- I sold the remainder of my MAIL. Post their earnings a couple weeks ago, I was as enamored with their move to growth and removal of the dividend.
- I bought JGBO, which absolutely has to be the cheapest company in the entire stock market. I have been watching them drift from $9 to $7, but could not pull the trigger as I was worried about their growth prospects. They answered that today.
- I bought more SCEI (but not in my MFI account), as they had dropped 14% post most excellent earnings a week ago.
- I bought some LNC, again not an MFI stock. They are a former TARP company selling at about 55% of book value. They just had their rating affirmed by AM Best (A+), they are increasing their dividend to 20 cents a share (still down from about $1.60 pre credit crisis) and most importantly will begin to repurchase share (Lincoln National Corporation Raises Dividend, Resumes Share Repurchase Program, and Announces Redemption of Series F Trust Preferred Securities). The repurchase should place a floor on their stock price (at about $23.70 right now) and will be very very accretive as there are few better investments for a company than to buy their shares at a 40% discount.
I am always (ahem) split on whether I am in favor of stocks splitting. For some weird reason, I feel like I have "more" when I have more shares. But RAI split 2:1 today, so if you're playing at home trying to follow my portfolio, double the shares (Splits Calendar: Reynolds American splits before market open today (2:1 ratio)).
I did have two companies report their earnings today.
- NEWN had a stellar quarter (New Energy Systems Group Reports 236% Increase in Revenue for the Third Quarter of 2010) and managed to rise 5.7% on this god-awful day. Their key is that they have now earned $1.13 for the 1st 3 quarters and will clearly blow-out their guidance of $1.23 for the year. Recall this is a stock still under $8, with an $85m market cap and $9m of cash.
- JGBO really impressed me (Jiangbo Pharmaceuticals Announces First Quarter Fiscal Year 2011 Results) which is why I bought in even though they were up. Think about some of these key facts:
- Their market cap is about 100m (for the life of me, I do not know what Yahoo finance has so much trouble with market caps and historical prices, both missing for JBGO).
- They made $14.6m in income in operating income for the quarter.
- Non Gaap income was $10.1m.
- They have $124m of cash. You read that right, $124m in cash for a company with a $80m!
- They grew revenues this quarter by 13%
- Management believes current sales level can be maintained.