Nov 16, 2012|
Stock Talk - Kathy Kristof, Kiplinger
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
Well I've seen worse days than this on Wall Street the Dow down thirteen points our guest is Kathy -- from Kipling. K I wanted to talk to -- read your article on November 2 about six Greek stocks you've never heard up in -- magazine. And I'd like to talk to you about this first one acacia research group you're right I've never heard of it. Yeah well you know it. The thing about these stocks at their -- relatively small companies say their sales are in the hundreds of millions rather about hundreds of billions like an apple. Matt and if that means that they find their radar at the a lot of analysts. But can create great companies -- Honestly after it on the market and sometimes doing things that are really you know intuitive. And by. You never really out of it and a great business it would be -- defense. -- actually and it runs patent portfolios. So you have all these companies and I had tax. Technology companies. Except that that have just that have happened like crazy. But in forcing patent is not their job. So they don't have a bank of lawyers. They can just go out and see if somebody infringing on the patent application that it basically takes over patent portfolios. Are well established companies. I -- and then. Make sure that if somebody is actually using that technology that they can't -- -- And they split the money so vacation been crying at and absolutely crazy pace and at 4050% per year and looks like it will continue growing at that crazy pace for the foreseeable future. So this is a growth play your -- this did you think the price of the stock is going to appreciate substantially. During the next five years. Absolutely it has appreciated substantially over the past five years now. There's no real compelling reason to think that they're gonna -- out. Why is it so far off their 52 week title but I looked at the 52 week on this cap and it's 44 bucks. I had hit YouTube actually go to the market lately. It's all recent it's all just taken it on the chin has a recent activity. Yeah -- had a lot of it and it went the other thing with education that you have to be aware of it because. They're attacked revenue comes from the patent soups. And the pending patent licensing. And leaned back in time is very lumpy and so and -- have a big. You know pot of money one time and -- be a mother next time you can't look at this and this stair step earnings. Guys -- about American Vanguard Corp. symbol EVD. This. It seems to be. A little more solid in terms of its pricing range over the last 52 weeks 29 dollars today. What do they do and what -- like it. Her fertilizer companies is really very. Old school -- and they have. Fertilizer and chemicals for the corn industry. So this is big business and what they do is they basically pot. And technology it old school technology on how to get rid of the for instance reborn. To the huge scourge in the corn industry right now. And what happened happened this for a while they were not that popular because this is an old technology people now you know. This new genetically altered seeds then. Barry you know disease resistant while they're not disease resistant right now. And so. I have to go back to the technology that gets rid of everywhere arm or that -- chemicals. They get rid of the requirements. And these kind of guy. App market more or less cornered the other thing they have to use any. System. Picnic at fox and potentially that put you put the chemicals and and then it delivers then the chemical directly to the ground. And this is important for farmers because. These -- toxic chemicals. And that you really don't wanna be reading them hit it compared to the less that there are exposed in the air the battered in this. And and Fox -- and extremely. Popular to -- moment. Their dividend is pretty light ED and they make quite a bit of money that it would appear to be as an outsider looking I don't owning this stock but it would appear to me they can afford to increase in dividend any talk about. You know they take -- that they think about them at the moment is paint there. There relative popularity as their popularity relatively new I mean they've they've grown -- much time. Okay. More and -- reasonable pace and the vacation for the world and so I'm. Indicates for a while there and into -- you genetically altering altered seeds. Where are making it look like their business is really not that great so I am so that I think don't. Is there -- ketchup based -- see what happens with the dividend. But if I think LA as they have been have a lot couple of years I think that's a very good -- Because I'm looking at your next stock pick which is Air Methods Corp. AIR. And this is a 106 dollar stock that they make six dollars and 49 cents a share that's a ton of cash they're generating. Any chance yet and there are companies that. Essentially puts them at helicopters. Pick up people that have been an accident. And I -- And and brings them to and trauma center. And it again and it's it's a very old school sort of business yeah permit you know helicopters that. And they've been growing at a rapid pace spying. Their competitors and doing exceptionally well. Almost like an ambulance business and right. Exactly it's an air ambulance. I've begun I didn't know that that was held by the private sector kind of by doing because I've seen a helicopter come in. I would have thought that was like the sheriff's department are there are subject that's actually private industry. Providing. -- most of the ambulance companies are private industry believe and -- -- -- yes certainly have paramedics and they have their government back. Ambulance companies expect. And they're buying up the competition and make -- six dollars and 49 cents a share what do you think that might be worth Sunday. Out of cheese and maybe -- estimate that thing about all of these guys is if they keep on growing and there and current -- They're going to impede dabbling in the market. Rate of return. Of -- -- you know -- and so whatever you think Kagan earned -- seven XP however many years. It's very likely that these companies will do it twice is well. Kathy thank you very much we appreciate this inside skinny. I'm gonna get -- playback for the last three sometime back -- for your time. I thank you Kathy Christoph -- -- magazine to take a look at it the spell her last name. JR I EST OF will be right back with your text messages or text number 68680. By email address is barrier Armstrong at WRK -- dot com.