HanesBrands Earning Surprise

Hanesbrands Profit Rises on Higher SalesThursday January 31, 5:13 pm ET By Ieva M. Augstums, AP Business Writer
Higher Apparel Sales, Cost-Cutting Help Double Profit for Wonderbra Maker

CHARLOTTE, N.C. (AP) -- Hanesbrands Inc., the maker of Hanes Brand underwear and the Wonderbra, said Thursday its profit more than doubled in its fourth quarter as a result of increased sales and cost-reduction efforts.

While pleased with his company's performance, Hanesbrands Chief Executive Officer Richard A. Noll said it's still a "tough consumer climate."
"It has been very challenging out there for the last four to six months and we continue to expect it will be challenging," Noll said on a conference call with analysts. "What is working is sticking to our strategy of driving our brands."
Hanesbrands shares rose 85 cents, or 3.4 percent, to $25.61 Thursday.
The Winston-Salem-based apparel maker earned $49.8 million, or 52 cents per share, for the three months ended Dec. 29 versus $23.8 million, or 25 cents per share, a year ago.
Excluding charges from plant closings, spinoff and related charges and other expenses, net income was $36.3 million, or 38 cents per share.

The three analysts polled by Thomson Financial expected profits of 39 cents per share. Estimates typically exclude one-time charges.
Revenue grew 2.4 percent to $1.16 billion from $1.13 billion during the year ago period.
Hanesbrands was spun off by former parent Sara Lee Corp. in 2006.
The company said increased sales from its Hanes, Champion and Bali brands helped results, with the Champion brand recording double-digit sales growth for three consecutive years.
Operating profit for the quarter rose 31 percent to $125.9 million, from $96.2 million a year ago.

"One of our strategies is to invest in our largest and strongest brands with innovative key items supported by great media," Noll said. "This strategy is delivering results."
As part of continued investment in its brands, the company recently launched a new advertising campaign for its Champion brand, the first campaign for the athletic apparel line since 2003. In October, Hanesbrands signed a 10-year marketing deal with The Walt Disney Co. that includes product co-branding, attraction sponsorships and signage at Disney parks and resorts.
As part of its global supply chain strategy, Hanesbrands in December acquired the Inversiones Bonaventure SA de CV hosiery sewing operations in Las Lourdes, El Salvador. The 900-employee plant had been a contract sewing supplier for Hanesbrands for 12 years.

Results For Boeing

NEW YORK (MarketWatch) -- Boeing Co.'s fourth-quarter earnings rose 4% as improved productivity helped to offset sluggish sales growth, the aerospace giant and Dow Jones Industrial Average component reported Wednesday.

In addition, the Chicago-based company ( BA 80.96, +3.36, +4.3%) raised its 2008 earnings forecast.

For 2008, Boeing said it now expects to generate earnings of $5.70 to $5.85 a share, up from a prior range of $5.55 to $5.75 a share.
For final three months of 2007, net earnings were $1.03 billion, or $1.36 a share, up from $989 million or $1.29 a share, in the year-earlier quarter.
Quarterly revenue fell a fraction from last year to $17.48 billion.

Analysts polled by Thomson Financial had expected, on average, earnings of $1.32 a share as well as revenue of $17.3 billion.
Boeing's stock has taken a pounding for the year to date and has fallen about 24% since striking an all-time high in July of $107.83 because of delays in its next-generation wide-body aircraft, the 787 Dreamliner.

In premarket trading on Wednesday, Boeing shares were up 4 cents to $80.96.
"We added substantial backlog, made major efficiency gains, and executed well on our production and services programs," said Chief Executive Jim McNerney in a statement. "Despite some development program challenges, we are a strong company growing stronger, and we expect continued improvement in our financial results in 2008 and beyond."
Boeing said its total backlog at the end of 2007 reached $327 billion, up 31%. The improvement was driven by commercial airplane orders and new defense-related contracts.
On Jan. 16, Boeing delayed for the third time its 787 program, a widely expected event that nonetheless shook investor confidence in its ability to ramp the program up to any meaningful rate by 2010.

Boeing has said it no longer expects to reach its 2009 delivery target of 109 planes, but management has yet to provide an update. The company said Wednesday it still expects the 787's maiden flight to occur in the second quarter, followed by first deliveries pegged for early in 2009.
Makers of aircraft and related parts and services have seen a boon in global demand, thanks to growing commercial traffic and higher corporate profits

Romney Versus McCain

I'll give it to McCain that he's more able and ready to be the foreign policy president but I certainly give the edge to Romney for his experience on the economic front. The following are quotes from John McCain about his economic experience and knowledge.

One of Josh Marshall’s readers dug up the quote, from an old Wall Street Journal article with the subtitle “John McCain explains his eclectic–and troubling–economic philosophy.”

“I’m going to be honest: I know a lot less about economics than I do about military and foreign policy issues. I still need to be educated.” John McCain is a nice guy but he knows nothing about running a business, economics, or the inner workings of Wall Street or financial markets.

Now for Romney's experience.

Business career
After graduation, Romney remained in Massachusetts and went to work for the Boston Consulting Group, where he had interned during the summer of 1974.[10] From 1978 to 1984, Romney was a vice president of Bain & Company, Inc., another management consulting firm based in Boston. In 1984, Romney left Bain & Company to co-found a spin-off private equity investment firm, Bain Capital.[11] During the 14 years he headed the company, Bain Capital's average annual internal rate of return on realized investments was 113 percent,[12] making money primarily through leveraged buyouts.[13] He invested in or bought many well-known companies such as Staples, Brookstone, Domino's, Sealy Corporation and Sports Authority.[14]
In 1990, Romney was asked to return to Bain & Company, which was facing financial collapse. As CEO, Romney managed an effort to restructure the firm's employee stock-ownership plan, real-estate deals and bank loans, while increasing fiscal transparency. Within a year, he had led Bain & Company through a highly successful turnaround and returned the firm to profitability without layoffs or partner defections.[12]
Romney left Bain Capital in 1998 to head the 2002 Salt Lake City Olympic Games Organizing Committee.[15] He and his wife have a net worth of between 190 and 250 million USD.[16]

CEO of the 2002 Winter Olympics
Romney served as president and CEO of the 2002 Olympic Winter Games held in Salt Lake City. In 1999, the event was running $379 million short of its revenue benchmarks. Plans were being made to scale back the games in order to compensate for the fiscal crisis.[17] The Games were also damaged by allegations of bribery involving top officials, including then Salt Lake Olympic Committee (SLOC) President and CEO Frank Joklik. Joklik and SLOC vice president Dave Johnson were forced to resign.[18]
On February 11, 1999, Romney was hired as the new president and CEO of the Salt Lake Organizing Committee.[19] Romney revamped the organization's leadership and policies, reduced budgets and boosted fundraising. He also worked to ensure the safety of the Games following the terrorist attacks of September 11, 2001 by coordinating a $300 million security budget.[20] Despite the initial fiscal shortfall, the Games ended up clearing a profit of $100 million, not counting the $224.5 million in security costs contributed by outside sources.[21][22]
Romney contributed $1 million to the Olympics, and donated the $825,000 salary he earned as President and CEO to charity.[23] He wrote a book about his experience titled Turnaround: Crisis, Leadership, and the Olympic Games.[24]

McCain definitely has the foreign policy experience edge and Romney has the economy edge. Who either wins the nomination needs to pick a VP that balances the ticket. How about Condoleeza Rice for Romney and Phil Gramm for John McCain.

ICK News

I have submitted a 20 share buy order for Hewlett-Packard (HPQ).

For ICK Members - This Week's Earnings Reports

On Thursday, Boeing reports 4th qtr earnings and on Friday Exxon reports 4th qtr earnings. Other notable earning reports this week are from McDonalds, 3M, EMC, Altria, Merck, UPS, Kraft, P&G, Google, and Wyeth.

These earnings reports are crucial for the direction of the market in the next several weeks. They could be an indication if we are in or heading for a recession.

I Love Apple

From Barrons -

SELLING APPLE SHARES in January has become an established trade. After all, the heavy breathing over Apple gizmos has peaked with the MacWorld conference and holiday sales. Last week, Apple gave nervous investors more reason to book their very hefty profits when, besides issuing its customarily cautious forecast, it reported shipping just 22 million iPods last quarter. That brought year-over-year iPod growth to just 5%, the first quarter of single-digit growth. To hear the bears tell it, it was the day the music died.

The selling took Apple down 35% in a month. At 130, shares trade at 20.7 times forward earnings -- the cheapest in a while. Stripping out its big cash stash, the stock trades at about 13 times free cash flow.

While the Street frets about slowing iPod sales (or how everyone on earth might already have one), it's easy to forget Apple's (AAPL) range. Mac revenues grew 47% last quarter. Unit sales are expected to increase at a pace more than double the industry's 11.6%, and Apple continues to gain share in the computer and phone markets. Investors moaning about the four million iPhones sold so far forget that Apple had no mobile-phone presence just a year ago.

Margins near 35% should improve with cheaper component prices, and Apple is rolling out its new operating system and iPhones overseas. In fact, Apple's knack for packaging aspiration and creating things people feel compelled to own will stand it in good stead in a spending slowdown. The new "MacBook Air," for instance, has inspired lust among existing laptop owners, and the buzz among young media types means consumer magazines will pant after it in print for months to come.

If history holds true, profit taking in Apple will exhaust itself about 21 days after the earnings report (as was the case last year). Last week, Citigroup analyst Richard Gardner called the sell off "overdone." Deutsche Bank analyst Chris Whitmore has a 225 price target that is 73% higher than where shares trade today.

HPQ: Summary for HEWLETT PACKARD CO - Yahoo! Finance

ICK Members, follow this link to find out news and get a snapshot of HP. HP has great international exposure, a low forward P/E, and a consensus 2008 target price of $57.83. It's time to buy.

HPQ: Summary for HEWLETT PACKARD CO - Yahoo! Finance

There's NO Worm In Apple

From Seeking Alpha

This is what we know Wall Street thinks about AAPL:
"Sep-08 FY EPS consensus = $5.14, Sep-09 FY EPS = $6.42."

The thing is, no analyst is including the tsunami of revenue sharing due from iPhone sales and partnerships, which is accruing at a monster rate (currently $1.2 Billion) the earnings from which are amortised out over a period of 24 months on a subscription account scheme.

Apple has the equivalent of an additional 25c earnings in free cash flow, which had it been taken into account would have resulted in Q1 earnings of $2.01 instead of $1.76.
Next quarter, the contribution from this amortised revenue is due to be approx 35c. If you add this in to LAST year's Q2 earnings of 87c, that would already take you to $1.22 EPS - in stark contrast with Apple's guidance of 94c and street expectations of $1.09. And that assumes ZERO ADDITIONAL REVENUES from increased iPod, iTunes, and Mac sales, which should add another 20c in earnings combined.

So for Q2 - for which Apple guided for 94c, they should be able to deliver $1.42.
Apple did a typically über-conservative guidance for Q2, and the stock was train-wrecked by the lynch mob as a result. Apple will earn between $6 - $6.50 this year rather than $5, and approximately $9 in FY09 again the $6.42 expected.
That's why its dirt cheap here: analysts haven't done the math, and the Street can't add up for itself. Had Apple guided realistically instead, the stock would have been closer to $200 today instead of hitting a low of $126.

Knowing this gives you the power and confidence to invest. AAPL is cheaper at $126 relative to its growth than at almost anytime in the last 5 years. Now's the time to buy.

An Apple A Day

Hey, an Apple a day keeps the doctor away. Apple, like other tech stocks have taken a beating the last few days. But the fundamentals tell a different story. The sale of Macs, iPhones, iPods, etc. are doing great. Earnings for the next five years are expected to average between 20-25% per year. The growth for 2008 is expected to be 30%. Apple has a consistant record for beating estimates. So go ahead, be tempted, take a bite out of the Apple.

Class Mobility

Movin' On Up November 13, 2007; Page A24 from the Wall Street Jounal

If you've been listening to Mike Huckabee or John Edwards on the Presidential trail, you may have heard that the U.S. is becoming a nation of rising inequality and shrinking opportunity. We'd refer those campaigns to a new study of income mobility by the Treasury Department that exposes those claims as so much populist hokum.
OK, "hokum" is our word. The study, to be released today, is a careful, detailed piece of research by professional economists that avoids political judgments. But what it does do is show beyond doubt that the U.S. remains a dynamic society marked by rapid and mostly upward income mobility. Much as they always have, Americans on the bottom rungs of the economic ladder continue to climb into the middle and sometimes upper classes in remarkably short periods of time.

The Treasury study examined a huge sample of 96,700 income tax returns from 1996 and 2005 for Americans over the age of 25. The study tracks what happened to these tax filers over this 10-year period. One of the notable, and reassuring, findings is that nearly 58% of filers who were in the poorest income group in 1996 had moved into a higher income category by 2005. Nearly 25% jumped into the middle or upper-middle income groups, and 5.3% made it all the way to the highest quintile.

Of those in the second lowest income quintile, nearly 50% moved into the middle quintile or higher, and only 17% moved down. This is a stunning show of upward mobility, meaning that more than half of all lower-income Americans in 1996 had moved up the income scale in only 10 years.

Also encouraging is the fact that the after-inflation median income of all tax filers increased by an impressive 24% over the same period. Two of every three workers had a real income gain -- which contradicts the Huckabee-Edwards-Lou Dobbs spin about stagnant incomes. This is even more impressive when you consider that "median" income and wage numbers are often skewed downward because the U.S. has had a huge influx of young workers and immigrants in the last 20 years. They start their work years with low wages, dragging down the averages.
Those who start at the bottom but hold full-time jobs nonetheless enjoyed steady income gains. The Treasury study found that those tax filers who were in the poorest income quintile in 1996 saw a near doubling of their incomes (90.5%) over the subsequent decade. Those in the highest quintile, on the other hand, saw only modest income gains (10%). The nearby table tells the story, which is that the poorer an individual or household was in 1996 the greater the percentage income gain after 10 years.

Only one income group experienced an absolute decline in real income -- the richest 1% in 1996. Those households lost 25.8% of their income. Moreover, more than half (57.4%) of the richest 1% in 1996 had dropped to a lower income group by 2005. Some of these people might have been "rich" merely for one year, or perhaps for several, as they hit their peak earning years or had some capital gains windfall. Others may simply have not been able to keep up with new entrepreneurs and wealth creators.

The key point is that the study shows that income mobility in the U.S. works down as well as up -- another sign that opportunity and merit continue to drive American success, not accidents of birth. The "rich" are not the same people over time.
The study is also valuable because it shows that income mobility remains little changed from what similar studies found in the 1970s and 1980s. Some journalists and academics have cited selective evidence to claim that income mobility has declined in recent years.
But the 58% of lowest-income earners who moved to a higher income quintile in this study is roughly comparable to the percentages that did so in several similar studies going back to the late 1960s. "The basic finding of this analysis," says the Treasury report, "is that relative income mobility is approximately the same in the last 10 years as it was in the previous decade."
All of this certainly helps to illuminate the current election-year debate about income "inequality" in the U.S. The political left and its media echoes are promoting the inequality story as a way to justify a huge tax increase. But inequality is only a problem if it reflects stagnant opportunity and a society stratified by more or less permanent income differences. That kind of society can breed class resentments and unrest. America isn't remotely such a society, thanks in large part to the incentives that exist for risk-taking and wealth creation.

The great irony is that, in the name of reducing inequality, some of our politicians want to raise taxes and other government obstacles to the kind of risk-taking and hard work that allow Americans to climb the income ladder so rapidly. As the Treasury data show, we shouldn't worry about inequality. We should worry about the people who use inequality as a political club to promote policies that reduce opportunity.

CEO Compensation - Forbes.com

Take a look at this complilation of CEO salaries from Forbes. Who deserves the pay and who doesn't, you decide. Let our readers know how you feel about CEO salaries. Too low, too high, too greedy, nothing we can do about it, or none of our business. What do you think?

CEO Compensation - Forbes.com

What Me Worried

A little perspective on market downturns. When the market dropped off this morning there was panic selling. But market panic, bear markets, and downturns are opportunities for buying into the market.

The biggest one day drop in the Dow was on October 19, 1997 when the market dropped 508.00 points or -22.61%. The market started the day at 2,246.74 and finished at 1,738.74. Two years later at the close of 1989 the market closed at 2753.20 or a two year gain from October 18, 1997 (the day before the drop) of +22.5%.

Our investment club, investment clubs in general, and individual investors need to keep a long term view or intermediate term view and keep investing. Just think the market twenty years ago was around 2000 and this year hit 14,000.

Get Drugged In 2008

Promising new drugs that experts believe might be approved this year and have potential to become blockbuster drugs.

Kynapid, from Cardiome (CRME, $7.64) would be the first new atrial fibrillation drug approved by the FDA since 2000. The drug is given intravenously, which can be a hassle. But the company is working on an oral form that would be “a clear blockbuster,” according to Mike King, an analyst with Rodman & Renshaw.

Sugammadex, made by Schering-Plough (SGP, $21.28) would be used to reverse the effects of strong muscle relaxants given during surgery. The drug appears to help patients come out of anesthesia more quickly, and with fewer side effects, than existing drugs. The drug was recently granted priority review by the FDA, but still doesn’t have a final brand name.

Methylnaltrexone, from Progenics (PGNX, $17.00) prevents constipation in patients taking opiates. In an unusual move, Progenics partnered with Wyeth to test the drug in hospice patients, who tend to receive high doses of opiates. An injected version of the drug could be approved in April for hospice patients. And an oral version for a broader patient population is being studied.

ICK Recommendation

To ICK Members:

Since we have discussed purchasing stock that has international exposure I am suggesting that we buy shares of either IBM or HP. HP has 67% of their sales overseas, while IBM has 61% of their sales overseas. HP is currently at $43.75 per share with a 0.70%div and IBM is at $103.40 with a 1.60%div. 1st year target price for HP is $57.91 and $123.43 for IBM. Let me know what you think.

SubPrime Housing Woes Continue

December 26, 2007, 10:14 am
Home Prices: Few Metro Areas Spared
Sources: S&P/Case-Shiller; J.P. Morgan

Home prices are dropping at a faster rate in most major metro areas, sparing fewer cities from anything positive to show for their housing markets.

The S&P/Case-Shiller report for October shows a composite of 10 cities recording a year-over-year decline of 6.7%, the worst since the 6.3% drop for April 1991. A larger 20-city index showed a 6.1% drop from a year earlier. Both composites dropped 1.4% over September, their largest monthly declines on record. All of the 20 areas showed monthly price declines in October (as they did in September). Eleven of 20 metro areas showed their worst year-over-year declines on record for the series.

“No matter how you look at these data, it is obvious that the current state of the single-family housing market remains grim,” Robert J. Shiller, Chief Economist at MacroMarkets LLC, said in releasing today’s numbers.

Atlanta and Dallas are the latest metro areas to show year-over-year drops. Atlanta recorded a 0.7% decline in October compared to a year earlier, while Dallas dropped 0.1%. They were among the five areas in Case-Shiller’s report for September to maintain annual price appreciation. Those still in positive year-over-year territory: Charlotte, N.C., rising 4.3%, Portland, Ore., up 1.9%, and Seattle, 3.3% higher in October.
City by City, year over year changes
Sources: S&P/Case-Shiller; Lehman Brothers

For most major areas, the figures suggest the housing market has yet to find a floor. Six metro areas posted double-digit declines in their year-over-year home prices, led by Miami (down 12.4%), Tampa (dropping 11.8%), Detroit (off 11.2%) and San Diego (declining 11.1%).
“Given conditions relating to mortgage financing, and the number of unsold homes that is piling up, all regions are likely to continue on a negative trend in the months ahead, and those with the greatest oversupply (at the bottom of the pack at the moment) will continue to fall by the most,” said Joshua Shapiro, chief economist of of MFR Inc.

Health Care Stocks - Recession Proof?

Healthcare provider stocks such as Aetna (AET), United Health Care (UNH), Well Point (WLP), and Humana (HUM) may provide a safe haven in 2008 as recession looms.

NEW YORK (CNNMoney.com) -- As the market flirts with recession, many of the top performers are healthcare providers, suggesting that the sector could be returning to its old reputation as a safe port in a storm.

"Traditionally in times of economic turmoil, healthcare is a place to run, because it is viewed as a safe sector, because people continue to use [healthcare] even in difficult times," said Angela Maria Larson, drug industry analyst for the Susquehanna Financial Group.
The numbers bear her out. The American Stock Exchange Pharmaceutical Index is up more than 3 percent this year, while the exchange as a whole is flat. Of the top 10 performers listed in Thomson Financial's Baseline, six are healthcare companies.

"[The healthcare sector has] underperformed for the last year or so, so we're at a point where it's becoming a safe harbor at attractive valuations," said Larsen, who believes that the trend will continue.

Health Care Funds - Good For Your Financial Health?

Health Care sector funds are in positive territory this year. Using the Morningstar fund screener the following seven funds may be worth looking into this year. They all have Star Ratings of three stars or more, YTD positive returns, low expense ratios, low P/Es, and solid earnings growth rates. Check them out.

• Jennison Health Science Z ***** 0.59%ytd
• Fidelity Select Medical **** 1.41%ytd
• DWS Health Care Instl **** 0.50%ytd
• Vanguard Health Care **** 0.35%ytd
• Vanguard Health Care Adm *** 0.34%ytd
• DWS Health Care S **** 0.43%ytd
• Morgan Stanley Health ****0.90%ytd

Most analysts agree that health cares and stocks will be leaders in 2008.

SubPrime Housing

The following article from MarketWatch is good and bad news. Bad in that the housing market is still feeling the affects of the subprime fiasco but good in the fact that the glut of housing will start winding its way down. Sure people should not have bought houses they couldn't afford but the primary blame lies with the mortgage and financial institutions that offered loans with no down payments, no credit check, and no income verification. Now some of those same institutions are being bailed out by China and oil rich Gulf states; Saudi Arabia, Kuwait, Bahrain, Qatar, UAE, and Oman. Have we mortgage our souls to the devil?

From MarketWatch -

The gruesome figures show builders are cutting back on production at a furious pace to try to work off a large backload of unsold homes. The bad news is that housing is still contracting; the good news is that the sooner builders stop adding supply to overbuilt markets, the sooner the housing market can recover.
Compared with December 2006, monthly housing starts were off 38%, the biggest year-over-year decline since 1980.
In December, single-family starts fell 3% to 794,000, the lowest monthly pace in 16 years.
Building permits, a better gauge of future activity than the volatile monthly figures on starts, fell 8% in December to a seasonally adjusted annual rate of 1.07 million, the lowest since May 1993. Single-family permits fell 10% in December to 692,000.
For all of 2007, housing starts fell 25% to 1.35 million, the lowest total since 1993. Building permits fell 25% in 2007 to 1.38 million, the lowest since 1995.
Single-family permits fell 29% in 2007 to 1.05 million, the lowest since 1992.
Housing completions dropped 8% in December to a seasonally adjusted annual rate of 1.30 million. Completions fell 24% in 2007.

Investing in Youth

Last year I started investing for my grandkids, five of them, ages 10,13,15,16, and 16. I set up a custodial account with an on-line broker (Ameritrade) and invested $800.00 in each account. I let them pick the stocks. Hopefully as time goes on they will gain an understanding of the financial markets. And I hope they will continue to let the money accumulate until they are 30 years old. Making that assumption and assuming a growth rate of 11%, the youngest will have $51,362.27 in their account when they are 30 years old, not a fortune but a solid base. The oldest will have accumulated $24,075.93 in their account when they reach 30 years of age.

I hope that they will learn the lesson of saving at an early age and will start investing their own money when they begin working and begin their careers.

Subprime Ethics

As you might have read, Countrywide Financial is being acquired by Bank of America. Countrywide was apparently on the brink of bankruptcy. It's bad enough that companies such as Countrywide made loans that were shaky at best, they compound the pain by giving their CEO, Angelo Mozilo, a severance package of $115m, free access to the company jet, and paid dues to the country club until 2011. This was certainly a pay for failure package. No one else in this great country gets paid for failure except greedy CEOs. The boards of these companies should be held up to public scrutiny and made to explain why!

What are your thoughts.

Growth vs. Dividends

Interesting research on dividends vs. growth. According to Jeremy Siegel from 1871 through 2003 97% of the market's returns have come from reinvested dividends not capital gains on original principle. More research shows that from 1972 through 2006 S&P stocks not paying dividends returned 4.1% vs. 10.1% from dividend paying stocks. A case can be made to invest in dividend paying stocks for part of your portfolio.

Is part of your portfolio in dividend paying stocks or funds?

January So Far

Almost every sector of the market, global and U.S. are down this year. The global exceptions are Indoenisia (+2.71%) and Malaysia (+6.79%). The U.S. equity exceptions are Health/Biotech (+2.55%), Utilities (+0.73%), and Gold Oriented (+10.80%). At the end of January it might be wise to see which sectors are up for the year and move money into sector mutual funds.

Hhgregg

An interesting article about Hhgregg is in this week's Barron's. Hhgregg is a mid-west company with stores in the Central Ohio area. It went public in July 2007 at about $13.00 a share. It hit a high of about $17.72 and currently stands at $9.62. Forward P/E is 7.76. This could be a good growth stock for a 1-2 year horizon with a consensus target of $18.88. Ticker symbol is HGG.

What do you think about Hhgregg? Do you shop there?

TransCanada

An interesting news article on the Keystone pipeline being built by TransCanada.

TransCanada Pipeline Gets State Dept. Approval

A proposed oil pipeline that would deliver Canadian crude to U.S. refineries passed another regulatory hurdle.
TransCanada Corp. received a Final Environmental Impact Statement from the State Department that says its planned Keystone Pipeline project would result in limited adverse environmental impacts.
The company expects a decision in February on a presidential permit authorizing the construction and operation of the facilities at the U.S.-Canada border. The Final Environmental Impact Statement is a requirement for the presidential permit process.
TransCanada plans to start construction this spring on the 590,000-barrel-a-day Keystone pipeline. Its 2,148-mile route will pass through North Dakota, South Dakota, Nebraska, Kansas and Missouri on the way to terminals in Illinois and Oklahoma.

This may be a good long term investment. Ticker symbol is TRP.

Early Investing

A quick story about the value of investing at an early age and the effects of compounding.

This is about two siblings, Jessica and Steve. As they turn 18, Jessica takes a job out of high school and begins investing. From age 18 to 30 -- when she gets married and has her first kid -- Jessica socks away five grand a year. Then she stops. Steve, meanwhile, goes to college and then medical school. He starts saving at 30 -- the same $5,000 per year. Both invest in the stock market, earning a long-term average of 11% a year. But by age 65, the difference in their financial fortunes will shock you: Steve, who contributed for 35 years straight, will have $1.9 million. But Jessica, who invested for only 12 years, actually has $4.9 million ... thanks to her head start!