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For nearly twenty years, Doug Gerlach has taught individuals and investment clubs to make smarter decisions about investing in the stock market, through books, software tools, websites, and educational presentations across the U.S. Gerlach is the President of ICLUBcentral Inc., makers of... More
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ICLUBcentral Inc.
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My book:
Pocket Idiot's Guide to Direct Stock Investing
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  • Russia's Yandex (YNDX) Poised For Above-Average Long-term Returns

    Yandex (YNDX), recommended in the September 2012 issue of the SmallCap Informer newsletter at $21.12, reported third-quarter results on October 30, 2012, with revenues of $235.2 million, up 33% compared with Q3 2011. EPS were up 26.4% to $0.22. The company explained that core contextual search business drove the strong top-line growth and maintained its 60+% market share of the Internet search business in Russia.

    YNDX also launched its own cloud-based browser, with support for automatic translations, security to block malicious websites, and user-selectable search engines. Third-party developers can also customize the browser for their particular needs.

    Since the earnings report was released, Yandex has released a search app for the iPad and rolled out a enhancements to its automobile classified ad service. The price has also fallen from a peak of $23.31 on October 31 to a recent price of $21.15. On the street, analysts are projecting 29% EPS growth over the next five years. Even if the company grows on average well below that rate and the P/E Ratio contracts accordingly, the stock is still poised to deliver above-average returns at its current valuation.

    We see Yandex as a buy up to $23.00.

    Disclosure: I am long YNDX.

    Tags: YNDX
    Dec 06 1:11 PM | Link | Comment!
  • AECOM Technology (ACM) Struggling In Global Slowdown, Possible Opportunity

    In the December 2012 issue of the Investor Advisory Service newsletter, our analysts updated their view of AECOM Technology (NYSE:ACM).

    The progress that AECOM Technology was making this year screeched to a halt. For the fourth fiscal quarter ended September 30, sales fell 2%. The Professional Technical Services (PTS) segment, the firm's dominant source of sales, fell 3%, while the smaller Management Support Services (MSS) segment grew 11%. The company is struggling with the contracting global economy, particularly Europe. Earnings took a big hit as AECOM recorded a $317 million after-tax impairment charge spread over both business segments. Without the charge EPS actually grew 10%, to $0.83, as previous cost-cutting efforts helped profit margins.

    For Fiscal 2013 the company is taking a cautious approach and expects EPS of $2.40-$2.50, up 4%-9%. The company indicated its best use of capital during this global slowdown is to aggressively repurchase stock and pursue accretive acquisitions.

    ACM is a buy up to 23. Our analysts see the potential for a 20% total annual return through 2017 if the company can meet our goals for EPS growth.

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

    Dec 05 11:48 AM | Link | Comment!
  • Top Investing Ideas For 2013: Free Webinar

    With questions about the direction of the economy, fiscal policy, and political bipartisanship clouding the picture for the year ahead, I invite you to join me as I cut through the noise with some top stock and mutual fund picks for 2013 as part of the Retail Investors Conference on Thursday, December 6, 2012.

    Selected by analysts from our three top-rated investing newsletters, the Investor Advisory Service, the SmallCap Informer, and the Mutual Fund Informer, the ideas presented in this session will help long-term oriented investors to earn superior returns in their stock and fund portfolios.

    In addition, I will discuss the methodology and performance results of the three newsletters, along with tips for putting them to maximum use in an individual investors' portfolios.

    The presentation is free, but advance registration is required. Register now.

    I look forward to seeing you at the presentation!

    Dec 05 11:47 AM | Link | Comment!
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