The money manager and editor of The Oberweis Report explains, "Indeed, we think that investors will pay an increasing premium for growth when year-over-year increases become more difficult to find. Here our favorite issues that fit this bill.

"Our research indicates P/Es for small-cap growth stocks remain modestly below-average, but substantially higher than 2008 crisis levels and well within the "normal" range.

Continue reading Small Cap Expert's 6 Favorite Growth Stocks

Small Cap Expert's 6 Favorite Growth Stocks originally appeared on BloggingStocks on Tue, 14 Dec 2010 10:30:00 EST. Please see our terms for use of feeds.

"Procter & Gamble (PG), a long-time growth stock, is now in value territory based on its above-average dividend yield," says Marvin Appel.

The editor of Systems & Forecasts explains, "The stock is -- which has become a high dividend payer -- is recommended as a long-term holding in a conservative equity portfolio.

"Procter & Gamble, historically an expensive stock in terms of its dividend yield, has developed into a high dividend payer by the standards of the U.S. market.

Continue reading Procter & Gamble (PG): Growth Stock Becomes Value Buy

Procter & Gamble (PG): Growth Stock Becomes Value Buy originally appeared on BloggingStocks on Thu, 04 Nov 2010 13:10:00 EST. Please see our terms for use of feeds.

Continue reading Chasing Value: EZCORP Is Easy Buy, Beating APPL, ISRG and XOM

Chasing Value: EZCORP Is Easy Buy, Beating APPL, ISRG and XOM originally appeared on BloggingStocks on Mon, 16 Aug 2010 09:30:00 EST. Please see our terms for use of feeds.

Continue reading Chasing Value: Insurance Mess, Ebix to the Rescue

Chasing Value: Insurance Mess, Ebix to the Rescue originally appeared on BloggingStocks on Thu, 25 Mar 2010 12:30:00 EST. Please see our terms for use of feeds.

Many investors need income, especially as they reach retirement. They look for ancillary cash flow to supplement their Social Security payments and any retirement benefits from a company for which they've worked. But those aren't the only investors who should be interested in income.

That's because studies show that dividends are a significant contributor to overall performance of a stock. When held for years, a stock's dividend can help diminish the volatility of a stock's price and keep returns reasonable, especially in down markets. Here are five stocks that have decent income as well as potential capital gains. All are exceptionally financially strong.

Continue reading Comfort Zone Investing: Five stocks for income and growth

Comfort Zone Investing: Five stocks for income and growth originally appeared on BloggingStocks on Sat, 17 Oct 2009 10:30:00 EST. Please see our terms for use of feeds.

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.

"Investors who can find the diamonds in the rough stand to profit handsomely," says small cap growth stock expert and money manager Jim Oberweis, Jr.

In his The Oberweis Report, he suggests Green Mountain Coffee Roasters (NASDAQ: GMCR) is one stock that fits the bill. As his top pick for 2009, he looks to the maker of specialty coffees and single-cup home brewing systems.

"There is no question that any company whose growth depends on selling goods to the U.S. consumer, especially non-essential goods, would seem risky at the present moment. But stock prices for most retail companies are already down in the dumps and reflect significantly reduced expectations.

"We've been looking for growth companies that won't be as badly affected as many folks believe. Green Mountain Coffee Roasters is one stock that fits the bill.

Continue reading Top Stock Picks '09: Green Mountain (GMCR)

Top Stock Picks '09: Green Mountain (GMCR) originally appeared on BloggingStocks on Tue, 13 Jan 2009 17:40:00 EST. Please see our terms for use of feeds.

Over 32 years, the portfolio in The Oberweis Report has returned an average gain of 21.2% a year vs. 7.9% for the S&P 500. Here, money manager and newsletter advisor Jim Oberweis, Jr. looks at Suntech Power Holdings Ltd. (NYSE: STP).

"Long-term results notwithstanding, 2008 has been humbling, to say the least. No other year in our history has been as challenging.

"But in our experience, the most favorable buying opportunities tend to fall after a period in which the market has not performed well.

"Although year-by-year results can be volatile, disciplined investors who remain fully invested in a portfolio of high-growth equities selected using our methodology have historically achieved an exceptional average rate of return over long periods of time.

"Suntech Power Holdings Co., Ltd is one of the leading solar energy companies in the world as measured by production output of photovoltaic, or PV, cells, with leading positions in key solar markets such as Germany and Spain.

Continue reading Suntech (STP) Solar shines for small cap expert

Suntech (STP) Solar shines for small cap expert originally appeared on BloggingStocks on Mon, 20 Oct 2008 12:27:00 EST. Please see our terms for use of feeds.

Continue reading Intel (INTC) still has the intelligence edge

Intel (INTC) still has the intelligence edge originally appeared on BloggingStocks on Thu, 24 Apr 2008 14:12:00 EST. Please see our terms for use of feeds.

Further, with oil now well above $110 per barrel, one may think that all of the attractive oil plays have been bid up. Indeed, most have, but one that may represent an opportunity, for high-risk investors only, is TXCO Resources.

TXCO Resources (NASDAQ: TXCO) acquires, explores, develops, and produces oil and gas properties. The company's primary focus is on developing oil and gas reserves on properties located in Texas. The company's reserve mix is 54% oil and 46% natural gas.

In general, analysts expect TXCO's revenue to increase by better than 20% in F2008 after an impressive 30% gain in F2007.

Further, analysts also like the fact that TXCO's proved reserves increased substantially, via drilling and acquisition, to 91.8 billion CFE at the end of F2007, from 41.4 billion CFE at the end of F2006. The Reuters F2008/F2009 EPS consensus estimates for TXCO are 57 cents / 75 cents.

Continue reading TXCO Resources: A low profile oil & natural gas play

TXCO Resources: A low profile oil & natural gas play originally appeared on BloggingStocks on Tue, 22 Apr 2008 13:24:00 EST. Please see our terms for use of feeds.

Continue reading Western Digital has the drive for success

Western Digital has the drive for success originally appeared on BloggingStocks on Tue, 08 Apr 2008 17:58:00 EST. Please see our terms for use of feeds.

Continue reading For Texas Instruments, the chips are starting to add up again

For Texas Instruments, the chips are starting to add up again originally appeared on BloggingStocks on Tue, 05 Feb 2008 09:18:00 EST. Please see our terms for use of feeds.

Continue reading Synchronoss Tech automates the laborious

Synchronoss Tech automates the laborious originally appeared on BloggingStocks on Fri, 04 Jan 2008 19:56:00 EST. Please see our terms for use of feeds.

Continue reading First Solar: Potential, but not for the squeamish

First Solar: Potential, but not for the squeamish originally appeared on BloggingStocks on Thu, 13 Dec 2007 17:22:00 EST. Please see our terms for use of feeds.

Among the rails, CSX Corp (NYSE: CSX) is a company worth a review. CSX operates the largest rail network in the eastern United States, with a 22,000-mile network in 23 states and two Canadian provinces.

In general, analysts see CSX's revenue growth slowing somewhat in 2007, offset by better margins, pricing power (including expired contracts repricing) and improved asset utilization.

Further, coal traffic may slow heading into 2008, but intermodal traffic is expected to remain solid. Numerous infrastructure improvements and capacity increases should improve CSX's delivery times and reduce dwell times. In addition, trading around $42 with a p/e of 16, CSX currently is somewhat of a bargain, as Wall Street has discounted CSX's share for a U.S. economic slowdown, taking the stock down about 20% from a $52-high reached this summer.

Continue reading Ride the rails with CSX

Ride the rails with CSX originally appeared on BloggingStocks on Mon, 26 Nov 2007 13:04:00 EST. Please see our terms for use of feeds.

The company had been on a run of exceeding Street expectations by quite a bit. The shares were hit very hard on Thursday coming down from $74 to $47, exacerbated by a 360-point decline in the Dow.

The numbers that Crocs reported were actually quite impressive as revenue were up 130% over last year's 3rd quarter and earnings were up 144% for the same period. The gross margins expanded from 58% to 60.4%, while the ever-important operating margin actually hit above 30%. Young growth companies are not supposed to hit operating margins of 30%. It is virtually unheard of.

The other important piece of news was the company raising its 2008 guidance for earnings in the $2.65-2.70 range. With 2007 looking to be at $1.96, the growth for 2008 would be 35-40%. The stock market reaction was a tremendous overreaction, and the shares are now selling at quite a discount to its growth rate and operating margin level.

Typically, the market is comfortable assigning one P/E point to one point of growth or one point of operating margin. With the growth rate and the operating margins north of 30%, Crocs could support a 30 PE of its 2008 earnings expectations or $81 per share. Assigning a premium over the 30 PE would lift the shares even higher.

Continue reading Did Crocs croak?

Did Crocs croak? originally appeared on BloggingStocks on Mon, 05 Nov 2007 13:16:00 EST. Please see our terms for use of feeds.

"A new study on stem cell research is mind-boggling," notes emerging growth expert Toby Smith in support of his recommendation for Geron Corp. (NASDAQ: GERN).

The growth stock expert and editor of ChangeWave Investing explains, "Geron reported its scientists and collaborators have demonstrated that human embryonic stem cell (hESC)-derived cardiomyocytes improve heart function when transplanted after myocardial infarction.

"Published online on Aug. 26, in Nature Biotechnology, the landmark study is the first to document the potential clinical utility of regenerating damaged heart muscle by injecting hESC-derived cardiomyocytes directly into the site of the infarct.

"In addition, the research confirms the effectiveness of a scalable production system that enables Geron to manufacture the cardiomyocytes for use in ongoing large animal studies and, ultimately, testing in humans."

Continue reading Geron (GERN): 'Mind-boggling' study boost stem cell research firm

Geron (GERN): 'Mind-boggling' study boost stem cell research firm originally appeared on BloggingStocks on Mon, 17 Sep 2007 08:30:00 EST. Please see our terms for use of feeds.

"In the current volatile market, you can't go wrong by making your portfolio more defensive," says Glenn Rogers, who notes he has been "on the hunt for stocks that are fairly bulletproof."

One such stock, according to the analyst with Internet Wealth Builder, is Diageo PLC (NYSE: DEO). He says, ""London-based Diageo is the largest international manufacturer and distributor in the beverage alcohol industry, which is virtually recession-proof."

Many of its brands, he notes, will be immediately recognizable: Smirnoff, Guinness, Johnnie Walker, Captain Morgan, Jose Cuervo, Bushmills, J&B Scotch, and our own Crown Royal. In fact, he observes, 17 of the company's brands are among the top 100 premium spirit brands in the world.

Rogers explains, "Its strategy is to drive organic growth by taking leadership positions in every category in which it competes. The company also looks to exploit opportunities for growth in such key emerging markets as China, India, Russia, and Brazil."

Continue reading Diageo (DEO) and Dentsply (XRAY): 'Bulletproof' buys

Diageo (DEO) and Dentsply (XRAY): 'Bulletproof' buys originally appeared on BloggingStocks on Tue, 11 Sep 2007 12:30:00 EST. Please see our terms for use of feeds.

Yesterday Google Inc. (NASDAQ: GOOG) hit an all time high -- up six-fold -- a bit under three years after its $85 IPO. The proximate cause of the latest rise is a deal with salesforce.com, Inc. (NYSE: CRM). The deal could create more opportunities for Google to connect with salesforce's 32,300 customers -- each of whom is a potential advertiser who has not previously tried running online marketing campaigns through Google's automated system

I've posted bullishly on Google for a while -- most recently on Memorial Day. That's when Steve Mandel, head of $8 billion hedge fund Lone Pine Capital, said he believes that Google's growth potential is not fully understood by investors because its core market of paid search is still in "its early innings."

Google is getting more expensive but I suspect not overvalued. I don't know Mandel's earnings forecasts for the company; however last week it traded at $497.91 a moderate PEG of 1.38 -- reflecting a P/E of 43.3 on 24 analysts' consensus 2008 earnings growth of 31.4% to $17.45. That PEG is higher now -- 1.49 reflecting a higher P/E of 46.5 on a slightly lower 24 analysts' consensus 2008 earnings growth of 31.21% to $17.43.

I think Google could hit $1,000 because of the growth potential in the company's 84 different businesses which do not yet generate revenues and revenues from future partnerships like the one with salesforce.

Do you think it's time to buy or sell Google?

Peter Cohan is President of Peter S. Cohan & Associates, a management consulting and venture capital firm. He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in the securities mentioned in this post.

Google hits all time high, but it could hit $1,000 originally appeared on BloggingStocks on Wed, 06 Jun 2007 10:15:00 EST. Please see our terms for use of feeds.

Google Inc. (NASDAQ: GOOG) reported a great quarter and once again shattered analysts best guess estimates across the board. The stock market is jubilant this morning on that and other favorable earnings reports recently as the Dow Jones Industrial Average, DJIA, is up over 100 points, threatening 13,000.

Google was up yesterday in after market trading and is currently (11:30 a.m. EST) trading at $488, up 3.5% from yesterday's close.

In my post yesterday, Serious Money: You asked about Intuitive Surgical?, I blogged of my own venture into a dramatic growth stock and even went as far as to outline why Intuitive Surgical (NASDAQ: ISRG) was the superior investment compared to Google.

While Google has taken the market by storm and grabbed all the attention, ISRG is currently trading up 10.3% to $133.66 on an equally astounding earnings report, beating estimates by 9 cents per share. Both companies are charging into the future with great promise, leading their respective sectors and leaving all estimates behind in the dust. GOOG and ISRG look unstoppable at the moment, but investors should be careful with all this euphoria.

If you are not familiar with ISRG, perhaps you should take a look.

Sheldon Liber is the CEO of a small private investment company and the vice president for design and research at an architecture & planning firm. Check out his other posts for BloggingStocks here.

Google rocks the market & Intuitive tops that! originally appeared on BloggingStocks on Fri, 20 Apr 2007 12:10:00 EST. Please see our terms for use of feeds.

In his small cap growth oriented newsletter, Upside, editor Richard Moroney uses a ranking system known as Quadrix that assesses a stock based on a wide variety of fundamental, financial and technical factors.

A rarity in this system, Chaparral Steel (NASDAQ: CHAP) earns a 100 out of 100 rating. Chaparral, he notes, is the second-largest supplier of structural steel in North America.

The firm specializes in structural beams and steel bars, which are used for commercial construction. Its two minimill plants, he notes, use recycled steel that comes primarily from shredded automobiles.

Looking ahead, he says, "the company should benefit from robust demand, decent pricing, and strict cost controls." In addition, he notes that last November the company paid its first quarterly dividend, initially set at $0.10 per share.

Further, he observes, management has authorized a share-repurchase program of to $100 million. Earnings estimates for this year and next have trended higher and for fiscal 2007 ending May, he notes that consensus estimates project per-share profits will be up 50% to $4.99.

He concludes, "With the maximum overall Quadrix score of 100, Chaparral is being added to our coverage as a Buy."

For more stock picks from the leading financial newsletter advisors, visit Steven Halpern's free daily website, TheStockAdvisors.com.

Chaparral Steel scores perfect 100 originally appeared on BloggingStocks on Thu, 05 Apr 2007 12:07:00 EST. Please see our terms for use of feeds.