Wow, the last two days I have had so many companies report earnings. Generally it has been good news. My portfolios continue to do well. I am up 8.5% on the year, which looks strong against the R3K being up a mere 2.2% and the MFI Index just 1.3%.
I am in Switzerland today. Yesterday you could see the snow-capped mountains in the distance. Today, maybe a mile visibility. I head back home tomorrow after being on the road for 11 nights - looking forward to being in own bed.
- FLR - they reported earnings last night after the closing bell (Fluor Reports First Quarter Results). I felt they were not too hot and not too cold. I like to look at operating income ($249m versus $271m a year ago). I look at backlog ($41.2b from $40.4b a year ago). It is amazing for these firms to have so much revenue, yet not that much income ($4.58b of revenues deriving the $249m of op income). It does make you realize that if they had to sharpen the pencil by 5%, they'd make nothing. Guidance remained unchanged.
- AVG - they reported Wednesday evening. And while I thought the earnings were strong (AVG Announces First Quarter 2015 Financial Results), I did not realize how strong. They popped 9% yesterday. The timing for a couple of my real bullish earnings (AVG and RCII) could not be better as I am slated to sell these stocks on May 6th. It is the opposite of how my February 1st tranche did in January, when it was one disaster after another.
- GNW - I was nervous here. Last quarter they took a huge charge. Then the prior two quarters were absolute disaster. This quarter was normal, hooray! (Genworth Financial Announces First Quarter 2015 Results Net Income Of $154 Million, Or $0.31 Per Share). That was really all the street wanted to see and the stock popped about 11%. I think with a couple more "normal" quarters, this is a $12 stock easily.
- IPCM - this was one where I was under-whelmed by earnings (IPC Healthcare Reports First Quarter 2015 Financial Results). It is not that they were terrible, but they did (to me at least) make the stock look a bit expensive. They are up 27% since I bought in November. Unless something happens, I would call them fully-valued at this point. So not a "sell", but not a "buy" either.
- NSU - they reported last night after the bell (Nevsun Reports $37 Million in Operating Cash Flow in Q1 2015). This has been a real pocket rocket stock for me, up 14% since I bought a month ago. I would call this a strong quarter. Seems like operations are good, they are keeping cost per pound low (and profitable), they have done some studies showing they have more in mine than they thought. I am pleased.
- PPC - guess what, there is still money in the chicken business (Pilgrim's Pride Reports Operating Income of $328 Million With a Margin of 16.0% for the First Quarter of 2015, a Significant 95% Improvement Compared to 2014). Pilgrim's Pride continues to be a cheap stock, just about any way you skin the (errr) chicken. I should probably add PPC to my idea list for May 6th.
- RCII - Rent A Center had strong earnings as well (Rent-A-Center, Inc. Reports First Quarter 2015 Results). When you read through them, they are pretty flat with a year ago, but clearly expectations were low.
- VIAB - Spongebob and company have been struggling a bit (Viacom Reports Results for March Quarter). Operating income was down year over year from 872m to 822m (note that exludes $780m restructuring charge). Revenues are down 3%. Might be a decent buy on any 5% pullback, but I already own enough.
Whew. Busy, busy, busy. Generally it has been solid though and the cool news is that my May 6th tranche now looks like a solid winner and will break a two tranche losing streak. Here are the most recently closed three tranches, plus the soon to close May tranche (ahead by four points):
| Start | Current | Dividend | Pct Gain | R3K Gain | |
| CF | $187.26 | $247.43 | $4.50 | 34.5% | 19.4% |
| $66.06 | $73.03 | $0.53 | 11.4% | 19.4% | |
| AGX | $15.60 | $36.71 | $0.75 | 140.1% | 19.4% |
| $11.29 | $14.26 | $0.00 | 26.3% | 19.4% | |
| RPXC | $15.92 | $15.09 | $0.00 | -5.2% | 19.4% |
| Totals | 41.4% | 19.4% | |||
| 11/15/13 Stocks | Start | Current | Dividend | Pct Gain | R3K Gain |
| AVG | $17.22 | $19.21 | $0.00 | 11.6% | 14.5% |
| $17.71 | $20.10 | $0.20 | 14.6% | 14.5% | |
| GA | $9.04 | $11.90 | $0.23 | 34.2% | 14.5% |
| RPXC | $17.04 | $13.91 | $0.00 | -18.4% | 14.5% |
| $48.01 | $61.90 | $0.00 | 28.9% | 14.5% | |
| Totals | 14.2% | 14.5% | |||
| 2/1/14 Stocks | Start | Current | Dividend | Pct Gain | R3K Gain |
| $17.13 | $20.90 | $0.20 | 23.1% | 12.9% | |
| $61.47 | $61.47 | $18.40 | 29.9% | 12.9% | |
| RPXC | $16.22 | $12.35 | $0.00 | -23.9% | 12.9% |
| $69.55 | $75.91 | $0.83 | 10.3% | 12.9% | |
| WNR | $39.11 | $37.13 | $3.04 | 2.7% | 12.9% |
| Totals | 8.5% | 12.9% | |||
| Start | Current | Dividend | Pct Gain | R3K Gain | |
| AVG | $19.57 | $23.92 | $0.00 | 22.2% | 12.8% |
| CA | $29.54 | $31.77 | $1.00 | 10.9% | 12.8% |
| $22.79 | $28.83 | $0.57 | 29.0% | 12.8% | |
| NSR | $25.82 | $30.00 | $0.00 | 16.2% | 12.8% |
| $28.78 | $29.60 | $0.94 | 6.1% | 12.8% | |
| Totals | 16.9% | 12.8% |
Have a great day.
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