Apr 13, 2012|
Jeff has some hot stock tips.
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
By the Dow's down about 52 points but interestingly. Jeffrey's first doc talked pick force today General Mills it's trading up today Jeff I you don't. There are apparently good -- General Mills I ESC this is your first pick for today. The symbol for it is GIS -- in about 38 dollars a share why do you like it. Well brother is not likely that is that -- -- shares exactly up against it to be tied popular pocket -- -- weren't around -- -- -- -- -- that -- very -- trading -- content -- -- Our opportunity to be cut. But it's only 15% range anyway I'm not one of the reasons I like the stock a lot to get frustrated. That trading range and right now I'm. Yeah I'm I'm kind of of the mind that some of -- stuff media a little bit overbought on and -- investors may want it. Try to look for opportunities that are gonna tank tops I mean I think it's great that the outlook for growth stock most of stocks have been -- lately and at a company like General Mills. Really has. Good staying power got a -- 1% dividend. It's one of these stocks where you know got a boat -- cheap great brands from lucky charms Betty Crocker Hamburger Helper so the packet on anywhere. I would kind of encourage people well while Xbox and development bank has -- night it might be who you kind of look for some -- at zero lower investment right now. So this would be -- it's considered a low beta stock I would assume right Jeff. Oh yeah that there there's no wiggle in General Mills that particular a lot of people don't really like. -- at least short term traders don't like companies like General Mills because you know not a very sexy enterprise -- packaged food doesn't really it's not grossly. But again I mean you're a long term -- and faster and I think most people are indeed if you're not I think that even. -- -- -- -- -- -- A bad rock part of the portfolio -- -- civilian -- general note that definition of that I mean it's. The company has a really good balance sheet and -- of -- one of the growth potentials that general that we don't have it's not dramatic but in twenty allotment eight. Acquire the you'll play Brandon -- -- you look at look at that -- earnings report. They thought 51% international sales growth and over forty that was immediately brand alone so it's not like there's no growth here I don't want people to think this stock is just you -- Yong -- your 3% dividend. But you know it is a little bit more on the low side rather that than Mexico stock. All right now your next stock pick has a beta of one point six so I'd consider this to be a fairly high beta stock or -- for talking about. DuPont and company the symbol is DD. This one trading today at 52 dollars and forty cents what is it about Du -- that you find attractive. Well department got a different -- of The Herald that argument you're right it is they have had a little bit more pop lately. On Paper investors you kind of want a quarter appreciation and want to get sleeper Media General -- I think the -- a good opportunity -- -- about. 50% you today I think I can kind of see where the -- it's the typical park. That the company is growing on its catalog good moves lately. You know which -- it's business it's a lot of new brain bigger and bigger profit. And it despite that it is still a pretty good value -- a fourteen year ponder -- and right now despite the fact that it's front up to 10% year to date. On I think a lot of people maybe think it departments -- chemical company it kind of like terrible -- doesn't really. Catalog appealed for for investors to detect exactly tech stocks like apple but. Yet it's not it's kind of trying to get into the 21 century they have. You know some pretty impressive. Growth in genetic. You're not market -- -- -- to do research and stuff like that they'd be there at the technology. Until it's not a company that's really just dealing you know -- that. Articles and petroleum products anymore they are trying to be part of the 21 century media look at there. They're growth in revenue and earnings and actually it's it's pretty impressive I -- in 2009 point while it. Got revenue and earnings growth you know the ballpark of and 20% annually and that. I mean that's a really good thing for people that the company like that it's been you know it in many respects as a supplier to other companies that you know. Chemicals are not something that you don't let the perfect storm popped -- I think it's organic play on the recovery recovery dot -- and it is not again it's good value. Under a -- and he -- also got three point 1% dividends paid dividends for over a hundred years -- Well let me ask you -- Jeff I got to ask you about that dividend because. You don't want nothing drives me. Crazier then went -- I buy a stock that has a dividend and then they cut the dividend. Ken Duke can't afford to continue to pay out a dividend of a dollar 64 year. That's an actual question and I always look at that indicated I mean I think. From from GE can afford to Bank of America people been -- -- coming to cut dividends and I. Google on it's really simple to do look at what the earnings per share our foreign stock and then look at what the dividend it each year that's going to -- to pay out ratio the percentage of profits that are delivered at dividends. Typically about 50% first shock right now actually a lot of dividend payers have been miserly average yes -- actually 130 right now. A lot of companies should be paying more but generally historically about 50%. The short answer question is DuPont is 45 for now to dividend payout ratio and that's pretty much historically average. So even if there is not a lot of revenue and sales growth. The dividend is definitely a sustainable for the company I'm so I I. I'm with you and Alan and I encourage people not just with the pop -- stock look at that payout ratio because once you get north of 50% into the 70% range. I mean -- -- you can't afford to pay 9% year profits back to shareholders even if you can't you're not gonna grow as you're taking all your money you're giving it away I think you've got it understandable but it's. Generally speaking about -- depth look at that pay out -- -- can -- the -- -- quality. Very get our it was Jeff thanks very much -- time sure appreciate it. That's our Jeffrey from investor place dot com has to stock picks for General Mills GIS and DuPont DD -- of the two stock picks for today's program.