Tuesday, May 27, 2008

DAR Bought @ $14.94

Stock Analysis DAR [Darling International Inc: NYSE]
Sector: Food-Misc/Diversified ; Agricultural Commodities ; Cleaning Products
Fundamentals: DAR's total debt/equity ratio is 83.93 lower than the industry average. DAR's 1 year ROIC is 47.72% higher than the industry average, which may indicate that DAR has made very good use of its debt and equity capital. DAR's price/earnings (P/E) ratio is 83.07% lower than the industry average.
Technicals: MA(50) and MA(200) are having good upward trend. Also current price is close to MA(50) support. Attached image shows them.
Cost basis: Bought at $14.94
Target: $16.94
Stop loss: $14.04 [Reason MA(50) $14.26]
Next Earnings: 07-August-08
Last Analyst Rating: Mkt Perform
Other comments: The CAPS Screen: 10 Mouth-Watering Consumer Stocks [http://www.fool.com/investing/value/2008/05/20/the-caps-screen-10-mouth-watering-consumer-stocks.aspx]. The rare intersection between today's two hottest sectors: energy and agricultural products [http://seekingalpha.com/article/77772-darling-international-positives-outweigh-the-negatives?source=yahoo]

Wednesday, May 21, 2008

DHI Short at $14.91

Stock Analysis DHI [DR Horton Inc : NYSE]
Sector: Residential Construction
Fundamentals: DHI's ROE has dipped below the Residential Construction industry's average ROE over the last five years. DHI's 1 year ROA is 35.67% lower than the industry average, which may indicate that DHI has not used assets as successfully as its competitors have. DHI's long-term debt/shareholder's equity ratio has risen above the Residential Construction industry's average within the last five years. DHI's net profit margins have fallen below the Residential Construction industry's average over the last five years.
Technicals: Two Bearish Pattern Recognition as of Close May 09, 2008 as: 'Continuation Wedge (Bearish)' and 'Double Top (Bearish)' with target of $7.75 and $12.20 respectively. Also note that trendline on weekly chart has been broken with PPO bearish divergence. Attached image shows them.
Cost basis: Shorted at $14.91
Target: $13.15
Stop loss: $16.21 [Reason Parabolic SAR(0.05,0.5)]
Next Earnings: 24-July-08
Last Analyst Rating: Strong Buy (!!!)
Other comments: Shares of homebuilders fall on more signs turmoil in the housing market is not over (http://biz.yahoo.com/ap/080519/homebuilders_sector_snap.html?.v&quicken=2)

Tuesday, May 6, 2008

VIP Bought @ $30.09

Stock Analysis VIP [Vimpel-Communications: NYSE]
Sector: Wireless Communications ; Telecomm-Wireless
Fundamentals: The company ROE of 31% also tops the industry average of 10% ; P/E (forward):11.41 with PEG 0.77 ; Dividend: 0.9%
Technicals: Currently MA(50)>MA(200) and they are in very close to each other even though the trend of MA(50) is down. Three Bullish patterns are found: 'Continuation Wedge (Bullish)' as of close on May 2, 2008 with potential target as $39. 'Diamond Bottom (Bullish)' and 'Symmetrical Continuation Triangle (Bullish)' formation as of close on 06, 2008 with potential target as $36 and $46. Attached image shows the trendline resistance.
Cost basis: Entered on 5/05/2008 for $30.09
Target: $36.13 [Above first bullish pattern target and below high price of Feb 21, 2008 $38.23]
Stop loss: $29.65 [Reason Parabolic SAR(0.05,0.5)]
Next Earnings: 23-May-08
Last Analyst Rating: Hold
Other comments: VIP recently posted fourth-quarter and full-year 2007 results, noting that revenues exceeded $7 billion and grew at a remarkable rate of 47%. The company exhibited growth in many areas and VIP also offers a dividend yield of 0.9%, which is better than the industry average.