,487) (97,618) (28,713) 7,126
------------ ------------ ------------ ------------INCOME (LOSS)
BEFORE BENEFIT
FROM (PROVISION
FOR) INCOME TAX
EXPENSE AND
MINORITY INTEREST
IN SUBSIDIARY (1,987,933) 1,218,722 1,042,839 433,957 Benefit from
(provision for)
income tax
expense 679,623 (198,493) (490,326) (58,443)
------------ ------------ ------------ ------------INCOME (LOSS)
BEFORE MINORITY
INTEREST (1,308,310) 1,020,229 552,513 375,514 Minority interest
in loss of
subsidiary (2,344) (981) (1,254) (4,858)
------------ ------------ ------------ ------------NET INCOME (LOSS) (1,310,654) 1,019,248 551,259 370,656Retained
earnings-beginning 4,946,467 4,009,151 1,539,986 4,657,743
Dividends (1,544,568) - - -
------------ ------------ ------------ ------------RETAINED EARNINGS -
ENDING $ 2,091,245 $ 5,028,399 $ 2,091,245 $ 5,028,399
============ ============ ============ ============Basic and diluted
earnings (loss)
per share $ (.24) $ .18 $ .10 $ .07
============ ============ ============ ============Weighted average
common shares
outstanding:
Basic 5,485,136 5,528,708 5,461,242 5,528,708
============ ============ ============ ============
Diluted 5,485,136 5,528,708 5,461,242 5,528,708
============ ============ ============ ============
COFFEE HOLDING CO., INC. CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited) 2008 2007
------------ ------------
OPERATING ACTIVITIES:
Net (loss) income $ (1,310,654) $ 1,019,248
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 400,134 272,058
Bad debts - 31,195
Writedown of amount due from dissolved
joint venture - 242,000
Loss from dissolved joint venture - 91,340
Writedown of investment in dissolved
joint venture - 33,000
Deferred income taxes (652,000) (236,600)
Impairment loss - 31,892
Changes in operating assets and
liabilities:
Commodities held at broker 2,481,589 546,805
Accounts receivable 563,222 1,226,060
Inventories (246,676) (982,758)
Prepaid expenses and other current assets 218,847 (24,326)
Prepaid and refundable income taxes (86,406) 269,592
Accounts payable and accrued expenses (833,122) (905,595)
Due from dissolved joint venture - (388,372)
Deposits and other assets (47,628) (197,370)
Income taxes payable (9,161) 27,756
Deferred compensation payable 62,880 95,048
------------ ------------
Net cash provided by operating activities 541,025 1,150,973
------------ ------------INVESTING ACTIVITIES:
Purchases of property and equipment (352,446) (234,291)
------------ ------------
Net cash used in investing activities (352,446) (234,291)
------------ ------------FINANCING ACTIVITIES:
Advances under bank line of credit 46,023,524 36,771,879
Principal payments under bank line of
credit (44,592,153) (36,640,270)
Payment of dividend (1,544,568) -
Purchase of treasury stock (200,592) (62,748)
------------ ------------
Net cash provided by (used) in financing
activities (313,789) 68,861
------------ ------------MINORITY INTEREST 2,344 981
------------ ------------NET INCREASE (DECREASE) IN CASH (122,866) 986,524 Cash, beginning of year 890,649 1,112,165
------------ ------------CASH, END OF PERIOD $ 767,783 $ 2,098,689
============ ============SUPPLEMENTAL DISCLOSURE OF CASH FLOW DATA:
Interest paid $ 84,143 $ 35,530
============ ============
Income taxes paid $ 23,249 $ 132,506
============ ============SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING
ACTIVITIES:
The Company utilized its deposit for the
purchase of machinery and equipment $ 296,960 $ 328,388
============ ============
Contact:
Andrew Gordon
President & CEO
http://ih.advfn.com/p.php?pid=nmona&cb=1221147732&article=28090412&symbol=A%5EJVA
Telephone: (718) 832-0800
ALCO...Alico Reports Third Quarter Earnings
Monday August 11, 5:04 pm ET
LABELLE, Fla., Aug. 11, 2008 (PRIME NEWSWIRE) -- Alico, Inc. (NasdaqGS:ALCO - News), a land management company, announced net income for the third quarter of fiscal year 2008 of $5.0 million, or $0.68 per share, compared with a net loss of $19.0 million, or $2.58 per share, during the three months ended June 30, 2007. For the nine months ended June 30, 2008, the Company reported net earnings of $9.3 million, or $1.26 per share, compared with a net loss of $10.9 million, or $1.48 per share, for the nine months ended June 30, 2007.
Results from both periods were impacted by the IRS audit assessments. Pretax income from continuing operations was $2.7 million, or $0.36 per share, and $9.8 million, or $1.33 per share for the three and nine months ended June 30, 2008, respectively, compared with $10.2 million, or $1.39 per share, and $24.5 million, or $3.33 per share, for the three and nine months ended June 30, 2007, respectively.
Operating revenues during the third quarter of fiscal year 2008 totaled $42.1 million, compared with $46.1 million for the three months ended June 30, 2007. Operating revenues were $113.0 million for the nine months ended March 31, 2008, compared with $127.4 million for the nine months ended June 30, 2007.
Dan L. Gunter, President and Chief Executive Officer, noted, ``We are continuing in our efforts to streamline operations, improve efficiencies and reduce costs, as well as to explore new strategic initiatives in order to increase profitability and shareholder value. During the past quarter, we have discontinued several unprofitable ventures, settled the IRS dispute and made changes that should result in a leaner and more responsive operation.'
Three months ended Nine months ended
June 30, June 30,
2008 2007 2008 2007
-------- -------- -------- --------
Revenues
Agriculture:
Bowen Brothers Fruit $ 17,451 $ 20,810 $ 44,294 $ 52,240
Citrus groves 17,528 19,640 40,679 46,729
Sugarcane 1,581 451 9,341 9,213
Cattle 3,049 2,893 6,451 8,093
Vegetables 1,522 898 5,460 3,803
Sod 404 527 877 1,577
-------- -------- -------- --------
Agriculture operations revenue 41,535 45,219 107,102 121,655
Real estate operations 1 79 3,870 3,329
Land leasing and other 542 450 1,674 1,275
Mining royalties 69 401 335 1,135
-------- -------- -------- --------
Total operating revenue $ 42,147 $ 46,149 $112,981 $127,394
======== ======== ======== ========
Three months ended Nine months ended
June 30, June 30,
2008 2007 2008 2007
-------- -------- -------- --------
Gross profit:
Agriculture:
Bowen Brothers Fruit $ 856 $ 480 $ 1,715 $ 1,138
Citrus groves 6,052 10,613 13,054 23,477
Sugarcane (41) 32 101 405
Cattle (363) 253 (1,290) 607
Vegetables 130 (2) (45) 553
Sod (391) 367 (456) 904
-------- -------- -------- --------
Gross profit from agricultural
operations 6,243 11,743 13,079 27,084
Real estate operations (293) 125 2,143 1,931
Other 407 790 1,561 2,110
-------- -------- -------- --------
Gross profit 6,357 12,658 16,783 31,125
Profits from the sale of bulk
real estate -- 239 817 1,277
Net interest and investment
income (216) 807 2,468 1,702
Corporate general and
administrative and other (3,471) (3,494) (10,283) (9,561)
Discontinued operations (816) (206) (927) (282)
-------- -------- -------- --------
Income before income taxes 1,854 10,004 8,858 24,261
Provision for income taxes (3,129) 29,025 (453) 35,199
-------- -------- -------- --------
Net Income $ 4,983 $(19,021) $ 9,311 $(10,938)
======== ======== ======== ========
Addressing the divisional results for the quarter, Mr. Gunter noted that:
* Citrus prices have declined an estimated 28% during fiscal year
2008 from their prior year levels. For this reason, the Company
expects profits from its citrus groves to be lower in fiscal year
2008 when compared with fiscal year 2007. Prices have declined in
the Florida citrus industry due to an increasing supply of citrus
as groves have recovered from the damages brought on by the
hurricanes of 2004 and 2005.
* Due to rising feed and fuel costs, cattle margins have eroded
considerably, causing the Company to write down its cattle
inventory by $0.4 million, to its net realizable value.
On June 30, 2008, the Company received the final Settlement Agreement related to the audits of Alico for the tax years 2000 through 2004 from the Internal Revenue Service. The terms of the IRS settlement agreement generated an income tax benefit of $5.2 million in the third quarter of fiscal year 2008.
On June 24, 2008 Florida Governor Charlie Crist announced that the South Florida Water Management District (SFWMD) was negotiating the purchase of the assets of United States Sugar Corporation (USSC). USSC (and its subsidiary Southern Gardens) is the Company's largest customer. Under the terms of the initial proposal USSC will continue its operations for a transition period of six years. The Company is evaluating various options regarding sugarcane production, including alternative uses for the property if determined necessary or advantageous.
Effective June 30, 2008, the Company ceased operating its Alico Plant World facility. The Company is currently leasing the Plant World facilities to a commercial greenhouse operator and has also sold a portion of the equipment used to operate the greenhouse. The results of Alico Plant World's operations have been reported as discontinued operations.
Also effective as of June 30, 2008, the Company discontinued its participation in Alico-J&J, LLC a joint venture vegetable farm. The Company is currently working to dissolve the venture and distribute the assets equitably among the members.
The Company has begun dissolution of its Agri-Insurance subsidiary, which has the effect of dissolving the Alico-Agri partnership. The dissolutions will transfer the assets of the subsidiaries to Alico, Inc. The costs of dissolution are not expected to be material to the Company.
About Alico, Inc.
Alico, Inc., a land management company operating in Central and Southwest Florida, owns approximately 135,500 acres of land located in Collier, Glades, Hendry, Lee and Polk counties. Alico is involved in various agricultural operations and real estate activities. Alico's mission is to grow its asset values through its agricultural and real estate activities to produce superior long-term returns for its shareholders.
Statements in this press release that are not statements of historical or current fact constitute ``forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995. Forward looking statements include expectations regarding the future performance of the Company's operating divisions. Such forward-looking statements involve known and unknown risks, uncertainties and other unknown factors that could cause the actual results of the Company to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the Company's reports and registration statements filed with the Securities and Exchange Commission.
Contact:
Alico, Inc.
La Belle, Florida
Dan L. Gunter
(863) 675-2966
--------------------------------------------------------------------------------
Source: Alico, Inc.
http://biz.yahoo.com/pz/080811/148405.html
Current MEA Investors Presentation:
http://library.corporate-ir.net/library/18/180/180159/items/304420/Aug-2008-Metalico-Pres_8-K.pdf
GARP- Growth at a reasonable price.
The P/E of the company in relation to the growth of the business as represented by the analyst's mean estimate of sustainable growth for the business looking out 3 to 5 years. A ratio of less than one is viewed as cheap while ratios well over 1 are viewed as expensive. If a company has a forecast growth of 15% over the next 3 to 5 years, but is selling at a P/E over 35, this might be viewed as a non-GARP. However, a growth rate of 30% with a P/E of 20 times, would, subject to further analysis, represent a possible GARP stock.
http://www.uoutperform.com/New_Folder/glossary_of_terms.htm
BKR...Michael Baker Corp...in flight mode
TGB...Taseko Mines...just watching the wreckage
BuyandHold: GARP is becoming increasingly mentioned, and it's important to know what it is.
The Definition...
GARP stands for Growth At A Reasonable Price. It is actually a combination of two popular and successful strategies: value investing and growth investing. In other words, GARP investors look for a stock with plenty of growth potential but one that is also reasonably priced.
About GARP...
Value investors look for relatively cheap stocks -- cheap that is in comparison to their earnings and book value. Growth investors, on the other hand, look for stocks that will grow faster than others. (A favorite with growth investors that made a big splash was Qualcomm, which gained over 2,000% in 1999.)
I see GARP investors in the middle, between value and growth investors. They don't look for companies that are hugely undervalued (or in trouble), nor do they look for wild, highflying growth stocks.
One of the best-known GARP investors is Peter Lynch who gained national prominence when he was manager of the Fidelity Magellan Fund. He is also the co-author of three books that he wrote with John Rothchild. You might like to read at least one of them -- they're not difficult: "One Up on Wall Street", "Beating the Street", and "Learn To Earn".
GARP stocks are almost always in healthy, robust sectors of the economy. Right now those sectors appear to be home building, generic drugs, health care and some specialty retailers.
About PEG...
Many GARP investors use a ratio called PEG when picking stocks. PEG is short for P/E Ratio Divided By Growth.
To find a stock's PEG you divide the current P/E ratio by the company's projected growth rate over the next year. The result is the PEG ratio. For example, a company with a projected P/E of 10 and a projected earnings growth of 10% has a PEG ratio of one.
Note: Some experts like the earnings growth rate to be based on five years, but most go for one year.
There are a couple of places on the Internet that will help you. At www.stockscreener.com you can screen for a list of PEGs in a number of ways while at www.fool.com/pegulator/pegulator.htm you can determine an individual stock's PEG.
If the PEG is less than one, the stock is believed to be undervalued. If it's more than one, the stock is believed to be overvalued. Some GARP investors look for stocks with PEG ratios no higher than 0.5, which means the company's P/E ratio is 50% below its growth rate. Most, but not all GARP types like a PEG of one or below.
As you study PEGs, keep the advice of Standard & Poor's David Braverman in mind: "If Company X has a P/E of 20 and its earnings are growing at 30% per year, it has a PEG of 0.67. Company Y, on the other hand, has a P/E of 10 and earnings growth estimated at 18% per year and a PEG of 0.56. GARP investors would pick Company Y -- the stock with the lower PEG measure -- since it is more attractively valued relative to its earnings potential."
In other words, you want to avoid investing in companies that have both a high growth rate and a high P/E.
While GARP investing can be successful, don't let it restrict your thinking. You should also look for companies with a reasonable amount of debt, that are leaders in their industry, that are well managed and have a high return on equity (ROE). You can read specifically about such companies in BUYandHOLD's Advisory Services research. Click here for information on how to sign up.
THE TRIVIA CORNER
GARP is not restricted just to Wall Street.
John Irving's fourth book, The World According to Garp (1978) deals with the life and times of a writer T.S. Garp, his English professor wife Helen and their two sons, Duncan and Walt. A novel about a writer writing novels, it is both intensely funny and tragic, and certainly unforgettable as was Robin Williams' portrayal of Garp in the movie version.
http://www.buyandhold.com/bh/en/education/oak/qa/qa81.html
Investorguide: Understanding GARP Stock Investing Strategy
As advocated in the value investing strategy, some people enjoy the idea of getting a stock for a bargain price. Others like investing in companies with large growth potential and pursue growth stocks for their portfolio. But for those people who like the ideas presented in both strategies but, find some of the stock picking criteria too severe, then the GARP stock investing strategy might be appropriate.
GARP (Growth at Reasonable Price) is literally a hybrid stock investment strategy that emphasizes picking investments slightly under valued but still expected to have solid earnings growth in the coming years. Many strict value and growth investors are irritated by the perceived ambiguity of the GARP stock strategy. However, GARP investors do seek out specific valuation metrics in order to help them make individual stock selections. But, a degree of personal judgment is also required. Peter Lynch is one of the most famous GARP investors who had an amazing average return of 29% during the years 1977-1990. So how do Peter and other GARP investors pick their stocks?
Growth and GARP investors definitely share a love of studying companies that are expected to continue to grow in the coming years. Growth projections beyond those of other companies within the same industry are welcome by GARP investors - but only to a point. Unlike growth investors who tend to pursue the stocks of companies expected to expand revenue, earnings, or both in the 25-50% range, GARP advocates are a little paranoid of such large numbers. Excessive growth projections make GARP investors nervous since they cause higher stock prices and, increase risks of loss should expectations fail to be met. Growth projections in the realistic and affordable 10-20% range make GARP investors more comfortable and willing to make an investment.
Because of their concern for growth, GARP investors also like the P/E ratio valuation metric because, it tells how the earnings compare to the share price. The P/E ratio can be found by taking the current share price and dividing it by the earnings per share (EPS) price, or:
P/E Ratio = Current Share Price / Earning Per Share
For a company to have a P/E ratio, it must at least be operating profitably and therefore have earnings to report. A high P/E ratio, say 40, indicates that the company is currently trading at 40 times its earnings. Growth investors love buying stocks with higher P/E ratios because there are high expectations the company will see significant growth. However, those high expectations come with higher prices for the stocks and GARP investors like to find investments that have been slightly under valued by the market. Higher P/E numbers tend to indicate businesses that are actually over valued, which is why they are not sought out by GARP investors. A P/E ratio in the 10-20 range is more reasonable for a GARP investor as it is less expensive and, less risky than a stock with a P/E ratio of 25 or above. Pursuing stocks with lower P/E ratios is also a tactic of value investors.
GARP and growth investors also tend to prefer businesses with a lower price to book (P/B) ratio. The P/B ratio is used to gauge how much value the market actually places on the book value of the business in question. It is found by dividing the current share price by the book value per share. Or:
P/B Ratio = Current Share Price / Book Value per Share
Where
Book Value per Share = Book Value (Assets - Liabilities) / Outstanding Shares
GARP investors look for a lower P/B ratio as that tends to indicate greater value. Companies with a P/B ratio that is below the average for the industry are especially prized by GARP investors since it indicates a larger potential for profit when the market corrects itself and values the stock properly.
While the P/B ratio is used to gauge the relative value of a business and help determine if its stock is under or over valued, the PEG ratio is another favorite valuation metric used by GARP investors to assess growth potential in relation to the value of the company. It is calculated by dividing the P/E ratio by the projected growth in earnings of the company:
PEG Ratio = P/E ratio / Projected Growth in Earnings
For the GARP investor, a PEG ratio of 1 or less is a good indicator that the company warrants further analysis. For example, a company with a P/E ratio of 15 and a projected growth in earnings of 25%, or 15/25 equals a PEG ratio of 0.6 and, would be considered a good investment by most GARP investors. While a 1 or less is desired, companies with a PEG ratio of around 0.5 are considered better as they have good growth potential but, are also slightly under valued - Growth at a Reasonable Price!
Indeed, GARP investors seek a balance between value and growth that can seem a little confusing to those unfamiliar with this stock investment strategy. They are not interested in outstanding future growth rates or exceptional bargains sought by growth or value investors. A sound balance between growth potential that is realistic and attainable while also looking for slightly undervalued stocks can be a great recipe for sustained profit with minimal risk.
A careful and studied analysis of the financial statements, projected growth in earnings, and valuation metrics like the P/B and P/E ratios are necessary for GARP investors to pick the right stocks for their portfolio. While every GARP investor ultimately customizes a formula that works best for him/her, there is an ordered process that helps investors choose stocks meeting the GARP criteria for Growth at a Reasonable Pace.
http://www.investorguide.com/igu-article-976-stock-strategies-understanding-garp-stock-investing-strategy.html
ALCO...Alico...trying to reason with hurricane season...
Alico Converts $50 Million of Its Line of Credit to a Fixed Interest 10 Year Term Note
Monday September 8, 4:59 pm ET
LABELLE, Fla., Sept. 8, 2008 (GLOBE NEWSWIRE) -- Alico, Inc. (NasdaqGS:ALCO - News), a land management company, announced today that on September 3, 2008 the Company converted $50,000,000 of the outstanding balance on its $175,000,000 Revolving Line of Credit with Farm Credit of Southwest Florida to a 10 year term loan bearing a fixed interest rate of 6.79% with equal payments of principal and interest of $1,712,403.26 per quarter until maturity.
http://biz.yahoo.com/pz/080908/149919.html
Thanks, sounds good.
Well, not good really but promising. I am looking forward to it.
I agree that folks should ALWAYS do their own DD. That's the first line in my signature. It always has been. I noticed your signature doesn't say that at all. In fact your first post regarding this stock began with "ANVH- for all newbies- MUST READ"
Wouldn't you agree that your posts are highly skewed due to your compensation? Did you ever post on this board before BAG Financial dished out the promotional shares to you? Hmmm, doesn't look like you did. Less than a month later you have a hundred posts more than the next most prolific supporter of this upstart multinational pink sheet enterprise.
Funny that.
Do your own due dilligence. Never buy or sell securities based on non-professional advice from the polka community.
PRGN...Paragon...support becoming resistance...choppy seas,imo
[chart]www.purplemoon.com/Stickers/tr-gdskele.jpg>
Do your own due dilligence. Never buy or sell securities based on non-professional advice from the polka community.
MAM...Maine and Maritimes, watching for support
Do your own due dilligence. Never buy or sell securities based on non-professional advice from the polka community.
Righty, Am I to understand that they have undertaken contacting the TA for permission to release the share structure? What's the IRP 411 on the TA status and this apparent lack of transparency?
Kudos on the spike last week. I hope you dumped some of your 750k comped shares.
GL
imo
PRGN...Paragon Shipping
Should hit the reef soon,imo
Do your own due dilligence. Never buy or sell securities based on non-professional advice from the polka community.
WMAR...West Marine
...that ship already sailed,imo
Do your own due dilligence. Never buy or sell securities based on non-professional advice from the polka community.
NCEH...New Century Equity soon to be Wilhelmina Modeling
IAG...Iamgold
Metalico Inc $ 12.58
MEA 1.38
Short Interest (Shares Short) 5,462,000
Days To Cover (Short Interest Ratio) 7.6
Short Percent of Float 23.30 %
Short Interest - Prior 6,235,900
Short % Increase / Decrease -12.41 %
Short Squeeze Ranking™ 128
% From 52-Wk High ($ 18.85 ) -49.84 %
% From 52-Wk Low ($ 7.01 ) 44.28 %
% From 200-Day MA ($ 13.37 ) -6.28 %
% From 50-Day MA ($ 14.14 ) -12.40 %
Price % Change (52-Week) 72.30 %
Shares Float 23,442,100
Total Shares Outstanding 35,378,942
% Owned by Insiders 44.80 %
% Owned by Institutions 45.40 %
Market Cap. $ 445,067,090
Trading Volume - Today 1,038,341
Trading Volume - Average 721,500
Trading Volume - Today vs. Average 143.91 %
Earnings Per Share 0.57
PE Ratio 19.60
Record Date 2008-AugA
Sector Basic Materials
Industry Steel & Iron
Data Provided Without Warranty
Mission Statement
The mission of ShortSqueeze.com TM is to provide short interest stock market data and services, so our members will be better informed of short selling in the market, track shorts in stocks and gain from the advantages that can be achieved from this valuable market data.
http://shortsqueeze.com/?symbol=mea
Yes, I gotcha... and thanks. Looks like BCOE earnings put the squeeze on the swelling short position in MEA. Good times.imo
Approximately 36% of Beacon’s stock is owned by Metalico, Inc. (AMEX: MEA) a rapidly growing holding company that is a leading producer of recycled ferrous and non-ferrous metal.
http://ih.advfn.com/p.php?pid=nmona&cb=1219341642&article=27824894&symbol=A%5EMEA
OK, I should say MEA rarely gaps
but that gap almost always fills.
LOL
GL