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Monday, May 17, 2010

Stocks to buy in May ( RT,LOW,AWR,ESL,ESYL )

1.Ruby Tuesday, Inc.
(Public, NYSE:RT) 11.50 a sahre / target price 15.00
Ruby Tuesday, Inc. (RTI) develops, operates and franchises casual dining restaurants in the United States, Puerto Rico, Guam, and 13 other countries and regions under the Ruby Tuesday brand. The Company also owns and operates two Wok Hay restaurants. At June 2, 2009, it owned and operated 672 Ruby Tuesday restaurants primarily in the Northeast, Southeast, Mid-Atlantic and Midwest of the United States. As of June 2, 2009, there were 229 domestic and international franchise restaurants located in 27 states primarily outside the Company’s existing markets primarily the Western United States and portions of the Midwest and Northeast and in the Asia Pacific Region, India, Middle East, Puerto Rico, Guam, Canada, Iceland, Eastern Europe, and Central and South America. On March 18, 2009, the Company acquired a Ruby Tuesday restaurant in Rockwall, Texas from a traditional domestic franchise. Credit Suisse analyst raised his rating on the restaurant operator based on an improving revenue picture and brand positioning.

Credit Suisse analyst Keith Suisse analyst Keith Siegner on Wednesday upgraded Ruby Tuesday to “Outperform” from “Neutral,” saying expectations are too low for the company.

“We believe a nascent recovery in the lower-income consumer can accelerate Ruby Tuesday's outperformance versus the industry,” he wrote in a note to investors. That in turn could lead to better-than-expected fourth-quarter results, he added.

“We continue to believe that the menu and brand repositioning are working, with Ruby Tuesday successfully driving trial and converting trial to repeat customers,” he said.The expansion was very good for the restaurant and they have struggled because they finished in time for the "credit crunch". However, I think that their balance sheet will turn around in the next few years to make them some great profits. RT is currently undervalued and should be making a rebound from a test of its 52 wk low. Look for a steady improvement over the next year or so.
Thousands of Tools on sale
2.Lowe's Companies, Inc.
(Public, NYSE:LOW) 25.88 a share / target price 32.00
Lowe’s Companies, Inc. (Lowe’s) is a home improvement retailer. As of January 29, 2010, the Company operated 1,710 stores, consisted of 1,694 stores across 50 United States states and 16 stores in Canada. Its 1,710 stores represent approximately 193 million square feet of retail selling space. The Company serves homeowners, renters and commercial business customers. Homeowners and renters primarily consist of do-it-yourself (DIY) customers and do-it-for-me (DIFM) customers who utilize its installed sales programs, as well as others buying for personal and family use. Commercial business customers include those who work in the construction, repair/remodel, commercial and residential property management, or business maintenance professions. During the fiscal year ended January 29, 2010 (fiscal 2009), it opened 62 stores, including five Canadian stores. Lowe's Cos. said Monday its net income rose 2.7 percent in the first quarter as people spent more money on home-improvement projects and bought more big ticket items.

The No. 2 home-improvement retailer raised its guidance for the year, though it fell shy of analyst expectations and shares fell in premarket trading.

The company, based in Mooresville, N.C., said it earned $489 million, or 34 cents a share, in the three-month period ended April 30. In the same period last year the Mooresville, N.C., company earned $476 million, or 32 cents a share.

Revenue rose 4.7 percent to $12.39 billion.

The results handily beat the expectations of analysts."While we are optimistic we will experience solid demand through the balance of the year, we view 2010 as a year of transition for our industry," he said in a statement.

Revenue at stores open at least a year rose 2.4 percent in the quarter. That's a key figure for retailers because it measures growth at existing stores, rather than new ones.

The company opened 11 stores in the quarter to finish with 1,721 in North America.

For the second quarter and full year, Lowe's said it expects revenue to rise between 5 percent and 7 percent over the prior year and revenue at stores open at least a year to grow between 2 percent and 4 percent. Previously for the year, the company expected sales to rise between 4 percent and 6 percent, and revenue at stores open at least a year to increase 1 percent to 3 percent.

The company expects second-quarter earnings per share to range from 57 cents to 59 cents, shy of the 62 cents a share analysts expect.Recession has everyone making things last as long as possible. How better to make things last than to invest in your own home? Seems as we come out of this recession home improvement companies like LOW for the long term play.My anticipation of investors and home buyers return to real estate and home improvement on the 2yr to 4yr time horizon may bring along for the ride the big box home improvement retailers. Buy, on the dips down today ......
3. American States Water Company
(Public, NYSE:AWR) 39.06 a share / target price 45.00
American States Water Company (AWR) is the parent company of Golden State Water Company (GSWC), Chaparral City Water Company (CCWC) and American States Utility Services, Inc. (ASUS). AWR has three segments: water, electric and contracted services. Within the segments, AWR has three principal business units: water and electric service utility operations conducted through GSWC; a water service utility operation conducted through CCWC, and contracted services conducted through ASUS and its subsidiaries. ASUS’ subsidiaries include Fort Bliss Water Services Company (FBWS), Terrapin Utility Services, Inc. (TUS), Old Dominion Utility Services, Inc. (ODUS), Palmetto State Utility Services, Inc. (PSUS) and Old North Utility Services, Inc. (ONUS). FBWS, TUS, ODUS, PSUS and ONUS are collectively referred to as the Military Utility Privatization Subsidiaries. has a potential upside of 15.5% based on a current price of $39.06 and an average consensus analyst price target of $45.Drought creates water crisis. The resource and delivery price increases have to some extent already been considered. Seasonal rains & snow COULD alleviate the problems. the need for water infrastructure buildout/improvement in both the U.S. and globally. 3.0% yield, 54 straight years of increases, unflashy water company in CA, this is in every dividend investors portfolio.water play-water is about to go into a
oil/copper bull run ..

4. Easylink Solutions Corp.
(Public, OTC:ESYL) .42 a share / target price .65
Easylink Solutions Corp., formerly AlgoDyne Ethanol Energy Corp., is a development stage company. The Company effected a change in business and commenced concentrating on developing ethanol and bio-diesel technologies. Up until July 2007, the Company was engaged in the business of buying and selling reclaimed textiles. It generated revenues by arranging the sale of reclaimed textiles to large, international wholesale buyers and, occasionally, to a small number of vintage clothing stores. Since July 2007, AlgoDyne had been seeking business opportunities in the alternative energy industry. The Company’s focus is to create a portfolio of three primary activities (raw materials, wholesale/manufacturing, and retail) in the ethanol and bio-diesel industries. During the year ended August 31, 2007 (effective June 1, 2007), the Company abandoned the business operated by its wholly owned subsidiary, Freshly Pressed Enterprises, Inc. Easylink Solutions Corp. announced the launch of a new consumer electronics product in Portable Multimedia Players (PMPs) Market in the next 30 days. The new product is a high quality home digital media center to play digital multimedia files on your TV/home entertainment or computer system. Risky play , however this can be rewarding ...

5. Esterline Technologies Corporation
(Public, NYSE:ESL) 55.47 a share / target price 70.00
Esterline Technologies Corporation (Esterline) is a manufacturing company principally serving aerospace and defense customers. It designs, manufactures and markets engineered products and systems for application within the industries it serves. The Company has three segments: avionics and controls, sensors and systems, and advanced materials. The Company’s products are supplied to Airbus, regional and business jet manufacturers, and the aircraft engine manufacturers. The Company’s sales are diversified across three markets: defense, commercial aerospace and general industrial. On December 15, 2008, the Company acquired NMC Group, Inc. (NMC) and on January 26, 2009, it acquired Racal Acoustics Global Ltd. (Racal Acoustics). to report earnings of $0.85 on sales of $373 million on May 28, 2010.
For the full year, analysts expect the company to post EPS of $3.40. In the year-ago period, the company reported EPS of $0.85 on sales of $360 million.
In the previous quarter, the company reported EPS of $0.42, missing consensus estimates of $0.48.Strong financials and undervalued .
Mad Money Fund is bullish on shares of Esterline Technologies Aerospace small hardware provider. Company has growth and is currently a leader in its market space. With strong fundamentals and strong earnings .They are a well diversified company..
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