Use access key #2 to skip to page content.

October 2008

Recs

2

Compass Minerals posts record sales

October 29, 2008 – Comments (3) | RELATED TICKERS: CMP

Compass Minerals, one of my favorite companies, reported excellent earnings today. The stock had tumbled to under $40 from a high of $80 in the middle of 2007.  [more]

Recs

0

Some tech firms still going strong

October 24, 2008 – Comments (1) | RELATED TICKERS: FFIV , MXIM.DL2 , EMC

Things are blowing up on Wall Street, but as I've repeatedly said, there are companies with good fundamentals that are getting caught up in a wave of general selling. A lot of that selling probably has to do with hedge funds deleveraging or imploding. I've previously highlighted some industries (MLPs, pharma, some consumer goods, some financials) that are less cyclical and are worth looking into. The tech industry is a bit more cyclical, but I still think there are some good-performing names. Here are a few that I own.  [more]

Recs

1

US Bancorp: worth buying now

October 23, 2008 – Comments (1) | RELATED TICKERS: USB , BBT , WFC

A few weeks ago it looked to me like the high quality banks were benefitting from a flight to quality. Their stock prices weren't exactly sky high but they'd clearly been benefitting from investors buying high quality names.  [more]

Recs

0

Buckeye GP Holdings shareholders should reject owners' tender offer

October 22, 2008 – Comments (0) | RELATED TICKERS: BGH.DL2

The privately held owners of most units of Buckeye GP Holdings (BGH) made a tender offer for $17 today with the intention of taking the entire company private. I believe they're trying to take advantage of market conditions and making a lowball offer. Buckeye GP Holdings yields 8.7% today and should be able to grow distributions over 10% annually going forward; the underlying assets are high quality and relatively low risk. The offer significantly understates BGH's potential. I don't know how much of a chance minority owners have to reject this buy-under, but I wouldn't be surprised if a lot of them do. I've ended my pick in CAPS but I would vote to reject management's offer if I owned the stock.  [more]

Recs

1

Western Union selloff overdone

October 21, 2008 – Comments (1) | RELATED TICKERS: WU

Western Union posted good quarterly results today, meeting analyst expecations. They also withdrew their long-term guidance, which I guess has called the stock to sell off over 15%.   [more]

Recs

1

American Express selling in the low $20s?

October 16, 2008 – Comments (2) | RELATED TICKERS: AXP

Today, American Express is selling around $23 a share. I realize that consumer spending will be down, that worldwide growth of credit card transactions will slow and that Amex does take on credit risk. But $23 and change is absolutely unjustified.  [more]

Recs

0

More stocks to buy

October 16, 2008 – Comments (0) | RELATED TICKERS: EPE.DL2 , MGG , ENLK

I've previously recommended several midstream master limited partnerships. These are tax advantaged securities that build and maintain pipelines from oil and/or gas fields to consumers. These are generally paid based on how much oil/gas flows through their pipelines and aren't exposed directly to commodity price risk. They can be a good way to invest in emerging shale plays like the Barnett Shale (e.g. through Crosstex Energy XTXI and its limited partner XTEX).  [more]

Recs

2

Stocks to buy now

October 14, 2008 – Comments (1)

It's hard for everyone to invest when things are falling apart.   [more]

Recs

1

Update on muni money markets

October 14, 2008 – Comments (0)

It looks like the party in muni money market funds is coming to an end. FTEXX yielded 2.77% as of yesterday, and other muni MM funds yielded a bit less. It looks like the commercial paper market in general is starting to thaw somewhat - the yield got over 5% for a few days. The yields on Fido's muni MM funds are still only a little less than their taxable funds, though. Their institutional MM funds are just over 3%. Their cash reserves fund (FDRXX) yields 2.78%.

Recs

5

Chesapeake: the CEO is the wild card

October 13, 2008 – Comments (4) | RELATED TICKERS: CHK

The Wall Street Journal writes a bit more about Chesapeake Energy CEO Aubrey McClendon and his mother of all margin calls. It turns out that McClendon was forced to sell 33 million shares as prices tumbled. Average daily volume in CHK is 28.5 million shares, so he contributed quite a bit to the (probably temporary) slide.  [more]

Recs

5

Chesapeake: fast money moving out but long term prospects strong

October 10, 2008 – Comments (1) | RELATED TICKERS: CHK

The Wall Street Journal has an article out whose title is "Credit crunch and sinking energy prices threaten Chesapeake Energy's growth". The synopsis is that Chesapeake's near term growth is up in the air; the company has been cutting sharply back on land leasing arrangements and isn't able to sell assets or tap the capital markets. Chesapeake had previously been aggressively leasing land, selling properties and tapping the capital markets.  [more]

Recs

1

Fastenal: was worth buying then, is worth buying now

October 07, 2008 – Comments (3) | RELATED TICKERS: FAST

Fastenal has performed steadily through the last year or so, recently hitting a high of $54. Everything's been selling off in the recent phase of the crisis and the stock price is now $41 and change.  [more]

Recs

2

A note on Compass Minerals

October 02, 2008 – Comments (1) | RELATED TICKERS: CMP , POT , MOS

Compass Minerals is declining precipitously today, as are other agricultural commodity stocks like Potash Corp and Mosaic.  [more]

Recs

3

Muni money market funds and insane yields

October 01, 2008 – Comments (1)

FTEXX, a core muni money market fund that I use in my Fidelity account, recently had a 7-day yield of 5.7%. That's unheard of. There are a number of factors at play.  [more]

Featured Broker Partners


Advertisement