Eric Novinson

Editor's Choice

  • Lighter Airplanes Are No Dream

    By Eric Novinson - April 24, 2013 | Tickers: HXL, BA, ZOLT | Editor's Choice

    Airplanes paid off for Hexcel (NYSE: HXL) this quarter. This company produces lightweight composite airplane parts for both Boeing (NYSE: BA) and Airbus. Hexcel makes composite helicopter blades and wind turbine blades as well. Hexcel's achieved solid results in the airplane business, and the company's composites and carbon fiber products could also find uses in other industries.

    Financial Results

    In general, the first quarter of 2013 went well more »

  • Brazil Makes Sense for CVS

    By Eric Novinson - February 7, 2013 | Tickers: CVS, ESRX, RAD, WAG | Editor's Choice

    CVS (NYSE: CVS) continues to grow in the United States, attracting shoppers from independent pharmacies and weaker big box chains. This pharmacy giant still risks hitting the wall in the domestic market if lucrative pharmacy expansion spots run low. Competitors Rite Aid (NYSE: RAD) and Walgreens (NYSE: WAG) face similar domestic growth constraints, and Walgreens addressed this challenge by entering the international market. Now CVS has international expansion plans of more »

  • A Solar Stock With a Better Business Model

    By Eric Novinson - January 14, 2013 | Tickers: BRK-B, BRK-A, CVX, SCTY | Editor's Choice

    Solar companies heard some good news recently, as Warren Buffett just demonstrated his confidence in the industry with a power plant buy. MidAmerican Solar, owned by Berkshire Hathaway, (NYSE: BRK-A) (NYSE: BRK-B) bought the Antelope Valley Solar Plants from SunPower, reported Chris Clarke at KCET. Warren Buffett definitely knows how to find bargains, but investors in the solar power business have been burned before, so a solar power company needs more »

  • Zoltek Avoids The Fiscal Cliff

    By Eric Novinson - January 2, 2013 | Tickers: HXL, IXYS, WWD, ZOLT | Editor's Choice

    The fiscal cliff deal could have ended the wind energy production tax credit, so the deal had major implications for carbon fiber maker Zoltek, (NASDAQ: ZOLT) which makes fiber for large wind turbines. Bears argued that Congress would cut the credit, which would make large wind turbines more expensive. Michael Bastach, at the Daily Caller, reported that the Senate fiscal cliff bill kept the production tax credit in place for more »

  • 3 Reasons To Buy This Health Food Giant

    By Eric Novinson - November 26, 2012 | Tickers: BNNY, HAIN, UNFI, WFM | Editor's Choice

    The secular health trend helps Whole Foods (NASDAQ: WFM) outperform other grocery stores, but health food suppliers also offer opportunities to profit from this trend. Hain Celestial (NASDAQ: HAIN), United Natural Foods (NASDAQ: UNFI), and Annie's Homegrown (NYSE: BNNY) all sell some of the food that shows up on Whole Foods' shelves. Whole Foods could be a better investment than these alternative health food plays for three reasons.

    Price more »

  • The Starbucks of Tea Might Be Starbucks After All

    By Eric Novinson - November 15, 2012 | Tickers: GMCR, HAIN, SBUX, TEA | Editor's Choice

    The Teavana (NYSE: TEA) bull argument offered investors a stake in the next Starbucks (NASDAQ: SBUX), but this time as a company that sold tea. Starbucks showed its own confidence in Teavana's potential with today's announcement. The Fool's Rich Smith explained that Starbucks just bought Teavana for $620 million cash. Starbucks made a good deal today for four reasons.

    A Reasonable Price

    Starbucks paid a premium for more »

  • Boorito Shows Why Chipotle Shorts Should Be Afraid

    By Eric Novinson - November 2, 2012 | Tickers: CMG, CHUY, PNRA, YUM | Editor's Choice

    Each Halloween Chipotle (NYSE: CMG) runs its Boorito event, where a diner in costume can pick up a burrito or another Chipotle entrée for $2. The Boorito promotion has directly impacted Chipotle's financial results in the past, although the restaurant runs this promotion to gain visibility that directly impacts higher future sales. Boorito also highlights Chipotle's operational and marketing advantages, which show why shorts might have underestimated this more »

  • Fools Versus The Short Sellers

    By Eric Novinson - October 11, 2012 | Tickers: CBZ, NPK, USTR, ZOLT | Editor's Choice

    If the Fools are right, and the short sellers are wrong, several stocks could skyrocket when the short sellers cover. Finding these contrarian picks just required a simple screen with two parameters: stocks with five star CAPS ratings, and stocks with over 30% of the float short. If this theory holds, all 16 stocks that this screen returned after the market closed on Oct. 9 could bring in strong gains more »

  • Picking Sides on California's Prop 37

    By Eric Novinson - August 30, 2012 | Tickers: BNNY, GIS, K, WFM | Editor's Choice

    California's Prop 37 could make or break some natural food brands' reputations. This state proposition would require a food company to tell shoppers whether a food product contains GMOs. Annie's (NYSE: BNNY) and Natural Grocers (NYSE: NGVC) support GMO labeling, and many of these companies' customers gladly pay higher prices to avoid food that contains GMOs. Kellogg's (NYSE: K) and General Mills (NYSE: GIS) oppose this proposition more »

  • Stack Ranking and Value Traps

    By Eric Novinson - July 5, 2012 | Tickers: FB, GOOG, HPQ, MSFT | Editor's Choice

    Several older technology firms look cheap right now. Microsoft (NASDAQ: MSFT) currently has a trailing P/E of 11.3 and a forward P/E of 10, which is lower than companies in many sectors, let alone the tech industry. Investors may be wondering if these tech firms are value traps. Tech companies that aren't innovating aren't good investments, even if the firms' stock isn't selling for more »

  • Is Zynga a Prime Short Candidate?

    By Eric Novinson - May 8, 2012 | Tickers: AMZN, TGT, ZNGA | Editor's Choice

    The studio OMGPop struggled before it gained a major success with its Draw Something app, but this app soon became so popular that it convinced Zynga (NASDAQ: ZNGA) to buy OMGPop for $200 million. In Forbes, Paul Tassi reports that Draw Something lost almost a third of its audience in April, illustrating a major flaw in Zynga's business model.

    Zynga's main strength is game monetization, not game design more »

  • Procter & Gamble's Gain is Kellogg's Gain

    By Eric Novinson - March 28, 2012 | Tickers: K, PG | Editor's Choice

    Kellogg (NYSE: K) established its brand by selling Kellogg's Corn Flakes and other cereals. The company's cereal brands helped it create some snack food brands, as Kellogg used its Special K cereal brand to develop Special K crackers, which PR Week mentions. Kellogg's can obviously develop a snack food on its own, but sometimes the best deal comes from another company. When Procter & Gamble (NYSE: PG) sold more »

  • Costco Investors: Have You Heard of PriceSmart?

    By Eric Novinson - March 13, 2012 | Tickers: COST, PSMT, WMT | Editor's Choice

    PriceSmart (NASDAQ: PSMT) brings the warehouse club retail model to shoppers in Central America and the Caribbean. With the addition of a store in Colombia last year, it also entered the South American market. Although most of the company's warehouse stores are located in foreign countries, PriceSmart itself is based in San Diego and trades on the Nasdaq. Because of PriceSmart's international expansion strategy, investors who follow other more »

  • SodaStream Keeps Up Its Profit Stream

    By Eric Novinson - March 2, 2012 | Tickers: GMCR, SODA | Editor's Choice

    Soft drinks have gained a bad health reputation because of the high levels of sugar they contain, yet customers remain attracted to carbonated beverages. SodaStream (NASDAQ: SODA) offers a customer a healthier alternative, allowing a customer to create his own carbonated drinks from fruits he picks in his yard, or fresh juice he keeps in his refrigerator. As health advocates condemn the traditional soft drink industry, SodaStream has the potential more »