Stock Pick – Tiffany And Co

TIFFANY AND CO

On Monday Tiffany & Co posted higher than expected quarterly result. The company has reported increased sales overseas and at the same the newly opened stores has helped to counterbalance the effects of a slowing US economy as that has put a strain on consumer spending.

The company reported that its net sales increased 15% in the fiscal year ended January 31, 2008 and rose 10% in the fourth quarter. Net earnings per diluted share from continuing operations excluding non-recurring items increased 22% to $2.33 in the year and increased 19% to $1.27 in the fourth quarter.

The company’s net sales in the fiscal year increased 15% to $2,938,771,000. On a constant-exchange-rate basis, which excludes the effect of translating foreign-currency-denominated sales into U.S. dollars, net sales increased 13% and worldwide comparable store sales increased 7%.

The company’s sales rose 10% to $1.05 billion. The company is expecting, for the current year, the net earnings per share to rise by 11% to 15% to a range of $2.75 to $2.85.

The Company repurchased and retired 9,299,491 shares of its Common Stock in the fourth quarter at a total cost of $418,374,000, or an average cost of $44.99 per share. In the year, the Company spent $574,608,000 to repurchase 12,374,000 shares of its Common Stock at an average cost of $46.44 per share. In January 2008, the Board of Directors increased by $500 million the amount authorized for future repurchases through January 2011. At January 31, 2008, the Company had $621 million available for future repurchases.

About Tiffany And Co

Tiffany & Co. is a holding company that operates through its subsidiary companies. The Company's principal subsidiary, Tiffany and Company, is a jeweler and specialty retailer, whose merchandise offerings include an extensive selection of jewelry (83% of net sales in fiscal 2006), as well as timepieces, sterling silverware, china, crystal, stationery, fragrances and accessories.

Through Tiffany and Company and other subsidiaries, the Company is engaged in product design, manufacturing and retailing activities.

Company’s performance on stock market

After touching the January’s low, this stock had performed quite well on Wall Street. At current situation, after the quarterly result, it is expected the stock will resume its upward movement.

Technically the stock seems to have resistant at $45. Once the stock takes out $45 resistant successfully with huge volume, the immediate target seems at $50 and from mid to long term, the stock has potential to touch $60.

From long term investor’s point of view, I think systemic small-small accumulation of Tiffany stock will be a very good strategy at current market scenario. Even though the Wall Street has gained quite considerably after the two month’s turmoil, it certainly cannot be granted that Wall Street is now completely out of woods. There is lot of uncertainties out there, and any slight negative news from economy front can drag the market southward.

If the Dow Jones and NASDAQ tends to move southward then this stock will also follow their same direction, but at lower level of $35, this stock will be a very good buy with huge upward potential and very low downside risk.

Mid Term Target: $50
Long Term Target: $60

Disclaimer: The views, investment and stock trading tips expressed on this online stock trading blog are solely from the blog owner. The blog owner advises users to check with certified experts before taking any stock trading or stock investing decision.

Current stock market behavior – best opportunity to learn

Since last couple of months, the Wall Street has been behaving more weirdly. But on the other hand, it has given a very good opportunity for newbie stock traders and stock investors to learn more about how the stock market works.

The stock market has shown
• How wildly it can behave
• How the negative sentiment can affect the investor’s pocket
• How the traders can easily burn their hands if they do not put perfect stock market management strategy in place.
• How the maximum of the bull market strategies does not work in bear market
• How losing of money is more easy then making it
• How drastically the positive things can turn into negative
• How non-fundamental stock tends to fall heavily

The stock market is showing its ugly face. This is a tough market and making money in this tough market is even tougher. But one who is able to live with this and can implement proper and perfect strategy can still make money.

You have to assume that stock market will never work according to what you think and it will never allow you to make money. But it is your skill and knowledge that you need to use to pull out the money from the stock market.

The stock trader should know how the significant dip in stock market is an opportunity to enter and how any significant rise is an opportunity to exit.

The investors should need to examine the highly defensive stock and to remain invested in such a stock that has very good fundamentals and has very good growth prospectus ahead.

Hard decision, high risk taking ability, patience and cool mind are supportive tools that help to implement this in more perfect way to make money in stock market.

Omnicell Ind - Fundamentally Looks Good

Omnicell, Inc. is a leading provider of various medication control and patient safety solutions for acute care health facilities.

The company's healthcare automation solutions enable healthcare facilities to acquire, manage, dispense, and administer medications and medical-surgical supplies. It offers medication-use product line for use in acute care nursing departments, central pharmacy automation, physician order management, and nursing workflow automation at the bedside.

The company had very recently announced on Feb 25th, repurchase of an aggregate of up to $40 million of its common stock over the next 12 months. The Company’s Board of Directors decided to pursue this course of action after a review of the Company’s financial position and investment alternatives. The Company expects the stock repurchase program to be accretive to earnings.

This move had leaded the Omnicell stock to remain isolated with ongoing carnage and turmoil in stock market. The stock show strong buy signal and downside risk also looks quite less.

Omnicell also announced that it expects 2008 earnings from operating income will be higher than previously estimated and expects the estimated return on cash investments to be reduced to an average of 3% as a result of recent Federal Reserve rate reductions, which will offset the increases in operating income. After these adjusted estimates, Omnicell reaffirms its previous 2008 earnings forecast of $0.85 to $0.88 per share, excluding stock compensation charges.

Technically the stock looks quite good. The stock is certainly giving buy signal and has very good potential to touch $30 on mid term basis.

Disclaimer: The views, investment and stock trading tips expressed on this online stock trading blog are solely from the blog owner. The blog owner advises users to check with certified experts before taking any stock trading or stock investing decision.

One more painful day on Wall Street

The stock market is certainly witnessing lot of pain. Investors are worried and maximum of stock traders are avoiding to take any buy call on painful and helpless stock market. The credit market is crunching, housing market is plummeting and entering of recession in US economy is almost dreading the investor.

The Dow Jones is almost at it strong support level of 12,000. Though the market is witnessing heavy pressure; I strongly feel the Dow will not fall below 12,000 levels, but still if it falls below 12,000 levels, then I don’t see any hope remaining. At such situation, maximum of the investor will try to pull out their money, and then worries will deepen to such extend that no support level will help the market. The market will not follow any technical or fundamental story and turmoil in stock market will continue for no definite period. It will take long time for one to see the market gets stabilize at some level.

Couple of years back where the market was looking as a paradise is now looking as a torment for me.

Economics worries make the Dow Jones to fall 300+

Wall Street saw one more bloodbath day on Friday. The bloodbath day was more with the concern of economic worries. It seems like the Wall Street has granted that the recession is almost entered or at the door of the US economy.

If for time being we grant that the recession has almost entered and it is affecting the US economy then we should also conclude that this market will lack investor. If investors face out from this market then certainly there will be more falls or the market will stick in range with slowing and sliding waiving upward movement and will start moving downward.

If such is the situation then small retail investor should remain away from the stock market. However retail online stock trader those who are mainly doing online stock trading from their home can enter the market near to the strong support level of 12,000 with strict stop loss of same.

Though the fear of recession is eating out the Wall Street, I strongly feel the Dow Jones should hold 12,000 levels. I estimate that for at least next 3-4 months the Dow Jones should remain in zone of 12,000 to 12,700 levels. But still it is too early to estimate because market reacts with situation. Any positive step from Fed and US government can fuel the market upward.

Stock pick - Universal Health Services Inc

Universal Health Services Inc (UHS) posted a descent quarterly result on Thursday 28 Feb, 2008. The USH Inc Posted 17% increase in 4th quarter profit on back of higher revenue from its acute care and behavioral health facilities.

Universal health earned $40 million, or 75% per share, compared with $34.2 million, or 63 cents per share, for the same quarter in 2006.

Revenue for the quarter rose 12% to $1.19 billion as expected with Wall Street estimates of $1.20 billion.

Universal forecast 2008 earnings from continuing operations of $3.37 to $3.42 per share on revenue of $5.13 billion. Wall Street analysts' are estimating earnings of $3.37 per share.

The main revenue source from acute care hospitals rose 7.6 %, while revenue at behavioral health facilities rose 9.5 %.

With ongoing bloodbath on Wall Street, it becomes evident to stay in more profitable and defensive stock which will help you to keep your stock investment safe. According to me USH stock comes in that defensive stock category. This stock has unique presence in healthcare sector. The healthcare sector is said to be more defensive and less impacted with any financial crisis.

Looking at technical chart of this stock, it looks like the stock has strong resistant at $54. According to me the stock should cross $54 irrespective of what is happening in overall stock market. Still I would remain cautions and will avoid doing any stock trading in this stock until the stock crosses $54 with high volume. Once the $54 is taken out successfully with high volume and stock remains above $54 for couple of days then I would like to take long position with price target of $62 and then $67.

Median target: $62
High target: $67

Disclaimer: The views, investment and stock trading tips expressed on this online stock trading blog are solely from the blog owner. The blog owner advises users to check with certified experts before taking any stock trading or stock investing decisions.