It is an excellent buy for the next 8-12 months. I will add it on any pull-backs the next month or so. It will drop in any across the board sell-off due to the present credit fiasco, but it won't stay down as the big money boys will be on it like stink on shit.
It won't make you rich, and it will bore the trader people, but if you like about 25% on your money over the next 8-12 months without anxiety attacks, get on it, guys!!!!!!!!
Cheers
0
SYY is off and running. Well done Vermeer
It is an excellent buy for the next 8-12 months. I will add it on any pull-backs the next month or so. It will drop in any across the board sell-off due to the present credit fiasco, but it won't stay down as the big money boys will be on it like stink on shit.
It won't make you rich, and it will bore the trader people, but if you like about 25% on your money over the next 8-12 months without anxiety attacks, get on it, guys!!!!!!!!
Historical outperfromance of SP from Nov-April. Doesn't usually move well after April due to yearly hand-wringing over the inevitable oil mark-up during peak driving season.
Oil is the fly in the ointment here, as anything so versed in transportation will get ridiculed if there is a lot of oil hoopla out of the middle east.
We shall see.
0
More on SYY.
Historical outperfromance of SP from Nov-April. Doesn't usually move well after April due to yearly hand-wringing over the inevitable oil mark-up during peak driving season.
Oil is the fly in the ointment here, as anything so versed in transportation will get ridiculed if there is a lot of oil hoopla out of the middle east.
You really think they are so hard up they sell investments to raise cash?
That sounds like somthing LEND might do versus BSC..but you are right about Payless..even at current levels for a shoe store they have an over 20 PE ratio..
Goes to show you how much I know, I never even knew Payless was a public company..
how do you explain a PSS 8 point drop in the last month? 5 months after GSCO filed 10% ownership...
if you have a 2b margin call, how do you propose covering it? (i dont know what their margin calls are)
0
Quote Originally Posted by wallstreetcappers:
You really think they are so hard up they sell investments to raise cash?
That sounds like somthing LEND might do versus BSC..but you are right about Payless..even at current levels for a shoe store they have an over 20 PE ratio..
Goes to show you how much I know, I never even knew Payless was a public company..
how do you explain a PSS 8 point drop in the last month? 5 months after GSCO filed 10% ownership...
if you have a 2b margin call, how do you propose covering it? (i dont know what their margin calls are)
It is an excellent buy for the next 8-12 months. I will add it on any pull-backs the next month or so. It will drop in any across the board sell-off due to the present credit fiasco, but it won't stay down as the big money boys will be on it like stink on shit.
It won't make you rich, and it will bore the trader people, but if you like about 25% on your money over the next 8-12 months without anxiety attacks, get on it, guys!!!!!!!!
Cheers
I also saw the buyback (not a huge one, but nonetheless, there)...and the following analysis.I am all for anxiety free days C Court!!
Food distributor Sysco, a Motley Fool Income Investor
recommendation, is the largest provider of food to restaurants, hotels,
schools, and health-care facilities. It's been hard at work cooking up
ways to increase shareholder value. In addition to the stock-buyback
program it announced and its 2.3% dividend, Sysco shares have grown in
value by about 19% from their low point last August. That made the
stock a pricey little meal ticket, particularly when shares reached
their highs of $37 at the end of last year. So at $32 a stub currently,
they've obviously given up some of those gains, and while management
believes its stock may be attractively priced, some think investors
still ought to be very afraid of the price.
What do CAPS Fools think? All-Star CAPS investor nickbaes thinks Sysco is an example of "growth on the cheap":
At first glance it seems moderately priced for
moderate growth. However, a big thing happened within the past quarter.
They are unifying their many divisions (around 80 or so that have been
separate) into 1 for purchasing power. This should allow them to
increase margins ... possibly leading to a multiple expansion.
The
company has a very high [return on equity], a massive revenue base that
is growing steadily, and a very strong brand moat. Good management and
company history of success.
0
Quote Originally Posted by claycourtlesson:
SYY is off and running. Well done Vermeer
It is an excellent buy for the next 8-12 months. I will add it on any pull-backs the next month or so. It will drop in any across the board sell-off due to the present credit fiasco, but it won't stay down as the big money boys will be on it like stink on shit.
It won't make you rich, and it will bore the trader people, but if you like about 25% on your money over the next 8-12 months without anxiety attacks, get on it, guys!!!!!!!!
Cheers
I also saw the buyback (not a huge one, but nonetheless, there)...and the following analysis.I am all for anxiety free days C Court!!
Food distributor Sysco, a Motley Fool Income Investor
recommendation, is the largest provider of food to restaurants, hotels,
schools, and health-care facilities. It's been hard at work cooking up
ways to increase shareholder value. In addition to the stock-buyback
program it announced and its 2.3% dividend, Sysco shares have grown in
value by about 19% from their low point last August. That made the
stock a pricey little meal ticket, particularly when shares reached
their highs of $37 at the end of last year. So at $32 a stub currently,
they've obviously given up some of those gains, and while management
believes its stock may be attractively priced, some think investors
still ought to be very afraid of the price.
What do CAPS Fools think? All-Star CAPS investor nickbaes thinks Sysco is an example of "growth on the cheap":
At first glance it seems moderately priced for
moderate growth. However, a big thing happened within the past quarter.
They are unifying their many divisions (around 80 or so that have been
separate) into 1 for purchasing power. This should allow them to
increase margins ... possibly leading to a multiple expansion.
The
company has a very high [return on equity], a massive revenue base that
is growing steadily, and a very strong brand moat. Good management and
company history of success.
SYY is not a stock I would own, but I hope it goes up for you guys.
Why I would never own it is because I have used their product and people dont like them but are forced to use them..they have lousy selection and high prices. US Foods (which if you check the yahoo profile for Sysco you will see them under competitors as a private company) is better..
Koaj, you cannot tell me they dont have access to 100 times those margin calls from cash on hand or lines of credit. Usually businesses dont try and sell investments to raise cash as a first option.
0
SYY is not a stock I would own, but I hope it goes up for you guys.
Why I would never own it is because I have used their product and people dont like them but are forced to use them..they have lousy selection and high prices. US Foods (which if you check the yahoo profile for Sysco you will see them under competitors as a private company) is better..
Koaj, you cannot tell me they dont have access to 100 times those margin calls from cash on hand or lines of credit. Usually businesses dont try and sell investments to raise cash as a first option.
Check out IRobot. I really think this is going to be a mega company in 5 years time and is severely undervalued. It's defense business alone is worth more than its market cap. Popping today as it looks like they are going to score a huge new military contract for 3000 new Packbots, rush order. Defense and law enforcement moving heavily toward automation. Also updated Roomba soon, plus 2 brand new consumer apps in Sept (bathroom cleaning bot?). This company is starting to grow fast and has proven it's profitability which is going to ramp up big time. Best of breed in all things robotics. Market cap just 530M.
0
Check out IRobot. I really think this is going to be a mega company in 5 years time and is severely undervalued. It's defense business alone is worth more than its market cap. Popping today as it looks like they are going to score a huge new military contract for 3000 new Packbots, rush order. Defense and law enforcement moving heavily toward automation. Also updated Roomba soon, plus 2 brand new consumer apps in Sept (bathroom cleaning bot?). This company is starting to grow fast and has proven it's profitability which is going to ramp up big time. Best of breed in all things robotics. Market cap just 530M.
Yeah, around $18. It actually fell below $17 just recently before popping pretty good, now $21 and change. Long way to run here IMO. This company is so much more than where it was at IPO a few years back and yet it's selling at barely over half of its high just after IPO. It's moving well beyond just the Roomba company, which while it didn't set the world on fire, has been a pretty good product nonetheless and captured a portion of a large market. Partnering up with the likes of Lockheed, Taser, Deere and Clorox. Robotics will continue to evolve and IRobot will be a big part of it all.
0
Yeah, around $18. It actually fell below $17 just recently before popping pretty good, now $21 and change. Long way to run here IMO. This company is so much more than where it was at IPO a few years back and yet it's selling at barely over half of its high just after IPO. It's moving well beyond just the Roomba company, which while it didn't set the world on fire, has been a pretty good product nonetheless and captured a portion of a large market. Partnering up with the likes of Lockheed, Taser, Deere and Clorox. Robotics will continue to evolve and IRobot will be a big part of it all.
hedge fund managers must be given 45 days for redemptions by investors and investors can only pull money out at the beginning of each qtr...next time is oct 1st, subtract 45 days and you get august 15th
so if you think the mkt will calm down, it probably wont..not anytime soon
0
fyi-----tomorrow big news
hedge fund managers must be given 45 days for redemptions by investors and investors can only pull money out at the beginning of each qtr...next time is oct 1st, subtract 45 days and you get august 15th
so if you think the mkt will calm down, it probably wont..not anytime soon
Really? That is worse than mutual fund redemption requirements..
Geez...
I dont see current levels on any exchange as bargains..are they down? yeah but they arent down to where I think they should go..especially large cap consumer stocks which have feasted on the loose money from the FED..
I need 100k to start going after some high beta stocks short and puts..anyone got some dough to loan?
0
Koaj,
Really? That is worse than mutual fund redemption requirements..
Geez...
I dont see current levels on any exchange as bargains..are they down? yeah but they arent down to where I think they should go..especially large cap consumer stocks which have feasted on the loose money from the FED..
I need 100k to start going after some high beta stocks short and puts..anyone got some dough to loan?
My issue with multi nationals, especially those who are selling world wide is when our currency returns to historic levels, these companies are going to get hit earnings wise..
PG and CL have like a 10 pt high and low for the year, both yield a paltry 2 percent and wont appreciate all that much. I dont like the risk currency wise and when the world economy turns down (usually the US leads the cycle and the world follows, but since the FED has changed the cycle by reducing our currency and making our exported goods on sale artificially, the WORLD might lead and the US be close behind) the mix of domestic recession plus world slowdown would be disasterous for a multi national.
On the CHEAP I would go with them, plus in a bad market they wont get hit as bad, but for a return and yield trade I dont like thse names much.
JNJ is really struggling growth wise and at 4 times book and 3 times sales I dont see tons of value there either.
I would probably take a little more gamble and try a name like PFE with a better yield and lower PE even with the reduction in earnings over a JNJ..
0
Koaj,
My issue with multi nationals, especially those who are selling world wide is when our currency returns to historic levels, these companies are going to get hit earnings wise..
PG and CL have like a 10 pt high and low for the year, both yield a paltry 2 percent and wont appreciate all that much. I dont like the risk currency wise and when the world economy turns down (usually the US leads the cycle and the world follows, but since the FED has changed the cycle by reducing our currency and making our exported goods on sale artificially, the WORLD might lead and the US be close behind) the mix of domestic recession plus world slowdown would be disasterous for a multi national.
On the CHEAP I would go with them, plus in a bad market they wont get hit as bad, but for a return and yield trade I dont like thse names much.
JNJ is really struggling growth wise and at 4 times book and 3 times sales I dont see tons of value there either.
I would probably take a little more gamble and try a name like PFE with a better yield and lower PE even with the reduction in earnings over a JNJ..
Like them or not, SYY is the king of food distributors. US Foods can't compete with them.
The bottom line is this.....the stock price will appreciate over the next 8-12 months and easily outperform the SP.
It dropped today on more weak hands folding, and I added at the end of the day.
I will keep adding a little here and there during this sell-off, and if I'm lucky enough to see it dip below 30 on a morning market meltdown, then I will put about 30% of my account on it and sit back and watch the account rise......stress free.
Cheers
0
Like them or not, SYY is the king of food distributors. US Foods can't compete with them.
The bottom line is this.....the stock price will appreciate over the next 8-12 months and easily outperform the SP.
It dropped today on more weak hands folding, and I added at the end of the day.
I will keep adding a little here and there during this sell-off, and if I'm lucky enough to see it dip below 30 on a morning market meltdown, then I will put about 30% of my account on it and sit back and watch the account rise......stress free.
Private 2 is US Foods. I have worked in several lines of food service in managment over the years and the comments I found are the same. Sysco over charges for garbage products. The reason they have market share is because of their scale and willingness to travel long distances.
Problem is their operating margins will never be great, their growth will never be monsterous, thus their PE ratios will always be at the level of the S&P or lower.
Higher fuel costs, higher cost of goods for basic items are hurting them to a large extent.
Also net tangible assets as a percentage of revenues isnt all that great. They have 10 times debt to cash and trade at 6 times book.
Outside a huge drop in 2003 the stock is a boring range trader. I guess they have a 2% yield to count on but they are definately not a growth stock...
0
claycourt,
Check this out-
SYY
Private 2 is US Foods. I have worked in several lines of food service in managment over the years and the comments I found are the same. Sysco over charges for garbage products. The reason they have market share is because of their scale and willingness to travel long distances.
Problem is their operating margins will never be great, their growth will never be monsterous, thus their PE ratios will always be at the level of the S&P or lower.
Warren Buffett made a serious bet against the dollar as I recall, and his only mistake was in doing so too early.while the dollar will regain some of its luster, I do not see it returning to what I would consider historic norms.
Also, wouldn't the mix of a domestic recession and a global slowdown be bad news for any stock? Not sure what holds up well in that scenario.
Here is a quote from an article in the financial times:
Thank God we're back to plain old-fashioned equity long-short. Yes,
its true. It's the only strategy that works over the long haul. Check
out Bank of America with a 5.3 per cent yield and little exposure to
subprime. Or check out US Bank, a Warren Buffett holding with no
exposure to subprime and a 4 per cent yield.Or buy EMC in the
wake of the initial public offering this week of subsidiary VMWare. EMC
trades at 13x cash flows when its competitors trade at 17x and nobody
seems to care that it will own 87 per cent of the hottest IPO of the
year, which counts Cisco and Intel as investors.
0
Warren Buffett made a serious bet against the dollar as I recall, and his only mistake was in doing so too early.while the dollar will regain some of its luster, I do not see it returning to what I would consider historic norms.
Also, wouldn't the mix of a domestic recession and a global slowdown be bad news for any stock? Not sure what holds up well in that scenario.
Here is a quote from an article in the financial times:
Thank God we're back to plain old-fashioned equity long-short. Yes,
its true. It's the only strategy that works over the long haul. Check
out Bank of America with a 5.3 per cent yield and little exposure to
subprime. Or check out US Bank, a Warren Buffett holding with no
exposure to subprime and a 4 per cent yield.Or buy EMC in the
wake of the initial public offering this week of subsidiary VMWare. EMC
trades at 13x cash flows when its competitors trade at 17x and nobody
seems to care that it will own 87 per cent of the hottest IPO of the
year, which counts Cisco and Intel as investors.
I wouldnt buy EMC because of a one time windfall when they sell the stake in that company.
The market values companies on earnings mostly, not investment holdings, especially a tech stock like EMC.
EMC is up almost 100% from the lows of the year, sporting over a 30 trailing PE ratio and over 20 forward.
I dont consider them cheap at all.
BAC is a favorite by Buffet and he has a good track record but you arent going to make a billion investing in a mature financial stock, especially if the economy softens..
0
I wouldnt buy EMC because of a one time windfall when they sell the stake in that company.
The market values companies on earnings mostly, not investment holdings, especially a tech stock like EMC.
EMC is up almost 100% from the lows of the year, sporting over a 30 trailing PE ratio and over 20 forward.
I dont consider them cheap at all.
BAC is a favorite by Buffet and he has a good track record but you arent going to make a billion investing in a mature financial stock, especially if the economy softens..
If I were long LEND I would be very careful..this bump today is nice but the reason behind it makes no sense to me. Lone Star extended the offer, only because they HAD to legally. If LEND asked, then Lone Star was required by the terms of the agreement to extend for 10 biz days, it doesnt mean they are going to follow through and purchase the company.
Also, LEND said if they werent bot then they might not make it..not good odds if you ask me.
0
If I were long LEND I would be very careful..this bump today is nice but the reason behind it makes no sense to me. Lone Star extended the offer, only because they HAD to legally. If LEND asked, then Lone Star was required by the terms of the agreement to extend for 10 biz days, it doesnt mean they are going to follow through and purchase the company.
Also, LEND said if they werent bot then they might not make it..not good odds if you ask me.
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