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The Best Transportation Stock To Buy Now, +18.8% Upside Jan 16, 2014

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http://gmcstockpicks.com Proprietary algorithms at work. Click here for our free newsletter: http://goo.gl/APYNVJ . This is a review of an undervalued stock in the Transportation Sector and Regional Airline Industry. Low priced stocks to buy. We do not look at penny stocks. Stock options are a safer bet than penny stocks.

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Below is the transcript. Requires more editiing beying the 6 minute mark.

0:01 Hi Everyone. Mathis Conner here with Conner Management Group and this week we're going to look at 0:07 the best transportation stock to buy right now. Today is Thursday, January 16, 2014. Alright from the slide 0:18 which you can tell is that the industry is regional airline and the we see this 0:25 name is having the upside potential of 18.8% From the next slide you can 0:33 see that the name is not all that unfamiliar its JetBlue Airways. The ticker symbol is JBLU. 0:42 Once again we see this has an upside potential of 18.8% over the next 12 months. Now for the business summary. of JetBlue 0:51 Airways Corporation. a passenger airline company provides air transportation services. The company 0:56 also provides in-flight entertainment for commercial aircraft, including live 1:01 in seat settling television, and a number of other a communication related services. Another 1:11 description I have is JetBlue Airways is a passenger airline that primarily uses a point-to-point 1:17 route system as opposed to the more common hub and spoke model. They serve about 75 destinations 1:25 in 23 states, plus Puerto Rico, Mexico, the Caribbean and Latin America. Their focus is on underserved markets 1:34 and metropolitan areas with high average fares. Major bases are New York JFK and 1:42 Boston Logan. So that paints a little more color on their business operations. Their website is 1:50 www.JetBlue, J-E-T-B-L-U-E, dot com. The company's headquarters is in Queens New York. They were 2:01 founded in 1998. The number employees they have is 12,124. Once again, their ticker symbols JBLU. 2:13 The super sector is transportation. The sector itself is services and the industry that JetBlue 2:22 falls under is of course our regional airlines. JetBlue's revenues over the last 12 months totaled $5.27 billion 2:31 The net income was $122 million. That sounds a little small against the size revenue. And cash from 2:40 operations however is at $722 million. The market capitalization for JetBlue stands at $2.54 2:49 billion. On to their products and services page. We have some pictures from the JetBlue 2:59 website. We've got the logo JetBlue airlines. We have a picture of a jet in front of 3:06 a JetBlue hanger. We've got a map showing their major destinations. Its clear that their 3:14 their primary hub is out of New York. It looks like they have secondary hubs out of Boston, Fort Lauderdale, 3:22 Long Beach California as well as Oakland California. We also have a picture of a JetBlue airline taking 3:30 off. A picture out of a window overlooking an engine and some snow covered mountains. 3:40 So thats what we have on their products and services page. Just pictures of the jets and their routes. 3:49 Some of JetBlue's key metrics. And once again annual revenues of $5.27 billion, net income 3:56 of $122 million and cash from operations of 722 million. Their operating margins were fairly flat. 4:07 For 2012, operating margins and 12.7% and for and 2013 are tracking to be 13%, just slightly 4:16 better. On to their valuation metrics. JetBlue's trailing P/E ratio right now is 23.4 and its 4:27 forward P/E ratios is at 13.4. So some healthy expansion of earnings is expected. 4:35 The PEG ratio is 0.8. Anything below one is considered to be somewhat of a bargain. 4:44 The prices sales ratio is 0.5. That is also low but I also know it's not unusual for a company 4:53 transportation sector to have low price to sales ratios. The price to book ratio is reasonable at 1.3. And enterprise 5:02 value to ebitda is at 6.9. So overall we we have what I would say are some some low 5:12 valuation metrics. The 23.4 P/E ratio maybe you could argue is a bit rich now but it is expected to 5:21 come down a bit. The other valuation metrics which we just talked about are definitely 5:28 in that on the low side range. This is the kind of thing that will make you wonder if this is a 5:34 good value stock I should take a closer look at. The recent closing price of JetBlue 5:40 yesterday it was $8.98, the 52-week low was $5.70 and it 52-week high was $9.22. 5:52 so right now JetBlue that is trading closer to 62 five slowness or short and the 20 day 5:59 moving average for JetBlue stands at $8.71 the 50 day moving average $8.55 and 200 day 6:09 moving average is $7.08 so that relationship tells you) that you had stock prices and somewhat 6:21 steady increase the average volume for JetBlue daily daily trading volume set 6.4 million 6:29 shares of day so that the stock is definitely traded this is the data is at 0.6 so it is 6:38 less local than the box. Market in general and dividend yield is at 0% and the average 6:46 dividend payout ratio zero cents of JetBlue doesn't pay dividends onto 6:51 were taken look at JetBlue's truck over the past year and what we see is as back around 7:02 the end of February the stock price was just a little over six dollars around six dollars 7:10 and then meandered jump into seven a month later and then down to six dollars in July 7:19 and that from July stock increased somewhat somewhat steadily up until around see mid-November 7:30 rate jumped up to almost 9 dollars.9 dollars and then you pull back maybe $.50 and early 7:41 December and you know right now that $8.90 nine dollars so stock it has increased over 7:52 the past year to come to our assessment about financial statement quality JetBlue's I'll 8:02 have to admit their financial statement quality is fair community that I tend to like to choose 8:12 stock that had that have pretty solid financial statements in most cases some interesting 8:19 circumstances but you airlines do not know that the strongest statements in general and 8:27 and and once again this is the strongest transportation stock that which we see right now so although 8:34 the vast statements are fair and you know in general lot airlines do have great financial 8:42 statements to begin with so you know Raleigh you might consider being in the middle attack 8:48 works with fair finance statements that operating margins as we mentioned earlier is is flat 8:55 80 overall agreement amount that they have it's doing five years stands at $2.2 billion 9:04 this sales of the past five years and increase an average of 3.5% per year thereafter earnings-per-share 9:15 are expected to increase over the next year you know. Their fuel expenses have been coming 9:25 down the maintenance costs have been coming down and they continue to have focus on expanding 9:34 into Sunday current markets and the date masonry senescence of doing cochair of codesharing 9:46 programs with South Africa Asia the united Arab emirates so the company has some some 9:54 love nice upside potential land which was related to part of the Outlook on their earnings 10:01 which which makes this an attractive by it so you know that are just some article Russell/St. 10:09 Paul receives there to bring marked trend is flat there are some some positive activities 10:17 going on inside the company the price pattern trend misusing increasing segment would imagine 10:24 the start that JetBlue and its potentials getting out there and you overall are market 10:29 outlook is still scares me to the past week were started season change the armor love 10:37 overvalued stocks but you get JetBlue weekly BCS is having some nice outside the next year 10:46 the recent closing prices much right now is and yesterday's close 8000 $.98 and are our 10:53 model live has a 12 month price target for JetBlue and $10.67 so that provides it up 11:03 a 12 month upside potential of 18.8% and the next JetBlue deathly worth taking a look at 11:13 and some you might want to consider having to portfolio so vessel we have this week this 11:20 JetBlue went on to our last line with you haven't already please sign up for our weekly 11:27 newsletter you can't get by going to www.GMCstockpicks.com and you be among the first to hear that the 11:36 beast comes a stock tips and alternate bar proprietary algorithm that looks at 3000 5/3500 11:45 stocks on every week we analyze and rank them the best opportunities so were new in the 11:52 block and retention when just how good we are to go sign up for newsletter and doesn't 11:57 don't miss out so we have to this week talk to set ticket

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The Best Capital Goods Stock To Buy Now, +16.1% Upside Jan 13, 2014

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We review the best low price stock to buy now that is in the Capital Goods Sector and Industrial Equipment Wholesale Industry.

Transcript Below.

Hi everyone happy new year. Mathis Conner here with Conner Management Group. This week 0:07 we're going to look at the best capital goods stock to buy right now. Today is Friday, January 0:14 3, 2014. The industry of this capital goods company and is in the 0:23 industrial equipment wholesale and we see the 12 month upside as 16.1%. Going 0:32 on to the second slide and we see the name of the company is called MSC Industrial Direct. 0:40 MSC industrial direct. And its ticker symbol is M S M. Let's see and as mentioned 0:49 industrial equipment wholesale is the name of the industry and upside potential is at 16.1%. 0:56 On to some quick facts about MSC. MSC together with its subsidiaries markets and distributes 1:05 metalworking and maintenance repair and operations supplies primarily in the United States. Its 1:12 MRO products, which is maintenance repair and operations, comprise include cutting tools measuring 1:18 instruments tooling components metalworking products fasteners things of that nature. Things 1:24 that are used to manufacture a lot of end retail type goods. We will see what some of 1:32 the products are on there on the following slide. The website for MSC is MSC direct.com 1:41 the company is headquartered in Melville New York founded in 1941. The number employees 1:48 stand it 6,133. Another interesting tidbit is that the officers and directors the company owns 20.1% of the 2:00 the company in total. Thats a nice chunk for a company the size is it still see in a second. 2:11 They are in the services sector and once again the industry is industrial equipment wholesale. 2:19 Their revenues the last 12 months have stood at $2.42 billion the net income was $249 million 2:30 and the cash from operations was $335 million. The market capitalization for MSC is $5.1 2:38 billion. This definitely a sizeble company. On to the products and services page is now got some pictures 2:47 of the products that they market and distribute so just a lot of hard-core basic product used 2:55 for manufacturing and maintenance. You've got pictures here of a vice, hand tools like a wrench, hole making items like 3:03 drill bits, cutting tools, other kinds of machinery, saw blades, welding 3:12 soldering equipment, HVAC fans, pipe related items like valve, janitorial and facility 3:22 maintenance type equipment, frequently seen things like buckets with mops, and stuff like electric motors, 3:29 power tools - just real hard-core basic stuff. One area to pick up in there business -they have 3:39 one excerpt from the web site that says " emergency preparedness supplies". So you know you can 3:46 imagine that with things like Hurricane Sandy and other disasters across 3:52 the country, their products would be in great demand. So thats what we have for their products and 4:00 services page. On to some of their metrics. As we mentioned annual revenues last 12 months 4:10 has been spent $2.4 billion, net income 249 million, cash from operations 335 million. Their 4:21 operating margins for 2012 was 19%. And the operating March 2013 declined slightly to 4:31 18% - we consider that flat. On to the valuation metrics. The trailing P/E ratio for MSC stands 4:41 at 20.4. The forward P/E ratio stands at 18.0 So we expect to see some some growth in earnings 4:49 going forward. The PEG ratio is at 1.9. The Price to Sales ratio is 2.1. The Price to Book ratio is at 3.7. And the 5:00 Enterprise Value to EBITDA ratio is 12.2. So the valuation metrics are 5:07 aren't crazy cheap or expensive overall - just somewhere somewhere in the middle. The 5:14 recent closing price of MSC stands at $80.74 and that was yesterday's close. The 52-week 5:22 low was $71.44 and 52-week high as $87.92. The 20 day moving average is now at $79.67. 5:37 The 50 day moving averages at $78.70. And the 200 day moving average is at $80.06. So that 5:48 that is a pretty tight grouping which which reflects its overall tight trading pattern, over the past 5:58 year. Right now the recent closing price of $80.74 is closer to the 52-week high of $87 than closer 6:08 to its low. The average daily trading volume of MSC stands at 425,000 shares per day day. 6:17 The beta of the stock is 1.0 basically implying that the stock has tended to move 6:25 with the market fairly lock-step, up and down. The dividend yield is modest. It stands at 6:34 1.6%. The average dividend payout ratio over the last five years has been on 31%. 6:43 So taking at look at its chart for MSC, the stock has really just bounced between $76 and 6:54 roughly $85 several times throughout the year. The stock started out around mid February 7:02 around $86 dollars and then it fell to at $76 around late April then in rose to $84 7:14 in late May then it declined again to $76 in early July and went through this cycle another two or three times 7:23 until late December it got up about to $85 again and now its down around $80. 7:33 So this stock has a flat pattern overall. It has 7:40 bounced back and forth. But we see some some upside here some with expanded earnings. 7:48 Also the operating margins are expected to increase the next of the next 1 to 2 years. 7:55 They made an acquisition of another company. So they will be marketing and distributing 8:02 some higher-margin products. The name of that was called Barnes. 8:11 So on to the next slide. The financial statement quality of MSC we 8:18 consider to be excellent. They have very good financials. The sales for the 8:26 past five years have averaged 10.5% per year. 8:36 Total debt stands about $300 million against $2.5 billion of 8:44 revenue. That's fairly modest. We see the operating margins possibly increasing. 8:53 Right now the operating margin trend is flat and the price trend is as flat as well. 9:01 Now the overall market outlook we continue to see as bearish. We wouldn't be surprised at 9:08 all to see some names pullback or there just not be much advancement over over the next 9:19 quarter so, at least. So we'll see. The recent closing price of MSC right now stands 9:25 $84.74 and we see its 12 month price target and $93.74. So the 12 potential at MSC we see as 9:37 6.1%. Now the return is not high as some previous finds we've found but we think this is just 9:44 a reflection of the market getting more expensive and there not being as is many upside opportunities. 9:54 But nonetheless we still believe that MSC is the best capital goods company to buy 10:02 right now. This is something for you to consider adding to your portfolio. If you are looking to do some 10:08 diversification especially into this sector, the capital goods sector, this is a stock we think you 10:16 should closely consider. And on to our last slide which is a just overall slide about Conner Management Group. 10:27 This is just a reminder to check out our Saturday 10:34 morning newsletter which you can get by going to www.gmcstockpicks.com and there you can hear 10:43 about the best opportunities such as this one and other just general market information. 10:49 All of our stock picks are driven by our proprietary algorithms where we look at over 10:56 3500 stocks every week. We are pretty pleased with what we developed. We are new on the block 11:04 and we are looking to show everyone just how good we are. So go to GMC Stock Picks.com to sign up 11:11 for the newsletter and get that on Saturday mornings. We think you'll be pleased wit it. 11:17 So that's all that we have for this week. Talk to you soon. Take care.

The Best Consumer Noncyclical Stock To Buy Now, +35.8% Upside Jan 12, 2014

Show notes

This is a review of a low price consumer noncyclical super sector stock in the Consumers Goods Sector and Beverage Industry.

Transcript Below:

Hi how are you, Its 0:03 Mathis Conner here with Conner Management Group 0:07 0:08 and this week we are here to look at another stock for you to consider buying 0:13 this week we are looking at the best consumer non cyclical 0:16 stock buy right now. And today is Thursday January 10 0:21 2014 and the stock 0:25 the industry it in is beverages 0:28 dash Brewers. The 12 month 0:32 upside potential we see at 35. percent 0:36 so that is some nice appreciation potential potential 0:39 and we will get into discussing the name of this company 0:42 The name of the company is not unfamiliar 0:46 to most people. Its Molson Coors 0:49 Brewing. The famous Coors 0:53 commercials are pretty hard to miss during weekend sports that's 0:57 for sure 0:57 The ticker symbol is TAP, the industry they are in is beverages dash brewers 1:04 and once again we see the 12 month upside at a 1:08 very healthy 35 point 8 percent 1:11 Some quick facts 1:15 the business summary of Molson is Molson Coors Brewing Company 1:20 manufactures and sells beer in other beverage products 1:23 the company sells products in Canada under the Coors Light, 1:27 Molson Canadian, Molson Export, Molson Canadian 67 and 1:32 a list of other brand names but you know 1:36 at the end of the day they sell beer 1:39 and sell it worldwide. The website 1:43 can be found WWW dot 1:46 Molson Coors dot-com that M O L 1:49 S O N C O O R S 1:53 dot com. The company is headquartered in Denver Colorado. 1:57 They were founded 1873. The number 2:00 of employees they have stand at 18,700. Once again their ticker symbol is TAP - 2:07 "tap". The sector there are in is consumer goods. 2:12 2:16 The annual revenue for Molson 2:19 over the last 12 months stood at 4.2 billion dollars, 2:23 their net income on at 494 2:28 million dollars and their cash from operations 2:31 over the last 12 months was 1.2 billion dollars. 2:35 So this companyh generates quite a bit of cashflow. 2:39 The capitalization of Molson stands at 10.2 billion dollars. 2:45 On the next slide 2:49 are pictures from the website. 2:53 We've got the logo Molson Coors 2:57 and you know a picture of 3:00 a frosty Coor Light beer 3:04 at a football stadium with that backdrop 3:07 of snowy mountains which is pretty a 3:10 common theme for their commercials here in North America. 3:15 On the left there is a list of about 6 3:18 other beers they have 3:22 in other countries. There is the famous Amstel Light 3:26 but they have number of other beers that 3:29 I'm not familiar with Aguila, Strika ... 3:34 3:38 So these are all just other varieties of beer or varitties 3:42 of the American brand name. On to the next slide. Taking a look 3:47 at some of the financial metrics of Molson Coors: 3:51 the annual revenue stands at 4.2 billion dollars over the last 12 last months, 3:55 the net income, 494 million, and once again the cash from operations 4:00 over the last 12 months has been 1.2 billion dollars. 4:04 The operating margins in 4:07 2012, Molson Coors was 18 point 1 percent 4:11 and it 2013 4:14 the past year, the operating margins have been tracking at 21 percent. 4:18 So we are definitely seeing some some improvement which is 4:22 definitely a good thinkg, The trailing p/e right now stands at 20-point 5, and the 4:27 forward p/e ration stands at 13 point 4. 4:31 So that implies some healthy 4:34 expansion of earnings as expected by 4:38 most analysts - which is the suggestion with type of range between trailing and forward 4:41 PE ratios. The PEG ratio stands at 3.6, 4:46 its not that cheap, 4:49 but lets go on, the price to sales ratio stands at 2.4 4:54 and the price to book is at 1.2, that's pretty low 4:58 The enterprise-value to ebitda ratio is at 16-point 7. 5:02 So this is an interesting group of 5:05 valuation metrics. On one hand you you've got the 5:10 the PE ratios implying that quite of bit of earnings expansion is expected, 5:15 the PEG ratio may be slightly high, getting 5:19 slightly rich, then the price to book ratio is pretty low 5:23 at 1.2, and the enterprise value to 5:27 to ebitda value seems a bit rich 5:31 at 16.7 and 5:34 we might see see some conflict here 5:37 regarding what's cheap or not, but 5:40 this probably just a representation of the fact that this company generates 5:45 so much cash from operations. I mean cash from operations of 5:50 around 25 percent you know 1.2 5:53 billion dollars against annual revenue of 4.2 billion .. 5:57 you just don't see that proportion 6:01 all that often. I'm sure that kind of explains these 6:05 valuation metrics in an indirect way. 6:08 On to recent pricing. 6:12 Yesterday's close of Molson Coors was fifty-five dollars 6:15 26 cents. The 52-week low ... 6:19 6:24 I don't have that right. The 52 week low number 6:29 and high number are off. 6:32 I'll come back to those on the next slide. slide 6:36 But the 20-day moving average I have at 54 dollars and 6:40 85 cents. The 50-day moving average of 6:43 $54.28 and a 200-day moving average of 6:48 $51.51 6:50 6:53 So this is a reasonably tight 6:56 differences among moving averages. The average volume 7:00 of Molson Coors stands at 871 7:05 thousand shares per day. The Beta is at 1.0. 7:09 A Beta of 1 says that the stock tends to 7:13 move with the broad general stock market. 7:17 The dividend yield is 7:20 2.3 percent - so 7:23 a healthy and decent dividend yield. The average dividend payout ratio stands at 34 percent. 7:28 That's the average over the last 5 years. 7:33 And on to the 7:36 stock chart for Molson. 7:40 As expected the 52 week low 7:44 of Molson is somewhere 7:47 around forty-seven dollars. And the 52-week high is somewhere around $56. 7:53 So the stock has steadily 7:57 increased - not necessarily in a smooth trend since the 8:01 end of February of last year. At the end of February of last year the stock's 8:07 was around forty-eight dollars and 8:11 it osciallated and has gotten as high as $56 in the last three 8:17 months. 8:18 And now its around 55 dollars. 8:21 So the the company 8:24 has gone through modest 8:27 not necessarily incline in price but 8:31 definitely an increase in price 8:37 Just to summarize the financial statement quality 8:42 of Molson Coors is actually 8:45 very good. They have 8:49 some debt. But the debt they have due in five years its 8:54 pretty match manageable 8:58 at three billion dollars. 9:01 Their revenues are at $4 billion-a-year so thats 9:04 thats not much of a problem. Their sales have steadily 9:08 increased over the the last 9:11 five years. Their earnings 9:14 are expected to increase over the next year. 9:18 Their financials are a 9:21 reflection of them doing a lot different things 9:25 that are moving 9:28 the company forward. I think thats part of what we 9:31 believe is the reason for the upside. 9:35 I mean they made an acquisition in 2012, 9:38 its going to help boost 9:42 the stock price in the next year. 9:45 They experienced a bunch of one-time charges 9:48 in 2012 that they won't have to deal with 9:51 at all in 2014. They have been going through 9:56 a number cost-cutting up efforts. 9:59 They've announced plans to retire 10:03 some debt. Also 10:06 they see their market share increasing 10:10 in Eastern Europe. So they've been doing a lot 10:13 of things that at the end of the day we think is going to create 10:18 some nice upside for the stock 10:21 over the next year. So the balance sheet, the financials 10:25 look good. And as we mentioned earlier the operating margin trend 10:29 is improving and might improve even some more 10:34 beyond 2014. 10:38 So the price pattern trend as we've noted is increasing. 10:42 Overall, our market outlook, 10:45 we are still bearish. 10:49 We are definitely not bullish right now. The recent closing price 10:53 for Molson Coors is $55.26. 10:56 And our model predicts 11:00 a 12-month price target $75.04. 11:05 So the 12 month appreciation potential, 11:08 that's 35.8%. 11:12 We think that this company has some nice 11:16 upside. They are doing several things right 11:19 and they are doing it well. On to our 11:23 closing slide. If you haven't already 11:26 sign up for our weekly newsletter. You can get it by going to gmcstockpicks.com. 11:31 11:31 In that newsletter you can find out about 11:35 great stock picks like this one, as well as just other 11:40 information about the stock market and what's going on and 11:43 also just good educational information. 11:47 Just to remind you if you're new to this is that this 11:50 stock tip was driven by 11:53 our proprietary algorithms where we review over 3500 stocks 11:58 every week. This is a 12:02 result of our 12:06 program. So we're new 12:09 and want to show people how good we are. So please 12:13 go subscribe. You can unsubscribe 12:16 with just once mouse click and you're done. 12:20 But we think you'll like it. 12:23 Check our website and talk to you soon. Take care.

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