Kelev

Dow's and Monsanto's SmartStax Looks Like a Blockbuster

DOW will unload its Ag division to pay down debt, no doubt. On paper, the company is insolvent and they don't have nearly the cash flow to be safe beyond debt service requirements.

ADR Overview - Which Stocks Look Good, Which Don't

At the time of publication, ATE was trading at a $3.1B market cap. Today, ATE sits at $4.6B. Price has skyrocketed on low volume. Strong short sell.

Autozone: Show me the money

ORLY is fairly pricey, but at least they have positive equity built up in the company. They are serious about gaining market share and I see them as a major obstacle to AZO's growth. ORLY's debt is only about 1/3 of their book equity, which makes it more manageable than AZO's debt, which is piled on top of negative equity.
I don't think either company is a buy, and AZO is definitely a sell.


On Jul 23 08:06 AM Rhino Realty wrote:

> Informative. Can you provide same details on peer O'Reilly ?

Autozone: Show me the money

ORLY is fairly pricey, but at least they have positive equity built up in the company. They are serious about gaining market share and I see them as a major obstacle to AZO's growth. ORLY's debt is only about 1/3 of their book equity, which makes it more manageable than AZO's debt, which is piled on top of negative equity.
I don't think either company is a buy, and AZO is definitely a sell.

Industrial Orders Dry Up in Europe

TEX is not a hold. It is a buy by almost any measure - trading below tangible book with outstanding cash flow.

Staying Away from These 15 Dividend Decreasers

GCI has been beaten up pretty badly and although it is in a terrible industry, they have solid cash flow and are trading at a forward P/E of less than 2. Their $0.16 divy per year is still 6% at today's prices.

Harry Winston: Looking Below the Surface for True Value

I think you missed the boat on some key issues. The Diavik mine in Canada is widely recognized as one of the most productive diamond mines on Earth. They do not operate the mine -- they simply own 40% of what comes out of it. It's a property right. Also, they do not even use the diamonds from Diavik in their own stores. They sell them to diamond cutters and manufacturers around the world. They have no vertical integration risk if the mine suddenly becomes unprofitable -- which it won't. You mentioned some low-grade material coming out of Diavik -- this is a low-grade zone that has now passed. If you look at the reports on output from the mine, you will see that in the past several months, the average carat and quality of the diamonds produced has been rapidly increasing, back to prior levels. 2009 will be a very good year at Diavik, and as you pointed out, they make a lot more money off the mine than they do at their stores. I think it's a buy.