Graham Corp (GHM)

Hey everyone thanks for reading my blog. I hope everyone is having a good weekend. Its been awhile since I last posted on here and I apologize for that. Work has been busy and I have been studying for the Certified Equities Professional test, (CEP) for the last few weeks as well. However I thought I should get back to it and start posting more.

Today I am going to be talking about Graham Corp, a company I found while looking over the top gainers for Friday. Graham reported there 2nd quarter fiscal earnings on Friday. Earning per share came in at $1.10 compared to just $0.14 a share last year! They also declared a 5 for 4 stock split effective on November 30th. They also increased there quarterly dividend to $0.05 from $0.03.

What do they do?
Graham Corporation (Graham) manufactures and sells custom-built vacuum and heat transfer equipment to customers worldwide. The Company’s products include steam jet ejector vacuum systems, surface condensers for steam turbines, vacuum pumps and compressors, various types of heat exchangers, including helical coil heat exchangers marketed under the Heliflow name, and plate and frame exchangers. Graham’s products produce a vacuum, condense steam or transfer heat, or perform a combination of these tasks. Its products are available in a variety of metals and non-metallic corrosion resistant materials. The Company’s has two wholly owned subsidiaries, Graham Europe Limited in the United Kingdom and Graham Vacuum and Heat Transfer Technology (Suzhou) Co., Ltd. in Suzhou, China.

Fundamental Quality?
I like to rate stocks on 3 different components, the first being fundamental strength. First thing that strikes my eye is there trailing twelve month return on investment of 22.1 up from 16.4 this time last year. Another good sign is there gross margin for the trailing twelve months is up to 42.9, from 27.2 in the last quarter. That is a huge improvement!

Current Operational Trends
The second category I like to rate a stock on is what I like to call Current Operational Trends. Or more simply, how strong is a company's most recent sales and EPS growth.
One way to gauge this is by using the sales growth for the most recent quarter. For Graham its 41% increase for the latest quarter. I also like to look at the EPS growth for the most recent quarter. For Graham its a 45% increase, that is very nice to say the least.

Technical Strength
The final aspect of a stock I like to look at is, Technical Strength.

Taking a look at the chart we can see the huge gap up on earnings day to set a new 52 week high. Both the 50 and 200 day moving averages are up and very high volume on Friday. Both the RSI and MACD are both trending upwards and I see no weakness in the charts, even after such a huge day on Friday this stock should continue higher.

Based on the fundamental and technical strength of this stock I am rating it a buy.

This Stock (GHM) Is Rated A Buy

As always view my latest picks and current return at socialpicks.com.

Ceragon Networks (CRNT)

Hey everyone thanks for reading my blog. I hope everyone had a good weekend.

Today I am going to be talking about Ceragon Networks a company I found while checking for stocks in a strong uptrend. Ceragon is supposed to report earning for there 3rd quarter on October 22. Earning per share is estimated to come in at $0.12 a share from $0.11 in 2006.

What do they do?
Ceragon Networks Ltd. (Ceragon) design, develops, manufactures and sells high-capacity, point-to-point wireless backhaul solutions. The Company’s products are used primarily by cellular operators to transport voice and data traffic in the backhaul, the segment of the telecommunications network that connects base stations to switch locations on the core network. Its products are also used by other telecommunications service providers that operate wired or wireless networks, and by organizations and enterprises that operate their own private networks based primarily on synchronous digital hierarchy/synchronous optical network technologies (SDH/SONET )and Internet protocol (IP) technologies.

Fundamental Quality?
I like to rate stocks on 3 different components, the first being fundamental strength. To start off I want to warn you, this company is not profitable yet and is highly volatile. This being the case it may be more speculative than past company's I have talked about. However I do feel this company has a ton of upside potential. First thing that strikes my eye is that return on investment has been cut from -9.7 at the end of 2006, to -1.8 for the trailing twelve months. We see a similar increase with there return on assets, at the end of 2006 it was at -6.4 and for the trailing twelve months its up to -1.2. Also sales have increased from 18.4 million in 2002, to 134.7 million in the trailing twelve months. Sales have increased every year.

Current Operational Trends
The second category I like to rate a stock on is what I like to call Current Operational Trends. Or more simply, how strong is a company's most recent sales and EPS growth.
One way to gauge this is by using the sales growth for the most recent quarter. For Ceragon its 57.9% compared to its peers in the industry there's is 85% higher. I also like to look at the EPS growth for the most recent quarter. For Ceragon its 217.2% which is 91% more than other company's in there industry.

Technical Strength
The final aspect of a stock I like to look at is, Technical Strength.

Taking a look at the chart we can see this stock just broke through resistance to set a new 52 week high. Both the 50 and 200 day moving averages are up and volume is up over the most recent breakout. Both the RSI and MACD are both trending upwards and I see no weakness in the charts, even after such a long and steep trend.

Based on the fundamental and technical strengh of this stock I am rating it a buy.

This Stock (CRNT) Is Rated A Buy

Excel Maritime Carriers Ltd (EXM)

Hey everyone thanks for reading my blog. I hope all of you are still making money after a wild week in the markets.
Today I am going to be talking about Excel Maritime Carriers a company I found while scanning the list of top gainers the NYSE. Wednesday they had a great day up 5.49% for the day.
This company just came out with some great earnings on August 13th beating analyst estimates by a whopping 20.42%

What do they do?
Excel Maritime Carriers Ltd. (Excel) is a shipping company. The Company is a provider of worldwide sea borne transportation services for dry bulk cargo, including among others, iron ore, coal and grain (collectively referred to as major bulks), and steel products, fertilizers, cement, bauxite, sugar and scrap metal (collectively referred to as minor bulks). As of December 31, 2006, its fleet consisted of 17 dry bulk carriers (10 Panamax and seven Handymax vessels), representing a carrying capacity of approximately 1,005,000 dead weight tons. As of December 31, 2006, the average age of Excel’s vessels was 13.8 years. The Company’s fleet is managed by its wholly owned subsidiary, Maryville Maritime Inc. As of December 31, 2006, Excel owned a 75% interest in Oceanaut Inc., which was formed to acquire, through a merger, capital stock exchange, asset acquisition, stock purchase or other similar business combination, vessels or one or more operating businesses in the shipping industry.

Fundamental Quality?
I like to rate stocks on 3 different components, the first being fundamental strengh. A few things that stand out to me on this stock are. Year after year increase in sales, starting in 2002 at $16 million and steadily increasing to $141 million for the trailing twelve months. There EPS has steadily increased as well, going from $0.09 in 2002 to $2.60 in the trailing twelve months. Now looking at some key ratios we see that there Price/Sales ratio is pretty high at 6.57%, but considering the uptrend this stock has enjoyed its understandable. There current ratio comes in at 2.66%, this shows they should have plenty of cash to cover any debt obligations. There return on equity ratio in strong as well at 15.90%, this shows they are pretty efficient at reinvesting there earnings.

Current Operational Trends
The second category I like to rate a stock on is what I like to call Current Operational Trends. Or more simply, how strong is a company's most recent sales and EPS growth.
One way to gauge this is by using the sales for growth for the most recent quarter. For Excel its 39.7% compared to its peers in the industry there's is 74% higher. I also like to look at the EPS growth for the most recent quarter. For Excel that is a crazy 347% which is 90% than other company's in this industry.

Technical Strengh
The final aspect of a stock I like to look at is, Technical Strengh.

Taking a look at the chart we can see this stock has been in a serious uptrend for over a year and is closing at new highs just about everyday. The 50 day ma and the 200 day ma are both moving up, something I love to see. Volume in steadily increasing as well. This shows increasing strengh in the stock. If you would have picked up this stock 180 days ago you would have seen a 136.9% increase!

Based on the fundamental and technical strengh of this stock I am rating it a buy.

This Stock (EXM) Is Rated A Buy

EMC Corporation (EMC)

Hey everyone thanks for coming by and reading my little blog.
After scanning the list of top of NYSE % gainers, I spotted EMC Corporation on there with a $0.10 gain on Friday.
This stock has been doing great this year up over 38% year to date!

I do not own any shares of EMC at this time.

I am rating EMC a Buy on there fundamental strength and the strong uptrend they have been in for the last few years. I would like to share with you my analysis of this company.

What does this company do?
The official description is:
EMC Corporation (EMC) and its subsidiaries develop, deliver and support information infrastructure technologies and solutions that are designed to help individuals and organizations handle their digital information needs. It operates in four segments: information storage, content management and archiving, RSA information security and VMware virtual infrastructure. They are in the Computer/Storage Device Sector.

How has this company been doing?

EMC released there 2nd quarter earnings report on June 30th. Revenue increased 19% to $6.10 billion. Net income was up 17% to $647 million..

Looking more long term we see that revenue has steadily increased from 6.24 billion in 2003 to 11.2 billion in 2006. Earnings have increased steadily from $0.25 per share in 2003 to $0.63 in 2006.

The company does not pay a dividend at this time. Number of shares outstanding has gone down a little at around 2.4 billion shares in 2003 to 2.1 billion shares in 2006. Only 1.97% of float is out short.

Current ratio is strong at 2.1. I look for anything over 1 to 1.5.

As you can see this company is starting to look pretty strong.

Valuation
Now for some valuation numbers current PE ratio is a good 29.5. PEG ratio is a good 1.27. Price/Sales ratio is 3.2, 91% greater than other company's in the same industry. Return on Equity comes in very strong at 11.9% better than 76% of company's in the same industry. Valuation wise people know this company is strong and are willing to pay a premium for that strength and growth.

The Chart
Looking at the chart we can see that this company has been in a very strong uptrend since September of last year. Right now were are right up against the 50 day ma but has not broken through. As long as we don't see a break through the 50 day ma it looks like the uptrend will continue.






All around this stock looks great, earnings are strong every quarter and are still getting stronger. If I were buying stocks today this is one I would be purchasing.

EMC CORPORATION IS RATED A BUY

Applied Industrial Technologies (AIT)

Hey everyone thanks for reading my blog. I hope all of you are still making money after a wild week in the markets.
Today I am going to be talking about Applied Industrial Technologies a company I found while scanning the list of top gainers on the NYSE. Friday they had a great day up 17.65% for the day.
This company just came out with some great earnings on Thursday and on a such a bad day the market completely ignored them. It seems on Friday people paid a little more attention and started buying into the stock.

What do they do?

Applied Industrial Technologies, Inc. is a North American distributor of bearings, power transmission components, fluid power components and systems, industrial rubber products, linear components, tools, safety products, general maintenance products and a variety of mill supply products. Fluid power products include hydraulic, pneumatic, lubrication and filtration components and systems. In September 2005, the Company acquired the assets of Spencer Industries, Inc., a fluid power distributor serving the western United States. The business operates as Spencer Fluid Power. In March 2006, it acquired Minnesota Bearing Company, a distributor of bearings, power transmission components and fluid power products. They are in the Consumer Cyclical/Auto and Truck Parts Sector.

How Are They Doing?
I always like to start out by taking a look at a company's latest quarter. This company just came out with there 4th quarter and 2007 year end results. For the year net income rose 19% to 86 million from 72 million the previous year. Net income for the quarter rose 22.2% and EPS for the 4th quarter rose 27.3% to $0.56 from $0.44 the previous year. Even after commenting on how the housing slump has affected there sales they still reaffirmed there guidance for 2008.

Taking a more long term look there yearly income has increased from 2.6 million in 2002 to 86 million in 2007. There EPS went from $0.34 in 2002 to $1.93 in 2007.
Next the amount of stock outstanding has been holding steady at about 43 million shares, something I always like to see. There net cash is all over the board, however considering the rest of the numbers it doesn't seem like to big of a problem. Taking a look at how well they have managed there debt we can see there current ratio is a strong 2.5, way over my minimum 1.0. They also pay a very nice dividend yielding 2%.

How Do They Compare?

Taking a look at how they compare to others in there sector we see there P/E is 15.06 compared to the industry average of 17.82 in 2006. Looking at there Price/Sale they came in at 0.55 compared to 0.76 for the industry. Also there ROE is very strong at 19.33% showing there better at reinvesting there earning then 86% of there competitors. These numbers tell me the street is undervaluing this company.
The Chart
Taking a look at the chart we can see they have been in an uptrend since March. Even after all this volatility they still managed to close above there 50 and 200 day ma. While the 50 day ma is not rising anymore I believe with the earnings they just released the stock will start another long climb.














Considering the fundamental strenght I believe this company has, if I was looking to purchase stock this one would be at the top of the list.

I Am Rating Applied Industrial Technologies (AIT) A Buy

Coca Cola Company (KO)

Hey everyone thanks for coming by and reading my little blog.
After scanning the list of top of NYSE % gainers, I spotted Coke on there with a very nice $1.47 gain today.
This stock has been on a tare this year up over 8% on the year!

I do not own any shares of KO at this time.

I am rating KO a Buy on there fundamental strength and the strong uptrend they have been in for the last few years. I would like to share with you my analysis of this company.

What does this company do?
I am sure we all know what Coke does but the official description is:
The Coca-Cola Company manufactures, distributes and markets non-alcoholic beverage concentrates and syrups. It manufactures beverage concentrates and syrups, which it sells to bottling and canning operations, fountain wholesalers and some fountain retailers, as well as some finished beverages, which it sells primarily to distributors. The Company owns or licenses more than 400 brands, including diet and light beverages, waters, juice and juice drinks, teas, coffees, and energy and sports drinks. It also has ownership interests in numerous bottling and canning operations. Finished beverage products bearing the Company�s trademarks are sold in more than 200 countries. As of December 31, 2006, the Company operated through eight segments: Africa; East, South Asia and Pacific Rim; European Union; Latin America; North America; North Asia, Eurasia and Middle East; Bottling Investments, and Corporate. In June 2007, the Company completed the acquisition of Energy Brands, Inc., known as glaceau.

How has this company been doing?

Coke released there 2nd quarter earnings report on July 17th. Earnings per share came in at $.80 up from $.74 in the 2nd quarter of 06. Net revenue was up 20%.

Looking more long term we see that revenue has steadily increased from 3.96 billion in 2002 to 5 billion in 2006. Cash flow has been a little erratic as of late going from 2.2 billion in 2002 to 6.6 billion in 2005 to 2.4 billion in 2006. Earnings have increased steadily from 1.61 per share in 2002 to 2.22 in 2006.

The company pays a good dividend at $0.34/share. Number of shares outstanding has held pretty steady at around 2.3 billion shares for the last 5 years. Only .92% of float is out short. Good to know everyone else thinks this is a strong company to.

Current ratio is strong at 1.90. I look for anything over 1 to 1.5.

Valuation
Now for some valuation numbers current PE ratio is a good 24.8. PEG ratio is pretty high at 2.27 I usually like to see something lower than 2. Price/Sales ratio is 4.93, 70% greater than other company's in the same industry. Return on Equity comes in very strong at 29.10% better than 87% of company's in the same industry. Valuation wise people know this company is strong and are willing to pay a premium for that strength and growth.

The Chart
Looking at the chart we can see that this company has been in a very strong uptrend since March. We had a pullback in late July to the 50 day moving average but has now broken through on strong volume. Technically speaking this chart looks great.













All around this stock looks great, earnings are strong every quarter and even after they grown this big they are still moving up. If I were buying stocks today this is one I would be purchasing.

COCA COLA COMPANY IS RATED A BUY