Thank you Wink! Good day everyone, it is Saturday Dec 8th and this of course is the infamous Barron's Game. For those of you uninitiated, the Barrons Game is when you read Barrons through the eyes of the stonedinvestor and together we pick one idea to make money off of hopefully in a week! In our last game we provided you all with an incredible near 80% return!!!! IStar SFI went from $1.10 to $1.90 although we sold out at closer to $1.55... still a mighty gain and TWO THOUSAND dollars was returned to EVERYONE who played the Barrons game- not a bad return for a (Yikes) $5 paper! This week, we hope to do the same or better and away we go.
In the week ahead preview mention is made of a female condom! On Thursday the FDA panel reviews a company called Female Health Co... are they even public? Why yes it is!
The Female Health Company Reports Record Results for Fiscal Year 2008, at High End of Guidance
NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS RISES 215% TO $4.8 MILLION ($0.18 PER DILUTED SHARE)
Highlights:
Fourth Quarter -
- Net revenue up 52% to $7.8 million
- Net income attributable to common stockholders increases 108% to $2.3 million
- Gross profit margin widens to 44.8% of net revenues vs. 39.3% of net revenues in prior-year period
- Operating income exceeds $1 million for first quarter in Company's history
FY2008 -
- Unit sales up 34% to 34.7 million female condoms
- Net revenue increases 33% to $25.6 million
- Operating income rises 252% to $3.2 million
- Net income attributable to common stockholders up 215% to $4.8 million
The Female Health Company Reports Record Results for Fiscal Year 2008, at High End of Guidance
Gross profit increased 73% to $3.5 million, or 44.8% of net revenues, in the most recent quarter, compared with $2.0 million, or 39.3% of net revenues, in the fourth quarter of FY2007. Operating income increased 206% to $1.2 million in the three months ended September 30, 2008, compared with $0.4 million in the corresponding period of the previous fiscal year. This was the first quarter in which the Company reported operating income in excess of $1 million.
The Company expects significant quarter-to-quarter variations in its operating results, due to the timing of large order receipts, production scheduling, and shipping of products.
For the year ended September 30, 2008, net revenues increased 33% to $25.6 million, compared with $19.3 million in FY2007. Gross profit increased 50% to $10.7 million, Operating income rose to $3.2 million, a 252% improvement from $0.9 million in FY2007. In FY2008, the Company sold 34.7 million female condoms, an increase of 34% over the 25.9 million units sold in FY2007.
The Company's pretax earnings guidance for FY2008 was an increase of 200% to 250% over pretax earnings for FY2007 The Company currently has no outstanding debt and $1.5 million in unused credit lines.Through September 30, 2008, the Company has purchased 841,000 shares for $2.1 million (an average price of $2.54 per share).
FY2009 Earnings Guidance: The Company expects unit sales to increase 20% to 25% and pretax earnings exclusive of currency gains or losses to increases 50% to 60% in FY2009.
Holy cow folks we are two pages in and I think I've spotted the BIG winner for the week... I'm tempted to stop right here. They have big earnings so I'm assuming that they are already selling the condoms in Europe and elsewhere... where is the danger here I wonder for the FDA this seems like a layup and a great play. Note that the company has bought back shares... Hummm. Now I'm getting confused they do sell in the US why the FDA review now?
The Female Health Company ("FHC" or the "Company"), based in Chicago, IL, manufactures, markets and sells the female condom (FC), the only product approved by the U.S. Food and Drug Administration (FDA) under a woman's control which provides dual protection against unintended pregnancy and sexually transmitted diseases ("STDs"), including HIV/AIDS. The Female Health Company is publically traded on AMEX under FHC
FC Female Condom® is the first and only female-initiated barrier method that is safe and effective if used correctly and consistently, has high acceptablility among both men and women in many countries, and provides dual protection against the transmission of sexually transmitted infections, including HIV/AIDS, and unintended pregnancy.
The product is currently sold or available through various channels in 108 countries. It is commercially marketed directly to consumers in 10 countries by various country specific partners, including in the United States, the United Kingdom, Canada and France. Currently, public sector female condom programs in various stages are ongoing in over 90 countries.....
Boy I find this one most interesting, especially since I am of an age of rather free sex and have never used a condom! And I would much prefer any potential tryst or fantasy gal to be the one wearing the latex... let's move on...
There is of course the Big 3 being talked about, Ford is mentioned as perhaps being at a good entry point @ $2.60 Honda too is mentioned as an even better bargain.
Goldman Sach's is mini profiled Barrons was a big booster at $161 and $180 now apparently they like it at $70. Don't know how I feel about this. Last week when the stk dipped below it's IPO price was probably the time to buy, I thought about it but personally I can't justify rewarding these fools with any of my money as they have been front and center to everything bad going on. Moving on.
Interesting article on Leucadia LUK. This is a collection of assets including Jeffries, the broker, an big Australion iron ore mine and the Hard Rock Hotel and other... entities like AmeriCredit.... run by formally smart guys, it's being likened to a mini Berkshire...
The main article is on the US bourses which is a fancy word for exchanges like the NYSE Euronext & ICE etc... This is an interesting article and the arguments hold some merit CME & ICE hold the fattest profit margins, ICE is 2.5 book and CME 0.6, I would lean towards CME which is expected to earn $17.68 next year after $16.61 this year. CME also has less debt than the others and the stock is down 74%- this is a strong idea. ICE is moving faster into devloping a market for CDS Credit Deafault Swaps, merging with a BAC unit but CME is in the game, partnering with Citidel... I'm sure a bunch of you Elite Traders know more about these exchanges than me or Barrons... if you favor NYX, NDAQ or ICE please drop a note asap... I'm leaning towards CME.
In the Mutual Funds section a small cap investor Nick Galluccio is profiled from Teton Advisors. I don't know much about him but he has an impressive resume. Some of the stocks he likes- ATMI & Keithley both test measurement plays, Keithly I've owned before.
FORM FACTOR another old stoney pick, and a very good company, they enjoy 50% share of wafer-probe cards for testing semiconductors. Zoran, another name i have owned (and took a bath in) In recent buys Nick has made some retail buys J Crew and Saks; I'm ticked off at Saks i was going to buy it the other day when that famous rich guy bought more of the shares- They have since exploded upwards. two other companies he highlighted as ones to emerge from this downcycle are Molex MOLX and PTEC!!!!
Oh no here is where the stoned one gets into trouble. I lost 50% in PTEC and loved it all the way down. This is a good company but it's tech and it's small and it's tough to get investor love out of the name. Phoenix Tech is the largest supplier of basic operating-system software for PC's, that " could " earn 60 centsin 09' vs 25 cents in the last 12 months.
Next up a very snootry lookingf Barry Ritholtz is profiled. he's a bear who looks oh so happy with himself. he's turning slightly bullish with bets on
AVAV a very good military play of drones (unmanned terrorist killers) and the general market. He has a couple others on his watch list, nothing too interesting, LMNX & Stanley Works and mentions Berkshire hathaway as a stk he has never owned but if it got cheap enough he would. What is cheap enough? $85,000 to $95,000 vs the current 98K...
I guess we are talking being able to afford 13 shares!
Highly profitable packaging companies are profiled as recession type stks. Ball, Crown Hldgs, owens-Illinois and Silgan Hldgs. i don't have a good feel for any of these names, I like Pactiv PTV in the same group but they have high pension liabilities.... Siligan I don't know but Wackyovia thinks this $43 stock can become a $65 stk so we will throw it into review.
On to market Week. Some basic chatter about MET life as it relates to Hartford, etc.. Got to give Barrons some credit here they have been huge backers of MET on the way down and the way back up and they have been right on.
Ok on to Insider Buying and woa! We have a group buy at ZALES. ZLC- 8 DIFFERENT BUYERS & top dollar value on the list! Very interesting Bruker BRKR has one buyer of 300,000 shares- they do test measurement too so let's keep them on the list and General Cable has two buyers BGC, another good company.
In 13D filings we see a familiar friend- Zale again! Former Securities & Exchange Commission Chairman Richard C Breeden raised his stake to 28.5%!!!!!!,
over 9 million shares.... geez, he's rich! he just bought ONE MILLION at $6.29 each on Nov 26!
Well that's it ladies & gents. Lets review our 11 main possibilities:
Female health Co FHC
Honda
Leucadia
CME
FORM
PTEC
AVAV
Silgan Hldgs & Pactiv
ZALE.
BRKR
BGC
As always please do Due Diligence and post your thoughts here. We will make a group decision and move on from there. And now back to our regularly scheduled programming! ~ stoney
In the week ahead preview mention is made of a female condom! On Thursday the FDA panel reviews a company called Female Health Co... are they even public? Why yes it is!
The Female Health Company Reports Record Results for Fiscal Year 2008, at High End of Guidance
NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS RISES 215% TO $4.8 MILLION ($0.18 PER DILUTED SHARE)
Highlights:
Fourth Quarter -
- Net revenue up 52% to $7.8 million
- Net income attributable to common stockholders increases 108% to $2.3 million
- Gross profit margin widens to 44.8% of net revenues vs. 39.3% of net revenues in prior-year period
- Operating income exceeds $1 million for first quarter in Company's history
FY2008 -
- Unit sales up 34% to 34.7 million female condoms
- Net revenue increases 33% to $25.6 million
- Operating income rises 252% to $3.2 million
- Net income attributable to common stockholders up 215% to $4.8 million
The Female Health Company Reports Record Results for Fiscal Year 2008, at High End of Guidance
Gross profit increased 73% to $3.5 million, or 44.8% of net revenues, in the most recent quarter, compared with $2.0 million, or 39.3% of net revenues, in the fourth quarter of FY2007. Operating income increased 206% to $1.2 million in the three months ended September 30, 2008, compared with $0.4 million in the corresponding period of the previous fiscal year. This was the first quarter in which the Company reported operating income in excess of $1 million.
The Company expects significant quarter-to-quarter variations in its operating results, due to the timing of large order receipts, production scheduling, and shipping of products.
For the year ended September 30, 2008, net revenues increased 33% to $25.6 million, compared with $19.3 million in FY2007. Gross profit increased 50% to $10.7 million, Operating income rose to $3.2 million, a 252% improvement from $0.9 million in FY2007. In FY2008, the Company sold 34.7 million female condoms, an increase of 34% over the 25.9 million units sold in FY2007.
The Company's pretax earnings guidance for FY2008 was an increase of 200% to 250% over pretax earnings for FY2007 The Company currently has no outstanding debt and $1.5 million in unused credit lines.Through September 30, 2008, the Company has purchased 841,000 shares for $2.1 million (an average price of $2.54 per share).
FY2009 Earnings Guidance: The Company expects unit sales to increase 20% to 25% and pretax earnings exclusive of currency gains or losses to increases 50% to 60% in FY2009.
Holy cow folks we are two pages in and I think I've spotted the BIG winner for the week... I'm tempted to stop right here. They have big earnings so I'm assuming that they are already selling the condoms in Europe and elsewhere... where is the danger here I wonder for the FDA this seems like a layup and a great play. Note that the company has bought back shares... Hummm. Now I'm getting confused they do sell in the US why the FDA review now?
The Female Health Company ("FHC" or the "Company"), based in Chicago, IL, manufactures, markets and sells the female condom (FC), the only product approved by the U.S. Food and Drug Administration (FDA) under a woman's control which provides dual protection against unintended pregnancy and sexually transmitted diseases ("STDs"), including HIV/AIDS. The Female Health Company is publically traded on AMEX under FHC
FC Female Condom® is the first and only female-initiated barrier method that is safe and effective if used correctly and consistently, has high acceptablility among both men and women in many countries, and provides dual protection against the transmission of sexually transmitted infections, including HIV/AIDS, and unintended pregnancy.
The product is currently sold or available through various channels in 108 countries. It is commercially marketed directly to consumers in 10 countries by various country specific partners, including in the United States, the United Kingdom, Canada and France. Currently, public sector female condom programs in various stages are ongoing in over 90 countries.....
Boy I find this one most interesting, especially since I am of an age of rather free sex and have never used a condom! And I would much prefer any potential tryst or fantasy gal to be the one wearing the latex... let's move on...
There is of course the Big 3 being talked about, Ford is mentioned as perhaps being at a good entry point @ $2.60 Honda too is mentioned as an even better bargain.
Goldman Sach's is mini profiled Barrons was a big booster at $161 and $180 now apparently they like it at $70. Don't know how I feel about this. Last week when the stk dipped below it's IPO price was probably the time to buy, I thought about it but personally I can't justify rewarding these fools with any of my money as they have been front and center to everything bad going on. Moving on.
Interesting article on Leucadia LUK. This is a collection of assets including Jeffries, the broker, an big Australion iron ore mine and the Hard Rock Hotel and other... entities like AmeriCredit.... run by formally smart guys, it's being likened to a mini Berkshire...
The main article is on the US bourses which is a fancy word for exchanges like the NYSE Euronext & ICE etc... This is an interesting article and the arguments hold some merit CME & ICE hold the fattest profit margins, ICE is 2.5 book and CME 0.6, I would lean towards CME which is expected to earn $17.68 next year after $16.61 this year. CME also has less debt than the others and the stock is down 74%- this is a strong idea. ICE is moving faster into devloping a market for CDS Credit Deafault Swaps, merging with a BAC unit but CME is in the game, partnering with Citidel... I'm sure a bunch of you Elite Traders know more about these exchanges than me or Barrons... if you favor NYX, NDAQ or ICE please drop a note asap... I'm leaning towards CME.
In the Mutual Funds section a small cap investor Nick Galluccio is profiled from Teton Advisors. I don't know much about him but he has an impressive resume. Some of the stocks he likes- ATMI & Keithley both test measurement plays, Keithly I've owned before.
FORM FACTOR another old stoney pick, and a very good company, they enjoy 50% share of wafer-probe cards for testing semiconductors. Zoran, another name i have owned (and took a bath in) In recent buys Nick has made some retail buys J Crew and Saks; I'm ticked off at Saks i was going to buy it the other day when that famous rich guy bought more of the shares- They have since exploded upwards. two other companies he highlighted as ones to emerge from this downcycle are Molex MOLX and PTEC!!!!
Oh no here is where the stoned one gets into trouble. I lost 50% in PTEC and loved it all the way down. This is a good company but it's tech and it's small and it's tough to get investor love out of the name. Phoenix Tech is the largest supplier of basic operating-system software for PC's, that " could " earn 60 centsin 09' vs 25 cents in the last 12 months.
Next up a very snootry lookingf Barry Ritholtz is profiled. he's a bear who looks oh so happy with himself. he's turning slightly bullish with bets on
AVAV a very good military play of drones (unmanned terrorist killers) and the general market. He has a couple others on his watch list, nothing too interesting, LMNX & Stanley Works and mentions Berkshire hathaway as a stk he has never owned but if it got cheap enough he would. What is cheap enough? $85,000 to $95,000 vs the current 98K...
I guess we are talking being able to afford 13 shares!
Highly profitable packaging companies are profiled as recession type stks. Ball, Crown Hldgs, owens-Illinois and Silgan Hldgs. i don't have a good feel for any of these names, I like Pactiv PTV in the same group but they have high pension liabilities.... Siligan I don't know but Wackyovia thinks this $43 stock can become a $65 stk so we will throw it into review.
On to market Week. Some basic chatter about MET life as it relates to Hartford, etc.. Got to give Barrons some credit here they have been huge backers of MET on the way down and the way back up and they have been right on.
Ok on to Insider Buying and woa! We have a group buy at ZALES. ZLC- 8 DIFFERENT BUYERS & top dollar value on the list! Very interesting Bruker BRKR has one buyer of 300,000 shares- they do test measurement too so let's keep them on the list and General Cable has two buyers BGC, another good company.
In 13D filings we see a familiar friend- Zale again! Former Securities & Exchange Commission Chairman Richard C Breeden raised his stake to 28.5%!!!!!!,
over 9 million shares.... geez, he's rich! he just bought ONE MILLION at $6.29 each on Nov 26!
Well that's it ladies & gents. Lets review our 11 main possibilities:
Female health Co FHC
Honda
Leucadia
CME
FORM
PTEC
AVAV
Silgan Hldgs & Pactiv
ZALE.
BRKR
BGC
As always please do Due Diligence and post your thoughts here. We will make a group decision and move on from there. And now back to our regularly scheduled programming! ~ stoney