Posts Tagged ‘investing’

Buzz Stock of the Day- Buffalo Wild Wings (BWLD)

Monday, March 16th, 2009

Here’s a pretty funny commercial for our Buzz Stock of the Day’s restaurant chain.

Cold beer, hot wings, and sports are usually key ingredients for a good time–especially in places where there isn’t all that much to do.

Buffalo Wild Wings, Inc. (Nasdaq: BWLD) runs 567 sports bars/restaurants in 39 states. As expected, the company’s restaurants attract sports fans, a group that seems to be spending money despite recessionary pressures. The Minneapolis-based Buffalo Wild Wings, reported a 33 percent boost in Q4 revenue, outstripping the verage 18 percent gain of companies in the hotels, restaurants, and leisure industry. Net profit climbed 29 percent, and EPS have increased year over year in the past eight quarters. Same store sales (a key metric for companies in the restaurant industry) at company owned restaurants increased 8 percent in January, and sales at franchise locations were up 7 percent.

“At some point it seems battle-fatigue sets in and, as a protective conditioned-response, consumers look for an escape,” said Morgan Keegan analyst Bob Derrington in a note to investors. “Restaurant dining can provide that escape.”

Derrington stated that although traffic at restaurants may be down, compared to a year ago, same store sales, or sales at stores open at least a year, are holding up relatively well.

Consumers’ desire for comfort and an escape from the daily drudgery could result in continued growth for Buffalo Wild Wings. Shares of BWLD are up about 71 percent over the past 12 months. The company has an operating margin of about 9 percent, and had operating cash flow of $66 million, on revenue of $422 million (ttm).

Can 2009 be another break out year for BWLD?

Buzz Stock of the Day: Jacobs Engineering Group (JEC)

Thursday, March 12th, 2009

We love movie trailers, so here’s one for our Buzz Stock of the day:

Jacobs Engineering Group (NYSE: JEC) provides technical, professional, and construction services to industrial, commercial, and governmental customers around the world. The $5 billion company has an operating margin of about 5.6%, and operating cash flow of $539 million.

The Motley Fool listed Jacobs as a stock for the next Great Depression. A key characteristic for these companies to have is the ability to stay out of the debt crisis that’s bringing sectors like finance, automotive, and homebuilding to their knees, according to the Fool.

Jacobs is in a sweet spot of the market–infrastructure–has a definite tailwind, and could be one of the big winners from the new administration’s stimulus plan.

Jacobs reported earnings of $116.4 million, or $0.94 a share in Q1 2009, up more than 18 percent compared with the same quarter last year. The company also increased its backlog by more than $1 billion from a year ago. Jacobs was listed as one of our Top 10 stocks to own in 2009, and we stand by our claim. Expect Jacobs to be one of the big winners of President Barack Obama’s stimulus plan, and out perform the S&P 500 this year.

Buzz Stock of the day- ARAY

Thursday, March 5th, 2009


Companies with disruptive technologies always pop up on our radar. We keep a close eye on them until we start seeing some traction for their products, and then do a little more digging to see if the company has what it takes to be a Buzz Stock.

We’ve had our eye on Accuray, Inc. (Nasdaq: ARAY) for quite some time. The company’s non-invasive CyberKnife Robotic Radiosurgery System has received recognition from both physicians, and customers as of late.

On March 2, Accuray issued a news release that announced “increased interest and continued rapid growth” for CyberKnife. According to the announcement, the number of lung cancer patients treated with CyberKnife grew 52 percent from 2007-2008 in the U.S., and 43 percent worldwide. Additionally the overall number of patients treated with CyberKnife radiosurgery grew to more than 60,000 patients – a 14 percent increase from calendar year 2007 to 2008. In late February, the stock received a 5-star rating from members of the Motley Fool’s CAPS community. The Company has a CAGR of about 52 percent over the past two years and about $110 million of cash in the bank. Currently trading at around $4.00 a share, Accuray could be a good buy at these levels.

Check out this video on CyberKnife to get a better idea of why Accuray is our Buzz Stock of the day.

Bargain Buzz Stocks–BNI, DENN and PCLN

Monday, March 2nd, 2009

The Dow Jones Industrial Average fell below 7,000 for the first time since October 1997 today, and all eyes are on a jobs report due out Friday which could be a “shocker,” according to David Dietze, chief investment strategist at Point View Financial Services. Some economists are predicting unemployment to hit 8 percent.

It all sounds very dismal, and for the most part, it is. But there are still opportunities out there–especially for investors that take a long-term approach to investing. These days, it seems like that’s the only way to go.

David Leonhardt of the NY Times stated in his blog today:

“With today’s declines, the long-term price-earnings ratio of the Standard & Poor 500-stock index is down to about 12.3. Over the past century, this ratio has averaged about 16. So relative to corporate profits, the stock market now appears to be undervalued by about 30 percent.”

But if you look back on history, stocks may have a way to go before they truly hit bottom.

Stated Leonhardt:

“In the other two great bear markets of the past century, in the 1930s and the 1980s, the p-e ratio ultimately dropped to about 6 or 7. To get to that level now, the S&P 500 would have to drop below 400, from the current 701, and the Dow Jones industrial average would need to be below 4,000.”

Here are a few Bargain Buzz Stocks that we think are worth looking at:

Burlington Northern Santa Fe Corp. (NYSE: BNI)
: Warren Buffet has been increasing his stake in this railroad company lately. Shares closed at $55.00 today. Great long-term investment.

Denny’s Corp. (Nasdaq: DENN): On Jan. 15, the company said it expects to meet or exceed its previous guidance for full-year 2008, thanks to the success of the Franchise Growth Initiative (FGI) and other cost-saving actions that protect margins and cash flow. The company has also restructured quite a bit, selling off a lot of its franchises, and keeping its best locations for its own portfolio.

Priceline.com, Inc. (Nasdaq: PCLN): And it’s not because we’re huge Shatner fans, either. Trading at around $82 per share, the stock above its 52-week low, but well below the high for the period of $144. The Company’s Name Your Own Price (NYOP) strategy will continue to become more attractive especially in a recessionary mode–both for travelers looking for a good deal, and hotel operators looking to unload inventory.

Buzz Stock of the day: CYIO

Tuesday, February 24th, 2009

Department of Defense contractor CYIOS Corp. (OTCBB: CYIO) announced in late December that it had completed the necessary changes business model to “decrease costs, ensure higher profits and prepare for new contract awards coming in the near future.” In that same announcement, CYIOS stated that it was awaiting new contract awards in excess of $180 million, “which will start at the opening of 2009.”

About a month later, CYIOS issued a news release projecting revenues to triple if not quadruple as new contracts execute. with EPS expected to reach $.08-$.15 by the end of the year. The Company earned $0.06 per-share last year.

Last week, CYIOS announced a comprehensive information technology support contract with the FBI valued at $175 million. The D.C.-based Department of Defense contractor will help design, develop, maintain, enhance, and provide operational support for automated systems.

Shares of CYIO traded for $0.13 as of this post.