Stocks Under $10 With David Peltier
Reviewing the Numbers
Model portfolio name McDermott (MDR:NYSE) announced better- than-expected third-quarter results overnight and we want to review the numbers for readers. We're not taking any action in this Alert.The company earned 50 cents a share in the quarter, which was 11 cents ahead of the consensus analyst estimate. Revenue grew 1% from the previous year to $1.68 billion, which also exceeded expectations by $150 million.
While the headline numbers were strong, a majority of the earnings upside was driven by a lower realized tax rate during the quarter. McDermott's backlog fell $1 billion sequentially to $8.5 billion, as weaker government and power generation demand offset improvement in the energy division.
Despite these negative items, the stock opened fractionally higher and was recently trading around $24.62, ahead of the 10 a.m. EST conference call. We will maintain our Three rating on McDermott until we receive more information from management on the call.
Regards,
David Peltier & the TSC Research Team
David welcomes your questions on Stocks Under $10. Please
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Recent Actions
Today's sharp market pullback offers a good opportunity to add shares to this well positioned model portfolio name.
11/27/09 - 10:32 AM ESTTwo model portfolio names are in the news today amid chatter on an obesity-drug study and a takeout rumor.
11/23/09 - 12:28 PM ESTAdding to our position and upgrading our rating as we believe the company will rebound in the current period.
11/20/09 - 10:58 AM ESTWeekly Roundups
We focused on researching new names for the model portfolio this week and used Friday's pullback to add shares to one holding.
11/27/09 - 02:17 PM ESTPlease note that any trading ideas suggested in the Product prior to June 9, 2009 were recommended by Mr. Frank Curzio.
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TheStreet.com Stocks Under $10 portfolio is a model portfolio of stocks chosen by the author in accordance with his stated investment strategy. Your actual results may differ from results reported for the model portfolio for many reasons, including, without limitation: (i) performance results for the model portfolio do not reflect actual trading commissions that you may incur; (ii) performance results for the model portfolio do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the stocks chosen for the model portfolio may be volatile, and although the "purchase" or "sale" of a security in the model portfolio will not be effected in the model portfolio until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks in the model portfolio at the point in time you begin subscribing to TheStreet.com Stocks Under $10 may be higher than such prices at the time such stocks were chosen for inclusion in the model portfolio. Past results are not necessarily indicative of future performance.span> Past results are not necessarily indicative of future performance.
TheStreet.com Stocks Under $10 portfolio is a model portfolio of stocks chosen by the authors in accordance with their stated investment strategy. Your actual results may differ from results reported for the model portfolio for many reasons, including, without limitation: (i) performance results for the model portfolio do not reflect actual trading commissions that you may incur; (ii) performance results for the model portfolio do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the stocks chosen for the model portfolio may be volatile, and although the "purchase" or "sale" of a security in the model portfolio will not be effected in the model portfolio until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks in the model portfolio at the point in time you begin subscribing to TheStreet.com Stocks Under $10 may be higher than such prices at the time such stocks were chosen for inclusion in the model portfolio.
Past results are not necessarily indicative of future performance.| Dow Jones | S&P 500 | NASDAQ | 10-Year Note | |
|---|---|---|---|---|
| 10,309.92 | 1,091.49 | 2,138.44 | 32.31 |
Oil *
77.12
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DOWN
154.48
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DOWN
19.14
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DOWN
37.61
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DOWN
0.48
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10 Yr
3.23%
SPDR Gold
115.06
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-1.48%
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-1.72%
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-1.73%
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-1.46%
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Data delayed 20 minutes |
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