Monthly Archives: December 2011

Bell Canada Enterprises, A Solid Company

BCE Inc. is one of the major Canadian telephone companies: Bell Canada Enterprises. It competes with Telus (TU), Rogers Communications (RCI), and many smaller companies such as Wind Mobile, Public Mobile and Mobilicity. The trend in the telephone industry is away from the traditional wired services and towards wireless services. The wireless services may be from an antenna network or via satellite. This trend means that the old wire networks will be used less each year and therefore will generate fewer profits. One of the strategies that the big telecoms use is to develop wireless business segments. They can either develop in house wireless capabilities and/or buy out competitors who have already developed wireless capabilities and market shares.

In terms of fundamentals, Bell Canada has good profitability figures. The operating margin (ttm) is 21.93% and the profit margin (ttm) is 11.87%. Management effectiveness is also good. The return on assets is 6.63% and the return on equity is 16.70%. Cash flow from operating activities is $4.79 billion. BCE also gives a dividend of $2.07 per share. Bell has raised the dividend rate 7 times over the last 5 years by a cumulative total of 57%.

Some of the mangers of CBE include Siim A. Vanaselja, Wade Osdterman and Kevin Crull.

Disclaimer: The information in this article is an insufficient basis for investment decisions. All decisions should be based on a thorough analysis of the investment.

CenturyLink third Largest Telcom in U.S.

CenturyLink, Inc. (CTL) is a telecommunications company which provides a range of telecommunications services, has a stock which is on the way up and also pays dividends. It is the 3rd largest telecom company in the U.S. and is on the Fortune 500 group of the U.S.’s largest corporations. It is also on the S&P 500 list.

CenturyLink provides international broadband services, internet services, cable services, voice, data, internet and video services as well as providing network databases. In addition, the company supplies standard wired telephone services, local and long distance.

This month, CenturyLink won a multi-year order worth more than $250 million from the Department of Defense (DISA/DITCO) to supply private line service for high-speed connections between military installations.

Some of the CenturyLink managers are Girish Varma, Karen Puckett, Stacey W. Goff, Jim Ousley, R. Stewart Ewing, Jr.,  Stephanie Comfort, William E. Cheek, and Chris Ancell.

Disclaimer: The information in this article is insufficient to base investment decisions on. All decisions should be based on a thorough analysis of the investment.

Yuan Rises Over Dollar And Will Remain There

The Yuan reached an all-time high trading against the dollar and appears that it will appreciate 4% for the year 2011 according to traders. The currency will probably continues to appreciate in 2012 as China continues with large trade surpluses and despite American pressure to allow the Yuan to rise in order to balance bilateral trade.

It is presumed that appreciation of the Yuan will slow to approximately 3% next year and will remain relatively stable during the first half of the year. This will provide an opportunity for the Chinese government to examine the impact of the European economic crisis. Then the expected rise in Yuan will come in the second half of 2012.

In order to stabilize the currency, when necessary, the People’s Bank of China (PBOC) has also sold dollars in order to weaken the dollar and strengthen the Yuan.

The PBOC appears to be maintaining the Yuan’s trading range between 6.3 to 6.4 Yuan to the dollar. This rate has remained in effect since early November and is likely to be maintained well into 2012. This provides an opportunity for forex traders to profit within that range.  For more information see the Reuters article by Lu Jianxin and Kazunori Takada.

Looking For a Stock That’s Going Up?

GNC Holdings Inc.’s stock has been rising since its Initial Public Offering (IPO) in April 2011. It started off at $16.75 and has risen to 28.65 over the past 8 months. That’s a 75% gain in 8 months. Could be worse!

GNC Holdings is a retail marketer of health and wellness products. GNC markets minerals, vitamins, herbal supplements, diet products, sports nutrition products etc. GNC markets its products under proprietary brands such as Mega Men, Longevity Factors, Ultra Mega, Pro Performance and GNC Wellbeing. The company has about 7,300 locations: 5,600 are retail stores (including 895 franchise operations and 2029 rite-aid store within a store). There are also franchise stores in 48 countries.

GNC has a market cap of $3.03 billion and an enterprise value of $3.79 billion. Regarding profit, the operating margin is 13.69% and the profit margin is 5.68%. Regarding management effectiveness, the return on assets is 7.06% and the return on equity is 12.70%.  In addition, quarterly revenue growth, year over year, is 15.50%. This company looks solid and, as I said, the stock has been going up for 8 months.

Some of the managers of GNC are: Jeffrey Hennion, Amy Lane, Thomas Dowd and Joe Fortunato.

Disclaimer: The information in this article is insufficient to base investment decisions on. All decisions should be based on a thorough analysis of the investment.

IT Services Industry: CDI

CDI Corp. (CDI) may be planning to improve its business but its stock has been rising since the beginning of October. On December 8th, CDI announced a strategic plan to promote long-term company growth. This plan will improve key areas such as client relations, technical service, engineering solutions, IT solutions, staffing and other area. On December 8th, the company also announced that it will be firing 200 people to cut costs.

The stock hit a 2 year bottom of $10.50 on August 18th and on October 1 it started to rise. The stock price rose from $10.30 to $13.02 on December 19th.  Interestingly enough, 32% of the shares are owned by company insiders. The above serves as a good buying sign.

So far the company’s profit and other statistics have not been very impressive, but if the new improvement plan works the company will take off, along with its stock.

Some of the mangers of of CDI are: Peggy Besand, Greg Thullner, Robert M. Larney, Brian D. Short, and Eric L. Moorehead.

Disclaimer: The information in this article is insufficient to base investment decisions on. All decisions should be based on a thorough analysis of the investment.

IT Services Industry: Computer Task Group Inc.

Computer Task group, Inc. supplies IT solutions and staffing services mainly in Europe and North America. CTG’s services include selection and implementation of software packages. The company also makes and integrates new software systems and develops customized software solutions.

The company provides solutions for health information management, medical care management, medical fraud, insurance assessments, and abuse detection and repair. CTG also helps start-ups.

Computer Task Group retains staff for technology service providers and for other companies that don’t have the IT staff to cover its needs. CTG serves the following industries: energy, financial, healthcare and technology.

Some of the mangers of Computer Task Group are Filip J.L. Gyde, Arthur W. Crumlish, and Peter P. Radetich.

Some of its competitors are: CIBER, Inc. (CBR) and Analysts International Corp. While the Ciber and Analysts International’s stocks are declining, the Computer Task Group stock is doing well.  CTG’s stock has been rising since its low of $9.79 on September 22. At closing today, on December 19, the stock was at $13.34. It seems to be on the upswing. In addition, on November 9, 2011, Northland Securites initiated a position on CTG and rated the stock as “outperform.” I believe that this stock is worth analyzing and perhaps buying.

Disclaimer: The information in this article is insufficient to base investment decisions on. All decisions should be based on a thorough analysis of the investment.

Information Technology Services Industry: Analysts International Corp.

Analysts International Corp. is one of many companies in the information technology services industry. Its services include internet technology staffing in the following formats: managed teams, solutions to project issues including solution implementations and system integration. The company also improves enterprise resource planning, implementation and also management services. It has 971 full-time employees.

Analysts International services has  clients in the following industries: manufacturing, business, technology, finance, energy, insurance, retail, communications, healthcare, utilities and government. The company works in the United States.

Analysts’ management effectiveness ratios are as follows: return on assets of 8.92% and return on equity of 19.54% which are fairly good. The profitability ratios are less good but still profitable. The profit margin is 2.77% and the operating margin is  3.51%.

As far as the stock, now is not the time to buy. However, this is  a growing industry and I will also be reviewing other companies in this industry.

Some of the managers of this company are  Bill Wolff, Virgil Pint and  Brittany Mckinney.

Some competitors are: CIBER, Inc. (CBR) and Computer Task Group Inc. (CTGX).

While the Ciber Inc. and Analysts International Corp. stocks are declining, the Computer Task Group are doing well.

Disclaimer: The information in this article is insufficient to base investment decisions on. All decisions should be based on a thorough analysis of the investment.

Insider Trading: Imitation Is The Sincerest Form Of Flattery

On November 11th, one of the directors of Iridium Communications, Inc (IRDM), Scott L. Bok, bought 50,000 shares of Iridium’s stock for $357,000. From the first to the twelfth of December, company insiders purchased more than 80,000 shares of Iradium. On Wall Street, there’s a saying about insider buying: There are several possible reasons to sell stocks, but only one reason to buy. What could that be?

From the beginning of 2011 until August, the stock was trading in the narrow range between $ 8 and $9. From August to October, the stock declined to $5.50. It has been headed upwards ever since, reaching $7.49 on December 14th. It is interesting that the insider trading started one month after the stock began to rise. The stock is still rising. See Yahoo Finance for more information.

Managers at Iridium include Gregory C. Ewert, Thomas D. Hickey, and Matthew J. Desch. The Board of Directors includes Alvin B. Krongard, Parker W. Rush, Steven B. Pfeiffer, Peter M. Dawkins, Thomas C. Canfield and Robert H. Niehaus.

Disclaimer: The information in this article is insufficient to base investment decisions on. All decisions should be based on a thorough analysis of the investment.

Is NeuStar A Good Investment?

Are you interested in a stock that has steadily but slowly gone up from March 2009 to October, 2011 and since October has gone up from $25 to $34. Well NeuStar Inc (NSR) looks like the company. However, when we look under the surface, we see that the company has offered a tender to buy back 9.9 percent of its class A common stocks. The price that NeuStar will pay is $34.50. The tender closed last Friday with the selling price of $33.46. The price continues to rise and is now up to 33.96. The question is will the stock continue to rise or will it settle down to where it was 3 months ago at $25.

According to Brian Nelson, this stock is undervalued and therefore being sold at a bargain price. NeuStar was a spin off from Lockheed Martin in 1999. The company runs databases that direct the rooting of phone calls through North America’s networks and carriers.

The management of NeuStar includes Dennis G. Ainge, Paul S. Lalljie, Mark F. Bregman, Lisa A. Hook, Steve J. Edwards and Scott Blake Harris.

Disclaimer: The information in this article is insufficient to base investment decisions on. All decisions should be based on a thorough analysis of the investment.

American Tower Is Standing Tall

American Tower Corporation (AMT) stock has been rising for the last three years. Three years ago it was $20.92 and today it is $58 .15. There have been a few ups and downs along the way but relative to market volatility, nothing drastic. In fact, the stock essentially continued to rise even though the market was moving in high volatility. The SMA 200 graph shows a steady but slow upward climb since July 2010. The SME 30 also shows a steady climb since August.

Net income from continuing operations increased significantly during 2010. The net operating income rose significantly in2011. However, there has been tremendous increase in “other expenses” of $145 million during the third quarter of 2011  which created a net loss of $15 million for that quarter. American Tower recently announced that it would be buying 2,500 telephone towers at $500 million to grow its business. That would indicate that they are confident about the future. For more information see what Karvy Global at The Street writes about AMT.

For an opposing opinion see what Seeking Alpha says.

Some of the managers of American Tower Corp are Edmund Disanto, Amit Sharma, James Taiclet and Hal Hess.

Disclaimer: The information in this article may be insufficient to base investment decisions upon. Before making each investment, the investment should be thoroughly analyzed.