This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

The Day Ahead: Channel Your Inner Financial Bushwhacker

Basics of a "Horror Story" Stock

Qualification #1: A company investing aggressively into 2012 end in marketing, headcount, or physical structures. This is happening while it's probable the Street has failed to adjust earnings estimates down to an appropriate baseline (modelers are watching the Fed, come on). Qualification #2: A company that has gotten in the face of Mr. Market to say earnings are at risk, but the market doesn't care today. Qualification #3: There is a disease in the financial statements that will worsen in the medium-term.

How Boston Beer Fills the Glass
  • Boston Beer has publicly stated that it is "prepared to forsake earnings in the short-term" to invest. Yet, the stock trades at 25x forward earnings (beyond exorbitant multiple for a packaged food company or a consumer staple, you choose), building in a takeover rumor in the valuation that has been around for as long as I have covered the company (Qualifications #1 and #2).
  • The heart of the business, Sam Adams non-seasonal brews, is experiencing waning volume (Qualification #3).
  • The gross margin is being eaten by higher costs and unfavorable product mix (Qualification #3).
At the time of publication, Sozzi had no positions in the stocks mentioned.

Brian Sozzi is Chief Equities Analyst for NBG Productions. In this capacity, he is responsible for developing independent financial content and actionable stock recommendations (including ratings and price targets) for an institutional and retail investor base. In addition, Sozzi is the Editor in Chief of the "Decoding Wall St." investor education online platform.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free

Markets

Chart of I:DJI
DOW 16,027.05 -177.92 -1.10%
S&P 500 1,853.44 -26.61 -1.42%
NASDAQ 4,283.7530 -79.3910 -1.82%

Our Tweets

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs