Apr 16, 2012|
Ken Shreve, Editor of the Ultimate Growth Stocks at TFNN.com, discusses a few stock picks.
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
The and and. Turns out -- stock market rally is fizzling out numerous fictitious we've got David Dallas 47 and everything else -- -- a lot of Reading can get you know it depends on what you like that are very red or Green and because of -- -- greens -- a lot of red in front of us the NASDAQ down 22 S&P 500 they'll only down one. Tenured US treasury is flat and one point 956 hasn't moved much this morning just a little bit down. Gold is down four dollar sixty cents oil trading down 69 cents to one of two. Thirteen Larry we're joined now -- entry -- contributor at thestreet.com and realmoney.com. He's also the editor of ultimate growth stocks -- TF and then. And welcome to the show Daria Dolan. I'm doing great very great to be what you. Thanks for taking time let's take a look at a couple of your stocks eBay -- trading down fifty cents a share you can get it under 36 now. What do you think. Well you take you get it 136 but you know you have to also pay attention to the fact there has spent some mild institutional selling ahead of the stock ahead of its earnings Wednesday after the close I like the company a lot. I think the numbers are going to be good Wednesday after the close com bottom a lot of concern about the stocks -- technical picture or not you're if you're just a fundamental investor that. You don't believe you eBay is gonna. Excuse me continue to grow earnings consistently going forward which I think is the case. I'm you know you could probably start position here and then -- and then see how it goes but technically it's a little we care but I am expecting a pretty good quarter when the company reports mom -- -- -- they make in what two dollars and 46 cents a share they seem cheap from a PE ratio fourteen to one for tech company what kind of growth. Is this company experiencing. -- -- -- -- of the big story -- -- -- -- personal valuation -- again for fundamental investors eBay selling at eighteen times trailing earnings sixteen times forward -- so it's really not even getting much of a premium based on -- growth prospects you know eBay's marketplace business which is -- of their core business. -- -- buying and selling online that continues to do very well but the real story for -- is itself is its -- it's electronic payment to our platform -- it's growing like gangbusters for the company they're really seeking -- international market expansion. Not only in China but also in Russia and -- in Indiana so it's it's a big contributor to enter revenues at this point done -- in the fourth quarter when the company reported. Earlier this year in January there of their PayPal revenue was up about 28%. From a year ago so. Why is how -- why -- PayPal du -- what is it about their service that makes is so attractive. Well it's just electronic payments online you know it just it just this move to -- two. You know pay PayPal and electronic payments as sort of the where it is right now and then -- eBay has definitely riding -- that that growth curve. What do you what do you think they do with PayPal I've heard rumors that they might spin it off and do a separate IPO fort. Well I would make sense I gotta say I would not -- would not be surprised at all to see that happen I mean upset so that's a question the company is gonna have to observed they handled because it is say it is a big revenue contributor right now of her. For eBay the question is is it gonna. You know deliver you know more. Value to shareholders as a as a separate company and I don't have the answer to that but it is such a fast growing business status and -- half but I don't think what surprised I was surprise anybody at this -- Can what was your second pick I missed that day they're run by producing an excellent. You know it's it's it's upscale grocery chain that has a presence in the northeast it's also big in the southeast and mid Atlantic got some mid western exposure as well but it's that's an upscale grocery chain called a fresh market which I came public in that November 2010 -- 22 bucks a -- but it was recently trading around us if you know Whole Foods Market is really probably the best known upscale. Brochure in the stock market has been a tremendous stock market performer. The fresh market is still in the early stages of both growth and boy has this company shown they can. They can execute its operating margin has been increasing each year even as the company has -- -- continue to expand so. Great return on equity carrying a little bit of debt but that's not uncommon to see when I'm when a company is expanding up at the rate that the -- marketers. Why would you buy this instead -- whole foods so I guess -- -- -- question like the I I would Judy you know of them do you ever see at least -- the fresh market appear in Boston and -- you know it's funny I have not I live at -- whole foods you know pretty much on their 34 times a week and getting sandwiches whatever but around. No I I don't think toughen it without him. He had -- the defendant is mostly the southeast like I said midwest mid Atlantic out of there obviously -- cinnamon you minorities obviously -- that big they are yet to other -- California at all but the reason you know basically I would go. With -- fresh market right now -- foods is that you know whole -- gross story I mean it's not a mature company has and it's certainly more mature than the fresh market and you know what I'm looking for growth stocks to does the -- my -- growth portfolio I like that whenever possible cap stocks in the early. In early stages of expansion -- -- starts with a -- management -- obviously -- -- does a great management team. But they have they're looking to have about 350 stores at the end of 2012. And with fresh market you're you're talking about half that. But there are plans for expansion of our our are quicker right now that that whole foods and I just think you're you're still you're still getting an early growth story with fresh. It's not so much so called -- Got it got it all right so the two picks then were eBay EB a Y and TFM the fresh market TFM is the symbol for an hour on. Ideal price target on enough fresh market. Well pat cash market -- I think right now but I mean -- initial a lot of selling in the market die recently more shelling especially intact today so I think the overall market is. Vulnerable to a pullback here not an extreme pullback but if we can get -- -- the pullback in the market can be relatively short lived. -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- So if things they've you know reasonably came in terms of the market the back Patrick you know twelve months ten to 15% higher from -- You sound like you think there's going to be a pretty good correction here can. I -- -- roller -- looking at apple you know certainly out big waiting in the NASDAQ-100. I've been writing about. Sort of an unsettled market in recent weeks have been trimming back guy especially in my -- depositions and my ultimate growth stocks model portfolio. So I do have to pay attention to. Mild signs and distribution or institutional selling in the market when -- actually had and it certainly has been around for the past few weeks housing market today. Why is that down what it would do what's going on over there right it is is is that the DOJ story or is it just a correction. I think it's just I think it's a normal -- profit -- and I don't think it has so much to do it that what the price. The -- e-book price fixing -- -- Apple has just been an extraordinary performer along with several other growth names like -- like Priceline there's another one that's under pressure -- a lot of these -- -- made it. Cute moves in the first quarter tremendous job performance in the market. I think that earnings are going to be Soledad both companies but they're just undergoing a normal profit taking pulled -- care and overall I'm not really expecting you know -- nasty pull back for the market share but I am expecting a -- -- that's for sure. All right Ken thanks very much for your time we appreciate it. Thanks we'll be right back with more talk on the financial exchange.