New Mechanical Stocks - March 12th 2010

Two new stocks hit the screen this weekend and we bid adieu to another three stocks from a year ago. The three stocks (FIX, DBTK and LOOP) were actually beaten by the S&P 500, by an average of 5.8% per stock.

The new stocks are PRSC (which hits both the top 30 and top 50 screens) and KIRK. Let us look at their stats etc.

		kirk	prsc
+	Operating Income After Depreciation	46.85	53.71
-	Minority Interest - Income Account	-	-
=	Income for Calculation	46.85	53.71
	Diluted Shares Outstanding	20.333	13.218
	Share Price	20.11	14.18
+	Market Cap Calc	408.90	187.43
+	Preferred Capital	-	-
+	Debt in Current Liabilities	-	18.64
+	Long-Term Debt	-	192.00
	Cash and Short-Term Investments	76.40	51.00
-	Excess Cash	76.40	51.00
=	Enterprise Value	332.50	347.07
+	Property Plant and Equipment - Net	38.51	11.41
+	Receivables	2.00	80.00
+	Inventories	39.40	--
+	Other Current Assests	8.00	36.00
+	Working Cash	-	-
-	Accounts Payable	15.50	5.80
-	Current Liabilities - Other	25.50	92.51
=	Invested Capital	46.91	29.10
	Earnings Yield	14%	15%
	ROIC	100%	185%

I had to do a little more work than usual as Fidelity (which I use) usually runs in sync with MFI website. But the MFI website already reflected earnings of these two companies (from Thursday) while my Fidelity did not. PRSC sounds to me a lot like ODSY, AFAM, AMED and CNU which have been on the lists for a while. Kirk is Kirkland stores, which sell specialty home furnishings. Both companies are positive about 2010 versus 2009 on a gross basis, but both companies comment that they expect their tax rates to go up in 2010 (Kirkland from 26% to 39%)! I did buy PRSC yesterday. I don't think I'll buy KIRK, though they look fine to me.

I am still kicking myself for not pulling the trigger on ARO when it hit the screen as it is such a well-run company. It was around $29 (pre split) and I got greedy and put in a buy price around $28. Since hitting my screen they have gone from 28.95 to 42.27 (pre their recent 3:2 split). Oh well!