Economics 101

The best economic advice that you will ever receive - maybe.

Saturday, August 12, 2006

Get some rest for next week

What a week. Some of the best bargains you could find. It just tires me out to constantly have to find every bit of information for every stock. But then again, the money I make, makes it all seem worth while. But now for my last reccommendations of the week. Give a good drumroll for Whole Foods. If you're sitting in front of your computer in shock you need to really wise up. Whole Foods is currently at $48. It has a 52 week range of $46.91-$79.90. Isn't Whole Foods like any other supermarket in America? Absolutely not. Whole Foods has done well by offering more organic foods than its competitors. If you ask a female shopper at Ralphs whether she prefers to buy organic food or non-organic food, she will most likely reply by saying "Well obviously organic." Who wouldn't tak eorganic over non-organic. Plus, Whole Foods is growing every day.The company has so much more growth in store, and I think that investors have to buy Whole Foods. Whole Foods only has a market cap. of $6.69 billion, so it still has lots of room to grow. Whole Foods makes more profit than its competitors, and the industry for that matter. Whole Foods is at a very discounted price, and I think you really need to buy some now. Plus Whole Foods quarterly revenue growth is about 6.7 times more than the industry itself. Whole Foods also has a lot more employees than its competitors, which mean it has a lot more stores. Against its best competitor, Trader Joe's (a privately held company), Whole Foods makes $1.4 billion more in revenues. That number is about the same for the industry. Against the industry, Whole Foods gets $111.5 million more in net income. There is no doubt that Whole Foods is a well-priced stock that you should buy. My next play is a retailer, so give it up for Target. Many people shop from Target each day because of its discounts and cleanliness. Target also has price scanners in various areas in its stores so if you have anything you want to check you don't have to bring i up all the way to the clerk, and then decide that you actually don't want it. I think that if Target keeps expanding it will do well in the near future. Target is currently priced at $48.80 and has a 52 week range of $44.70-$59.29. I think Target might be at this price only becuase it wasn't growing fast enough for its competitors or just because everything that goes up must come down. I think Target is probably the second best in it competition, after Wal-Mart. The thing about Wal-Mart is its advertising. It advertises so much on television that it not only gets shoppers, but a swarm of investors. However, Target is at a cheaper price than Wal-Mart, but that may change in the near future. Target just has to keep growing, and along the way, maybe more television advertising. Now I'm just going to talk a little bit about Wal-Mart since it is not an absolute must buy. Investors could make $5-$7 per share off of Wal-Mart but that doesn't mean that you have to buy it. I think Walart is doing the right the with television advertising but needs to grow faster than the industry because of the standards it has set for itself. I think that you should buy Wal-Mart if you don't think that many other stocks are attractive, but remeber that it is not the best oppurtunity for making profit. Now I'm bringing a technology retailer, so pleae pay attention as I inform you on Best Buy. Best Buy is currently at $46.78 and has a 52 week rane of $40.40-$59.50. Bset Buy does well, by advertising and making a better inventory Best Buy has been doing well. If Best Buy just keeps bringing big screen televisions and nice computers they will continue to do well. Best Buy has about 5.5 times more market capitol than Circuit City. Circuit City's stock is a lot like Wal-Mart's at the moment. It's good for a bit spare money, maybe $7 per share, again, not a very good profit. So as long as Best Buy keeps advertising, not only on television, but in the newspapers, it will be fine. Because it does a lot better advertising than its competitors when it comes to advertising. Next reccomendation: Nutrisystem. Nutrisystem probably has the best stock history than any stock you know. If you had bought Nutrisystem 5 years ago at $1 and sold it at its high this year you would have made 15,000%. That is almost 3 times the Dow Jones' all-time gain. Nutrisystem is in the weight-loss business, and more and more Americans want to lose weight every day. Nutrisystem is currently at $53.30 and has a 52-week range of $17.40-$76.33. Nutrisystem is a company that is not only growing, but making truckloads of profits. So in the end, I think that Nutrisystem is your best buy. Hansen Natural is another great buy. In fact, Nutrisystem and HANS are tied for best buy. HANS is a company that was taken over by two young men a couple of years ago. They created a drink. Now that same drink is a hit. Now when they bought the company, the stock was at $100. It ent from $100 to $200, then the company issued a 2:1 split, so the stock was sent back to $100 once again. This year HANS went reached $200 once again. This time the company issued a 4:1 split which sent the stock to a low $50. Last week, the company had its quarterly conference call, and it wasn't a pretty picture. the stock went down 10.40% and even more in after hours trading. So now it's less than $30. Now you could make at least $20 per share or more. Its 52 week range adjusted to the split is $9.89-$52.72. I think that is a great oppurtunity to make some cash.

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