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Showing posts with label month. Show all posts
Showing posts with label month. Show all posts

Sunday, February 12, 2012

February's Top stock to buy - Ford ( F )

FORD ( F ) is a value stock.Ford Motor Company (Ford) is a producer of cars and trucks. Ford and its subsidiaries are also engaged in other businesses, including financing vehicles. It operates under two segments: Automotive and Financial Services. Automotive segment includes the operations of Ford North America, Ford South America, Ford Europe and Ford Asia Pacific Africa.Only US automaker that didn't get bailed out. Great brand, modernized products. Seems to get it ?American company has transformed itself from a wrecked has-been to a focused, disciplined, and profitable leader of the global auto business.PEG of .7, $20 billion in cash, and a powerful brand name with several products that thrive as fleet vehicles, like the Crown Vic in the past and the Transit van for NYC's new taxis.The actions that the company leadership has taken over the past several years have set them up well for continued growth over the next several years. With the stock fluctuating between $10-12 a share, recently this looks like a solid time to buy into this company; as additional analysts begin paying attention to the stock over the next several months look for it to rebound to my target share price of 18.00 a share by year end 2012.Ford is well positioned and widley bought for fleet use in the US.Ford's ace CFO, Lewis Booth, announced his retirement on Thursday, as did Global Product Development Chief Derrick Kuzak. That's the guy who brought Ford's balance sheet under control and the guy who drove the "One Ford" product strategy that turned the company around -- gone ! Ford's trading at about 7.7 times earnings. Even with Ford's ongoing challenges .A hybrid version of its popular Fusion sedan has been a steady seller, and a plug-in version is coming year in 2012.That long list doesn't mean Ford has no challenges ahead. Overseas operations, particularly in Europe (but also in Brazil) will continue to weigh on earnings for some time -- though Ford is making progress with most.With the Recession ending sometime soon (hopefully) people that were scrimping and saving during the Recession will have more money to spend on luxuries like new cars. Ford didn't take the government bailout and because of that, still has a good reputation and more credibiltiy than it's direct competitors .Ford Has established itself as the top of the line truck brand and is still cheap in terms of price to earnings.With Ford Strong cash position, diversified international assets, & on the rise in an industry waiting to pop as people look to replace aging cars as the economy gradually improves.  Only concern is europe but either way in the long run this stock will outperform the s&p since both will be dragged down by the Euro if it does collapse.This company has turned a corner. undervalued stock below 12.00 a share.USA should be Proud of Ford and all it's done to prove itself. Short at your own risk.I am a believer in American history and proud of this car manufacturer.Thanks for giving me confidence in the American spirit again. Go Ford & Buy ( F ) Stock this month!

Monday, December 5, 2011

Top stocks to buy in December 2011

Portfolio for December
CompanySectorNov. 30 closeScouter score
Pioneer Southwest Energy Partners (PSE 0.00%, news)Oil and natural gas$30.4110
Rex Energy (REXX 0.00%, news)Oil and natural gas$16.159
Vanguard Natural Resources (VNR 0.00%, news)Oil and natural gas$26.4610
Global Partners (GLP 0.00%, news)Petroleum products$20.698
InfoSpace (INSP 0.00%, news)Internet search$9.648
Encore Energy Partners (ENP +130.46%, news)Oil and natural gas$20.0510
Evolution Petroleum (EPM 0.00%, news)Oil and natural gas$7.308
ECA Marcellus Trust I (ECT 0.00%, news)Natural gas$25.158
Innophos (IPHS 0.00%, news)Specialty phosphates$49.259
Heico (HEI 0.00%, news)Aerospace and defense$59.348
Mobile Mini (MINI 0.00%, news)Rental storage$18.039
AFC Enterprises (AFCE 0.00%, news)Quick-service restaurants$15.709
XO Group (XOXO 0.00%, news)Specialty retail$7.377
Neutral Tandem (TNDM 0.00%, news)Wireless communications$10.818
Interval Leisure Group (IILG 0.00%, news)Travel and leisure$14.018
China Digital TV (STV 0.00%, news)Application software$3.638
Hornbeck Offshore Services (HOS 0.00%, news)Offshore energy services$33.748
Buckeye Technologies (BKI 0.00%, news)Specialty products$30.988
Thompson Creek Metals (TC 0.00%, news)Mining$6.998
Orbcomm (ORBC 0.00%, news)Communication services$3.308
Colfax (CFX 0.00%, news)Industrial machinery$29.318
Whiting USA Trust I (WHX 0.00%, news)Oil and natural gas$17.308
Dun & Bradstreet (DNB 0.00%, news)Business information$69.8710
Capstead Mortgage (CMO 0.00%, news)Real estate investments$12.4810
Williams Partners (WPZ 0.00%, news)Natural gas$58.069
Main Street Capital (MAIN 0.00%, news)Investments$19.5110
Community Trust Bancorp (CTBI 0.00%, news)Banking$28.1910
Community Trust Bancorp (CTBI 0.00%, news)Credit services$9.7810
PennyMac Mortgage Investment Trust (PMT 0.00%, news)Residential real estate$16.1210
Waters (WAT 0.00%, news)Medical instruments$80.0010
Corrections Corp. of America (CXW 0.00%, news)Prisons$21.0010
Legacy Reserves (LGCY 0.00%, news)Oil and natural gas$26.8210
CubeSmart (CUBE 0.00%, news)Rental storage$9.9710
Chesapeake Lodging Trust (CHSP 0.00%, news)Hotels$15.9010
Flowserve (FLS 0.00%, news)Flow controls$102.7710
Energen (EGN 0.00%, news)Oil and natural gas$50.7210
Wyndham Worldwide (WYN 0.00%, news)Lodging$35.4510
Chipotle Mexican Grill (CMG 0.00%, news)Restaurants$321.5610
NewMarket (NEU 0.00%, news)Specialty chemicals$197.8910
Bally Technologies (BYI 0.00%, news)Application software$38.3410
Atlas Pipeline Partners (APL 0.00%, news)Natural gas$34.8010
OSI Systems (OSIS 0.00%, news)Electronic components$47.819
Core Laboratories (CLB 0.00%, news)Oil-field services$116.0510
Cedar Fair (FUN 0.00%, news)Amusement parks$23.0910
Taser International (TASR 0.00%, news)Electronic controls$6.0210
Pebblebrook Hotel Trust (PEB 0.00%, news)Hotels$18.5210
SPS Commerce (SPSC 0.00%, news)Business services$23.4510
Quaker Chemical (KWR 0.00%, news)Specialty chemicals$38.919
Nara Bancorp (NARA, news)Banking$9.379
Halozyme Therapeutics (HALO 0.00%, news)Biotechnology$9.489

Friday, November 11, 2011

Mad Money Fund Top November stock pick Chipotle Mexican Grill Public, ( NYSE:CMG)

Public, NYSE:CMG)

Chipotle Mexican Grill, Inc.

(Public, NYSE:CMG) Watch this stock
 

Dow Jones12,153.382.18%
S&P 5001,263.84
Services1.89%
CMG329.271.04%
 Chipotle Mexican Grill, Inc. and its subsidiaries (Chipotle) operate restaurants throughout the United States, as well as two restaurants in Toronto, Canada and one in London, England. As of December 31, 2010, Chipotle operated 1,084 restaurants. The Company’s restaurants serve a menu of tacos, burritos, salads and burrito bowls (a burrito without the tortilla). The Company manages its operations and restaurants based on five regions that all report into a single segment.Revenues were $571.561 million up 22.43% from $466.841 million. TTM revenues were $2.05 billion or $65.61 per share up from TTM revenues of $1.65 billion or $51.82 per share. TTM revenue per share was up 26.6%. Same stores sales were up 10%

Net income was $50.657 million up 9% from $46.461 million. Net income per share was $1.59 up 8.9% from $1.46 per share.

Cash and long-term investments were $439.5 million and no debt. Long-term investments were $89.712 million.

Cash flow for the quarter was $75.133 million up from $37.3 million. TTM cash flow was $205.7 million or $6.60 per share up from TTM cash flow of $167.88 million or $5.28 per share. Cash flow per share was up 25%. Capital expenditures for six months were $57.681 million up 38.5% from $41.653 million. For the quarter, they spent $31.243 million up 42% from $21.95 million last year.

The Company repurchased 32,283 for an average price of $277.54 for the second quarter of 2011. They spent about $8.96 million to repurchase those shares.

Thompsonfn estimates: September 24, 2011
3Q:2011 $1.85
4Q:2011 $1.85
Fiscal 2011 $6.81
Fiscal 2012 $8.62

The Company now has 1,131 restaurants. They opened 39 new restaurants I the second quarter, including 3 relocations. They expect to open 135 to 145 restaurants for the full fiscal year. New restaurants are hitting the high end of their $1.4 million and $1.5 million opening sales range. The average sales volume for nearly 1,000 of their restaurants that have been open for at least 12 months has passed $1.9 million for the first time. These stores average $1.927 million in revenues per year.

Restaurant level margins were 25.8% down 110 basis points from 26.9% last year. Operating margins were 14.67% down from 16.06% last year. Margins were negatively affected by food inflation and the U.S Attorney’s Office entering the immigration investigation in April.

The company has raised prices which they believe will offset all or nearly all of the impact from food inflation on margins. They also have taken steps to ensure that illegal immigrants aren’t hired by the company. They are using the E-Verify system, the Department of Homeland Security's online tool, which allows the Company to verify the identity and work authorization status of every new employee immediately after the time of hire. They have hired about 12,000 new employees since March when they started to use the E-Verify system. They believe the investigation is running smoothly.

thompsonFN estimates: July 19, 2011
Q2:2011 $1.68
Q3:2011 $1.88
Fiscal 2011 $6.82
Fiscal 2012 $8.48

Potential growth drivers: It's a fantastically run company that seems to proliferate and is always popular.

1. International – They have only a few stores in major European cities. They are going to focus on developing their U.S stores first, but someday they will shift focus internationally.

2. The new restaurant concept - ShopHouse Southeast Asian Kitchen. They will open their first restaurant in Washington DC soon. We will have to wait to see how well it does.

3. Expansion of their menu. The location at the Dulles Airport serves breakfast. Their lease requires it to do so. But the breakfast menu has been successful there. They may in time expand their breakfast to other locations.

Conclusion:
Growth, growth, growth! The additional of opening their asian cuisine stores supplies this company with a whole new way to infuse this lovely growth story. only in 38 states. still room for growth in their core business. with shophouse, they're going to duplicate their success in the chinese fast casual market. 
  
Chipotle is among my favorite restaurant investments. BWLD, Panera and BJRI are three others that I like for different reasons. BWLD has good long-term potential but I can also trade it a fairly predictable range a few times a year. Panera has similar growth potential as CMG, but the valuation is much better. And BJRI gives me slower growth but very consistent growth.

Chipotle’s PE ratio is 53 and it has a cash flow yield of 2.1%.  Just now getting into global expansion, potential for a stock split. Based on the PE or cash flow yields the Company is expensive. But it has a large premium because they consistently grow at high rates and they have huge potential for growth. They now have 1,131 restaurants and analysts believe they can build 3500, so there is a lot of room to grow. They also will be rolling out a new Asian concept restaurant. This would significantly boost their growth potential if the restaurant is successful. So they carry a high premium.

Chipotle is one of my favorite investments, but not at one value point. If I didn’t already own them, I would buy some now and keep trying to add at better and better value points over time. But my Chipotle strategy is based on a ten to twenty year plan and again I won’t be buying at only one value point. And I will be buying over time, always trying to increase the average value of my total position in them as I do with all of my stocks.

I think everyone should own some shares of Chipotle, but when the PE is high, I try to buy less. As the PE goes lower I add more – over time this strategy increases the value of my total portfolio as I do this with all of my stocks. I have found that for most of my really big growers, they may go years without giving me a great entry point, but at some point, they always do. If one waits for that great entry point, they will do well, but they could miss huge growth during the waiting period when earnings keep going up and the margin of safety grows for shares even purchased at high valuations. Outperform. The food is amazing, people want healthy and responsible food options, it's fast, it's delicious and it's affordable. They are coming out with their asian line and it looks like a great success

For instance in 2005, CMG was selling for a PE of 90, but the price was $59 per share. If one bought at $59 in 2005, they purchased it at a very high premium. Even today’s price of $320.30 is at a better valuation with a PE of 53. But the margin of safety is what is important. Today with earnings of $6.04, the PE if the price fell to $59 would be 9.77. During the Great recession, the PE fell to 15.49, so the person that bought at a 90 PE in 2005, is very unlikely to see their principal endangered. I believe it is important to capture that growth from high PE to high PE over time. To do this with confidence one has to believe in the company long-term relevancy.

They have given us plenty of clues to their staying power. They have been a strong company since going public. Chipotle has proven they can flourish in a niche-y market (giant burritos) - I think if this new concept (Shophouse) is anywhere near as good, they could comple close to doubling over a few yearsThey have grown to 1131 restaurants without using debt. Even during the Great Recession, they had only one quarter when earnings were down and even then they were down only a little. They produce huge amounts of cash flow even after you take out for capital expenditures to build large numbers of new restaurants. As an investment, I may be a little late. As a pick, this is solid? dont think so , buy , buy , buy !Same store sales are still growing at impressive rates, so there are no signs of cannibalization. CMG represent a very strong and important stock in my portfolio and I don’t see that changing for anytime soon      As of December 31, 2010, the Company delivered ingredients and other supplies to its restaurants from 22 independently owned and operated regional distribution centers.Chipotle categorizes its restaurants as either end-caps (at the end of a line of retail outlets), in-lines (in a line of retail outlets), free-standing or other. As of December 31, 2010, of its restaurants in operation, the Company had 212 free-standing units, 663 end-cap locations, 174 in-line locations and 35 other.
 Chipotle has been a great Caps investment for me and a great real investment for me. So I keep notes on them regularly. This is the McDonald's of the next generation. And with only about 1,000 restaurants and the new ShopHouse concept just coming out, there's plenty of room for growth.   

The price is very high at $329.30, yet if I didn't own them, I wouldn't hesitate to buy some now and then buy more on the dips below 310.00 a share . 
329.27
+3.39(1.04%) Target price 425.00 by Mid 2012 ........

Monday, March 1, 2010

Top March Stock to buy ..... RPC, Inc. (Public, NYSE:RES)

RPC, Inc. 

(Public, NYSE:RES) 12.75 a share / Target price 18.00
RPC, Inc. (RPC) provides a range of specialized oilfield services and equipment to independent and oil and gas companies engaged in the exploration, production and development of oil and gas properties throughout the United States, including the Gulf of Mexico, mid-continent, southwest and Rocky Mountain regions, and in selected international markets. The services and equipment provided include, among others, pressure pumping services, snubbing services (referred to as hydraulic workover services), coiled tubing services, nitrogen services, the rental of drill pipe and other specialized oilfield equipment, downhole tool rental services and firefighting and well control. RPC acts as a holding company for its operating units, Cudd Energy Services, Patterson Rental and Fishing Tools, Bronco Oilfield Services, Thru Tubing Solutions, Well Control School and others. RPC’s service lines are aggregated into two oil and gas services businessOnline Only: Save EXTRA $5 off $50 w/ code SEARS5OFF50 at cart 5/24/09-1/31/10 segments: Technical Services and Support Services. RPC is in SmarTrend's Oil & Gas- Equipment and Services industry and this industry is currently in a Downtrend according to our research. We are monitoring many other stocks on the move within this industry. upwards earnings estimates.reloading at a 30% discount.When we have to drill and I mean DRILL, this company is well placed and already in position to profit on the Gulf of Mexico, TX, LA, OK. I think they have the model to make great profits. The only question is the price of Oil when it turns winter up north. Despite the increasing efforts to become independent on oil, we must face the fact that oil is not going anywhere in the short term and I would rather invest in a company that was a supplier to the oil companies than the oil companies themselves...Oil and oil services are sadly not going anywhere for quite a while. With booming markets in Asia, demand for RPC's product will only expand. As long as management can handle the load, I expect good things from RPC. Long term Play ...

Monday, January 18, 2010

Martin Luther King Jr. Stock Picks for 2010 ! ( TKO,GILD )


1. Taseko Mines Limited (TKO) 5.73 a share / target price 8.00
Taseko Mines Limited (Taseko) is a mining and mineral exploration company. The Company has one operating mine and three exploration projects, all located in British Columbia, Canada, which includes Gibraltar copper-molybdenum mine, the Prosperity gold-copper property, the Harmony gold property, and the Aley niobium property. On May 2, 2008, Taseko completed the acquisition of Oakmont Ventures Ltd.
approval from British Columbia's environment ministry to proceed with its Prosperity gold-copper project. Cramer say's it is a risky stock , however this is a good time to buy !


2. Gilead Sciences, Inc. (GILD) 45.18 a share / target price 60.00
Gilead Sciences, Inc. (Gilead) is a biopharmaceutical company that discovers, develops, and commercializes therapeutics in areas of unmet medical need. The Company has United States and international commercial sales operations, with marketing subsidiaries in Australia, Austria, Canada, France, Germany, Greece, Ireland, Italy, New Zealand, Portugal, Spain, Switzerland, Turkey, United Kingdom, and United States. Its commercial team promotes Truvada, Viread, Emtriva, Hepsera, AmBisome, Letairis, and Flolan through direct field contact with physicians, hospitals, clinics, and other healthcare providers. Gilead’s corporate partner, Astellas Pharma, Inc. (Astellas), promotes and sells AmBisome in the United States, Canada, Europe, Australia, and New Zealand. In May 2008, the Company acquired Navitas Assets, LLC’s. In April 2009, the Company announced the completion of its acquisition of CV Therapeutics, Inc.GILD is currently a "sleeper" as a swineflu play (they license their vaccine to La Roche); their profits in this area were quintepled last for the 3Q! They currently have a value that reflects at most 20% of what the market has seen, but continue to be a leader in their niche of medical therapies.Yes, this stock is pricey at 16.8 P/E and 6.9 book, but I think I'm getting what I pay for: plenty of cash, consistently growing sales. Margins and ROE are nearly the best in the industry.Gilead Sciences may have had its stock performance depressed by the ongoing healthcare reform. It has essentially not participated in the 2009 market rally while posting solid revenue and earnings....

Monday, September 7, 2009

Top september stock pick for 2009 , Is ford ? ( F )


1. Ford ( F ) 7.43 a share as of 9/1/09 Target price 12.00 by 1/1/10
New, environmentally-focused product lineup rolling out now and especially through 2010. Ford has demonstrated an understanding of what spurs consumer car-buying, recession or not. Economy cars and light utility vehicles with a high standard of quality are a ubiquitous desire for almost every American and American family. Staying out of the government's pocket has done wonders for its reputation throughout the last 6 months, and Ford will continue to grow. A slowdown in sales due to the jolt from CARS will see this stock dip in the short-term, but F is a great long-term bet.
Stick it out with Ford. The clash for clunkers is ramping up their production so can expect them to climb in the near future. Plus, they are not being directly monitored by the government as GM is so there potential should be greater in the months to come.Ford has been moving their pieces behind the scenes. They were well prepared to stand alone when their competitors were grabbing their ankles for Uncle Sam. As a long standing client of Goldman Sachs, I believe the Wall Street bank has had some influence in guiding Ford through the recent mine fields. Ford was crying broke, many years ago. They knew they had to make a change in the amount of fuel their products were using. And now they are ready to satisfy the consumers with their low milege cars and trucks. It's Great to see FORD MOTORS stay independent.Recently pulled back 15% from a 52 wk high. I expect F to bounce back. Should benefit from Cash for Clunkers program in Q3 and beat earnings expectations. "Now" it's their turn to make money. I see Ford ( F ) going to 12.00 a share by year end !

By: Phil LeBeau

For as long as I've been covering the auto industry, I've seen some variation of this story on a regular basis. Every so often, there is a survey that shows a growing percentage of car buyers would be willing to consider sliding behind the wheel of a Big 3 car. Despite these encouraging reports, the Big 3 market share continues to slide.

The latest survey coming from Consumer Reports shows an overwhelming majority of those surveyed would definitely consider buying a GM, Ford, or Chrysler. 81% to be exact. Compared to 47% for an Asian model and 46% for a European model. With numbers like that, you'd think the Big 3 would be gaining ground on the boys from overseas. But they aren't. Only Ford has picked up market share in the last year.
So what's the deal?

Why is it buyers say they are interested in a Detroit car, but when it comes time to driving off the lot, they are zipping away in a Toyota, Hyundai, or Mini?

Lately, you can blame some of the disconnect on the bankruptcies of GM and Chrysler. While both came through the process better than expected, both companies are just getting their footing. The other issue is new product cadence. Ford's gaining ground right now because it's in the sweet spot with new models rolling out. For GM, there's little hitting showrooms that is generating buzz, and Chrysler is left holding some re-designed older models until the new owners Fiat can pump some life, and product designs, into the company.

As one auto industry veteran told me this summer, aside from Ford, there's not a lot coming out Detroit to get excited about.

Still, the Consumer Reports survey shows these guys have an amazing opportunity to win back buyers who ARE willing to give motown another shot. And all is not lost. This fall GM will ramp up its advertising and marketing under vice chair Bob Lutz. A fresh approach could change perception even more. And at Chrysler, Sergio Marchionne has the company's designers moving fast to not only tweak existing models, but more importantly speed up the development of new vehicles. Ford? It's in a groove right now and will run with the new Taurus and its "Why Ford? Why now?" campaign for some time.

Monday, June 1, 2009

Top June 2009 Stock picks




1. ( WAC ) 13.50 a share 6/1 Target price 20.00 by 12/09
Hanover Capital Mortgage Holdings, Inc. is a specialty finance company whose principal business is to generate net interest income on its portfolio of mortgage loans and mortgage securities backed by mortgage loans on a leveraged basis. The Company avoids investments in sub-prime or Alt-A loans or securities collateralized by sub-prime or Alt-A loans. It leverages its purchases of mortgage securities with borrowings obtained primarily through the use of sales with agreements to repurchase the securities. The Company conducts its operations as a real estate investment trust (REIT) and has one primary subsidiary, Hanover Capital Partners 2, Ltd. (HCP-2). In April 2009, Walter Industries, Inc. announced the completion of the separation of its Financing business and the merger of that business with Hanover Capital Mortgage Holdings, Inc. to create Walter Investment Management Corp.Spun off by WLT (Walter's Energy) and merged with Hanover Capital Mortgage, is a REIT that manages a 1.8 billion dollar portfolio of Sub-prime, prime and non-conformingl (ie Moblil Homes) Mortgages ( with a delinquency rate under 6%). Insiders have recently gobbled up shares at a furious clip taking the stock price from 7 to just under 14 in less than 2 weeks. This, in spite of generous stock grants. One director, also Chairman of WLT, took down almost 2 million dollars worth of stock in three separate buys in the open market. The only revenue this company has at present is the yield from the mortgages, but with all the gov't programs, and the mortgage servicing and insurance divisions, there could be substantial earnings power hidden by all the recent machinations required to merge the companies. Not much info available since the merger was completed only a month ago, so you really need to read every SEC filing. Could be a real sleeper. Building a portfolio based on insider buys.Subprime mortgage REIT? It should yield almost 12% around $13, and the $1.8B portfolio could be a hidden value should the economy improve.They are looking to announce the DIV. by june or mid july ! when announce we will see a pop in this stock !

2. ( S ) 5.06 as hare 6/1 target price 9.00 a share by 9/09
Sprint Nextel Corporation (Sprint Nextel) is a holding company that offers a range of wireless and wireline communications products and services for individual consumers, businesses and government customers. The Company conducts its operations through two segments: Wireless and Wireline. Sprint Nextel owns wireless networks and a global long distance, Tier 1 Internet backbone. The Company offers digital wireless service to subscribers in all 50 states, Puerto Rico and the United States Virgin Islands under the Sprint brand name utilizing wireless code division multiple access (CDMA) technology. The Company offers digital wireless services under its Nextel brand name using integrated digital enhanced network (iDEN) technology.4G, Pre, improved customer service, more bang for your buck. (ie I dont get changed for pandora while other providers do, free TV, etc) Network will trump phones, and reliability will drastically increase. Those on the ground floor will profit. Sprint was priced as though it was going into oblivion. However the fundamentals manifested otherwise. Last quarter to everyone’s surprise they beat earnings estimates by 8 cents, paid down their debt by $600 million and added $800 million to their reserves, which now exceeds $4.5 billion. The company also has net cash flow of $3 billion. Their subsidiary Boost Mobile, best known for Prepaid customers had net additions of 800,000 new accounts and continues to grow at the same pace. Sprint's new management, starting in the first quarter of 2008 under the leadership of Dan Hesse, has been impressive in his actions in returning the company to profitability. He spun off the companies Wimax (4G) division into a joint venture with Clearwire, however maintaining 51% majority ownership. Clearwire also has a dream team of investors; Intel, Google, Time Warner, Comcast, Samsung and just recently Cisco. With Hesse at its helm the company has managed to cut costs through organic restructuring during these recessionary times. During his tenure the company has beaten earnings estimates four out of the last five quarters. Customer service has improved dramatically and anyone dealing with the company will ascertain that this is an unequivocal fact. All of this was done without a decent Smart phone contender, like the iPhone or Storm, however in two weeks Sprint will not only have a contender but it will have an exclusive on the best contender to date, the Palm Pre. According to the experts in the wireless world this could quite easily be the iPhone killer. Whether it is or not it will without a doubt be a major contender. It is my understanding that the Pre will also be 4G compatible, which is something ATT/iPhone will not be able to compete against, since ATT will not have a ubiquitous 4G network until 2012. Notwithstanding the aforementioned Sprint is very attractive on a valuation basis as a takeover target. With 49 million customers in the continental US a foreign telecom would do well in a Merger & Acquisition while Sprint is trading at around $15 billion. It is rumored that Telefonica, a $100 billion dollar global telecom company, is looking to do a major acquisition in the US and that Sprint is under its radar. Short of the economy going into a Depression, I expect Sprint to ensconce itself back to $9.5 a share, or $27 billion. $10 by the end of the year.