Friday, February 10, 2012

Monster Worldwide, Inc. (MWW)

Monster Worldwide, Inc. (MWW) Yes, I'm going to recommend this terribly beaten, oversold stock.  I'm not going to tell you there have been buyout rumors, because every weekend Yahoo is about to get purchased and we are still waiting.  What I will tell you, is that employment is looking up. has laid off many of its own employees, so their next report should reflect some improvement. financials Investor Relations

Disclosure:  I am long MWW, and plan to continue adding to my position between $7-8 a share.  I plan to sell around $20, or 12-18 months.  This is a speculative stock, and I don't expect an acquisition of this company.  

I am also long Yahoo, but don't plan to add to my current holdings.  I also don't recommend purchasing Yahoo, until there is some clarity to their business.

Monster Worldwide, Inc. (NYSE: MWW), parent company of Monster, the premier global online employment solution for more than a decade, strives to inspire people to improve their lives. With a local presence in key markets in North America, Europe, and Asia, Monster works for everyone by connecting employers with quality job seekers at all levels and by providing personalized career advice to consumers globally. Through online media sites and services, Monster delivers vast, highly targeted audiences to advertisers. To learn more about Monster's industry-leading products and services, visit

Thursday, February 9, 2012

Nokia Corporation (NOK)

For most that read this, you'll likely wonder...NOKIA?  You must be nuts!  Yes I am, but let's take a look at what is going on in the wireless handset business.  Palm...acquired.  Motorola...acquired.  RIM...rumors are swirling.  Nokia...rumors are swirling as well.

Jan. 26- Nokia Corp. says it sold 19.6 million smartphones in the quarter, down from 28 million handsets a year earlier. That includes over 1 million Lumia devices running Microsoft's Windows software. The new Lumia 800 and Lumia 710 hit stores in Europe / Asia in November, while T-Mobile started offering the 710 in the U.S. in January 2012.

Why should we care?  We shouldn't, but Nokia has a current valuation of around 19 billion dollars.  It sounds like a ton of money, especially if you are Austin Powers,  but not much if you are Microsoft sitting on gazillions of dollars, and wanting to boost the patent portfolio.  Forget an Apple, Samsung, or HP acquisition of Nokia.  Highly unlikely, although there are numerous rumors of this going around.  Remember owning patents, is an effective strategy stopping other manufacturers from suing the crap out of you.  Nokia is definitely sitting on many patents.

I have acquired 800 shares of NOK in the last 4 months from $8 a share, down to $5 a share.  The dividend (although reduced) is an added bonus if the stock appreciates.  This is purely a speculative play, and not for the faint of heart.  I'm only holding off for a buyer of Nokia, because I have a 12-18 timeframe to exit this position.  Buy anywhere around $5, dollar cost average anywhere around $4.25, and my apologies if it dips below $4.

Disclosure:  I am long Nokia.

Wednesday, February 8, 2012

Exco Resources, Inc. (XCO)

Exco Resources, Inc. (XCO) is a Texas-based onshore oil and natural gas company. 

This stock has been slammed and recently hit new 52 week lows at $6.80 over concerns about low natural gas prices. This company has some interesting people involved in its operations. World famous oil investor T. Boone Pickens is a board member, as well as a major stockholder (over 9 million shares). At only $7.77 per share the stock looks deeply undervalued. 

The company is profitable and the book value is $8.07 per share. XCO pays a dividend of 16 cents per share which is equivalent to a 2.3% yield. Expect an eventual rebound (as well as volatility), but buying now while the stock is low is a great opportunity to begin. 

Another insider (Wilbur Ross, an owner of more than 10% of the company, as well as a Miami Dolphins owner) has purchased multiple times.  He is obviously dollar cost averaging.

Today, I purchased an initial stake of 150 shares (at around $7.50), and will continue increasing my investment.  I will have a standing sell order set at $20.

Disclosure: I am long on XCO, and will be increasing my position. 

Tuesday, February 7, 2012

R.R. Donnelley & Sons Company (RRD)

Today we look at RRD:

R.R. Donnelley & Sons Company (RRD) is a global provider of integrated communications. The Company operates primarily in the printing industry, with related products and services. 

In 2011, the company acquired Andover, LibreDigital, Genesis Packaging & Design Inc and StratusGroup, Inc. The stock trades at a low valuation, with trailing and forward price-to-earnings ratios at 4.5 and 6.4 respectively. The expected dividend (currently 8.7%) and the price to free cash flow ratio for the company stand at 9.2% and 6.9 respectively. The forward earnings per share is expected to decline by a meager 1.7%. 

I have purchased 200 shares of this stock in a ROTH IRA, and expect to reinvest the healthy dividends in other stocks.  Keep RRD as a long term holding, and increase your position if the stock decreases while maintaining the dividend.  In other words, buy on dips, as long as you continue benefitting from the profits received.

Disclosure: I am long RRD (as stated).