MONI Meeting Minutes 9/8/07
Meeting was called to order at 10:18am. Elenie made a motion to accept minutes from last month; Eve made a 2nd motion, all in favor.
Previous visitors Linda Klein and Diana Valentine were unable to make the meeting but would like to return again.
Treasurer’s Report:
We’ve earned $74.43 in dividends from Lowes, AT&T, and Polymedica and earned $19.92 in interest, totaling $94.35.
As of 9/8/07 we have $808.92 in cash for trading, $136.32 in petty cash.
There’s new software we’re interested in trying out. Eve has links on our blog to our live portfolio. Cool!
As of 9/7/07
Cash (PC and held by broker) $ 945.24
Securities Market Value 67,475.26
Total cash & stock $ 68,420.50
Stock Info: (as of 8/10/07)
STOCK PRICE P/E RATIO 52WK Hi/Lo Reported by
AMGEN 50.90 14.63 77.00/48.30 Katie
ATT 24.12 n/a 25.90/21.90 Julie
BAC 49.02 10.02 55.08/46.52 Debra
BBBY 32.77 15.46 43.32/32.46 Elenie
CRNT 16.46 n/a 18.60/4.00 Dee
HET 86.03 28.11 86.80/60.90 Suzette
INTC 25.47 25.99 26.52/18.75 Jan
LOW 29.43 14.64 35.74/25.98 Cheri
PEP 67.98 19.10 76.25/61.15 Katie **
PLMD 51.86 30.89 51.99/35.82 Debra
TEVA 43.39 61.11 44.31/30.33 Elenie
TM 113.30 13.05 138.00/105.00 Carla
**will be assigned to Roma
Stock Reports:
AMGN – Lobbied the FDA to re-evaluate labeling for anemia drugs. S&P still ranks it great. 12,000 staff layoffs, and they may have to further downsize. Maybe they’re in the middle of a bad news cycle. They’ve got diabetes drugs down the pipeline, but Aranesp and Epogen are their biggies. Their meeting is Tuesday 9/11. SELL (partial??)
ATT – Eve passed out information on preferred stock (which is what our AT&T stock is.) The call date on AT&T is around 2012.
BAC – Income statement was better than last quarter. They paid $140million to lobbyists. On Motley Fool’s top 10 stocks. They do have exposure to credit card debt issue. Having more of a presence in China—lending to Chinese to build. New executive is Silverstein from the bay area. They may bail out Countrywide, paying them $18/share. Soooo much news….HOLD
BBBY – Boring….not going to make us cash rich, too slow growing. 5 year plan is steady but slow growth. 12 month target price is $47. HOLD or SELL
CRNT-- No news. No target price available. Should we sell and take the profit? SELL
HET -- Should be another dividend paid before the deal is closed (stock buyout), which should happen before the end of the year or by Feb 2008. Harrah’s announced last month a partnership with AEG (owner of Staples among many other venues) to build a $500m 20,000 seat sports arena east of Bally’s and Paris. This is intended to transform the area of Flamingo Road and Las Vegas Blvd. into a major community centerpiece. (HET owns Flamingo and Harrah’s that are right there.) HOLD
INTC – No report ☹ Tech stocks are sizzly hot again.
LOW -- Not much happening. Sold $1.3billion in debt in the form of notes, proceeds are to finance the repurchase of stock…so will there be a buyback? HOLD or SELL?
PEP -- 3rd Quarter earnings to be reported on 10/11. In Southeast Asia, Pepsi is tied with Santori, which is privately held. Introducing diet Gatorade (yuck) and diet Propel (double yuck) in early 2008. HOLD
PLMD -- It’s getting bought out by Medco at $53/share at the end of the year. Medco is cash rich, baby. HOLD
TEVA – (Tev – uh) S&P recommends it as a BUY. 12-month target price is $51. Revenue has doubled every 2 years. Low volatility, medium risk. HOLD or BUY
TM – No report ☹
Other Talk:
Don’t forget to set yourself up a GMAIL account so you can blog with all the cool kids.
We discussed selling AMGN, BBBY, and CRNT, and buy more INTC
• Dee motioned to put a stop limit order at $14.00/share to sell all 100 shares CRNT, Deb seconded, all in favor.
• Elenie motioned to sell 75 shares AMGN. Deb motioned to sell 100 shares AMGN, Bonnie seconded, 5 in favor, motion passed.
• Deb motioned to sell all 100 shares BBBY, Cheri seconded, all in favor.
• Deb motioned to buy 100 shares INTC, Dee seconded, all in favor.
Elenie made a motion to vote in new member Roma Maffia, Eve seconded, all in favor.
Food Queen is Julie and Coffee Princess is Cheri.
Meeting adjourned at 11:48am
Monday, October 8, 2007
Profit Views Show Toll Of Credit Crisis, But Not For Long?
October 08, 2007: 08:05 PM EST
Oct. 9, 2007 (Investor's Business Daily delivered by Newstex) --
Profit growth likely screeched to a virtual halt in the third quarter. But Wall Street already is betting corporate earnings will quickly rev back into high gear.
Hit by the credit crunch, third-quarter profits for S&P 500 companies likely rose just 0.8% vs. a year earlier, according to Thomson Financial. That would be the worst showing since the start of 2002.
Actual profits typically top views by about 3 percentage points.
Earnings estimates have fallen sharply in recent days. Just a week ago, analysts saw 3.6% growth.
That's almost entirely due to big banks. Citigroup (NYSE:C) C, Merrill Lynch (NYSE:MER) (OOTC:MERIZ) MER and Washington Mutual (NYSE:WM) WM all have warned they'll miss forecasts.
S&P 500 financial firms are now seen posting a 6% profit drop. A week ago, analysts saw a 4% gain.
Yet investors have rushed back into stocks, especially financials.
"The credit crunch is being interpreted as a one-quarter story," said John Butters, director of earnings research at Thomson Financial. "Look at the fourth quarter. The estimates haven't changed all that much."
Analysts see 11% growth in the fourth quarter, with continued strength in 2008.
How can profit growth reaccelerate amid a soft U.S. economy?
"Roughly 45% of the S&P 500's sales come from overseas vs. 32% in 2001," said Alec Young, equity strategist at Standard & Poor's. (NYSE:MHP)
So strong overseas economic growth and the weak dollar are fueling multinationals' results.
Hefty stock buybacks also are boosting earnings per share.
Meanwhile, some sectors should enjoy strong third-quarter results.
Health care profits are supposed to rise by 12%, led by Merck (NYSE:MRK) MRK and other drug makers, Butters said.
S&P 500 tech firms' earnings are expected to climb 10%.
"We're seeing a lot of estimate upgrades to technology recently," noted Dirk van Dijk of Zacks Financial Research.
Joining financials on the downside, consumer discretionary firms likely will suffer a 7% profit slide as home builders post or predict big losses. Excluding builders, discretionary profits should rise 6%.
Energy profits should fall 4%, even with oil prices near record highs. Refining margins have fallen, and natural gas prices aren't up as much as oil. Companies also face tough year-ago comparisons.
Profit views on financials may keep heading south.
"A lot of banks have yet to step into the confessional," said van Dijk. He adds that analysts are still reacting to warnings from Merrill and others.
Preannouncements outside of finance have been sparse. But they may pick up this week.
Ryder R said Monday it will miss third-quarter profit views, citing weaker commercial rentals and broad economic weakness. The truck leasing firm's shares fell 7%. The Dow transports skidded 1.2%.
After the close, Yum Brands (NYSE:YUM) YUM said third-quarter profit rose 19%, easily beating views. Yum, owner of KFC, Taco Bell and Pizza Hut, rose 3% in late trading after surging 6% to a new high ahead of results.
On Tuesday, Alcoa (AMEX:AA.PR) (NYSE:AA) AAwill be the first Dow component to report.
Next week tech giants Google GOOG, Yahoo (NASDAQ:YHOO) YHOO, Intel (NASDAQ:INTC) INTC and eBay (NASDAQ:EBAY) EBAY are up to bat.
Oct. 9, 2007 (Investor's Business Daily delivered by Newstex) --
Profit growth likely screeched to a virtual halt in the third quarter. But Wall Street already is betting corporate earnings will quickly rev back into high gear.
Hit by the credit crunch, third-quarter profits for S&P 500 companies likely rose just 0.8% vs. a year earlier, according to Thomson Financial. That would be the worst showing since the start of 2002.
Actual profits typically top views by about 3 percentage points.
Earnings estimates have fallen sharply in recent days. Just a week ago, analysts saw 3.6% growth.
That's almost entirely due to big banks. Citigroup (NYSE:C) C, Merrill Lynch (NYSE:MER) (OOTC:MERIZ) MER and Washington Mutual (NYSE:WM) WM all have warned they'll miss forecasts.
S&P 500 financial firms are now seen posting a 6% profit drop. A week ago, analysts saw a 4% gain.
Yet investors have rushed back into stocks, especially financials.
"The credit crunch is being interpreted as a one-quarter story," said John Butters, director of earnings research at Thomson Financial. "Look at the fourth quarter. The estimates haven't changed all that much."
Analysts see 11% growth in the fourth quarter, with continued strength in 2008.
How can profit growth reaccelerate amid a soft U.S. economy?
"Roughly 45% of the S&P 500's sales come from overseas vs. 32% in 2001," said Alec Young, equity strategist at Standard & Poor's. (NYSE:MHP)
So strong overseas economic growth and the weak dollar are fueling multinationals' results.
Hefty stock buybacks also are boosting earnings per share.
Meanwhile, some sectors should enjoy strong third-quarter results.
Health care profits are supposed to rise by 12%, led by Merck (NYSE:MRK) MRK and other drug makers, Butters said.
S&P 500 tech firms' earnings are expected to climb 10%.
"We're seeing a lot of estimate upgrades to technology recently," noted Dirk van Dijk of Zacks Financial Research.
Joining financials on the downside, consumer discretionary firms likely will suffer a 7% profit slide as home builders post or predict big losses. Excluding builders, discretionary profits should rise 6%.
Energy profits should fall 4%, even with oil prices near record highs. Refining margins have fallen, and natural gas prices aren't up as much as oil. Companies also face tough year-ago comparisons.
Profit views on financials may keep heading south.
"A lot of banks have yet to step into the confessional," said van Dijk. He adds that analysts are still reacting to warnings from Merrill and others.
Preannouncements outside of finance have been sparse. But they may pick up this week.
Ryder R said Monday it will miss third-quarter profit views, citing weaker commercial rentals and broad economic weakness. The truck leasing firm's shares fell 7%. The Dow transports skidded 1.2%.
After the close, Yum Brands (NYSE:YUM) YUM said third-quarter profit rose 19%, easily beating views. Yum, owner of KFC, Taco Bell and Pizza Hut, rose 3% in late trading after surging 6% to a new high ahead of results.
On Tuesday, Alcoa (AMEX:AA.PR) (NYSE:AA) AAwill be the first Dow component to report.
Next week tech giants Google GOOG, Yahoo (NASDAQ:YHOO) YHOO, Intel (NASDAQ:INTC) INTC and eBay (NASDAQ:EBAY) EBAY are up to bat.
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