This post is part of a special annual report -- Top Stock Picks '09 -- in which TheStockAdvisors.com asked 75 leading newsletter advisors to select their favorite investment for the new year.
As his top pick for 2009, leading value investor Charles Mizrahi looks to Intuit (NASDAQ: INTU), the maker of QuickBooks, Quicken, and TurboTax. Here's the latest from Hidden Values Alert.
"Intuit is s a leading provider of business and financial management solutions for small and medium sized businesses, financial institutions, consumers, and accounting professionals.
"Their flagship products and services, including QuickBooks, Quicken, and TurboTax, simplify small business management and payroll processing, personal finance, and tax preparation and filing.
"ProSeries and Lacerte are Intuit's leading tax preparation offerings for professional accountants. Its Digital Insight, provides on-demand banking services that help banks and credit unions serve businesses and consumers with innovative solutions.
"Founded in 1983 and based in Mountain View, California, INTU had revenue of $3.1 billion in our fiscal year ended July 31, 2008.
"Free cash flow as a percentage of sales is 18.5%; for each $1 of sales, 18.5 cents falls to the bottom line. Management continues to lessen the share count. Over the past five years shares outstanding have declined by 20%.
"INTU is a well-run business and a price of $21 or lower per share represents a very good value. If INTU can grow earnings at only 13% per annum and maintain a P/E of 15, the stock will handsomely reward investors during the next five years."
Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.
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Reader Comments (Page 1 of 1)
1-09-2009 @ 1:15AM
imtjm said...
yeah right, intuit messed up royally with the new pricing scheme for turbotax.