Poetic Portfolios

Middleby just reported their fourth quarter 2007 results. Net sales grew 24.1% for the full year, and earnings per share grew 21.0% year over year. In my previous valuation, I had assumed 15% earnings growth, which yielded an intrinsic value of $94 per share. Based on these results, I look forward to seeing what shares are worth now. Apparently the future is still bright for Middleby.

Disclosure: Long Middleby

Ctrip just reported their fourth quarter earnings. They beat analyst estimates by $0.06 per share, and outpaced my growth projections. I thought they represented a good value before this announcement. Now I’m looking forward to crunching these numbers and updating my models to determine a new range of values.

Disclosure: Long Ctrip

The first quarter results from Oyo Geospace (NASD: OYOG) were pretty disappointing. Quarter over quarter growth was negative after the company reported $0.60 per share in earnings in their fourth quarter (excluding one-time items), earnings fell to $0.54 per share in their first quarter of 2008. There were no RCS contract announcements, and the move to their new 170,000 square foot facility is still on-going. (more…)

As I mentioned in a previous post, I think a disciplined investor should focus on earnings and intrinsic values rather than market quotes. So it is because of their recently reported earnings that I am disappointed with Dawson Geophysical (NASD: DWSN). After last quarter, I estimated full year proforma earnings for Dawson prior to adding their 15th crew. I expected that after having a full quarter with 15 crews that I would once again have to revise my estimates upward. It turns out that the opposite is true. (more…)

ADP continued their strong performance as a company in their fiscal second quarter of 2008, posting 15% year-over-year revenue growth and 22% earnings growth from continuing operations. In addition, ADP guided to 12-13% revenue growth, and 18-21% diluted earnings per share growth in 2008. The market is certainly not pricing the company as if it expects these targets to be achieved. ADP also continues to pay a $0.29 per share dividend per quarter. That’s over a 3% dividend yield. (more…)

Even for the most disciplined investor, it can be difficult watching stocks decline as they have this year. I need to remind myself and the few that read this blog that it is the long-term that counts. (more…)

A little over a week ago, I wrote that Netflix (NASD: NFLX) shares were a bargain. Since then, Goldman Sachs Asset Management has indicated that their stake in Netflix rose from 3.12% to 5.4%, and Netflix announced the authorization of a $100 million stock buyback. Both announcements are positive signs for shareholders. Netflix’s stock has risen approximately $3.00 per share, or 13%, in the past week. (more…)