dividends paid
FAIR ISAAC CORP. $44.96 (New York symbol FICO; TSINetwork Rating: Average) (415-472-2211; www.fairisaac.com; Shares outstanding: 33.8 million; Market cap: $1.5 billion; Dividend yield: 0.2%) makes FICO Scores, the computer program that dominates the market for software that businesses use to evaluate customer creditworthiness. The company is also profiting by selling software that helps credit card issuers control fraud and analyze their clients’ spending patterns. I In its fiscal 2012 third quarter, which ended June 30, 2012, Fair Isaac’s earnings per share rose 1.7%, to $0.59 from $0.58. That matched the consensus estimate of $0.59. Revenue rose 6.5%, to $160.5 million from $150.7 million.
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Research spending is a hidden plus
DUNDEE CORP. $24 (Toronto symbol DC.A; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 54.7 million; Market cap: $1.3 billion; Price-to-sales ratio: 1.8; No dividends paid; TSINetwork Rating: Average; www.dundeecorp.com) is a holding company with investments in wealth management, real estate, resources and agriculture. In the quarter ended June 30, 2012, Dundee lost $16.8 million, or $0.34 a share. That’s because it wrote down the value of securities it holds by $34.0 million. A year earlier, it earned $21.0 million, or $0.28 a share, partly due to $1.9 million in investment gains. Revenue jumped 40.7%, to $171.2 million from $121.7 million. Dundee is still a buy.
ADOBE SYSTEMS $33.44 (Nasdaq symbol ADBE; TSINetwork Rating: Average) (408-536-6000; www.adobe.com; Shares outstanding: 496.1 million; Market cap: $16.6 billion; No dividends paid) makes software that lets computer users create, edit and share documents in the popular PDF format. As well, graphic designers use Adobe’s software to create print publications and web pages.
Adobe’s revenue rose 6.6% in the three months ended August 31, 2012, to $1.08 billion from $1.03 billion a year earlier. Even so, that missed the consensus estimate of $1.1 billion.
The company is doing a good job of selling its Creative Cloud package of photo-editing and desktop-publishingprograms as a subscription service instead of a one-time purchase.
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Adobe’s revenue rose 6.6% in the three months ended August 31, 2012, to $1.08 billion from $1.03 billion a year earlier. Even so, that missed the consensus estimate of $1.1 billion.
The company is doing a good job of selling its Creative Cloud package of photo-editing and desktop-publishingprograms as a subscription service instead of a one-time purchase.
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TEMPUR-PEDIC $33.39 (New York symbol TPX; TSINetwork Rating: Speculative) (800- 878-8889; www.tempurpedic.com; Shares outstanding: 59.5 million; Market cap: $2.0 billion; No dividends paid) plans to buy rival Sealy Corp. (symbol ZZ on New York) for $1.3 billion.
Sealy, which was founded in 1881, makes a wide range of spring-coil beds under the Sealy, Sealy Posturepedic, Sealy Embody, Stearns & Foster and Bassett brands.
The purchase lets Tempur-Pedic diversify into the market for traditional spring-coil beds. Right now, the company manufactures and distributes therapeutic mattresses and pillows made from its Tempur material. But that’s become a more competitive market because other mattress makers have introduced many new products and supported them with aggressive promotions.
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Sealy, which was founded in 1881, makes a wide range of spring-coil beds under the Sealy, Sealy Posturepedic, Sealy Embody, Stearns & Foster and Bassett brands.
The purchase lets Tempur-Pedic diversify into the market for traditional spring-coil beds. Right now, the company manufactures and distributes therapeutic mattresses and pillows made from its Tempur material. But that’s become a more competitive market because other mattress makers have introduced many new products and supported them with aggressive promotions.
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AMAZON.COM $247.49 (Nasdaq symbol AMZN; TSINetwork Rating: Extra Risk) (206-266-1000; www.amazon.com; Shares outstanding: 452.1 million; Market cap: $111.9 billion; No dividends paid) is now launching a new service, called Amazon Lending, which will offer loans to its online sellers.
This new service adds credit risk—the company will make loans of up to $800,000 to selected merchants—but the move should boost Amazon’s sales. That’s because the additional cash will let merchants stock more inventory to sell through the company’s websites, especially heading into the holiday season.
Amazon.com is still a hold.
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This new service adds credit risk—the company will make loans of up to $800,000 to selected merchants—but the move should boost Amazon’s sales. That’s because the additional cash will let merchants stock more inventory to sell through the company’s websites, especially heading into the holiday season.
Amazon.com is still a hold.
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NISSAN MOTOR CO. (ADR) $17.11 (Nasdaq symbol NSANY; TSINetwork Rating: Above Average) (310-771-3111; www.nissanmotors.com; Shares outstanding: 2.3 billion; Market cap: $39.4 billion; No dividends paid) has won a big contract with New York City’s Taxi and Limousine Commission to replace over 13,000 of the city’s taxi cabs that are nearing the end of their useful lives. Nissan beat out Ford (symbol F on New York) for the contract.
The vote went 5 to 2 for Nissan to supply its NV200 “Taxi of Tomorrow” sedan. The commission will put the new fleet into service beginning in October 2013. The cars will last for over a decade.
Powered by a 2.0-litre four-cylinder engine, the NV200s have much lower carbon emissions and better fuel efficiency than the cars they are replacing.
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The vote went 5 to 2 for Nissan to supply its NV200 “Taxi of Tomorrow” sedan. The commission will put the new fleet into service beginning in October 2013. The cars will last for over a decade.
Powered by a 2.0-litre four-cylinder engine, the NV200s have much lower carbon emissions and better fuel efficiency than the cars they are replacing.
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RUBY TUESDAY, INC. $7.65 (New York symbol RT; TSINetwork Rating: Speculative) (865-379-5700; www.rubytuesday.com; Shares outstanding: 64.0 million; Market cap: $489.6 million; No dividends paid) reports that its sales rose 0.8% in the three months ended September 4, 2012, to $332.9 million from $330.3 million a year earlier. Sales rose even though the company closed 27 less profitable restaurants. Same-restaurant sales rose 1.9%.
Excluding one-time items, the company earned $0.05 a share in the latest quarter, unchanged from a year earlier. That matched the consensus estimate.
Ruby Tuesday has developed a number of new restaurant concepts, including Marlin & Ray’s seafood estaurants and Lime Fresh Mexican Grills. The company feels these new layouts will help it compete in certain towns and cities. It’s now building new restaurants under these banners and converting underperforming outlets.
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Excluding one-time items, the company earned $0.05 a share in the latest quarter, unchanged from a year earlier. That matched the consensus estimate.
Ruby Tuesday has developed a number of new restaurant concepts, including Marlin & Ray’s seafood estaurants and Lime Fresh Mexican Grills. The company feels these new layouts will help it compete in certain towns and cities. It’s now building new restaurants under these banners and converting underperforming outlets.
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NEW GOLD $11.84 (Toronto symbol NGD; TSINetwork Rating: Speculative) (888-315-9715; www.newgold- .com; Shares outstanding: 462.0 million; Market cap: $5.5 billion; No dividends paid) has four operating mines: the Mesquite mine in the U.S., the Cerro San Pedro mine in Mexico, the Peak mine in Australia and the just-completed New Afton mine in B.C. It also owns 30% of the El Morro copper/gold project in Chile (Goldcorp Inc. owns the other 70%).
El Morro contains an estimated 4.7 million ounces of gold and 3.7 billion pounds of copper. New Gold also owns the Blackwater property in central B.C., which could hold as much as 7.8 million ounces of gold.
The company reported cash flow of $0.12 per share in the three months ended June 30, 2012, up 20.0% from $0.10 a share a year earlier.
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El Morro contains an estimated 4.7 million ounces of gold and 3.7 billion pounds of copper. New Gold also owns the Blackwater property in central B.C., which could hold as much as 7.8 million ounces of gold.
The company reported cash flow of $0.12 per share in the three months ended June 30, 2012, up 20.0% from $0.10 a share a year earlier.
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DOMINO’S PIZZA $41.20 (New York symbol DPZ; TSINetwork Rating: Average) (734-930-3030; www.dominos.com; Shares outstanding: 56.7 million; Market cap: $2.3 billion; No dividends paid) continues to benefit from its new pizza recipes, digital ordering and aggressive international expansion.
The stock jumped over 7% on October 16, 2012, when the company reported higher earnings in the quarter ended September 9, 2012. Earnings per share jumped 22.2%, to $0.44 from $0.36 a year earlier. Same-store sales rose 3.3% in the U.S. and 5.0% internationally.
Domino’s opened its 10,000th store in September. It now has 10,040 outlets in the U.S. and over 70 other countries. Franchisees run most of its stores.
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The stock jumped over 7% on October 16, 2012, when the company reported higher earnings in the quarter ended September 9, 2012. Earnings per share jumped 22.2%, to $0.44 from $0.36 a year earlier. Same-store sales rose 3.3% in the U.S. and 5.0% internationally.
Domino’s opened its 10,000th store in September. It now has 10,040 outlets in the U.S. and over 70 other countries. Franchisees run most of its stores.
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eBay has moved far beyond its original auction website business in the past 17 years. It’s now a complete e-commerce platform that helps merchants sell their goods and collect payments. Demand for the company’s services should keep rising, particularly in developing countries, where online shopping is growing and there are fewer traditional retailers to compete with. eBay now gets over half of its sales from outside the U.S. EBAY INC. $48 (Nasdaq symbol EBAY; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 1.3 billion; Market cap: $62.4 billion; Price-to-sales ratio: 4.8; No dividends paid; TSINetwork Rating: Above Average; www.ebay.com) launched its online auction site in September 1995. It now has 104.8 million users worldwide. The company charges users fees to list and sell their goods through its websites. On top of used goods, the company is also selling more merchandise from retailers. That’s helping it compete with Amazon.com. Right now, sales of new items at fixed prices account for over 60% of eBay’s total transactions....