stock pickers
When markets rebound, we tend to hear from more investors asking whether they should invest in junior mines. My first answer is that you should have your portfolio spread out among the five main economic sectors (Manufacturing & Industry, Resources & Commodities, the Consumer sector, Finance and Utilities). Still, junior mining stocks can play a role in that part of your portfolio you have for more aggressive investments. Even then, it is important to realize just how long the odds against success can be before you proceed....
RUBY TUESDAY INC., $7.10, symbol RT on New York, reports that its revenue rose 0.8% in the three months ended September 4, 2012, to $332.9 million from $330.3 million a year earlier. Revenue 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. The company owns 712 of its U.S. restaurants; franchisees operate 78 outlets in the U.S. and overseas....
FAIRFAX FINANCIAL HOLDINGS, $376.90, symbol FFH on Toronto, owns 43.2% of Cunningham Lindsey, one of the world’s largest insurance claims management companies. Private-equity firm Stone Point Capital LLC holds a 51% interest. Cunningham Lindsey’s services include claims adjusting, appraisal and claims and risk management. Its customers include insurance and reinsurance companies, insurance brokers and multinational corporations....
TEMPUR-PEDIC, $29.89, symbol TPX on New York, jumped as high as $33 this week after it announced plans to buy rival Sealy Corp. (symbol ZZ on New York). Tempur-Pedic will pay $1.3 billion, consisting of $228.6 million in cash plus the assumption of all of Sealy’s debt. 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....
This summer, natural gas prices dropped below $2 U.S.per thousand cubic feet, a 10-year low. That’s mainly because of new shale gas discoveries. Prices are now around $2.84, still well below last year’s high of almost $5. Oil prices have weakened, as well. They are now down 16%, from $109 a barrel in February to $92 today. Oil prices will continue to vary, while gas prices will likely recover. The key for this tech stock that serves the energy industry is that prices remain high enough to generate increased drilling for both oil and gas....
CHIPOTLE MEXICAN GRILL, $336.40, symbol CMG on New York, offers higher-quality food and better decor and service than many fast-food chains, and charges slightly higher prices. Under its Food with Integrity initiative, it uses naturally raised meat wherever possible. All of Chipotle’s naturally raised meat comes from animals that are raised in a humane way, never given antibiotics or hormones, and fed a pure vegetarian diet. To expand its Food with Integrity offerings, Chipotle opened a ShopHouse Southeast Asian Kitchen restaurant in Washington, D.C.’s Georgetown neighbourhood in September 2011. The company now plans to open a second location in Georgetown later this year or in early 2013....
APPLE INC., $691.28, Nasdaq symbol AAPL, unveiled the latest version of its hugely popular iPhone martphone this week. The new iPhone 5 features a larger touchscreen, faster processor and a longer-lasting battery. As well, the new model is compatible with long-term evolution (LTE) wireless networks, which are roughly five times faster than current networks. As well, Apple has upgraded iOS, the software that powers its mobile devices. It has also improved some of its other products, including its iPod music players....
ALARMFORCE INDUSTRIES, $11.65, symbol AF on Toronto, reports that it attracted more customers and increased its revenue in the latest quarter. However, its earnings fell as it continued to expand its business. In the three months ended July 31, 2012, the company’s sales rose 10.9%, to $11.4 million from $10.3 million a year earlier. Even so, AlarmForce lost $6,589, or nil per share, compared to a profit of $831,342, or $0.07 a share. AlarmForce’s earnings fell because it increased its advertising spending as it expanded into Florida. It also invested more in its VideoRelay system, which it launched in October 2011. VideoRelay lets subscribers watch their homes through their computers and smartphones....
ALIMENTATION COUCHE-TARD, $49.95, symbol ATD.B on Toronto, reported sharply higher sales and earnings in its latest quarter. The company is the largest convenience store operator in Canada, with over 2,000 outlets. It also has nearly 3,700 U.S. stores. The Canadian stores operate under the Couche-Tard and Mac’s banners, while the U.S. stores mainly use the Circle K brand. If you exclude one-time costs related to its $2.7-billion purchase of Norway’s Statoil Fuel & Retail ASA, Couche-Tard’s earnings rose 23.8% in the three months ended July 22, 2012, to $173.0 million from $139.7 million a year earlier (all figures except share price in U.S. dollars). Earnings per share rose 26.7%, to $0.95 from $0.75, on fewer shares outstanding. Sales rose 16.1% to $6.0 billion from $5.2 billion....
CAMECO CORP., $21.48, symbol CCO on Toronto, has agreed to buy the Yeelirrie uranium project in Western Australia from BHP Billiton, symbol BHP on New York. BHP is a recommendation of Wall Street Stock Forecaster, our newsletter that focuses on U.S. stocks. Cameco is the world’s largest uranium producer. It supplies over 25% of global production and has large, high-grade reserves, low-cost operations, significant market share and a number of uranium mines. Cameco will pay $430 million U.S. for Yeelirrie when the deal closes by the end of 2012. The company held cash and investments of $894.9 million (Canadian) on June 30, 2012, so it can comfortably afford this purchase....