Notes from Barrons 8/26/13


Bill Nygren still likes DLPH, 11x ’14 earnings, as well as DTV. DTV is 10x next year’s expected earnings and the share count continues to decline. A merger with DISH would generate big savings.


JPM might get hit for $6.8b in legal losses above reserves for manipulating energy markets.

Re-Energizing Peabody – Seerat Sodhi of QCI thinks BTU can roughly double in price.

Interview with David Kotak – Kotak said he is about at a 60/40 split between stocks and bonds now and mentioned that the NJ Turnpike tax-free munis were recently yielding 4.73% and the taxable NJ Turnpike bonds were at 5.15% (can be used in an IRA).

Vito Racanelli wrote about Teleflex (TFX). The price is down 12% for its April high and trades at 15x next year’s estimate, which is the average PE for the last 10 years and about 1/3 below its highs.



Notes from Barron’s

Here are some comments in Barron’s this week:

Kopin Tan wrote about the high valuations of grocery stores that sell natural, organic products. FWM, a 12-store chain in the NY area, is not profitable and sell for 112 times projected 2015 earnings. They had a 21% increase in annual revenue but SSS were up 1.4% and the average basket size was up 0.5%. SFM went up 123% on their first day of trading. By comparison, WFM trades at 27x 2015 projected profits.

Andrew Bary writes that “Barron’s estimates that Post’s net asset value is about $700 per share.” He is referring to the Washington Post (WPO), after the sale of the namesake newspaper. WPO is priced at $585.

Outerwall (OUTR) sells for 10x 2014 estimated earnings at a price of $60.85. OUTR has a FCF yield of 17%. Stock deserves a 12 multiple (David Englander wrote the article).

An MLP article mentioned ACMP, EMES, EPD, MMP and SXL has picks.