(NEM) - 100 shares
Dad
Friday, October 27, 2006
Thursday, October 26, 2006
Wednesday, October 25, 2006
PNRA: Major Q3 Traffic Wreck
Grr...Panera incurred a significant loss on a 30% revenue gain. Looks like they had issues rolling out their night menu. Read more by CLICKING HERE.
Tuesday, October 24, 2006
Monday, October 23, 2006
Allan's Stocks
JCP 2 SHARES
BBY 3 SHARES
CC 6 SHARES
GME 1 SHARE
BBW 8 SHARES
HAS 1 SHARE
LF 15 SHARES
BKS 35 SHARES
BKC 20 SHARES
BOBE 1 SHARE
WMT 40 SHARES
BWLD 70 SHARES
PEP 120 SHARES
KR 500 SHARES
MCD 900 SHARES
OII 900 SHARES
BBY 3 SHARES
CC 6 SHARES
GME 1 SHARE
BBW 8 SHARES
HAS 1 SHARE
LF 15 SHARES
BKS 35 SHARES
BKC 20 SHARES
BOBE 1 SHARE
WMT 40 SHARES
BWLD 70 SHARES
PEP 120 SHARES
KR 500 SHARES
MCD 900 SHARES
OII 900 SHARES
Chris' Stock Picking Justification, v1.0
When choosing picks for this competition, I began by trying to avoid being overweight in any one segment. I may not have hit this goal since I have two stocks dealing with food (PNRA and WFMI), but since one is a restaurant and one is a grocer, I felt comfortable enough to continue. I have only performed basic research, so I won't claim that any of the statements here constitute fact; they are simply my impressions as I surfed the web looking for some picks for the competition.
American Campus Communities, Inc. (ACC) - I picked this because higher education is becoming a growth industry, as more and more jobs require a college degree of some type. All those bodies require somewhere to sleep, and this REIT is focused on serving that niche. Their latest project is 100% leased through the next academic year, Vista del Campo Norte (More). Additionally, the company manages the projects, and to me, this means that they can monitor costs more effectively than an outside management company.
Community Bancorp (CBON) - Holding company for the Community Bank of Nevada, which focuses lending to commercial projects in and around the Las Vegas metropolitan area. My reasoning on this is that: 1) as one of the fastest-growing cities in the US, Las Vegas commercial lending and development should offer a wide opportunity to lending institutions that specialize in the area, and 2) even as the real estate market cools, owning a second home is no longer restricted to the "rich and famous". As the population ages, demand for summer homes should increase, and this "phantom population" will require goods and services for the months that they reside there, increasing the need for commercial real estate even more; 3) It is on an M & A trail, so it may be purchasing other banks to try and fuel growth, which can sometimes make share prices rise. My fault lies in not researching its portfolio - and its 3-year chart is schizophrenic to say the least. Of course, for a competition such as this, maybe that's a good thing, and will allow me to grab a few points before flipping it.
Panera Bread Company (PNRA) - Love their food. And yes, that is never a "good enough" reason to invest in any company. But, their Q3 same store sales were VERY strong, so that gave me a warm and fuzzy feeling, just like their artichoke-chicken-panini. They aren't just fueling growth by building new stores like some chains do.
Align Technology, Inc. (ALGN) - Cosmetic dentistry is the most lucrative niche in the healthcare industry, and Invisalign's product offering addresses teeth straightening without the need of unsightly metal braces. The company has just won a court case against a competitor offering a similar system, meaning essentially that ALGN now owns this vertical. ALGN is also releasing a software system that will help doctors more effectively treat and use ALGN's products effectively, leveraging their brand in the minds of decision makers: doctors and dentists.
Whole Foods Market, Inc. (WFMI) - GMO, or genetically modified organisms in terms of food are plants or animals that have been modified using recombinant DNA technology to enhance or 'build in' specific features, such as resistances to herbicides. There is a growing concern that used to be centered in Europe, but has made its way to the US, about the 'unpredictable nature' of this technology. I personally believe the risks are overblown, but this represents a growing mindshare in the public, and that packs a lot of value. As an 'organic' retailer, Whole Foods can leverage that mindshare by offering foods that are labeled as non-gm foods. Additionally, the use of 'heritage foods' and 'locally grown foods' is becoming in vogue in high-end residential kitchens, and with 155 locations, building and M & A could represent an avenue of growth if the management chose to pursue it.
UPDATE: I just found their spreadsheet on their site of their location history, and a web page with their acquisition history. They also have regularly scheduled podcasts, and have an upcoming fourth quarter podcast on Nov 2. Never having been to one of their locations, just looking over the company's website, their merchandising looks unique and inviting, and differentiates it from a standard grocer. Looks like a place to 'hang-out' as well as shop.
American Campus Communities, Inc. (ACC) - I picked this because higher education is becoming a growth industry, as more and more jobs require a college degree of some type. All those bodies require somewhere to sleep, and this REIT is focused on serving that niche. Their latest project is 100% leased through the next academic year, Vista del Campo Norte (More). Additionally, the company manages the projects, and to me, this means that they can monitor costs more effectively than an outside management company.
Community Bancorp (CBON) - Holding company for the Community Bank of Nevada, which focuses lending to commercial projects in and around the Las Vegas metropolitan area. My reasoning on this is that: 1) as one of the fastest-growing cities in the US, Las Vegas commercial lending and development should offer a wide opportunity to lending institutions that specialize in the area, and 2) even as the real estate market cools, owning a second home is no longer restricted to the "rich and famous". As the population ages, demand for summer homes should increase, and this "phantom population" will require goods and services for the months that they reside there, increasing the need for commercial real estate even more; 3) It is on an M & A trail, so it may be purchasing other banks to try and fuel growth, which can sometimes make share prices rise. My fault lies in not researching its portfolio - and its 3-year chart is schizophrenic to say the least. Of course, for a competition such as this, maybe that's a good thing, and will allow me to grab a few points before flipping it.
Panera Bread Company (PNRA) - Love their food. And yes, that is never a "good enough" reason to invest in any company. But, their Q3 same store sales were VERY strong, so that gave me a warm and fuzzy feeling, just like their artichoke-chicken-panini. They aren't just fueling growth by building new stores like some chains do.
Align Technology, Inc. (ALGN) - Cosmetic dentistry is the most lucrative niche in the healthcare industry, and Invisalign's product offering addresses teeth straightening without the need of unsightly metal braces. The company has just won a court case against a competitor offering a similar system, meaning essentially that ALGN now owns this vertical. ALGN is also releasing a software system that will help doctors more effectively treat and use ALGN's products effectively, leveraging their brand in the minds of decision makers: doctors and dentists.
Whole Foods Market, Inc. (WFMI) - GMO, or genetically modified organisms in terms of food are plants or animals that have been modified using recombinant DNA technology to enhance or 'build in' specific features, such as resistances to herbicides. There is a growing concern that used to be centered in Europe, but has made its way to the US, about the 'unpredictable nature' of this technology. I personally believe the risks are overblown, but this represents a growing mindshare in the public, and that packs a lot of value. As an 'organic' retailer, Whole Foods can leverage that mindshare by offering foods that are labeled as non-gm foods. Additionally, the use of 'heritage foods' and 'locally grown foods' is becoming in vogue in high-end residential kitchens, and with 155 locations, building and M & A could represent an avenue of growth if the management chose to pursue it.
UPDATE: I just found their spreadsheet on their site of their location history, and a web page with their acquisition history. They also have regularly scheduled podcasts, and have an upcoming fourth quarter podcast on Nov 2. Never having been to one of their locations, just looking over the company's website, their merchandising looks unique and inviting, and differentiates it from a standard grocer. Looks like a place to 'hang-out' as well as shop.
Monday's gains
Well today I'm pleased to say that everyone who invested, made money! My portfolio took an early lead when I gambled on Google - after last week's run I still thought it had some legs in it. Chris made some solid gains as well with Panera, and both Todd and I felt that the only real winner in the videogame console wars this fall would be Gamestop.
What will tomorrow bring? I can't wait to find out!
What will tomorrow bring? I can't wait to find out!
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