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Saturday, July 11, 2009

All - Star Stocks


1. RTN 42.68 a share / target price 55.00

Raytheon Company designs, develops, manufactures, integrates, supports and provides a range of products, services and solutions for principally governmental customers in the United States and worldwide. The Company operates in six business segments: Integrated Defense Systems (IDS), Intelligence and Information Systems (ibis'), Missile Systems (MS), Network Centric Systems (NCS), Space and Airborne Systems (SAS) and Technical Services (TS). In April 2008, the Company acquired SI Government Solutions. In July 2008, Raytheon Company acquired Telemus Solutions, Inc., a provider of information security, intelligence and technical services to defense, intelligence and other federal customers.Raytheon's bread and butter has been advanced weapon systems (specifically advance missile targetting systems). As the US government tries to continue to utilize remote precision strike capability, more and more contracts roll Raytheon's way. Additionally, with a burgeoning cybersecurity unit, Raytheon is very well positioned to capitalize on the strategic shift of the Obama administration.Fear will keep RTN going because it is the leading provider of missile defense technology, and North Korea has been doing a lot of saber rattling lately.With the government working on modernizing the military, the technology that Raytheon constantly develops makes it a go-to company for the government when the government is looking for new and innovative military solutions.
Solid earnings growth. Increases in spending should help this company and also debt is being paid back. This isn't a buy and hold, but a buy and take profits.Even if military/defense spending declines under the new administration, this company is well positioned compared to its competitors in the civil satellite/environmental monitoring areas, and stands to benefit from increasing interest in climate change and natural disaster prediction/tracking. This is a great long term play !


2. DCM 15.13 / target price 24.00 a share

NTT DoCoMo, Inc. is a mobile telecommunication services provider belonging to NTT group, whose parent company is Nippon Telegraph and Telephone Corporation (NTT). The Company focuses on the development of mobile multimedia services, such as i-mode service (Internet access service for mobile terminals). In addition to offering music and video services and mobile credit payment services, the Company offer services and functions to match customers’ lifestyles and needs and providing services that make use of the characteristics of mobile phones, such as services tailored to use scenarios through collaboration with mobile phones and customer lifestyle support tools. The Company also provide handsets adapted for this range of services and contents, offering a handset lineup that has been tailored to customer values and lifestyles.Picking this one up while it's down.Japanese cell phone carrier. Largest carrier in the world in terms of subscribers. Good long term value... Seriously undervalued stock right now, strong customer base and innovative products. Demand for video on cell phones in Japan will fuel above average growth.

1 comment:

Value Stock Plays said...

As a value investor I will always avoid stocks in the spotlight like Mcdonald's Or Apple computer. Although they may be very good companies their not great value stocks. The problem that I see with stocks like apple computer and Mcdonalds is that the expectations for these companies are so very high so even a modest downward revision of future earnings and sales expectations can cause a huge drop in the price of the shares. Most everyone buying apple computer and Mcdonalds are basing their decision on the future expectations of earnings and sales. But can anyone really peer into the future with any degree of certainty.