Archive for the ‘Services’ Category

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DirecTV (NASDAQ:DTV) – As from Q4 2011 reports U.S. Net customer additions dropped! However on another note it had rapid growth in Latin America. Currently in Brazil DirecTV remains the top market in both current base, and future. However there was talk that the subscriber growth will be not only slower for 2012, but the revenue made from each user will decline as well.

Now after all that is said what is there to expect out of DirecTV for 2012?

There is talk that growth in Latin America will continue, but not at the Rapid Rate it did in 2011 as other competitors have stepped into the market. DirecTV will surely push HD & DVR Services, but have great opportunities in Brazil. DirecTV has stated that they expect subscribers to grow by only 20% which is down 15% from 2011 growth rate of 35%.

“We expect that Brazil will continue to remain a dominating market. The pay-TV penetration in Brazil stood at little over 21% of the total households in 2011. The satellite companies gained close to 2.5 million subscribers in Brazil in 2011 with DirecTV leading the pack. It is clear that there is still plenty of opportunity to expand as almost 80% of the households do not have pay-TV subscription.” – Trefis.com

At the end of it all there is still a vary tough market out there for DirecTV (NASDAQ:DTV) – Not only do the have to compete with other companies such as  Dish Network (NASDAQ:DISH) and Comcast (NASDAQ:CMCSA) in the U.S. and local pay-TV service providers in Latin America,Brazil. DirecTV also has to worry about the ones who have decided to do away with actual live Cable/TV. Many have now moved and shifted to use streaming Movie,TV series technology like Hulu, Netflix.

At this Time there is no PoulTrend Alert out on shares of DirecTV. Shares are Rated a HOLD, and current August Target Price is $49.00

Over the past 52 weeks DirecTV(NASDAQ:DTV) has traded as low as $39.82-$53.40. Closing today at $45.15 +0.17 (0.38%).

Currently I do not hold any Positions of  DirecTV (NASDAQ:DTV), Dish Network (NASDAQ:DISH) or Comcast (NASDAQ:CMCSA) and have no plans to in the next 3 trading days.

 

 

Over the past year Starbucks Corporation (NASDAQ:SBUX) has made headline news in future plans for the company. Not only did the acquire Evolution Fresh, Inc. to tap into the fruit drinks, healthy shakes market but have most recently reported that they will be making there way into India by the end of August 2012. Starbucks, along with Asia’s largest publicly traded coffee grower, Tata Coffee Ltd, have plans to open close to 50 stores spreading Frappuccino aromas to the two largest cities in India Mumbai and India’s Capital city Delhi. There has been talk of the coffee outlets opening in shopping malls, office parks, universities, train stations, and even airports.

Most recently Starbucks Coffee Company has now made headlines of announcing an agreement to form a joint venture with Ai Ni Group. Ai Ni Group of which is China‘s most established coffee operators, and agricultural companies in the city of Yunnan. This joint venture will be controlled by Starbucks.

Currently Starbucks Corporation (NASDAQ:SBUX) – Has a 52 week moving average of $32.17  – $48.62. Since PoulTrend Alert back on 10/3/2011, Starbucks has climbed over 30%. Not only is Starbucks a dividend payer, it has a P/E of 29 Times Earnings which may suggest that investors feel there is great potential in the future outlook for Starbucks.

In a recent Blog Post by Scaeffer’s Research  BMO boosted its price target to $57 from $51.

Currently I Love this company however think there will be some time before we see Starbucks Corporation (NASDAQ:SBUX) trading up at or around $57.00 a share. Many have concerns on Starbucks and there expansion to other countries like India, and China. Not only is this market hard to please, but they are always looking for a bargain prices. There may be some time before Starbucks can pull in profits from the expansion to these countries, OR there could be the possibility that it just does not work out for them as they are expecting.

Currently I still have Starbucks Corporation (NASDAQ:SBUX) Rated a HOLD. I would recommend trying to wait, and see if you can get this stock at a better value as  over $45.00 a share is a little to pricey in my eyes.

Currently I do not own any Shares of Starbucks Corporation (NASDAQ:SBUX) and have no plans to make a position within the next 3 trading days.

PetMed Express Inc. (PETS) – a nationwide pet pharmacy that delivers prescription and non prescription pet medications for dogs, horses, and cats out directly to the consumer. PetMed Express also sells pet accessories, pet food,health, and nutritional supplements. PetMed’s products are bought over the Phone, and via the Internet.

Not only in a recent blog post (9/21/2011) did I announce a PoulTrend Alert! I discussed how this company was going to blow out analysis predictions. As announced Yesterday, PetMed Express Inc. (PETS) not only increased Revenues for the quarter from $50.5 million, from $45.1 million a year prior. (PETS) closed trading up $1.24 +(11.00%) at $12.51. Over the past 52 weeks (PETS) has traded between $16.16-$8.51. However over the past month the company has been trading in upward fashion now eclipsing the 6 month trading average.

With a dividend payout close to 0.13 a quarter or 0.50 a share each year for the long portfolio investors this is a wonderful investment for the future. I expect this company to continue to out beat analysis predictions for some time. Currently I Rate PetMed Express Inc. (PETS) a BUY/HOLD, with a Target Price of $15.00.

Research In Motion Ltd. (NASDAQ:RIMM) – are a manufacturer, marketer, and designer of wireless solutions for the worldwide mobile communications market. RIM provides platforms + solutions for access to information, including E-Mail, Voice, Instant Messaging, Short Message Service (SMS), Internet and intranet – based apps and browsing. RIM’s Portfolio includes Blackberry Wireless solution, of which is their Handheld product line.

Not only did (NASDAQ:RIMM) drop over 6% yesterday but has been on a downtrend for sometime. Many are questioning this company as a company to invest in or to stay away from.

Currently I Rate (RIMM) a HOLD/SELL!  There will be news someday down the road that may spike the shares, however there should be steady downtrend until stock hits $12.50. At that point in time would I then possible think about investing in this company. As we have all seen trends, especially now fade, and disappear faster than most people can imagine. I am not saying that this company is done, and over but I think for now that RIMM Will be a lost company for sometime.

Not only have they lost a large share in the cell phone market, but it seems as though the company is unsure of where they are heading next. With this company however having virtually no Debt, it would not surprise me if they do not pick up a company or two over the next year. Possibly even selling some of their patients off, and reworking their phones which could take some time to get up and running.  As there is now new management involved I cannot see them doing anything spectacular over the next 6-8 months.

 

Currently I do not hold a position in PetMed Express Inc.(PETS) or Research In Motion (RIMM) nor plan to initiate a position in the next 3 trading days.

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The Coca-Cola Company(KO)Coca Cola, a Stock that has always been known for its Great Dividend, Great Yield.

Today Coca Cola (KO) traded at a Low of $63.34 – $65.43.  KO ended up closing at $65.23, and in the Eyes of many investors this is around or close to a Bargain Price, However I beg to differ. KO of which is a company I do not see going anywhere, anytime soon. However I think over the coming years ahead this may be one stock of which will a gradual long term decline. Not because its financials are out line or anything like that. However I feel as more, and more baby boomers get closer to retirement they will be selling off their shares of Coca Cola of which will bring it down even as it continues to outperform.
Over the Past year, Coca Cola has traded at a High of $71.77, and a low of $58.55

Since 1986 – 1996 Coca Cola has split 4 separate times a 3 to 1 split, and 3- 2 to 1 splits. During this time, the Baby Bombers were in there peak times of their life where they may of had the extra cash lining around to invest into KO.

If a Baby Boomer owned just 1 share, by the end of these 4 splits they would have 24 Shares.

Split 1 – 1 Share * 3 = 3 Shares

Split 2- 4 Shares *2= 6 Shares

Split 3 – 8 Shares*2= 12

Split 4 -16 Shares*2= 24

During 1946-1964 the so called 19 years of the Baby Boom, there was close to 76 Million Births in the USA.

Lets Estimate that 15 Million of these Baby Boomers invested in Cola during that time, each buying just 10 Shares of Coca Cola.

During Split 1- they would have 30 Shares Each * 15 Million = 450 Million Shares.

During the Next 3 Splits lets Say 9 Million of these decided to sell all their investments in KO 5 Million Continued to hold there shares of 30 and 1 Million of them Buying 30 More after the First Split.

During Split 2 – 5 Million * 30 Original Shares = 150 Million Shares with a 2 for 1 Split, Making their shares increase to 60 for a total of 300 Million Shares. The 1 Million of who invested into buying 30 more shares before that split now held 60 Shares each = 60 Million * 2 for 1 Split = 120 Million Shares. Meaning Now 6 Million Baby Boomers owned 420 Million Shares which is Lower than the Previous 450 Million However lets continue on.
During Split 3 – Lets say those 5 Million held their Shares and Still hold 30 Shares Each, for a total of  150 Million Shares * 2 for 1 = 60 Shares Each times 5 Million = 300 Million Shares. The 200,000 of the Original 1 Million who double their stock after the initial Split now added 20 More shares. They now own 80 Shares Each * 200,000 * 2 for 1 = 16 Million Shares. The other 800,000 decided to buy 25 More Shares bring there grand total to 85 Shares * 2 for 1 split = 800,000 * 85 *2= 136 Million Shares. Meaning now that a total of 6 Million people own a total of

300 Million Shares + 16 Million Shares + 136 Million Shares grand total of 452 Million Shares.

During Split 4- Lets Say 2 Million sold off their shares and now only 3 Million held their shares of 60 * 2 for 1 split = 120 Shares * 3 Million = 360 Million Shares. The 200,000 of who have 80 decided to buy 20 more bring there total to 100 Shares * 2 for 1 Split = 200 Shares. 200,000*200 Shares each = 40 Million Shares, and Finally the 800,00 0f who had 85 Shares decided to buy 40 More shares bringing total to 125 Shares * 2 for 1 = 250 Shares each * 800,000 = 200 Million Shares . Meaning that Now these 4 Million people own a combined

360 Million Shares + 40 Million Shares + 200 Million Shares bringing their Grand total to 600 Million Shares. Out of the 2.3 Billion shares Available 1,439,688,448 of which are owned by institutional Investments, owners meaning now that

1,439,688,448 + 600,000,000 = 2.3 Billion Shares.

Obviously this is not a for sure, and these are all estimates, but what if there was out of those 4 Million Baby Boomers 1/3 or 1/2 decided to sell off  in a gradually during a 3 year span.

The Stock that has a 52 week low of $57.00 could see more levels close to $45.00-$50.00 range. Meaning why not wait for the storm to happen, and for KO to see Lower Lows!

Personally I believe many of the High Dividend, and High Yield Stocks will be on a Moderate Lower decline over the coming years ahead. I will wait for my Opportunity of  when to get in with KO, However I do not think that time is right now.

 

 

 

 

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Netflix (NFLX) of which was a $300.00 Stock back in July 2011, is not trading at a $114.00.

Shares of Netflix obviously were overvalued, and it has showed have been overbought for sometime.

Netflix is currently at a Price now most people would want to take a look at for a long term investment however I tend to disagree. Not only do I think that Netflix has not seen its Bottom. Netflix is a stock to stay clear of until it starts to establish a better Video Portfolio. Another thing to look for is, when will Netflix start streaming in Blu-Ray. I recommend that people stay Clear of this Stock as any bad news will Rock, it. If Netflix can establish themselves in the Streaming of Blu Rays, and signing some better Movie Companies, and TV shows it will then open my eyes for a possible investment. Do not forget that Microsoft has now announced it will be entering the streaming of content, this may hurt Netflix Long term.

If or When Netflix starts trading under $80.00 will I look to a possible investment in the company. However it also would rely solely on good news such as an announcement of New TV show Releases, and the Streaming of Blu Ray content.

 

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Listed Below are 5 Stocks to add to your watch list the coming week, months ahead.

1. HollyFrontier Corp   – (HFC) (-5%) of which 5 days ago was trading at $37.92. As they just announced they will go ex – dividend tomorrow, many may be dumping there stocks to re buy at a low.

2. Sodastream International Limited -(SODA) (+5%) of which had a 52 week high of $79.72 is currently at $40.00 which is almost 50% off of the high. I am Long SODA, as I feel it has great potential to crank in great Return on Assets, and Equity, Plus net profit, and revenue will continue to jump long term.

3. The Blackstone Group L.P.  – (BX) (+3%) of which is trading around $7.00 off its 52 week high of $19.63 is a sound investment long term. With a 0.10 dividend, and a yield of 3.16. The potential upside, factored in with the dividend payout is solid for many investors to want to eye.

4. MGM Resorts International. – (MGM) (+2%) of which is trading $4.50 off of 52 week highs of $16.94. Even in a down economy, gamblers continue to gamble. Not to mention with the online poker thing still on major crack down, the ones of who used to gamble at home, will be heading to the Casinos, to do there betting. Long Term growth, with a possibility of someday adding a Dividend.

5. Starbucks Corporation – (SBUX) (+.085)  an investment of which I feel could be a stock for the next 10 years. As Starbucks aims for the market overseas, now we can see how big this company can actually get. With the profits, and revenues of which Starbucks generates, the only future ahead for Starbucks is continued growth, and dividend payouts.

Disclosure – I am Long all the stocks named.

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National Beverage Corp. (FIZZ) company of which manufactures, develops, distributes, and markets a portfolio of beverages through the USA.  Their beverage products include soft drinks,juices,waters, and energy drinks.  Some of the key things that I love about this stock is the their potential. With the fact that they literally have no DEBT, and with there EPS growing 3 years in a row it is obvious that they are being run like a business. There Revenue, has also continued to climb in 4 straight years. Now they are no Pepsi, or Coke Cola, but they are managed extremely well.  Not to mention there last Dividend paid out $2.30!! Now many believe that when a company is paying out that much that their is High risk in failing however I tend to disagree when it comes to (FIZZ). As Fool.com pointed out there intangible assets ratio is 8% compared to competitors like Pepsi (PEP) at 45% and Cola (KO) at 34%. Yes these companies are worth are worth 10 times as much as (FIZZ). However (FIZZ) blows (KO)(PEP) out the water in Return on average equity which was 56% last Qt to (KO) 33%,(PEP) 35%. However (FIZZ) cannot compete with their Net Profit Margins. At the end of the day, I feel that (FIZZ) about to eclipse its 52 week High of $16.57, there could be a break out to the high $18.00 or more. Currently I am Long (FIZZ)(KO) and (PEP) however for a young trader who may not have as much money on the table (FIZZ) may be a better buy!

Currently I rate (FIZZ) as a BUY,HOLD HOLD, and a PoulTrend alert has been called 8/30/2011 at $16.00.

Disclosure- Currently I do not hold positions in any of the stocks talked about in this blog post, and have no plans to initiate a position in them for the next 72 hours.

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Pandora (P) of which went public in mid June, has had a high of $26.00, and a Low of $11.00. Currently with Pandora (P) trading at $13.80, I firmly believe this is a bargain buy. As of January 31, 2011, it had over 80 million registered users. The key things I love about Pandora (P) is their structure. The company the President and CEO
Joseph J. (Joe) Kennedy, is a Genesis. They have a great market of which has solely been based towards Cell Phones. Now they have started growing as they have now made contracts with Cars, Audio Companies to per mote there product. Not to mention the way that the music Like button is synced to the user is a concept of which will keep there customers. They do countless analysis data to retrieve the best playlist for you. This is a tool of which can not be found on Sirius, or XM. Not to mention they make a large amount of there revenue’s from mobile add’s as well as Online adds. I firmly think that later down the road Pandora (P) could superficiality change the music world.

Currently I have Pandora rated at a BUY BUY BUY, HOLD HOLD HOLD, and have a target price for Pandora to be close to $30.00 buy end of 2011. They are a new and growing company give them a chance, they could bring you great returns!

Disclosure – Currently I do not own, or plan to own a position in Pandora (P) in the next 72 hours.

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With the U.S. Government wanting to do an internal investigation into the financial crisis, and Goldman Sachs (GS) I expect financials to take a major hit over the coming days and weeks ahead. Goldman Sachs CEO Lloyd Blankfein has decided to take it into his own hands and hire Reid Weingarten a highly known attorney of who represents clients in high profile cases of whom are believed to of done some type of corporate wrongdoing. With Lloyd Blankfein taking it into his own hands to hire a lawyer it is obvious that there could be a potential push to investigate the firm as well as its executives on criminal grounds.  When the news was released that Blankfein had hired a lawyer, Goldman shares closed down $5.25 (4.7%) to $106.51. In the after market stock continued to drop $1.27 (1.19%).

Goldman Sachs of which is one of the most known names on Wall Street has been in the news, and under distress since the financial crisis because of their record profit this year. Profit of which was generated during some of the worst of times for all of the economy. So far all the investigations have not involved criminal charges, and have all settled without Goldman having admitted to no wrongdoing.  Something to note is almost 1 year ago Goldman paid $550 million to Securities and Exchange Commission to settle the charges that it helped create low-quality mortgage backed securities of which they had knowledge that they would fall in value.

What I think gets me the most is the fact that it has TAKEN this long for government to look into everything. When I say this, meaning Goldman Sachs is not the only ones of who need to be under investigation. All the major Banks including (J.P and Morgan)(Bank of America)(Wells Fargo) just to name a few. Not only were they all involved in the reason for the Crash of the Market in 2008 but they were all the ones who allowed this to happen. Just watch “The Last Days of the Lehman Brothers”  Not only did these banks take the money from the government in 2008 but they completely used it against the USA and us the PEOPLE to SCREW US! Now the BANKS control Everything and it is about time for them to take the blame for what they did and put the ones of who were involved in it into prison.

I expect that the coming days ahead will be vary big! Especially in the Financial Sector. If there is any news that breaks of Goldman (GS) admitting to wrong doing, CEO Lloyd Blankfein may have to tell them what he really knows. Meaning he may announce news of which could involve other Banks!  Imagine if all these banks get investigated and are found guilty.
Currently Goldman Sachs (GS) is a Complete SELL SELL SELL. It would not surprise me if we see Goldman Drop into the Low $90.00 by the end of today. Personally I would stay away from all Financials. I expect a SELL OFF of all major Banks until this matter gets handled.

Disclosure – Currently do not hold a position, nor plan to hold a position in Goldman Sachs or any other Financial Sector within the next 3 trading days. Some of the information of which was used for this post can be found at http://www.latimes.com/business/la-fi-blankfein-goldman-20110823,0,2783618.story

Starbucks Corporation (SBUX) – is a roaster and retailer of specialty coffee in more than 50 countries around the world. Starbucks purchases,roasts whole bean coffees, and sells them. Starbucks also sells a variety of handcrafted coffee and tea beverages, plus many fresh food items via their company stores. In October 2010, the Company acquired Magic Johnson Enterprise’s remaining 50% interest in Urban Coffee Opportunities.

Starbucks being one of the leading roaster of specialty coffee had wonderful third quarter results for the 2011 year. Earnings not only soared 33% year over year but had EPS at 36 which out beat most analysis.

(SBUXS)- Revenues and Margins

Total sales foe Q3 jumped 10.5% to $2,417.3 million in the quarter compared with $2,186.7 million in the prior-year quarter.

Adjusted operating margin for Q3 expanded 40 basis points (bps) to 13.7%.

Adjusted operating margin in the U.S. segment jumped to 18.8% from 16.7%.

On an international level Net Revenue surged 20% year over year to $658.5 million in Q3, reflecting a 5% growth in same-store sales.

Starbucks Looking Forward Predictions.

Starbucks raised its fiscal 2011 earnings guidance to the range of $1.50 to $1.51, from the previously communicated 15% to 20% growth over fiscal 2010 non-GAAP EPS on a comparable 52-week basis.

Starbucks has also unveiled a new three-region corporate structure to accelerate its growth strategy in China and Asia Pacific, including all Asia Pacific markets and China; Americas, including the United States, Canada, Mexico and Latin America; and EMEA, including Europe, U.K., Middle East, Russia and Africa.

Currently I have (SBUX)Starbucks at a HOLD HOLD HOLD Rating.

Disclosure – At this time I currently do not have any position in Starbucks nor do I plan on having any in the next 3 trading day.