Given that the markets have come down a bit over the past week, there are a few stock and ETF names that might be worth looking at now. While there is always the chance that these names could fall further, they do look attractive at current prices so why not take a peek?
1. Carbo Ceramics (CRR) is the world’s largest supplier of ceramic proppant, used in the hydraulic fracturing of natural gas and oil wells, the provider of the world’s most popular fracture simulation software, and provides fracture design and consulting services. The stock dropped in early August after its latest earnings report at the end of July. Despite beating on both the top and bottom line, certain segment sales missed and gross margins were below expectations. The company also warned that their competition was gaining ground. The stock fell from $180 to $120 in the upcoming weeks, bounced back to $160, and is now back at those $128. The stock bounced more than $13 yesterday from its lows to the close, as the markets rose and I believe some short covering occurred. I'd wait for those $115 to $120 levels.
Why may this stock be a buy now? Well, for starters, since the last earnings report, analysts have raised EPS numbers for the current quarter, next quarter, full year, and next year. The company is currently expecting 32% revenue growth this year and 29% next year. EPS is expected to grow 63% this year and 36% next year. Of the 13 analysts currently rating the stock, 7 have buys, 5 have holds, and 1 has an underperform. Current price targets range from $155 to $232, with an average of $190. Even the lowest target implies 30% upside from here.
The company has a very clean balance sheet too. The company has no debt and its liabilities to assets ratio is just 12.45%. Over the past 3 quarters its current ratio has increased from 4.20 to 5.37. The company's cash levels could cover all current liabilities. Property, Plant and Equipment has risen by $44 million, or 13% in the last 3 quarters. The company has been investing in its business, and it shows. It also pays a small dividend.
2 & 3. Chinese Technology: These stocks have been hammered lately. For a good read on the overall sector, check out this article. While I agree with some of the factual information, like the Chinese government tightening restrictions and increasing censorship rules, I do think some of these stocks are worth a look. I like SINA if it drops back into the $70s. I also agree that Baidu (BIDU) is a buy, as my article recently said that even at $140 I thought you could increase your position. But Baidu was under $115 yesterday, so today's $128 may not be the best entry right now.
4. Sodastream (SODA) - Although I've traded the name a few times, last quarters' earnings report and subsequent 50% drop in stock price led me to believe this could be a fad. However, yesterday, I heard a radio commercial for the company's product telling me how making soda at home is so much better than buying it at the store.
Yes, there was a little sarcasm in that last statement, but it brings up a good point. At basically the size of an all-in-one printer, the machine is not big and bulky. While you do have to run out and refill the CO2 bottle every now and then, plus get additional drink syrups, this product has caught on quite a bit. If it truly becomes the Green Mountain of soda, this stock at $37 is the steal of the century. Green Mountain is worth about $16 billion, Soda currently trades at $675 million.
Now I hear that Sodastream's soda costs about $2 to $3 for 2 liters worth, but I'm not an expert on that number. At the store, rising commodity prices have pushed certain 2-liter soda prices close to $2.00 when not on sale. Even on sale, it's hard finding them now for under $1.50 a bottle. And CNBC's taste test found that Sodastream's sodas are comparable in taste to your normal Coke or Pepsi.
Now there are plenty of growth concerns and last quarter's conference call made a lot of investors run for the exits. But now that we are back within a few bucks of the company's lows of the past few months, it might be worth a look.
5. Coffee Holding (JVA) - Shares of JVA have lost 50% in the past month and continue their downward spiral today on news of a share offering and some insider selling. Kinda looks foolish that they are selling around $10 a share when a month ago they could have gotten double that price. This was a rocket stock earlier in the year, going from $3 to $30, but remember, at current prices, the market cap is only $57 million. It's very volatile and maybe not the best long term investment, but could be a good trade if it falls a little further.
6. Walter Energy (WLT) - The stock hit a new 52-week low last week as fears of a recession would definitely slow down this metallurgical coal company, which supplies the steel industry. The stock had settled in nicely after a spike due to a buyout rumor, but is now back below those pre-rumor levels. If you believe in a recession, you want to stay away from this name at current levels. But if you think this is all just panic, wait for the next leg down and then pounce.
7. Walgreen (WAG) - The stock was down 6.3% today despite beating estimates on concerns over their deal with Express Scripts. Failure to strike a new deal will impact their overall EPS by up to 28 cents per share, depending on how many customers they lose. That's up to 10% of their projected profit for 2012. The good news is that they had a very strong quarter, beating on both the top and bottom line. A drop like this may provide an excellent entry point, and the company has a 2.66% current dividend yield. However, you are currently betting on a new deal being reached, which according to some, is appearing less and less likely.
8. Apple (AAPL) - Stock is back around $400 following news of Ipad shipment cuts and the scheduling of the October 4th IPhone event. Apple usually drops during these types of events, so I'd wait to see the news before jumping in currently. Long term, this is definitely a stock to be in, but don't pay too much for it. Apple is currently down on a day where the markets are up close to 2%.