Cart (0)
VIDEOTicker Shock: Two Stocks You Don't Know You Should Be Watching
Monday's top stories and stocks with potential to move.
 |
|
Asian markets were mixed. The Hang Seng was down more than 2.7%. The Nikkei was up a fraction. Meanwhile, European stocks were in the red earlier this morning. And here in the US, we're currently trading lower.
Here's what I’m focused on this fine Monday morning:
Two Stocks You Should Be Watching
I ran a quick stock screen, as I frequently do on Monday mornings. This time it was for companies with a price-to-book ratio of under one (Zacks.com was the source for the data/screen). Two companies that I came across that stand out to me are Dow Chemical and Tyson Foods. Dow Chemical (DOW):
Although I personally didn’t rip through the actual balance sheet, the Zacks data indicates that its price-to-book ratio is 0.89, which catches my eye. (I’m hoping this may mean that the downside is somewhat limited from current levels.) I’d also point out that while the companies earnings are expected to be somewhat anemic this year (a $0.22 gain is the current estimate), next year the Street is looking for $0.96.
That’d be a nice jump, and I can’t help but think that if it looks like it will put up that number, the shares could be trading markedly higher than the current (and roughly) $13 price.
By the way, check out the insider buying toward the latter part of last year. I have to think these guys have ample incentive to find ways to get the share price moving.
This is one I’ll be keeping an eye on.
Tyson Foods (TSN):
The pork producer could have a rough day for obvious reasons (read: swine flu).
However, Zacks data does show that it trades at 0.86 book, which perks up my interest. I’m thinking if this flu bug peters out in the near-term and gets off the front pages, the shares could get a nice boost.
Conversely, if the problem spreads, right or wrong, I think the shares get taken out to the woodshed. And so this is another one I’m keeping my eye on. There could be some opportunity here.
By the way: Note that insiders had hopped aboard back in November.
B/E Aerospace (BEAV):
The airplane-seat and oxygen-system maker was out with its first-quarter earnings at the crack of dawn this morning. There was some good news and some bad news. The good: Excluding items, it earned $0.41, which was $0.03 better than the estimate I’m seeing. The bad news: Along with its release, it indicated that its looking to earn about $1.50 a share in ’09 - well shy of the $1.73 the Street is looking for.
I think the shares get smacked on this news, and could be affected by all the chatter about the swine flu, as well. (The potential link: The flu could cause fewer to travel. If airlines make less money, this could mean less in the way of demand for the company’s wares.)
With all that in mind, I plan on keeping a close eye, because $1.50 a share wouldn’t be so bad for a stock that trades south of $13. In addition, the insider buying in the earlier part of this year and the latter part of ’08 catches my eye.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
