This is the fourth update to my ranting eight months ago that acquiring six of the most hated, and most highly traded stocks with constant negative headlines would outperform the overall market. The theory has born fruit as the toxic stocks are ahead and the difference is increasing over time.

Continue reading Chasing Value: Toxic Stock Update #4 -- BAC, BP, C, GE, GS, RIG

Chasing Value: Toxic Stock Update #4 -- BAC, BP, C, GE, GS, RIG originally appeared on BloggingStocks on Fri, 11 Mar 2011 15:00:00 EST. Please see our terms for use of feeds.

It's that time of year when I start thinking about my 2011 stock picks, and enough folks have been nudging me that I might as well get on with it. The list will not be finalized until the end of the month. During the interim time I will take readers through a number of possibilities, explaining the rational for my suggestions along the way and adding and subtracting until I get the list down to ten.

Today I will start by reviewing opportunities discussed in another post and determine which of these stocks might provide the best value. The list was originally cast as a globally diversified, large cap, dividend paying and relatively stable group of companies that would likely weather any storm. See: Chasing Value: Bonds, Gold, Stocks and Capital Flight

Continue reading Chasing Value: 2011 Stock Picks -- The Journey Begins

Chasing Value: 2011 Stock Picks -- The Journey Begins originally appeared on BloggingStocks on Thu, 02 Dec 2010 15:20:00 EST. Please see our terms for use of feeds.

I have always felt that for all the blabbing we do -- or blogging, in my case -- we should try as best we can to be accountable for our good and bad calls. This report is long overdue, but I will post it anyway since all of my past year's picks and results have been made public.

The market was very harsh in the early part of 2009, filling investors fear and trepidation, and sinking to a March 9, 2009 bottom. Perhaps some of the bleeding has stopped, but the economy has not healed as bears and bulls seem to carry the day, or every other day.

Continue reading Chasing Value™: 2009 Results Crushed the S&P 500

Chasing Value™: 2009 Results Crushed the S&P 500 originally appeared on BloggingStocks on Tue, 31 Aug 2010 10:00:00 EST. Please see our terms for use of feeds.

The first quarter of 2010 is closed and the results are in. My picks surpassed the primary indices by a large margin. The original story, Chasing Value: 10 Stock Picks for 2010 , was the culmination of a process presented to our readers and finally narrowed down to the select group using final prices from Monday, December 28, 2009.

Continue reading Chasing Value: 2010 Picks Triple Market Returns

Chasing Value: 2010 Picks Triple Market Returns originally appeared on BloggingStocks on Mon, 05 Apr 2010 10:00:00 EST. Please see our terms for use of feeds.

Just last week General Electric (GE) surged on news that it will likely boost its dividend by some time in 2011. Coupled with the resumption of General Electric's buyback plan, shares set a new 52-week high.

But before you set off the fireworks and jump back into GE with the rest of the lemmings on Wall Street, take a closer look at the stock's fundamentals. My analysis of this company shows some serious flaws in profits and sales growth. Wall Street has forecast negative revenue growth for each of the next four quarters, and though earnings have topped the Street's low expectations recently, they have been relatively flat. That means GE isn't sinking, but it sure isn't going anywhere.

Continue reading GE vs. H.J. Heinz: Which Is the Tastier Dividend Play?

GE vs. H.J. Heinz: Which Is the Tastier Dividend Play? originally appeared on BloggingStocks on Tue, 23 Mar 2010 17:00:00 EST. Please see our terms for use of feeds.

Besides owning a long-term position, I tried trading the company during the economic crisis. I didn't succeed; I eventually sold the short-term position at a loss, as I mentioned in this piece. But I still hold my long-term shares. And if you haven't been reading the financial news lately, you've missed all the articles about the industrial conglomerate. Looks like everyone is talking about GE, specifically about its potential to come back in the next year or so.

Continue reading Everyone's Talking About GE

Everyone's Talking About GE originally appeared on BloggingStocks on Wed, 17 Mar 2010 15:40:00 EST. Please see our terms for use of feeds.

CBS (CBS) posted Q4 figures Thursday after the bell. The broadcaster, which competes with Disney's (DIS) ABC, General Electric's (GE) NBC, and News Corp.'s (NWS) Fox, said it made 25 cents per share on an adjusted basis. The growth rate wasn't bad at 19%, but unfortunately, expectations were only met. I know, meeting expectations isn't necessarily the worst thing in the world, but let's remember how the analyst game operates: beating estimates is all that matters.

But meeting expectations wasn't the most disappointing part of the story -- far from it. Instead, the flat top line and the decline in cash flow were more relevant elements. Net cash from operations for all of 2009 was a little under $940 million. There was over $2.1 billion generated from operations in 2008.

Continue reading CBS Increases Adjusted Profit in Q4, Cash Flow Down for the Year

CBS Increases Adjusted Profit in Q4, Cash Flow Down for the Year originally appeared on BloggingStocks on Fri, 19 Feb 2010 09:00:00 EST. Please see our terms for use of feeds.

Disney (DIS), a major media company that competes with CBS (CBS), General Electric's (GE) NBC Universal, News Corp. (NWS), Sony (SNE), Time Warner (TWX), and Viacom (VIA), offered up fiscal Q1 data after the bell on Tuesday. From the looks of things, the Mouse had a good quarter.

According to my earnings preview, the call was for net income to come in at 39 cents per share on an adjusted basis. Disney actually made 47 cents per share. Not only was that a more than acceptable beat, but it represents growth of 15%.

Continue reading Disney Starts Off the New Fiscal Year with Solid Results

Disney Starts Off the New Fiscal Year with Solid Results originally appeared on BloggingStocks on Wed, 10 Feb 2010 08:30:00 EST. Please see our terms for use of feeds.

Continue reading Chasing Value: General Cable -- Can Something Be Too Cheap?

Chasing Value: General Cable -- Can Something Be Too Cheap? originally appeared on BloggingStocks on Tue, 09 Feb 2010 17:20:00 EST. Please see our terms for use of feeds.

We all knew News Corp.'s (NWS) Avatar would cede the top spot to some film someday. To be honest, I didn't think Sony's (SNE) Dear John would be the one to do it.

According to Box Office Mojo, John grossed roughly $32 million at domestic theaters. That was more than enough to put the sci-fi flick in second place. However, no one should feel sad for News Corp.; Avatar's worldwide haul now stands at over $2.2 billion.

Continue reading Should 'Avatar' Be Rushed to DVD Now That It Is in Second Place?

Should 'Avatar' Be Rushed to DVD Now That It Is in Second Place? originally appeared on BloggingStocks on Mon, 08 Feb 2010 16:00:00 EST. Please see our terms for use of feeds.

Comcast (CMCSA) published fourth-quarter numbers earlier today. On a reported basis, net income more than doubled to 33 cents per share. According to Reuters, the cable company earned 29 cents per share on an adjusted basis, beating estimates by two pennies.

Management loves to promote its ability to generate free cash flow. There was an increase in this metric of just under 21% for the twelve-month period. I love free-cash generation, and I appreciate this example of growth, but one thing should be pointed out: operational cash flow was flat. As the earnings release stated, a reduction in capital expenditures was mostly responsible for the expansion. Free cash flow was down 11% for the fourth quarter itself, sorry to say.

Continue reading Comcast Down on Q4 Release

Comcast Down on Q4 Release originally appeared on BloggingStocks on Wed, 03 Feb 2010 18:00:00 EST. Please see our terms for use of feeds.

News Corp. (NWS), the media conglomerate that competes with Disney (DIS), Time Warner (TWX), and General Electric's (GE) NBC Universal, posted Q2 data after the bell on Tuesday. Shareholders should have few complaints on this one.

Revenues went up 10%, and earnings on an adjusted basis jumped well over 60% to 25 cents per share. According to Reuters, the estimate was 20 cents per share. Besides the beat, cash from operations was a lot better in the current six-month period. In the comparable frame, cash was used to fund operating activities.

Continue reading News Corp. Reports Fantastic Second Quarter

News Corp. Reports Fantastic Second Quarter originally appeared on BloggingStocks on Wed, 03 Feb 2010 08:30:00 EST. Please see our terms for use of feeds.

NBC Universal, which recently was the subject of a proposed transaction between General Electric (GE) and Comcast (CMCSA), is having a serious problem with The Jay Leno Show. It's not performing well in the ratings. But wait, there's more, as a typical infomercial narrator might intone: The Tonight Show isn't faring any better under the aegis of Conan O'Brien.

Worse, the issues with the 10 PM Leno programming asset go beyond just his ratings. The show is exerting a negative halo effect over the local newscasts. If you don't have a strong lead-in, then the content that follows will suffer.

Continue reading The Leno/O'Brien Puzzle: What Should NBC Do?

The Leno/O'Brien Puzzle: What Should NBC Do? originally appeared on BloggingStocks on Fri, 08 Jan 2010 15:30:00 EST. Please see our terms for use of feeds.

Time Warner (TWX), whose colleagues include The Walt Disney Company (DIS), General Electric Corporation's (GE) Universal, and Sony Corporation (SNE), did an incredible job at the box office in 2009. It could even end up being the top studio, although there is currently some ambiguity on that count. This article over at Variety says that News Corp. (NWS) might come out ahead once all is said and done.

Nevertheless, according to Moviefone, Time Warner's movie operations captured an estimated $3.99 billion at multiplexes around the globe. Yes, it's an impressive feat, and it was done with the help of a major franchise. Harry Potter and the Half-Blood Prince grossed well over $900 million on a worldwide basis. Even more amazing was the performance of surprise comedy hit The Hangover. And to think, that one had an R rating, something that tends to limit the potential for big success.

Continue reading Thoughts on Time Warner's 2009 Box Office Performance

Thoughts on Time Warner's 2009 Box Office Performance originally appeared on BloggingStocks on Thu, 31 Dec 2009 17:00:00 EST. Please see our terms for use of feeds.

During my tenure at BloggingStocks I have expressed my opinion often about the contribution that dividends make to your overall return. Most shrewd investors, and especially "my pal Warren," know this and understand why I re-emphasize the point when I make my annual selections.

By now I hope you have had a chance to peruse my picks for 2010. If not the links below will give you another opportunity.

Continue reading Chasing Value: 2010 Dividends for Ten Stock Picks

Chasing Value: 2010 Dividends for Ten Stock Picks originally appeared on BloggingStocks on Thu, 31 Dec 2009 16:30:00 EST. Please see our terms for use of feeds.

Many retail investors have been shrieking as General Electric (GE) hovers around ten year lows and has gone nowhere all year while almost everything else has appreciated. GE is on hot lists and not lists for 2010.

It is one of my holdover picks from 2009 and if it does not improve in the next few days will be my only loser -- for the other, a winner, see: Chasing Value: 2010 -- #3 EZCORP.

Continue reading Chasing Value: 2010 -- #6 General Electric

Chasing Value: 2010 -- #6 General Electric originally appeared on BloggingStocks on Wed, 30 Dec 2009 15:30:00 EST. Please see our terms for use of feeds.

Continue reading Chasing Value: 2010 -- #1 Berkshire Hathaway

Chasing Value: 2010 -- #1 Berkshire Hathaway originally appeared on BloggingStocks on Tue, 29 Dec 2009 17:00:00 EST. Please see our terms for use of feeds.

The 5 data points were price-to-sales (P/S), price-to-book (P/B), price-to-cash flow (P/CF), dividend yield and return-on-equity (ROE). I did look at other things but these were the subject of my initial focus.

Continue reading Chasing Value: 10 Stock Picks for 2010

Chasing Value: 10 Stock Picks for 2010 originally appeared on BloggingStocks on Tue, 29 Dec 2009 16:40:00 EST. Please see our terms for use of feeds.

Shareholders of News Corp. (NWS) are probably happy this Monday as two of the company's films -- Avatar and Alvin and the Chipmunks: The Squeakquel -- did very well over the three-day holiday weekend.

James Cameron's Avatar topped the charts at domestic theaters, pulling in an estimated $75 million, according to Box Office Mojo. If the project can continue to attract moviegoers in large droves, as well as propagate a lot of repeat business, then it should break even before it hits other distribution channels.

Continue reading News Corp.'s 'Avatar' and 'Alvin and the Chipmunks' Had a Great Weekend

News Corp.'s 'Avatar' and 'Alvin and the Chipmunks' Had a Great Weekend originally appeared on BloggingStocks on Mon, 28 Dec 2009 10:50:00 EST. Please see our terms for use of feeds.

The DVD market continues to disappoint. There's an article over at The Hollywood Reporter discussing the industry and its sorry state. According to the piece, sales of discs are down 13% at the end of the third quarter.

Interestingly enough, the article goes on to give a positive spin to the news by pointing out that the Blu-ray format is gaining traction, and that digital distribution and rental of discs are also acting as offsetting elements. While that may be true, I'm not so sure I can be as positive, because I still believe that the studios have a long way to go in terms of answering the DVD issue.

Continue reading A resolution for Hollywood in the new year: Get home video moving again

A resolution for Hollywood in the new year: Get home video moving again originally appeared on BloggingStocks on Wed, 23 Dec 2009 17:00:00 EST. Please see our terms for use of feeds.