Nov 14, 2012|
Stock Talk - Jim Mueller, Motley Fool
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
Successful investors buy stocks when the market is down the Dow was down 25 points were joined by Jim Mueller from the Motley Fool who's got a couple stocks for us to talk about. Jim good morning welcome to the show. -- hey let's take a look at your first stock pick and that is Express Scripts holding company this is a 51 dollar stock what do they do what -- like them. The area and pharmacy benefit manager that is they handled the pharmacy benefit. People's health plans. And so they're the ones who. Handled the script -- the payments to the pharmacies in. Get paid by their health insurance companies sought to date there through Obama to. They should do all right help health insurers should be getting a lot more more custom role and that has been more customers or Express Scripts. Right now this is a 51 dollar stock it's been as high. And 66 dollars during the last year about would what are you expecting for the city it's a pretty big company and 42 billion dollar company. Point two billion dollar company and has about 40% of the total keep him architecture. So dominant player there. What I'm expecting is that its commitment and keep on transferring people more to generic drugs. As those continue to come off patent over the next couple leaders. And get more people look to accept less expensive mail pharmacy. Giving drugs to the -- you can do it myself. So fighting bibles if I buy this at 51 would you think you might be worth two years from now. I think over the next couple years it could easily beat the media market. His -- aren't addicts are let's take a look at Seagate Technology uses a the symbol for the stock -- STX. And it's trading for 27 dollars a share. Would they do. There are hard disk drive maker -- Number two. With 42% market -- right behind Western Digital has just a little bit more so that hard disks or PCs for. I T departments and companies and for all those -- applications and everyone I'm running nowadays. Right now this. This is a ten billion dollar companies as an acquisition takeover candidate Terry is that why you'd well. Not really they just acquired the hardest section up from Samsung about a year ago to console they've. They -- what some good people -- -- consolidated industry industry so it's pretty much duopoly there. I'll dividend is it safe at four point 0% as error and they can actually. What are they increased the dividend Jamaican seven dollars a share in the Le -- out of dark when he. -- can certainly afford to do that and -- but right now what they're doing is buying back its shares they're gonna. They're projected to drop their share count by another thirty million witches about 2% by the end of the year. And I think these guys are worked. Almost twice what they are too dangerous to us from -- cash -- they don't grow any free cash flow growth and now forever you have got to present to box. All right pretty risky it's a volatile stock a beta of 267 is that. -- -- volatile certainly volatile but that can oh all work for investors as well if they managed to get it on a downswing like it had. Since August and on about 20% from August highs but. I think today is -- Yeah I was gonna say it's down two and a half percent today so this could be your your buying opportunity right now it. Are you hate Jim thank you very much great picks who really -- -- thank you very much. That's Jim -- Motley Fool joining us today has to stock picks were Express Scripts holding ES RX that's a 51 dollar stock. And when I kind of had my -- on his Seagate Technology I wrote that one down 27 dollars a share with a dividend yield four point 4% they're making. Seven dollars and sixty cents a share in the all the pain out a dollar 28 so. That to me is a rich stock that's a good one text question of the day. June night do you take the day off from work when you have the flu aha we're getting. A lot of interesting taxed 774. -- says. Hey tell Barry that I'm not a woman but I'm 41 year old military retiree who's been immunized against pretty much every disease. In the world right in all over the world. Do -- activities that he's had everything you can possibly get 781 says. On the nurse and I only get two sick days a year so we need to save them for when my kids are sick out. And that's you see that was a luxury that I didn't have to worry that that that was an issue that I didn't have to worry about when I was raising my kids right because my wife was a stay at home mom. So in my kids get sick like any other kids Serena I think that's why I never get sick I've been exposed to everything -- -- -- kids are like germ sponges it they bring every German and household yes and so. You know and I was around -- -- atomic coached hockey and all that stuff so I was always around but sometimes don't go away and hit a decent ring sickness and to work -- like if their kids are sick yeah get -- -- -- -- -- -- what and personally getting too sick days a year we couple that hey that's day you know that's union contracts -- union -- that's -- -- -- and while. Now that's that's -- sick days did you get when you're union. My demeanor and -- And I for a week's vacation in I got 56 days -- five personal days but then there -- time -- so. Now -- depends sentinel event. Text message us -- in Texas 68680 is our text number also you can email the show if you have a more complex question -- -- we have a couple those -- gonna get to next. My email address is very Armstrong at WRKO --