Casino Capitalism

Comp for Graham (GHM) Shows that Stock Still Has Upside

In Barron's this week, Art Samberg recommended Foster Wheeler (FWLT), as a top stock pick. What is interesting is that this is, I think, one of the best comps for valuing Graham (GHM). Based on Art's comments, it would therefore seem that Graham (GHM) should be trading at about $30-$35, assuming  $1.35 per share in earnings this year.   

Planar (PLNR) Still Significantly Undervalued

Well, Planar (PLNR) came out with earnings this morning, that just blew me away. I wish I had more of this stock, but who knew how quickly this thing would turnaround. Maybe prior management was not all that bad.

T-3 Energy Services (TTES) Withdraws Public Offering

With the release of today´s bullish news by T-3 Energy Services (TTES), it now becomes understandable why the stock has performed strongly thus far in 2006. It also explains why insiders recently excercised options at about $11.40 per share. Bottom-line: Hold on to TTES thru 2006 and buy on dips. With a tiny share float and exposure to one of the hottest sectors, oilfield services, it should be a wild ride.

Planar (PLNR) Raises Guidance

Right after the close, Planar raised EPS guidance for the coming quarter to $0.08 to $0.10 per share. This is up from breakeven expectations a couple of months ago. The reason:

The change in expectations is primarily the result of higher than anticipated sales of higher margin EL and AMLCD display products to Industrial and Medical segments.

My back of the envelope valuation of PLNR, based on the current EPS guidance is at minimum $10 per share. This is based on $0.40 annualized EPS with a 15 multiple plus $4.10 per share in cash. It´s possible the stock moves even higher, if sales guidance and EPS estimates continue to improve in 2006. Hold on to this stock. If you want to read my original analysis of the stock, you can click here.

Google Video

I read an interesting post about Google Video and its impact on data centers over at the Internet stock blog. I don´t own any of the stocks mentioned there, but the article gives a decent summary of why you need to invest in Internet and Broadband infrastructure plays.

Interland (INLD) Earnings Update

Interland (INLD) came out with earnings this morning. I just listened into the conference call and still feel that the stock is an excellent "gamble" at current prices. In fact, I picked up some more shares at $3.82.

Telecom and Internet Infrastructure

Here is a link to a good article which when you dig a bit deeper lends some credence to my bullish bet on telecom and Internet infrastructure plays:
http://online.wsj.com/article_print/SB113651664929039412.html

So far, I´m in RBAK, IIP , and INLD (click the links for my original analyses of these stocks).

There are a host of other Internet infrastructure and telecom plays that I´m looking at. Feel free to post some of your own ideas here.

Russian - Ukraine Gas Dispute

It´s fascinating to follow the current Russian-Ukraine Gas Dispute. If you still needed convincing to invest in Canadian Oil Companies and US Natural Gas Companies, this latest battle between Russia and the Ukraine should have you throwing in the towel.

Nutrisystem Misunderstood?

Here is one of my favorite analyst quotes of this week, read more for my take:

"Fundamental to our call this morning is our belief that in general terms, NutriSystem is not properly understood by the Street, which includes a wide underestimation of the company's advertising potential in 2006," Block wrote in a research note. "We are raising our numbers to account for our belief that NutriSystem will spend at least $100 million in advertising in fiscal 2006."

Tech Trader

I always keep a lookout for new investment blogs, particularly since there is such a dearth of non-biased stock research out there. One blog I found interesting, particularly, for some interesting insights on  Tech, is http://techtrader.blogspot.com/. Check it out.