3 Interesting Speculative Growth And Dividend Plays

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Includes: NMM, TNK, WPRT
by: Tactical Investor

The stocks featured in this article are speculative stocks. In other words, only investors willing to take on extra risk should consider them. Investors who are risk averse should stop and move on right now. Out of the 3 stocks listed, Navios Maritime Partners LP (NYSE:NMM) has the best fundamentals, net income, sales, cash flow and EBITDA have been rising for the past 3 years. It also sports a very handsome yield of 12.7%.

The following factors should be viewed as small positive developments if present in any of the suggested plays.

  • The rate at which net income is dropping is slowing down.
  • The rate at which cash flow per share is dropping is slowing down.
  • Sales for the past three year are trending upwards.
  • Projected 3-5 year EPS growth is in 10%-15% ranges.
  • A current ratio above 2.5 0
  • A quick ratio of 2.00

Bonus factors

  • Volume spike on an up day - this is usually a sign of accumulation and maybe close to putting in a bottom.
  • Insider buying - it is always a good sign of a turnaround, especially if the stock is beaten down.

Company: Navios Maritime Partners LP

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Brief Overview

  1. Percentage Held by Insiders = 9.23%
  2. Profit Margin = 35%
  3. Operating Margin = 40.3%
  4. Quarterly Revenue Growth = 7.5%
  5. Quarterly Earnings Growth = 23.5%
  6. Operating Cash Flow = 138M
  7. Beta = 1.37
  8. Levered Free Cash Flow = 59M
  9. Percentage Held by Institutions = 24.6%
  10. Sales vs 1 year ago = 30%
  11. Sales vs 1 quarter ago = 7.5%
  12. EPS vs 1 year ago = 23%
  13. Long term debt to equity = 0.45

Growth

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  1. Net Income ($mil) 12/2011 = 65
  2. Net Income ($mil) 12/2010 = 61
  3. Net Income ($mil) 12/2009 = 34
  4. Net Income Reported Quarterly ($mil) = 17
  5. EBITDA ($mil) 12/2011 = 139
  6. EBITDA ($mil) 12/2010 = 109
  7. EBITDA ($mil) 12/2009 = 59
  8. Cash Flow ($/share) 12/2011 = 2.86
  9. Cash Flow ($/share) 12/2010 = 2.49
  10. Cash Flow ($/share) 12/2009 = 2.24
  11. Sales ($mil) 12/2011 = 187
  12. Sales ($mil) 12/2010 = 143
  13. Sales ($mil) 12/2009 = 93
  14. Annual EPS before NRI 12/2007 = 0.15
  15. Annual EPS before NRI 12/2008 = 1.56
  16. Annual EPS before NRI 12/2009 = 1.66
  17. Annual EPS before NRI 12/2010 = 1.51
  18. Annual EPS before NRI 12/2011 = 1.4

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Dividend history

  1. Dividend Yield = 12.7
  2. Dividend Yield 5 Year Average = 11.33

Dividend sustainability

  1. Payout Ratio = 4.73
  2. Payout Ratio 5 Year Average = 1.08

Performance

  1. Next 3-5 Year Estimate EPS Growth rate = 5
  2. ROE 5 Year Average = 24.89
  3. Current Ratio = 1.19
  4. Current Ratio 5 Year Average = 2.26
  5. Quick Ratio = 1.12
  6. Cash Ratio = 1.04
  7. Interest Coverage Quarterly = 7.03

Notes

It sports a positive quarterly revenue and earnings growth rate of 7.5% and 23.5% respectively. In addition, it has a positive levered free cash flow of $59 million; sales vs one year ago equal 30% and net income has continued to improve for three years in a row. Even though one could open new positions as in the 13.50-14.00, ideally one should wait for a test of the 13.00 ranges before jumping in. A weekly close above 15.50 should result in a test of the 17.00 plus ranges.

Company: Teekay Tankers (NYSE:TNK)

Brief Overview

  1. Profit Margin = -10.9%
  2. Operating Margin = 6.3%
  3. Quarterly Revenue Growth = 0.10%
  4. Quarterly Earnings Growth = -41%
  5. Operating Cash Flow = 44.7M
  6. Beta = 1.93
  7. Levered Free Cash Flow = 37M
  8. Sales vs 1 year ago = -13%
  9. Sales vs 1 quarter ago = 0.4%
  10. EPS vs 1 year ago = -41%
  11. Long term debt to equity = 0.45
  12. Short percentage of float = 10.9%

Growth

  1. Net Income ($mil) 12/2011 = -9
  2. Net Income ($mil) 12/2010 = 16
  3. Net Income ($mil) 12/2009 = 42
  4. EBITDA ($mil) 12/2010 = 69
  5. EBITDA ($mil) 12/2009 = 99
  6. Cash Flow ($/share) 12/2011 = 1.08
  7. Cash Flow ($/share) 12/2010 = 1.74
  8. Cash Flow ($/share) 12/2009 = 3.74
  9. Sales ($mil) 12/2011 = 121
  10. Sales ($mil) 12/2010 = 139
  11. Sales ($mil) 12/2009 = 113
  12. Annual EPS before NRI 12/2007 = 2.76
  13. Annual EPS before NRI 12/2008 = 2.6
  14. Annual EPS before NRI 12/2009 = 0.97
  15. Annual EPS before NRI 12/2010 = 0.53
  16. Annual EPS before NRI 12/2011 = 0.17

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Dividend history

  1. Dividend Yield = 14.9
  2. Dividend Yield 5 Year Average = 14.53
  3. Dividend 5 year Growth = -27.81

Dividend sustainability

  1. Payout Ratio = 3.53
  2. Payout Ratio 5 Year Average = 1.93

Performance

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  1. Next 3-5 Year Estimate EPS Growth rate = 3
  2. ROE 5 Year Average = 16.99
  3. Current Ratio = 2.2
  4. Current Ratio 5 Year Average = 2.32
  5. Quick Ratio = 2.00
  6. Cash Ratio = 1.59
  7. Interest Coverage Quarterly = 0.63

Notes

It is still trying to put in a bottom. Consider waiting for a test of the 3.80-3.90 ranges before jumping in. A weekly close above 4.60 will turn the outlook to bullish and should result in a test of the 5.50-6.00 ranges. A weekly close below 3.30 will turn the outlook to bearish and will probably result in the stock putting in a new series of 52-week lows.

Company: Westport Innovations (NASDAQ:WPRT)

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Basic overview

  1. Quarterly revenue growth rate = 136%
  2. Beta = 1.76
  3. Operating cash flow = -41.7M
  4. Long term debt to equity = 0.16
  5. 52 week change = 59%
  6. Sales vs 1 year ago = 53%
  7. Sales vs quarter 1 year ago = 164%
  8. 5 year sales growth rate = 32.5%
  9. Short ratio = 10.10%
  10. 52 week change = 42%

Growth

  1. Net Income ($mil) 12/2011 = -60
  2. Net Income ($mil) 12/2010 = -12
  3. Net Income ($mil) 12/2009 = -7
  4. EBITDA ($mil) 12/2010 = -6
  5. EBITDA ($mil) 12/2009 = 1
  6. Cash Flow ($/share) 12/2010 = -0.85
  7. Cash Flow ($/share) 12/2009 = -0.88
  8. Sales ($mil) 12/2011 = 265
  9. Sales ($mil) 12/2010 = 148
  10. Sales ($mil) 12/2009 = 122
  11. Annual EPS before NRI 12/2007 = -0.11
  12. Annual EPS before NRI 12/2008 = -1.11
  13. Annual EPS before NRI 12/2009 = -1.02
  14. Annual EPS before NRI 12/2010 = -1
  15. Annual EPS before NRI 12/2011 = -1.24

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Performance

  1. Next 3-5 Year Estimate EPS Growth rate = 30
  2. ROE 5 Year Average = -43.53
  3. Return on Investment = -21.54
  4. Current Ratio = 4.60
  5. Current Ratio 5 Year Average = 4.28
  6. Quick Ratio = 4.00
  7. Cash Ratio = 4.42
  8. Book Value = 7.76

Notes

Quarterly revenue growth rate continues to come in strong. In the 1st quarter, it grew by 132% and in the second quarter, it came in at 136%. Sales vs quarter 1 year ago improved by 164%. It has a strong five-year sales growth rate of 32.5% and a low long-term debt to equity ratio of 0.16.

The percentage short of the float stands at a very high 36.8%. This makes it a great candidate for a short squeeze. It also has a projected 3-5 year EPS growth rate of 30%. Consider waiting for a test of the 31.50-33.00 ranges before committing new money to this play. This play does not pay a dividend but is potentially a good growth play for those willing to take a risk. Out of the three stocks, it has the best 52-week performance.

EPS, company vs industry and Price Vs industry charts obtained from zacks.com. A major portion of the historical data used in this article was obtained from zacks.com.

Disclaimer

This list of stocks is meant to serve as a starting point. Please do not treat this as a buying list. It is imperative that you do your due diligence and then determine if any of the above plays meet with your risk tolerance levels. The Latin maxim caveat emptor applies-let the buyer beware

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.