The following three stocks were recommended in the most recent edition of Forbes. I have included the price at which Forbes recommended them, because all three are now trading below this price - due to the recent market activity.
In fact, I just bought two of them (W.R. Grace and Gentiva Health Services) today, and plan to manage them with my Stock Trading Riches system:
W.R. Grace (GRA,28) Grace is recovering from bankruptcy (related to asbestos claims). Those are behind them now, and they are a $2.8 billion (2009 revenues) chemical company. They make catalysts for refining and silica-based products for paint, beer, and ink-jet paper. Almost 70% of their sales are outside the U.S. They have 36% gross margins and a lot of tax-loss carryforwards. At $28, it is trading for 15 times estimated 2010 free cash flow (vs. 19 for its industry).
Gentiva Health Services (GTIV,30) This is an Atlanta-based provider of skilled nurses, therapy, and hospice services. Companies that deliver health care to the home are not expected to be hurt from "ObamaCare". Fourth quarter 2009 revenue was up 16% from the 4th quarter in 2008, while Ebitda jumped 25%. At $30, the company trades at 11.2 times the 2010 earnings forecast (vs. 21 times historically for home health care companies).
Insituform Technologies (INSU, 26) It installs and upgrades pipes: from sewers to industrial conduits. It has its own technology and machines that can lay or fix pipe without having to dig trenches - which saves utilities money. From 2008 to 2009, sales increased 35% and net income was up 21%. At $26, it is trading at 17.4 times expected 2010 earnings, which they don't consider rich because INSU's earnings are forecast to compound 23% annually over the next 5 years.
Friday, 7 May 2010
Three Good Stocks Made More Attractive By The Recent Market Activity
Posted on 13:24 by Unknown
Subscribe to:
Post Comments (Atom)
0 comments:
Post a Comment