May 15th, 2008
My latest column is up at RealMoney. It is part of an ongoing series on “wallflowers” - stocks that have little or no analyst coverage from Wall Street. In this case, it is Seacor Holdings (CKH).
Over the last 12 months, Seacor has generated about $325 million in free cash flow, which equates to a very juicy free cash flow yield of nearly 17%. This wasn’t just a fluke number, either. Over the last three years, free cash flow has averaged $295 million per year.
At 1.2 times book value, Seacor is trading well below the industry average (according to Zacks Research Wizard) of 2.7 times. On the basis of its return on equity, I estimate a sustainable growth rate in the high single digits. Adding in a potential valuation expansion to the industry average, total return could range from 20% to 30% per year, with the main variable being the estimated time for Seacor’s price/book to converge to the industry average.
Disclosure: At time of publication, William Trent has no financial position in the companies mentioned in this article.
Zacks Investment Research has provided Stock Market Beat with a complimentary trial subscription to Research Wizard.
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May 15th, 2008
What did Jim Cramer call “the Tony Soprano stock”?
But Tony Soprano’s official title was “waste-management consultant.” Therefore, waste management is a recession-proof business.OK, admittedly there are some gaping holes in that formula. But that doesn’t mean Waste Management (WMI) the company, isn’t “fairly recession-resistant,” CEO David Steiner told Cramer Tuesday.
Personally, I have expressed a preference for Allied Waste (AW).
Disclosure: At time of publication, William Trent has no financial position in the companies mentioned in this article.
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May 15th, 2008
Jeffries’ managing director Paul Fremont loves dirty coal. On May 6, he recommended which energy stock?
Recommendations:
Dynegy (DYN), NRG Energy (NRG), Allegheny Energy (AYE).
Disclosure: At time of publication, William Trent has no financial position in the companies mentioned in this article.
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May 15th, 2008
On May 14, Pimco’s Mohamed El-Erian warned that the Fed is:
El-Erian added that the Fed is “particularly challenged” because of its dual mandate that calls for maintaining solid employment and low inflation.
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May 14th, 2008
In the story “Homebrew Heads To Your Gas Tank,” what’s the “true cost” of the EFuel100 MicroFueler?
The true cost is actually around $5,000.
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May 14th, 2008
In the slideshow, 10 Biggest Entrepreneurial Mistakes, what is the No. 5 (Five) error?
Dazed & Confused - No Rallying Point
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May 14th, 2008
What casino-resort company did billionaire Ron Baron recommend on Tuesday?
In this video, Baron recommends Wynn Resorts (WYNN) as well as Ralph Lauren (RL).
Disclosure: At time of publication, William Trent has no financial position in the companies mentioned in this article.
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May 14th, 2008
Short Seller Trivia: In the May 1 “Market Insider” blog, which green stock did shorts want badly?
There is also interest by short sellers in Canadian Solar (CSIQ) and SunPower (SPWR) and they were in the top 10 stocks being sought this week, says John Tabacco, ceo of Locatestock.com.
Disclosure: At time of publication, William Trent has no financial position in Canadian Solar (CSIQ) or SunPower (SPWR).
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May 14th, 2008
How much did super sports agent David Falk sell his agency, FAME, for in 1998?
Darren: You sold your agency, FAME, for $100 million in 1998 to SFX, but continued representing players.
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May 14th, 2008
In Monday’s Fast Money Web Extra, what M&A pair did the FM traders discuss?
In Monday’s Web Extra, Pete Najarian reveals which chip maker he thinks is a buy. Also the latest play on the XM / Sirius merger.
Disclosure: At time of publication, William Trent has no financial positions in XM Satellite Radio (XMSR) or Sirius Satellite Radio (SIRI).
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