ARG
Buckeye and Cedar Fair operate in industries that are difficult to enter, which limits competition. This competitive advantage should continue to let both of them pay above-average distribution yields, despite the difficult economy.
BUCKEYE PARTNERS L.P. $37 (New York symbol BPL; Income Portfolio, Utilities sector; Units outstanding: 48.4 million; Market cap: $1.8 billion; Price-to-sales ratio: 0.9; WSSF Rating: Average) operates over …read more »
CONAGRA FOODS INC. $16 (New York symbol CAG, Income Portfolio, Consumer sector; Shares outstanding: 447.1 million; Market cap: $7.2 billion; Price-to-sales ratio: 0.5; WSSF Rating: Above Average) reports that a recent salmonella outbreak has lowered sales of its Peter Pan peanut butter. However, the source of the contamination, Peanut Corp. of America, is not one of its suppliers. In 2007, …read more »
SHERWIN-WILLIAMS CO. $46 (New York symbol SHW; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 116.9 million; Market cap: $5.4 billion; Price-to-sales ratio: 0.7; WSSF Rating: Above Average) is North America’s largest paint producer. It also operates over 3,300 retail paint stores, which supply 60% of its sales.
In 2008, Sherwin’s sales fell 0.3%, to $7.98 billion from $8.01 billion in the …read more »
The bleak outlook for the U.S. housing industry continues to weigh on Sherwin-Williams and La-Z-Boy. Their cost-control plans and industry-leading brands should help them cope, but both will probably make little progress in the next few months.
SHERWIN-WILLIAMS CO. $46 (New York symbol SHW; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 116.9 million; Market cap: $5.4 billion; Price-to-sales ratio: 0.7; WSSF …read more »
CHEVRON CORP. $64 (New York symbol CVX; Conservative Growth Portfolio, Resources sector; Shares outstanding: 2 billion; Market cap: $128 billion; Price-to-sales ratio: 0.7; WSSF Rating: Above Average) is the second-largest integrated oil company in the United States, after ExxonMobil. Oil production supplied 86% of its earnings in 2008; the remaining 14% came from its refineries and retail gas stations.
In response …read more »
This year, global oil consumption will probably fall for the first time since the early 1980s. We feel now is a good time to buy well-established oil companies that can take advantage of low oil prices. The three listed below are good examples; all have low debt and plenty of cash, which puts them in a good position to buy …read more »
AUTODESK INC. $14 (Nasdaq symbol ADSK; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 226.3 million; Market cap: $3.2 billion; Price-to-sales ratio: 1.4; WSSF Rating: Average) makes computer-assisted design software that lets engineers and architects visualize, simulate and analyze the performance of their products early in the design process. This saves time and money, and improves the quality of …read more »
The market downturn has been particularly hard on cyclical technology companies like Symantec and Autodesk. However, both are world leaders in their niches, which gives them an advantage over competitors; many users prefer to avoid having to learn new software. As well, both companies continue to heavily invest in research. This hurts their earnings, but the resulting new products will …read more »
TOROMONT INDUSTRIES LTD. $20.51 (Toronto symbol TIH; SI Rating: Extra Risk) (416-667-5511; www.toromont.com; Shares outstanding: 64.6 million; Market cap: $1.3 billion) operates in two business segments: the equipment group and the compression group.
The equipment group’s Caterpillar dealership, which covers Ontario, Manitoba, Newfoundland, and most of Labrador and Nunavut, is one of the world’s largest. It also includes rental operations. Also …read more »
MAJOR DRILLING. $14.31 (Toronto symbol MDI; SI Rating: Speculative) (www.majordrilling.com; 1-866-264- 3986; Shares outstanding: 23.7 million; Market cap: $339.3 million) is a large drilling company that mainly serves the mining industry.
In the three months ended October 31, 2008, Major Drilling’s revenues rose 22.4%, to $191 million from $156.1 million. Excluding one-time items, its earnings rose 28.5%, to $29.3 million, or …read more »
