Pick Your Price Target! 52
Glen is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.
Hi, my name is Glen Bradford and I have had a blast assigning price targets to all sorts of companies. If you're reading this, you're probably wondering what your company is worth. Well, let's take a look.
323. Stericycle Inc. (NASDAQ: SRCL) is far too expensive for me to recommend as something that I'd want to own beyond momentum alone. I think the momentum is giving up. The price is too high here given the decelerating growth profile. Target: $60-$70. Glenn Mattison needs to chill out though. You can't argue a stock price down on blogs. The company actually is going to need to miss their numbers for their share price to follow suit. That's the game that wall street plays and I'm willing to acknowledge that playing the game the right way is obscenely profitable. If you're wrong, even in the short term, you'll know it immediately as you'll watch your positions go against you almost helplessly. A P/E of over 30 for something growing around 15% is where I'd be looking to exit at full valuation. You should too.
324. Southwest Airlines (NYSE: LUV) enabled me to travel to New Orleans for a few days around New Years for less than the cabs I took to get to and from the airport. They are buying the other airline that runs my routes to Florida that has a business class, Airtran. When it comes to airlines, I don't know how to justify an investment hypothesis when nearly all of them are constantly losing their shirts and I am always losing my shorts when the TSA screens me with the full pat down every time I board. Southwest is one of the best airlines out there but it's still an airline. Target: $7-$9.
325. Republic Services Inc. (NYSE: RSG) is seeing a lot of interest from Cascade Investment LLC who has been gobbling up shares below $28. If you go back in time, they've been buying all the way down from $34. Anything less than that is a solid buy. Target: $30-$35. I don't quite understand why Cascade Investment LLC has been so gung hoe here. Bill Gates controls it. Their cash earnings are 15%+ stronger than their reported earnings. I'm not really a fan of their share repurchase strategy. I'd rather see them hoard cash and put out a notice that they'll buy it back below a certain price. I've always wanted to see a company draw a line in the sand below which they'll buy themselves back. I do like this company in terms of a long term 10+ year hold from here if you're just looking for something safe.
326. Raytheon Co. (NYSE: RTN) in the middle of where I'd ballpark fair value. Target: $47-$53. Your chance to get Raytheon at an excellent valuation already occured a few months ago. The entire company was trading at 30-year yield highs, which caught the attention of Clay King. That's just because the company recently boosted their dividend, which in my opinion is sustainable by the way. I don't see this as a growth play, more of a stalwart. I htink defense spending cuts are a sure bet as we recently left Iraq.
327. Quanta Services Inc. (NYSE: PWR) is not down as much as I would have expected considering the Keystone pipeline was recently cast aside by President Obama. As an aside, I want to question what on earth Jamie Cook, Peter Chang, Andrew Buscaglia and Linda Yuan were thinking treating Quanta Services like a Keystone Light beer commercial? The valuation target they gave looks high to me. Maybe they had a few too many as they put together their report, which is unusual. Usually I like Credit Suisse reports. Target: $17-$20. I think expectations are overblown for this one and I see state and municipal budget problems in the pipeline, not Keystone.
That's all for now, stay tuned!
Motley Fool newsletter services recommend Southwest Airlines, Republic Services and Stericycle. The Motley Fool owns shares of Raytheon Company. bradford86 has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.