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Sunday, May 3, 2009

May 2009 Stock Picks to buy ! ( Ford & Scotts Miracle - Gro )

1. ( F ) Ford 5.69 a share as May 1, 2009 Target Price 10.00 a Share.
Ford Motor Company (Ford) is a producer of cars and trucks. The Company and its subsidiaries also engage in other businesses, including financing vehicles. Ford operates in two sectors: Automotive and Financial Services. The Automotive sector includes the operations of Ford North America, Ford South America, Ford Europe, Volvo, and Ford Asia Pacific Africa segments. The Financial Services sector includes the operations of Ford Motor Credit Company and Other Financial Services. During the year ended December 31, 2008, the Company sold the ACH glass business to Zeledyne, LLC. The sale included the Nashville, Tulsa, and VidrioCar plants. In 2008, Ford and its subsidiary, Volvo Car Corporation, completed the sale of Thai-Swedish Assembly Group to Volvo Holding Sverige, AB. In March 2008, the Company acquired 72.4% of the shares of S.C. Automobile Craiova SA. In June 2008, the Company completed the sale of its Jaguar and Land Rover operations to Tata Motors Limited.Nice run up in the last month... Look to see some profit takers, then watch out double digits...Ford did not get involved with the big bailout. They have a plan and they have enough capital to help them through the recession. With GM and Chrysler going under, I think Ford will be in a better market position. The Focus will probably be a big seller among the X & Y crowd.Meet the NEW number one U.S car maker. Nowhere to go but up from here once the economy recovers. With the cutbacks this company already made prior, and no debt, profitability is certain. With the economy now turning around, consumer spending and car sales will increase. I would assume if bankruptcy comes for either GM or Chrysler's, then Ford sales definitely will benefit.Customers who want a domestic vehicle will shy away from the other two. Ford has a good handle on reliability and fuel economy. I feel that once the job market opens, people will resume the purchase of new cars and trucks, and banks will follow suit with increased consumer loans. The economy will spiral upward.Has new products and has been aggressive in cost cutting. The right size for a the auto maker to become lean and mean.Ford has spent the past three years paring its capacity, its workforce, and its debt. More importantly, it pared its cars gas consumption and will soon have the best MPG rating in all car classes in which it competes. In contrast, its North American competition has stumbled. Aside from GM and Chrysler's woes, Toyota and Nissan and Honda are all hurting. Much worse, 2008 saw Ford retain its lead in truck sales, hurting Toyota and Nissan who spent the past three years planning on taking share from Ford and GM.

Meanwhile, GM and Chrysler have spent the past six months in desperation and will spend the next six attempting to survive...and then the next few years paying back the Government if they are still around. With these companies stumbling now, Ford will take market share form them for the rest of the year as sales decline and will then be able to increase share against them and the rest of the world when the auto industry does rebound.

Ford won't beat the rest of the world's automakers in the next few years in terms of production and revenue, but it doesn't have to. It will exceed expectations and beat the market from here with capacity in line with sales and vehicles that will sell better than capacity. While GM and Chrysler have been screaming for government bailouts, Ford has been surviving on its own. Recent reports point to the great likelihood that Ford will not have to worry about bankruptcy and the company projects operating profits in 2011.

This is a long term pick, buy and hold.............

2.The Scotts Miracle-Gro Company ( SMG ) As of may 1 32.92 target price 40.00
The Scotts Miracle-Gro Company (Scotts Miracle-Gro) is a marketer of lawn fertilizer, grass seed and growing media products within the United States. During the fiscal year ended September 30, 2008 (fiscal 2008), the Company divided its business Global Consumer; Global Professional; Scotts LawnService and Corporate & Other. Its major customers include home centers, mass merchandisers, warehouse clubs, large hardware chains, independent hardware stores, nurseries, garden centers, food and drug stores, commercial nurseries and greenhouses and specialty crop growers.I see this stock following the rest of the chemical fertilizer sector this summer...higher highs and higher lows. A recession at home isn't going to stop people from beautifying thier lawns...there is no way. And new home owners will need to fix there new bought foreclose home .With people paying so much for groceries, I have to believe that the demand for growing your own at a lower cost will be appealing to consumers. With many Americans spending more time at home, the idea of adding a few plants or flower boxes to brighten up the place makes sense. I think this stock has been sold to the point of being overdone. Probably won't bounce until after the next earnings release, but I think there is more upside potential than downside -- especially at this price. You also have a dividend , so u can grow more shares while u hold on to this stock !I see this stock following the rest of the chemical fertilizer sector this summer...higher highs and higher lows. A recession at home isn't going to stop people from beautifying their lawns...there is no way. Can you name more than 1 competitor?
so buy up some share and watch your stock grow crazy like your crabgrass on your lawn !!!!!!

3. Under Armour ( UA ) Price As Of May 1 , 2009 23.84 target Price 35.00 A Share By 12/09

Under Armour, Inc. (Under Armour), is engaged in the business of developing, marketing and distribution of branded performance apparel, footwear and accessories for men, women and youth. The Company product offerings consist of apparel, footwear and accessories for men, women and youth. During the year ended December 31, 2008, the sales of apparel, footwear and accessories represented approximately 80%, 12%, and 4% of net revenues, respectively.While nothing currently looks good in a retail enviornment, UA has caught my attention for the one simple reason that a lot of Generation X & Y are wearing it.more easy points. This is a damn good company who is taking on Nike. Nike on other hand is old news with not so much new products and not a good quality and over priced.More cash than debt, sales doing well, many product lines, especially tactical that aren't affected by the down turn in the economy because Soldiers and Police need the gear to operate and stay alive so they're buying. They make a quality product that lasts and are slowly establishing themself in an area then moving on to other related but new areas...i.e. shoes. Nike is running scared and was great for the 80s/90s. UA is the new stuff for years to come.Under Armour is still small but has a loyal following for its apparel. That brand and image will translate into success as the company adds more types of serious footwear to its arsenal. Moving into athletic shoes to take on Nike. Great clothes, hugh profit margin, and all I see on the kids in the leagues that my children participate in is UA clothes. None of these kids are wearing Nike or Addidas anymore. You know brand loyalty, hit the young ones and let them buy your stuff for life. I like this company long term. Garage start up in the 1990s for college lacrosse. Now EVERY sport benefits from the specially designed Under Armour to wear under uniforms--professional and collegiate. And didn't they just get the naming rights to one of the college bowls? An incredible buy under $ 25 a share.Underarmour has a market share that many civilians don't normally see: Tactical Operators. Underarmour is the go to name for operators who require top-line thermal apparel. Ask any cop or soldier and i can gurantee they own at least 1 piece of UA clothing. As they keep increasing their market share with new products, it only gives these individuals a broader spectrum of products to pick from.It's becoming a household name.. I thought they would only specialized in football, but they are expanding to every other sport.Why do I think UA will outperform the S&P 500? Well let see, when I go to the gym I see more people wearing underarmour clothes. When I play my basketball game on Sundays, I noticed more players wearing underarmour socks and clothes and some even carrying duffle bags with the UA logo. What really stands out to me is that I noticed underarmour is having more shelf space with the retailers such as Footlocker, Sport Chalet, Dicks Sporting Goods, and even online retailer is loaded with UA apparels. I myself have several UA gears and also some of my friends start buying UA gear. Thats why I believe UA will do well in the long term. A company with little or no debt and generating positive cash flow. And the sports apparel business is huge which have room for NIke, UA, Addidas, etc. And finally, with the share price dropping so low, I strongly believe this company is undervalued compare to its growth prospects.
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