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Adam Ritt
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Director of Communications at BetterInvesting (www.betterinvesting.org), a nonprofit dedicated to investment education. Our focus is on long-term investing in growth stocks using fundamental analysis. Companies are mentioned for educational purposes only. No investment recommendations are intended.
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  • Texas Instruments: Chipping Away at Old Image?
    The most recent meeting of BetterInvesting Magazine's Editorial Advisory and Securities Review Committee meeting centered on revisiting a company that I doubt you've thought about much over the past few years: Texas Instruments. My memories of TI go back to the 1970s and a row of calculators chained to a table at my dad's office, and my impressions haven't changed much since then. Indeed, one can infer by looking at the company's sales growth over the last several years that this is a mature company with unexciting investment potential. But the committee found much to be intrigued about regarding the company's prospects over the next several years. The company has managed to reinvent itself, committee members said, and when this happens, it's an opportunity to revisit the stock. Today TI holds strong positions in several markets, such as analog and embedded processing, Value Line reports, and long-term sales growth is expected to exceed 10 percent annually. Analysts are looking at 10 percent long-term EPS growth--not spectacular, but OK for a company of this size. Coupled with a decent dividend yield, TXN could be an attractive investment over the next five years, committee members said.


    Disclosure: No positions
    Jul 07 11:12 AM | Link | Comment!
  • AECOM's History Pleasing to the Eye
    This month's meeting of BetterInvesting Magazine's Editorial Advisory and Securities Review Committee reminded me why I enjoy these meetings so much. The committee selected AECOM Technology (NYSE:ACM) as the Stock to Study, a company I never would have known about if it weren't for these gatherings. ACM provides a variety of construction-related services and in its relatively short history has displayed excellent growth with great opportunities for additional expansion over the next several years.

    In the Stock Selection Guide for ACM, you see what BetterInvesting members look for in companies they study: sales and earnings growing year by year at relatively high annual rates. (Sales growth should be studied more carefully in this case, however, because the company's gross sales includes a lot of pass-through costs — look at the net revenues.) BetterInvesting members also will consider the company's narrow profit margins and relatively short history (five years of financial results is a minimum requirement), and they'll also be skeptical that the company can continue growing at its historical pace, but there's no doubt a quick look at the Stock Selection Guide's Visual Analysis section will lead many to investigate further.


    Disclosure: No positions
    Tags: ACM, construction
    Jun 08 9:25 AM | Link | Comment!
  • Teva Stands Out in Generics Industry
    Teva Pharmaceutical Industries Limited, a producer of generic drugs, was selected as BetterInvesting Magazine's latest Stock to Study. The company has managed to excel in a highly competitive industry and maintain high, fairly consistent growth in sales and earnings over the long term. It would be unreasonable to expect annual growth to continue in the historical range of 25 percent to 30 percent, but Teva should have plenty of opportunities for strong growth in the years ahead. Teva faces an important issue, however, and ironically it's related to its branded-drug business. Copaxone, the MS drug that's accounted for $2.8 billion of the company's $13.9 billion in sales in 2009, is facing patent challenges. For long-term investors, Teva will have to show that it can offset the expected drop in revenues from Copaxone, but they should be encouraged by management's strong historical performance. BetterInvesting members have been building their positions in Teva for several years. The company ranked No. 11 in this year's Top 100 Survey of Investment Clubs.


    Disclosure: No position
    May 03 9:19 AM | Link | Comment!
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