Windmere-Durable Holdings, Amgen, Automobile Protection, Cintas
A selection of some of the most intriguing stock newsletter suggestions on the Web. The items presented do not represent the views of
TheStreet.com
; rather, the collection is offered as a service to our members who may be scanning the Web for stock-related information.
Windmere-Durable Holdings
Norman Fosback
(12/21)
Windmere-Durable Holdings
(WND)
, manufacturer of household products, has seen some rough times recently, plummeting 85% from this year's high. But judging from the actions of company insiders, the stock is on its way back, reports Norman Fosback, writing in
The Insiders
newsletter.
The stock plummeted primarily because cost saving didn't materialize from the acquisition of
Black & Decker's
(BDK)
household products division. In addition, sales in Latin America and Canada have been disappointing. The company responded by raising money via a 3 million-share stock offering and floating 10% subordinated notes. That didn't satisfy shareholders. The stock bottomed near 4, and six class-action lawsuits were filed and are pending.
But all indications are that the company is turning around. Windmere officers and directors bought shares in September, and then again in October. In all, 105,000 shares were bought at an average price per share of $5.41. (The stock is now trading around 5 3/ 4.) "This company has excellent recovery potential," writes Fosback. "The company is growing rapidly by acquisition, and insiders are on a buying stampede. Buy."
More information can be found at:
www.tfc.com
Amgen
Online Investor
(12/21)
Life seems good for drug manufacturer
Amgen
(AMGN) - Get Report
, especially since winning an arbitration victory over
Johnson & Johnson
(JNJ) - Get Report
in a dispute over which company had the right to exclusively distribute Amgen's new anti-anemia drug, NESP. World of the victory sent the stock to new heights, at 103 3 /4, reports
Online Investor
. It has since settled back slightly to around 102.
The dispute between Amgen and J&J stems from an agreement for J&J to sell Amgen's drug Epogen. J&J claimed that agreement meant it had the right to market NESP because the new drug is an improved version of Epogen. But the arbitration panel ruled otherwise, and Amgen won the rights to potentially billions of dollars in annual sales from NESP.
But sales of its two superstar products, Epogen and cancer drug Neupogen, indicate some aging, and new products are quite a ways down the development road. With the 65% runup in stock price this year, some analysts are reconsidering, some are downgrading and some are announcing "hold" ratings. So unless something more than the J&J win surfaces, ever-soaring valuations may not be the case in the near future, says
Online Investor
.
More information can be found at:
fnews.yahoo.com
Automobile Protection
INVESTools
(12/21)
Two small-stock investors are high on
Automobile Protection
(APCO)
, which markets and administers vehicle service contracts and extended warranty programs for new and used cars,
Richard Geist of
Richard Geist's Strategic Investing
newsletter, calls APCO a "classic growth company," citing record revenues and earnings for the third quarter and an annual revenue growth rate of 37% over the most recent three years. "APCO has maintained steady growth for several years and has the potential to grow at about 25% per year in the coming two years," says Geist.
Jon Steinberg of
Individual Investor's Special Situations Report
points out that the company achieved 23 consecutive quarters of record revenues, mostly by concentrating on establishing relationships with companies such as
Honda
(HMC) - Get Report
,
Allstate
(ALL) - Get Report
and
BancOne
(ONE) - Get Report
. "The reason to check out APCO is for its alliances and earnings history, not just because it beat earnings expectations," says Steinberg. He also notes the firm has a very healthy balance sheet, with $29 million, or $2.34 per share, in the bank. Steinberg maintains a buy recommendation and a 12-month target price of $16. The stock is currently trading around 10.
More information can be found at:
www.investools.com
Cintas
Robert Metz
(12/22)
Uniform maker
Cintas
(CTAS) - Get Report
may be "King of the Drab," but it is a solid company that has succeeded, as many others have, by gaining critical mass in a very fragmented market, says
Money Talks
stock columnist Robert Metz.
The $19 billion uniform industry is "ripe for continued consolidation," says
Merrill Lynch
analyst Fran Blechman Bernstein, whose research is cited by Metz. Management is experienced and executives have most of their net worth invested in the company's stock -- a good sign. Chairman Richard T. Farmer owns 24.3% of the company.
Bernstein rates the stock a "long-term buy," citing its stable 19% earnings growth over the past 15 years, low debt and solid balance sheet. It should be a "core holding," she says. Her 12-month price objective is 71. The stock is trading at 62.
More information can be found at:
