Bottom of the Barrel: Sorting Through the Pile of Picks
As earnings season winds down, many readers have asked for a review of the stocks in the Bottom of the Barrel portfolio. So let's take a quick look at each of the nearly 30 companies in there.
I've reorganized and simplified the portfolio into three clear categories:
Above-average performers: small-cap stocks expected to perform best in the coming months;
Average performers: stocks that deserve your attention but don't quite make the elite list;
|Dressing Up the Barrel
Category changes and realignment
|Current Rating||Company/Ticker||Date of Mention||May 13 Price||Mention Price*||% Change From Mention||First Call 2002 EPS Est.||Current P/E Ratio|
|Fidelity National (LION:Nasdaq)||May 8, 2002||$10.31||$10.58||-2.55%||$0.55||18.75|
|Endocare (ENDO:Nasdaq)||Jan. 23, 2002||19.35||18.21||6.26||0.34||56.91|
|SurModics (SRDX:Nasdaq)||Dec. 19, 2001||37.65||34.60||8.82||0.42||89.64|
|FPIC Insurance (FPIC:Nasdaq)||Nov. 14, 2001||14.37||12.83||12.00||1.25||11.50|
|Trico Marine (TMAR:Nasdaq)||May 1, 2002||$9.15||$8.25||10.91%||$(0.26)||NE|
|Arch Chemicals (ARJ:NYSE)||April 24, 2002||24.20||22.52||7.46||0.55||44.00|
|Hines Horticulture (HORT:Nasdaq)||April 17, 2002||4.64||4.75||-2.32||0.58||8.00|
|UCBH Holdings (UCBH:Nasdaq)||March 27, 2002||39.71||35.65||11.39||1.84||21.58|
|Cost Plus World Markets (CPWM:Nasdaq)||March 6, 2002||31.99||25.83||23.85||1.11||28.82|
|Rare Hospitality (RARE:Nasdaq)||Feb. 20, 2002||28.25||25.72||9.84||1.44||19.62|
|VitalWorks (VWKS:Nasdaq)||Nov. 21, 2001||7.60||4.30||76.74||0.33||23.03|
|NetBank (NTBK:Nasdaq)||Feb. 6, 2002||15.97||13.45||18.74||0.65||24.57|
|Coastal Bancorp (CBSA:Nasdaq)||Dec. 12, 2001||31.75||27.84||14.04||2.41||13.17|
|Coinstar (CSTR:Nasdaq)||Nov. 7, 2001||29.95||19.96||50.05||0.73||41.03|
|Witness Systems (WITS:Nasdaq)||Oct. 31, 2001||7.54||8.06||-6.45||0.16||47.13|
|Hibbett Sports (HIBB:Nasdaq)**||Oct. 24, 2001||27.10||20.04||35.23||1.37||19.78|
|Quixote (QUIX:Nasdaq)||Oct. 3, 2001||18.75||21.44||-12.55||0.72||26.04|
|Actrade (ACRT:Nasdaq)||Jan. 30, 2002||$17.50||$20.65||-15.25%||$3.05||5.74|
|Goody's Family Clothing (GDYS:Nasdaq)||Nov. 28, 2001||10.96||4.50||143.56||0.51||21.49|
|Bridgford Foods (BRID:Nasdaq)||Oct. 10, 2001||14.00||13.18||6.22||NA||NA|
|Quanta Systems (PWR:NYSE)||Jan. 9, 2002||13.60||16.05||-15.26||1.04||13.08|
|Bottom of the Barrel Income Portfolio|
|Capital Automotive REIT (CARS:Nasdaq)||April 3, 2002||$23.70||$22.95||3.27%||$2.03||11.67|
|Laclede Group (LG:NYSE)||March 20, 2002||23.29||23.64||-1.48||1.20||19.41|
|Alexandria Real Estate (ARE:NYSE)||Feb. 13, 2002||44.99||40.25||11.78||3.92||11.48|
|Empire District Electric (EDE:NYSE)||Jan. 16, 2002||21.30||21.23||0.33||1.26||16.90|
|Met-Pro (MPR:NYSE)||Oct. 17, 2001||15.41||11.16||38.08||NA||NA|
|Integra Bancorp (IBNK:Nasdaq)||Jan. 2, 2002||23.25||20.75||12.05||1.50||15.50|
|Bottom of the Barrel Special Situation Portfolio|
|Luby's (LUB:NYSE)||Feb. 27, 2002||$6.70||$6.22||7.72%||$(0.28)||NE|
|*Average price on date of mention.
**Prices adjusted for 3:2 split on Feb. 20, 2002.
NA=No First Call estimates available.
Source: Thomson Financial/First Call, TSC Research
For an explanation of our barrel rating system,
At the Top of the BarrelFour stocks remain at the top of the list: Fidelity National (LION), an Atlanta-based community bank with lots of potential, was
The Middle TierA lot of good companies are in the middle group of stocks. I recently profiled Trico Marine (TMAR), Arch Chemicals (ARJ) and Hines Horticulture (HORT). The stories on all three remain the same. Here's a quick look at the others. UCBH Holdings (UCBH) had a good first quarter, with net income up 29%. I still like
The Real Bottom of the BarrelI continue to avoid four companies in the portfolio: When a stock trades at only five times estimated earnings, there must be a reason. For Actrade (ACRT), the
Looking for IncomeThe stocks in the income portfolio all sport nice, safe dividends. Gains in Alexandria Real Estate (ARE) and Met-Pro (MPR) have pushed yields lower, and taking profits is not unreasonable. The best total return prospects are Laclede Group (LG), which sports a 5.76% yield, and Empire District (EDE), which has a 6% yield. The 6.6% yield of Capital Automotive (CARS) is also attractive. Finally, the Pappas brothers'
I'll continue with weekly portfolio updates and will try to provide a whirlwind look at the entire portfolio each quarter. Next week, look for another addition to the portfolio. Keep your eye on the barrel. Do you have candidates for Bottom of the Barrel? If so,
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