The numbers: The company swung to a second-quarter profit of $9.7 million, or 12 cents a share, from a loss of $350,000, or 1 cent, in the year-earlier period. Revenue increased 55% to $33 million. Its gross margin rose from 40% to 43%, but its operating margin dropped from 10% to 7%. The company has a strong financial position, with $77 million of debt, compared to $79 million of cash. A debt-to-equity ratio of 0.3 indicates fiscal prudence.
The stock: Jaguar Mining has more than doubled this year, outpacing major U.S. indices. As a result of net losses in the third and fourth quarter of 2008, the stock now trades at a price-to-earnings ratio of 95, a premium to gold peers and the market. The company doesn't pay dividends.
The model upgraded aircraft-components maker Triumph Group (TGI) to "buy."
The numbers: Fiscal first-quarter net income decreased 27% to $18 million and earnings per share dropped 16% to $1.30. Revenue fell 1% to $316 million. Its gross margin declined from 31% to 29% and its operating margin fell from 14% to 12%. A quick ratio of 1.1 demonstrates ample liquidity and a debt-to-equity ratio of 0.5 indicates conservative leverage.The stock: Triumph Group is up 6% this year, underperforming major U.S. indices. The stock trades at a price-to-earnings ratio of 8, a discount to aerospace and defense peers and the market. The shares offer a dividend yield of less than 1%. The model upgraded health-care-equipment maker Young Innovations (YDNT) to "buy." The numbers: Second-quarter revenue declined 5% to $25 million, but net income advanced 7% to $3.3 million and earnings per share climbed 11% to 42 cents. Its gross margin rose from 57% to 60% and its operating margin increased from 19% to 22%. A quick ratio of 1.2 indicates ample liquidity and a debt-to-equity ratio of 0.2 demonstrates modest leverage.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV