Stock Talk - Jeff Fischer, Motley Fool
Feb 21, 2012|
Jeff Fischer from the Motley Fool gives us a few stocks.
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
It would appear that the high price of oil is keeping stock traces a little bit depressed today oil hitting over a 104 dollars a barrel. Gotta tell you June if we had ninety dollar a barrel oil I think we'd have a 141000 point now. Well yeah that would be nice day and the Dow is ill it's only up. Like you know four point Barry's so the NASDAQ as well as flat S&P is flat tenure treasury standing and holding it 2.0 four. Gold is up of course 29 dollars and oil is up the dollar 31 it's now trading in a 104 dollars. 55 cents a barrel a lot of investors not buying this. Greek deal I'm thinking. Not an -- -- -- our next guest is Jeff Fisher from the Motley Fool has got a couple stock picks for us Jeff -- you -- -- Dave Barry I'm doing well how are you. Good pebble brook hotel trust this is when he your pics today symbol PEB. Trading about 22 dollars a share and quite appropriately it's up today as we talk about it. Excellent those -- in 2009. For the very young company. Swarmed by an industry expert John -- who came out of retirement and because he was he was seen such good deals on our. Scale luxury hotels in 2009. So he started buying properties to so I get this straight he started buying hotels upscale hotels in 2009. Exactly and this trust. They owned fourteen luxury hotels include in the W and your beautiful city -- the Drake and San Francisco and the Hotel Monaco here in DC. They don't fourteen luxury hotels that what they've done is they've bought just the propagate themselves at a discount. And these properties were in debt and -- and -- -- not to come to the debt so they just stepped in. To date -- -- my dad did it how did they take it over to -- by the debt and then for closer today how did they get how to they get around that. They did -- by the debt at all these these properties probably would have gone to foreclosures you know -- Brooks stepped in and the banquet happy to have a buyer. And that's how they dig acquired the properties. At a discount at that what kind of discounts as they get on the properties -- from what you can say. If anything from -- when he took 40%. And our estimation and the company that this year to not trade much about a very conservative book value and that is why they like it. And the other thing Barry is there at their leveraging these properties now they want to run very well and that's why they got into trouble. They're making them much more profitable and as the -- as their profits go up. They have to pay out most of their profits from the yields for the shares only yield 2% right now but they just began to become profitable because multiple -- of only owned a year or so. So in the future we think that the dividend very likely will double or more in the coming. Were they able to get get financing terms or -- the wait until they run the places for a few years build up their credit rating. Before they're able to get really low interest rates. But can the great thing about that they -- went public to raise money so they raised a lot of money to them Bible tells. Based on job -- is history thirty years in the in the streets. And they also now we're at a rate in more debt to buy more hotels sometimes more credit to buy hotels and they're getting good terms of that. They are because a Boortz right. -- -- And are operating history even their histories so far they've shown an ability to buying at a good price and improved results right away and the profitable. So all that together that is supporting them good credit right now. What do you think the stocks worth the you know maybe two years from now when the economy's I I think 22 years from now -- -- -- and it's gonna be in the sixes -- sevens. It would it would impact will that have on a stock like this if we do have a recovering economy. That that'll certainly had some impact but they are upper upscale hotels as they describe them. So they have the traffic -- that is from business travelers and the well heeled. And that we this year to 2.2 right now we prepare value in the in the upper to high thirties right now. Okay our next stock that you have forces a small cap stock it's got a one billion dollar market capitalization. Trading at 2123 it's called 3-D systems corporation what you like this one. That's right that company is real interest in and out of South Carolina 500 employees they make 3-D printers. And that's not a 3-D 3-D image and actually print a treaty object others. A Cuban actually printed -- kidney. Does someone then use focus and their bodies so it's an incredibly. Transforming technology they. They print anything from a car's dashboard. To the jewelry it's important to clothing. Go back to the kidney how do you protect -- I -- I just like yeah. It's. That they stayed. Designed it to sit in the body perfectly of course and -- everything from from a real kidney that he uses materials and the technology to print. Or a community could then replace -- on the body. So that they use. Jet jet printers laser printers. And as technology that frankly I don't understand all but except for what it what it what the help. The outcome of that and so it's an incredible company that's still Leon they had about 200 million in sales they make money selling the pictures. And then saw in the materials for the printers as well. I see there are rightly guess it is trading at 21 dollars a share the getting much institutional interest doors -- all individual buy in investors buy in the stock. I think there's there's some small mutual fund finance. But it certainly that is not on the radar it isn't big enough for at large font -- I think in the next three years that there will be it'll probably. It could potentially double in size and -- terriers. All right well there's a couple of pretty aggressive stock picks -- Jeff Fisher thanks for joining us appreciate your time. Thank you very had a great. Just from the Motley Fool and it's good web senator if you ever the crews that would say I've heard about the printer by the way of Sina segment on TV about that really it's amazing really yeah -- I have not seen this to stock picks the symbols were. EB and Dee Dee -- I do not own either one of those stocks. Up next will be taking your text taking your calls 686 CDS are text every can always follow me on Twitter at Barry G -- and this is the financial exchange.