price to sales ratio
TERADATA CORP. $73 (New York symbol TDC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 168.6 million; Market cap: $12.3 billion; Price-to-sales ratio: 4.9; No dividends paid; TSINetwork Rating: Average; ww.teradata.com) continues to see strong demand for its analytics services, which help businesses gather and analyze large amounts of data, including customer purchasing patterns. The company’s revenue rose 14.5% in the three months ended June 30, 2012, to $665 million from $581 million a year earlier. Earnings per share rose 28.3%, to $0.77 from $0.60. However, the company is facing stronger competition from bigger companies like IBM and Oracle. That could force it to lower its prices, which would hurt its profit margins. Teradata is a hold....
ADOBE SYSTEMS INC. $33 (Nasdaq symbol ADBE; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 491.8 million; Market cap: $16.2 billion; Price-to-sales ratio: 3.7; No dividends paid since June 2005; TSINetwork Rating: Average; www.adobe.com) reported that its revenue rose 6.6% in the three months ended August 31, 2012, to $1.08 billion from $1.01 billion a year earlier. The company is doing a good job of selling its Creative Cloud package of photo-editing and desktop-publishing programs as a subscription service instead of a one-time purchase. Subscription revenue jumped 50.9% in the quarter, and now accounts for 16% of its overall revenue, up from 11% a year earlier. Adobe still gets 75% of its revenue from direct software sales. The remaining 9% comes from services and support. Earnings rose 6.7%, to $291.2 million from $272.8 million. Earnings per share rose 5.5%, to $0.58 from $0.55, on more shares outstanding. These figures exclude several unusual items, such as restructuring charges and gains on investment sales....
NEWMONT MINING CORP. $55 (New York symbol NEM; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 496.2 million; Market cap: $27.3 billion; Price-to-sales ratio: 2.6; Dividend yield: 2.5%; TSINetwork Rating: Average; www.newmont.com) is the world’s second-largest gold miner by production, behind Barrick Gold Corp. (New York symbol ABX). The company has major mines in the U.S., Australia and Peru. It gets about 90% of its revenue from gold. The remaining 10% comes from copper, zinc and other metals. Newmont sells its gold at the market rate instead of through hedging contracts that lock in prices. This policy has helped it take full advantage of rising gold: its average realized gold price jumped 124.1%, from $697 an ounce in 2007 to $1,562 in 2011. Lack of hedges unleashed earnings...
NORDION INC. $6.87 (Toronto symbol NDN; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 62.0 million; Market cap: $425.9 million; Price-to-sales ratio: 1.0; Dividend suspended in September 2012; TSINetwork Rating: Extra Risk; www.nordion.com) fell 30% after it lost its arbitration case against government-owned Atomic Energy of Canada Ltd. It may also have to pay part of Atomic Energy’s legal costs.
Nordion gets 40% of its revenue from selling isotopes for medical research and cancer treatments. Most of its isotopes come from Atomic Energy’s 53-year old Chalk River nuclear reactor near Ottawa.
In 1996, the company hired Atomic Energy to build two new reactors, called MAPLE, which would replace Chalk River. In 2006, Atomic Energy bought MAPLE and agreed to supply isotopes to Nordion for 40 years. However, Atomic Energy shut down MAPLE in 2008 due to rising costs.
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Nordion gets 40% of its revenue from selling isotopes for medical research and cancer treatments. Most of its isotopes come from Atomic Energy’s 53-year old Chalk River nuclear reactor near Ottawa.
In 1996, the company hired Atomic Energy to build two new reactors, called MAPLE, which would replace Chalk River. In 2006, Atomic Energy bought MAPLE and agreed to supply isotopes to Nordion for 40 years. However, Atomic Energy shut down MAPLE in 2008 due to rising costs.
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NEWMONT MINING CORP. $55 (New York symbol NEM; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 496.2 million; Market cap: $27.3 billion; Price-to-sales ratio: 2.6; Dividend yield: 2.5%; TSINetwork Rating: Average; www.newmont.com) is the world’s second-largest gold miner by production, behind Barrick Gold Corp. (New York symbol ABX). The company has major mines in the U.S., Australia and Peru. It gets about 90% of its revenue from gold. The remaining 10% comes from copper, zinc and other metals.
Newmont sells its gold at the market rate instead of through hedging contracts that lock in prices. This policy has helped it take full advantage of rising gold: its average realized gold price jumped 124.1%, from $697 an ounce in 2007 to $1,562 in 2011.
Lack of hedges unleashed earnings
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Newmont sells its gold at the market rate instead of through hedging contracts that lock in prices. This policy has helped it take full advantage of rising gold: its average realized gold price jumped 124.1%, from $697 an ounce in 2007 to $1,562 in 2011.
Lack of hedges unleashed earnings
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ADOBE SYSTEMS INC. $33 (Nasdaq symbol ADBE; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 491.8 million; Market cap: $16.2 billion; Price-to-sales ratio: 3.7; No dividends paid since June 2005; TSINetwork Rating: Average; www.adobe.com) reported that its revenue rose 6.6% in the three months ended August 31, 2012, to $1.08 billion from $1.01 billion a year earlier.
The company is doing a good job of selling its Creative Cloud package of photo-editing and desktop-publishing programs as a subscription service instead of a one-time purchase. Subscription revenue jumped 50.9% in the quarter, and now accounts for 16% of its overall revenue, up from 11% a year earlier. Adobe still gets 75% of its revenue from direct software sales. The remaining 9% comes from services and support.
Earnings rose 6.7%, to $291.2 million from $272.8 million. Earnings per share rose 5.5%, to $0.58 from $0.55, on more shares outstanding. These figures exclude several unusual items, such as restructuring charges and gains on investment sales.
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The company is doing a good job of selling its Creative Cloud package of photo-editing and desktop-publishing programs as a subscription service instead of a one-time purchase. Subscription revenue jumped 50.9% in the quarter, and now accounts for 16% of its overall revenue, up from 11% a year earlier. Adobe still gets 75% of its revenue from direct software sales. The remaining 9% comes from services and support.
Earnings rose 6.7%, to $291.2 million from $272.8 million. Earnings per share rose 5.5%, to $0.58 from $0.55, on more shares outstanding. These figures exclude several unusual items, such as restructuring charges and gains on investment sales.
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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.
The company also operates several other highly popular websites, including StubHub (live event ticket sales), Shopping.com (comparison shopping) and Rent.com (apartment and house rentals). In addition, it has local websites that sell classified advertising in over 1,000 cities. In all, eBay’s websites provide 54% of its revenue.
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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.
The company also operates several other highly popular websites, including StubHub (live event ticket sales), Shopping.com (comparison shopping) and Rent.com (apartment and house rentals). In addition, it has local websites that sell classified advertising in over 1,000 cities. In all, eBay’s websites provide 54% of its revenue.
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VERIZON COMMUNICATIONS INC. $46 (New York symbol VZ, Conservative Growth Portfolio, Utilities sector; Shares outstanding: 2.9 billion; Market cap: $133.4 billion; Price-to-sales ratio: 1.2; Dividend yield: 4.5%; TSINetwork Rating: Average; www.verizon.com) is close to completing its $3.9- billion purchase of wireless spectrum from a group of cable companies. This will help Verizon profit from rising wireless data use: the Federal Communications Commission estimates mobile data demand will be 25 to 50 times greater by 2015 than it was in 2010.
The company also increased its quarterly dividend by 3.0%, to $0.515 a share from $0.50. The new annual rate of $2.06 yields 4.5%.
Verizon is a buy.
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The company also increased its quarterly dividend by 3.0%, to $0.515 a share from $0.50. The new annual rate of $2.06 yields 4.5%.
Verizon is a buy.
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TERADATA CORP. $73 (New York symbol TDC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 168.6 million; Market cap: $12.3 billion; Price-to-sales ratio: 4.9; No dividends paid; TSINetwork Rating: Average; ww.teradata.com) continues to see strong demand for its analytics services, which help businesses gather and analyze large amounts of data, including customer purchasing patterns. The company’s revenue rose 14.5% in the three months ended June 30, 2012, to $665 million from $581 million a year earlier. Earnings per share rose 28.3%, to $0.77 from $0.60.
However, the company is facing stronger competition from bigger companies like IBM and Oracle. That could force it to lower its prices, which would hurt its profit margins.
Teradata is a hold.
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However, the company is facing stronger competition from bigger companies like IBM and Oracle. That could force it to lower its prices, which would hurt its profit margins.
Teradata is a hold.
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SHERWIN-WILLIAMS CO. $146 (New York symbol SHW; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 102.6 million; Market cap: $15.0 billion; Price-to-sales ratio: 1.6; Dividend yield: 1.1%; TSINetwork Rating: Above Average; www. sherwin-williams.com) earned $227.8 million in the quarter ended June 30, 2012, up 27.2% from $179.1 million a year earlier. Earnings per share rose 30.7%, to $2.17 from $1.66, on fewer shares outstanding. Sales rose 9.3%, to $2.6 billion from $2.4 billion.
Demand for the company’s paints has moved up as the U.S. housing market continues to recover. That’s making it easier for Sherwin to increase its prices to cover its rising raw material costs (the company uses oil to make its paint). However, the stock has gained 92% in the past year, and now trades at a high 22.9 times Sherwin’s projected 2012 earnings of $6.38 a share.
Sherwin-Williams is a hold.
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Demand for the company’s paints has moved up as the U.S. housing market continues to recover. That’s making it easier for Sherwin to increase its prices to cover its rising raw material costs (the company uses oil to make its paint). However, the stock has gained 92% in the past year, and now trades at a high 22.9 times Sherwin’s projected 2012 earnings of $6.38 a share.
Sherwin-Williams is a hold.
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