I first discussed California Pizza Kitchen (CPKI) here on May 16, 2009, at a price of $13.53. Shares have resumed an uptrend -- making good on my March 2010 analysis to stick with CPKI -- and I still like the shares.

Note: I consider CPKI to be a high-risk stock not suitable for low-risk or moderate-risk investors.

California Pizza's first-quarter 10 cent earnings per share performance was in-line with Wall Street estimates, and that was more than enough to keep investors interested, given challenging restaurant sector conditions.

Continue reading California Pizza Is in an Uptrend

California Pizza Is in an Uptrend originally appeared on BloggingStocks on Fri, 18 Jun 2010 15:00:00 EST. Please see our terms for use of feeds.

I have written up eight companies that have a chance to be among the top 25 stocks for the NEXT 25 years and I thought it might be time for some discussion. You, the readers have sent in quite a bit of responses to the first six names. Most of your responses have been very positive and I certainly appreciate it. But many of you have been raising questions that I believe need a general response.

Let's put a few ideas and myths to rest once and for all.

The top 25 for the NEXT 25 years are bound to be smaller capitalization companies. By definition, they have to be. I recommend a number of companies on my website that are of a larger capitalization, but to make the list, the law of large numbers is against the larger cap names. If a $20 billion market cap names five folds over the next 10 years, that's a great return and no one should be unhappy. But if a $500 million market cap name goes to $20 billion in value, that's a 40 times return. So, the names will be of a smaller cap nature.

With high-growth companies early in their development, don't get hung up on lack of dividends. High growth companies do not pay dividends, nor should they. You want every penny of after-tax earnings to be plowed back into the business. Mature companies tend to pay cash dividends because their growth rates have slowed, the business lines are well-funded, and the excess cash is returned to shareholders. The downfall is that the stocks will not grow as fast in value as a high-growth company that is executing well. The big joke among portfolio managers when Microsoft Corp. (NASDAQ: MSFT) declared its one time $3 dividend and initiated a quarterly dividend was that the party was over! When is the funeral? Microsoft was signaling that the high-growth, plow the earnings back into the business era was over. The stock traded sideways for nearly three years as Microsoft tried to get its footing back.

Continue reading The Top 25 Stocks for the NEXT 25 Years -- Discussion

The Top 25 Stocks for the NEXT 25 Years -- Discussion originally appeared on BloggingStocks on Sat, 19 May 2007 08:40:00 EST. Please see our terms for use of feeds.