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FINANCE 533
SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT
STOCK PICKS
The Cheesecake Factory, Inc. (CAKE)
because the speaker mentioned it today in class and I have noticed its expansion recently
The speaker from tues. recommended it, and I have been there several times. Each time I go, it is always packed, so I know they do great business. They are also starting to expand, so it has growth potential.
Southwest Airlines, Inc (LUV)
because oil prices are falling and they are already the low cost leader in the airline industry. Also they are starting to add non-stop flights which should boost profits, because the one negative about them is that they didn't have many non-stop flights so the more they add, the better service they provide
Intel Corp. (INTC)
August 30th's WSJ, Intel unveiled a new manufacturing process that will be implemented next year. This process is shrinking the size of transistors and other circuitry, increasing the processing speed of chips and their data-storage capacity. In this process, Intel said it has created chips called SRAMs, that store 70 million bits of data in comparison with four million bits on SRAMs the company had made in Nov of 2003. Here is a link to the Yahoo! Finance Intel page. Intel is now at a 14 month low after mid-quarter reports and in prime condition to buy @ 21.35/sh. In talking with our speaker today after class he commented to me that Aug-Dec is the best time to buy tech stocks and he liked Intel.
http://finance.yahoo.com/q?s=INTC&d=t
Int'l Game Technology( IGT)
Trends are consistent,going back five years, with the price going up after Aug. through March. Target P/E ratio is 31.2x,an indicator that investors believe that the company will have high growth in the future. EBITDA is higher than the other two companies in the leisure and entertainment sector. EBITDA is a good measure of profit in a company.
BMW(BMWCF.PK)
BMW is a strong, solid automobile company looking towards the future with innovations in the auto industry. I believe it will sustain considerable growth and an increase in overall stock value.
Penn Virginia Corp(PVA)
Penn Virginia Corporation is engaged in the exploration, development and production of crude oil and natural gas, primarily in the eastern and Gulf Coast onshore areas of the United States.
Toyota Motor (TM)
Toyota is taking advantage of global economy introducing vehicles not only in Japan and the US, but also in other markets such as Indonesia. With GM and Ford cutting back in production, Toyota will thrive.
Alliance Gaming Corp. ( AGI).
Sterne, Agee and Leach, Inc. has had them listed as a buy since at least June of 03. I visited my mom in Las Vegas a couple of weeks ago, and Steve Wynn is almost finished with his HUGE new casino and hotel. Also, other reasons that I didn't think of are listed in our handout such as the "busier fall and winter convention season, Global Gaming Expo in October..." Also, Texas Hold'em is taking the poker world by storm. Lastly, we can think of any of our late night Tunica trips as a way to contribute to our cause :)
Sony Corp. (SNE)
they are about to launch their new Video Game Console called PSP in December, which might have a positive impact on their stock.
XM Satellite Radio (XMSR)
Many analysts consider it a strong buy. It is expected to expand its channel lineup this fall and rival Sirius Satellite Radio is struggling. XM has doubled its number of subscribers since the beginning of the year (from around 1 million to over 2 million as of last month), while its closest rival has only 500,000 subscribers. With satellite radio becoming more common, this stock is expected to continue to rise.
XM is being installed in a lot of new cars and they give you the service free for about a year, and it seems like a lot of people get addicted to it and end up subscribing to it after their trial period is over with just because they're so used to it and they can't live without it now. These partners with XM include General Motors, the largest U.S. auto and truck manufacturer; Honda Motors; and also Clear Channel, the largest U.S. radio station operator. It's trading around $29 right now, in the last year it went up from $15. I think it's popularity can only go up as it catches on like satellite tv did.
Anheuser Busch (BUD) or another beer company.
I feel with the coming of the college and professional football seasons the alcohol industry will see increased sales.
Starbucks (SBUX)
Its annual return has risen about 20% a year for a few years, so it might be a good buy. Plus I love mocha frappuccinos!