Hello Amigoland,
As I posted previously, Smart Money listed 10 stocks under $25 which they thought could go up. There are some good stocks on this list. But I decided to narrow it down to one.
My second pick would be CRLBF, also a good stock but the PE is too high for my comfort level. But it has a great chart, and strong buys.
Also VCAI looks good, but again a high PE. So, this is what I came up with.
HELE Helen of Troy
This is my top pick. It definitely gives me FISP. Also, being a female, I am well aware of the products. I didn't realize this company did this. They have a lot in the pipeline coming up with Dr. Scholl's, and I really think this could be a winner. Please, jump in and give me your perspectives, that is what this is all about. The only negative I could come up with was some insider selling, but previous Amigo posts have answered this question to my satisfaction.
Ok here is my research.
Excerpt from Smart Money
UNLIKE ITS NAMESAKE, who attracted attention wherever she went, this leading manufacturer of personal-care products has launched very few followers on Wall Street. Only two analysts from the larger brokerage houses follow the company, even though earnings have been up in each of the past 10 quarters.
Why have you never heard of the company that controls nearly a third of the retail hair-dryer market? That's because you won't find a Helen of Troy (HELE) hair dryer on store shelves. The company sells under famous (and heavily advertised) brands such as Vidal Sassoon and Revlon (REV). Those names have helped push Helen of Troy's sales to $213 million, up from only $120 million in 1992, the first year of its Revlon deal.
The company is expected to grow 25% a year for the next several years, yet Helen's stock trades at only 19.1 times this year's estimated earnings. (Its fiscal year ends in February.)
Helen of Troy, which is registered in Bermuda, but based in El Paso, Texas, is attractive for other reasons. Its stock was beaten up late last year because the company fumbled its 1996 acquisition of two businesses from Dazey Corp., a personal-care products company. Dazey's manufacturing was shifted to Mexico, but production problems caused Helen of Troy to lose $15
million in sales during last year's holiday season, according to Peter
Schaeffer, an analyst at SBC Warburg Dillon Read. The company learned its lesson and moved most of its manufacturing to Asia, where nearly all of its other production is done.
Helen of Troy is planning several new product lines this year. As part of its Dazey acquisition, the company got a long-term licensing agreement with Dr. Scholl's, the foot-care giant. Helen of Troy will begin shipping a line of Dr. Scholl's foot and body massagers this month. Later this year it will introduce a line of artificial fingernails under the Revlon name. This is a huge untapped market for Revlon. American women buy $260 million worth of fake nails a year, and it seems logical that the millions of women who buy Revlon nail polish will also buy Revlon fake nails. Both new products should
keep sales growing strongly.
-------------------------------------
Yahoo URL, price, news, chart
quote.yahoo.com
---------------------------------
First Call consensus strong buy
Zacks 2 strong buys 1 moderate buy
Vector Vest consensus value of $29.80 a share, HELE has about average safety with well
above average upside potential. It reflects a stock which is likely to give well above average
,relatively consistent returns over the long term.
--------------------------------
Insider trading from Vickers
Vickers Top Ten Direct Insider Holders for HELEN OF TROY LTD
Filer's Name Shares Held Market Value Held
RUBIN, GERALD J. 1,241,282 19,007,131
SHENKMAN, AARON M. 80,360 1,230,513
MURPHY, MARTHA J. 5,400 82,688 ************************only person selling
ABROMOVITZ, GARY B. 500 7,656
Vickers Summary of Direct Insider Transactions for HELEN OF TROY LTD
Current Month Previous Month Last 6 Months
Shares Purchased 0 0 0
Shares Sold 0 13,000 21,400
Total Shares Held 1,327,542 1,327,575 N/A
Market Value Purchased 0 0 0
Market Value Sold 0 199,063 327,687
Total Market Value Held 20,327,988 20,328,493 N/A
---------------
Well, I am always looking for good sources of stock picks, and maybe this has led to one. Just some food for thought.
Thanks everyone, hope you all have a great trading wekk and make lots of $$$$$$$$$$$$$4.
Keep smiling,
Redhead
PS Sandra, thanks for HDIE, I think this will be a winner this week. You are on a roll girl, keep up the good work. |
