Less than a week ago I gave you my take on Apple stock and now it's Caterpillar's turn! That's right! The Peoria Powerhouse. Ticker symbol CAT
What I have learned from this phenomenal company is that business is good. Business is so good that 2012 will be another year of growth for this company. Growth is the easiest indicator pointing to higher stock prices in the future. Now lets take a look at CAT's 4th qtr numbers and highlights.
-Record 2011 4th quarter revenues of $17.243 billion vs. 2010 revenues of $12.807 billion.
-Revenue for the 4th quarter was 34.63% higher vs last year. Truly amazing!
-4th quarter profit was $1.547 billion compared to $968 million this time last year
-EPS came in at $2.32, which is 57.82% higher than 2010 EPS of $1.47
Now let's take a look at the full year numbers
CAT's 2011 sales and revenues destroyed the 2010 numbers ($60.138 billion vs. $42.588 billion). That's an increase of 41.20%! On top of that profits for 2011 were 82.5% higher than 2010 coming in at $4.928 billion vs. $2.700 billion and full year EPS was $7.40 vs. $4.15 or a 78.3% increase. I could really stop right here and tell you to buy this stock on the dips, but I have more to add to this wonderful earnings report.
I promise this is the last list for the night. Here are the remaining reasons I believe CAT will have another extraordinary year.
1. Raised full year 2012 sales and revenues to $68 to $72 billion (That's double digit growth)
2. Strong global demand for its products
3. Improved quality of products
4. Increased investment in product development
5. Integrate acquisitions and adding production capacity
6. 2011 produced record sales even with slow construction market in the US and Europe
7. Commodity prices are favorable, which means greater demand for engines and turbines for petroleum applications, as well as mining equipment.
8. Full time employees increased 20,609 from 2010. 125,099 employees vs. 104,490 in 2010. Hiring is always a good sign for business!
9. Higher sales volume
10. I saved the best for last.... Order backlog of $29.8 billion at the end of 2011. That's an all time record for CAT! That means the demand for CAT products is in full force.
In closing I believe CAT has plenty of room to run higher into 2012. I would wait for a pull back say between $105-$110 before I would make an initial purchase. That's a good starting point.
Have a great night!
Clay-
Showing posts with label Peoria Powerhouse. Show all posts
Showing posts with label Peoria Powerhouse. Show all posts
Tuesday, February 7, 2012
Wednesday, February 1, 2012
APPLE-Solid/CAT-Solid
Did a little research since last week in regards to Apple and Caterpillar's earnings. From listening to Apple's conference call and reading Cat's earnings transcript 2012 should be yet another great year for both of these companies. Below is the link to Apple's earnings call.
http://www.apple.com/quicktime/qtv/earningsq112/
This is where I get all of my information. These calls are the key to my success in picking winning stocks. Management plays a huge part in the price of the companies stock. Great management equals higher stock prices. Investing in quality companies comes down to confidence. Confidence brings great quality investors, which is what you want when putting your hard earned money on the line.
Apple (AAPL) is a perfect example of a company that has great management. I enjoy listening to Tim Cook, Apple's CEO and Peter Oppenheimer, Apple's CFO. These are the guys that help you make a decision on Apple's future. This particular call was very upbeat.
-record sales in 3 of their 4 major products
-strong sales activity in the U.S.
-continued demand for the iPhone 4S. The channel inventory is lower than they predicted, which means they are moving them as fast as they can make them!
-Mac sales were up 26% yoy (year over year), that growth destroys the PC growth.
-Apple stores increased foot traffic in excess of 40% vs last year.
-Siri the iPhone 4S assistant has been a real hit.
-Increased convenience of purchasing Apple's products online. You can purchase most products online and pick them up just a few hours later at your nearest Apple store. (I like this feature!)
- iPhone 4S first quarter results didn't include sales in mainland China, due to release in January
Those were just a few of the things I heard on this conference call. In the end Apple will continue to outperform the market. The stock hit a 52 week high of $458.99 today, but I'm not a buyer just yet. If I were to purchase Apple it would be initiated around $435 a share. I need a little pullback...
Caterpillar (CAT) will be next up for discussion later this week. One thing I can tell you is the Peoria Powerhouse will shine in 2012.
P.S. Westport Innovations (WPRT) down -7.74% This stock is to hot to handle. It looks like I will have another shot at purchasing WPRT in the near future, before WPRT takes off again. Natural gas is the future bridge fuel for the United States. I expect a lot of activity to continue with businesses continuing to switch over to natural gas vehicles in order to save on fuel costs. Be ready! This type of stock doesn't come around very often.
I have yet to make a stock purchase in 2012! I'm waiting to pull the trigger.
Have a great night!
Clay-
http://www.apple.com/quicktime/qtv/earningsq112/
This is where I get all of my information. These calls are the key to my success in picking winning stocks. Management plays a huge part in the price of the companies stock. Great management equals higher stock prices. Investing in quality companies comes down to confidence. Confidence brings great quality investors, which is what you want when putting your hard earned money on the line.
Apple (AAPL) is a perfect example of a company that has great management. I enjoy listening to Tim Cook, Apple's CEO and Peter Oppenheimer, Apple's CFO. These are the guys that help you make a decision on Apple's future. This particular call was very upbeat.
-record sales in 3 of their 4 major products
-strong sales activity in the U.S.
-continued demand for the iPhone 4S. The channel inventory is lower than they predicted, which means they are moving them as fast as they can make them!
-Mac sales were up 26% yoy (year over year), that growth destroys the PC growth.
-Apple stores increased foot traffic in excess of 40% vs last year.
-Siri the iPhone 4S assistant has been a real hit.
-Increased convenience of purchasing Apple's products online. You can purchase most products online and pick them up just a few hours later at your nearest Apple store. (I like this feature!)
- iPhone 4S first quarter results didn't include sales in mainland China, due to release in January
Those were just a few of the things I heard on this conference call. In the end Apple will continue to outperform the market. The stock hit a 52 week high of $458.99 today, but I'm not a buyer just yet. If I were to purchase Apple it would be initiated around $435 a share. I need a little pullback...
Caterpillar (CAT) will be next up for discussion later this week. One thing I can tell you is the Peoria Powerhouse will shine in 2012.
P.S. Westport Innovations (WPRT) down -7.74% This stock is to hot to handle. It looks like I will have another shot at purchasing WPRT in the near future, before WPRT takes off again. Natural gas is the future bridge fuel for the United States. I expect a lot of activity to continue with businesses continuing to switch over to natural gas vehicles in order to save on fuel costs. Be ready! This type of stock doesn't come around very often.
I have yet to make a stock purchase in 2012! I'm waiting to pull the trigger.
Have a great night!
Clay-
Tuesday, October 25, 2011
Monster Portfolio Week 41 Results
MONSTER PORTFOLIO 2011
Balance: Inception 01/07/11
$1977.32 Stock
$13.65 Cash
Total $1990.97
Balance: End of Week 40 10/21/11
$2,444.80 Stock$12.05 Cash
Total $2,456.85
Since Inception: -7.01%
Back out cash inflow and we have a balance of $1,851.35.
I thought I would have some good things to say today, but the negative day in the market has overshadowed my enthusiasm. Yesterday on the other hand was very exciting and I contribute the market rally to the Peoria Powerhouse! That's right! Good ole Caterpillar (CAT). CAT reported an all time record with revenue coming in at $15.7 Billion and earnings of a $1.71 per share. They also raised their 2011 outlook slightly with higher revenue of $58 Billion and a profit of $6.75 a share. For 2012 they gave a pretty decent guidance with revenues roughly 10-20% higher than 2011. That being said Caterpillar should be bought as its currently cheap, trading at a P/E of 14.87. On top of that CAT pays a dividend that has a yield of 2.10%
Now let’s move onto my portfolio holdings, which consist of Apple (AAPL) and Weatherford International (WFT). Apple missed earnings and Weatherford was in line with the analysts earnings expectations, but did manage to exceed on the revenue side. I’m not going to talk much about WFT as I haven’t listened to the conference call. Earnings seemed to reflect what the other oil service companies have reported, but it appears the outlook is uncertain. On top of that WFT never really gave me an opportunity to sell a portion of my shares. I’m not too happy about that one! Plain and simple WFT traded terribly this past week and I have yet to see this stock trade at its potential. I will continue to hold onto WFT until I come up with a better reason to sell it. LOL!
As for Apple I have no worries. I blame their earnings miss to a product hold out. Everyone was patiently waiting for the new iPhone to come out and sales were negatively impacted. Today the stock market continued to trade in fear as the concern over the outlook of Europe looms. Europe has yet to release a plan to resolve their debt issues. What a drag!
Have a great night!
Clay-
“When in doubt buy more!”
Current Holdings:
Apple (AAPL)
Cosi Inc. (COSI)
Weatherford International (WFT)
Monday, April 25, 2011
Monster Portfolio 2011 Week 15 Results/1 yr Anniversary of Blog
MONSTER PORTFOLIO 2011
Balance: Inception 01/07/11
$1977.32 Stock
$13.65 Cash
Total $1990.97
Balance: End of Week 14 04/22/11
$2,112.50 Stock
$51.96 Cash
Total $2,164.46
Excluding cash inflow of $255.50 we have a balance of $1,908.96. I’m fighting back tooth and nail. I'm up +2.88% from last weeks results.
Since Inception: -4.12%
Current Holdings:
Apple (AAPL)
Cosi Inc. (COSI)
Weatherford International (WFT)
Last week worked out pretty well! Apple (AAPL) destroyed earnings and revitalized the Monster Portfolio. Apple is on fire generating $24.67 billion in revenues this quarter, with a profit of $5.99 billion. That is a record on both numbers. That is a ton of money. I listened to the earnings call and the CFO Peter Oppenheimer was extremely upbeat. They had record revenues in a single quarter for the iPhone. They sold 18.65 million iPhones. This is their leading product and it continues to be the top seller. Sales for the iPhone increased 113% compared to last year’s Q2 Results. That’s amazing growth rate! Don’t forget about the iPad 2. The demand for the iPad 2 is taking hold. They shipped every iPad 2 they could possibly produce in excess of 4 million units. Although this number was light the demand continues to be overwhelming. Tim Cook the COO of Apple was very confident they will be able to produce a very large number of iPad 2’s for the 3rd qtr. The pipeline continues to be strong and I believe Q3 will be another strong quarter for Apple. I enjoy listening to the earning calls because they give listeners an edge. You can tell if the company is excited vs. misleading. When a CEO/CFO/COO beat around the bush you know something is up. Everything about this call was very upbeat. For me as a shareholder a strong management team adds confidence in my purchase of Apple stock. The numbers were great and the stock price doesn’t reflect of how well Apple performed. I’m looking for a gradual upturn in the stock price very soon. Let’s go!
Now onto my second company Weatherford International (WFT). This company confuses me. The numbers were terrible. They came in with a low number of $78 million for the 1st qtr or $0.10 a share well below the analyst expectations of $0.19 a share. The earnings call consisted of tax charges, after-tax severance, and investigation costs. Not sure what WFT is trying to do, but I believe all of the negative news is priced into the stock. Normally I would cut and run, but the future for this company is promising. They just need to cut out the 1 time charges. The bright spot was the North American business. North America was stronger than expected and should continue through the remainder of 2011. The sore spot was the Middle East, North Africa, and Asia business. Revenues decreased $109 million sequentially, which means it dropped drastically from last qtr. Europe, West Africa, FSU, and Latin America were all dogs as well compared to the previous qtr. WFT was gradually gaining my confidence, but with this fiasco they have been knocked down a few notches. I still have confidence and the current share price is very enticing. Next qtr earnings are to be between $0.15 to $0.17 a share. I still want to hold onto WFT. International operations were very poor, but the numbers can only go up from here. Increased drilling activity due to high oil prices should keep WFT busy for the remainder of 2011 and into 2012. It's a no brainer even if they had a dog of a qtr. I’m a buyer!
Well that’s all I have for tonight. We still have many weeks of earnings to go. Caterpillar the Peoria Powerhouse is set to report on Friday. $$$. I almost forgot! Today is the official 1 year anniversary of my blog the Stock Market Monster! I appreciate everyone that has been along for the ride. Your input is very welcome. I hope the information that I have provided has helped everyone with their investment portfolios. Or at least I was able to provide some sort of entertainment value. LOL! I’m here to stay. Now if I could only get my portfolio to take off. 2011 should continue to be a great year for stocks!
Clay-
Balance: Inception 01/07/11
$1977.32 Stock
$13.65 Cash
Total $1990.97
Balance: End of Week 14 04/22/11
$2,112.50 Stock
$51.96 Cash
Total $2,164.46
Excluding cash inflow of $255.50 we have a balance of $1,908.96. I’m fighting back tooth and nail. I'm up +2.88% from last weeks results.
Since Inception: -4.12%
Current Holdings:
Apple (AAPL)
Cosi Inc. (COSI)
Weatherford International (WFT)
Last week worked out pretty well! Apple (AAPL) destroyed earnings and revitalized the Monster Portfolio. Apple is on fire generating $24.67 billion in revenues this quarter, with a profit of $5.99 billion. That is a record on both numbers. That is a ton of money. I listened to the earnings call and the CFO Peter Oppenheimer was extremely upbeat. They had record revenues in a single quarter for the iPhone. They sold 18.65 million iPhones. This is their leading product and it continues to be the top seller. Sales for the iPhone increased 113% compared to last year’s Q2 Results. That’s amazing growth rate! Don’t forget about the iPad 2. The demand for the iPad 2 is taking hold. They shipped every iPad 2 they could possibly produce in excess of 4 million units. Although this number was light the demand continues to be overwhelming. Tim Cook the COO of Apple was very confident they will be able to produce a very large number of iPad 2’s for the 3rd qtr. The pipeline continues to be strong and I believe Q3 will be another strong quarter for Apple. I enjoy listening to the earning calls because they give listeners an edge. You can tell if the company is excited vs. misleading. When a CEO/CFO/COO beat around the bush you know something is up. Everything about this call was very upbeat. For me as a shareholder a strong management team adds confidence in my purchase of Apple stock. The numbers were great and the stock price doesn’t reflect of how well Apple performed. I’m looking for a gradual upturn in the stock price very soon. Let’s go!
Now onto my second company Weatherford International (WFT). This company confuses me. The numbers were terrible. They came in with a low number of $78 million for the 1st qtr or $0.10 a share well below the analyst expectations of $0.19 a share. The earnings call consisted of tax charges, after-tax severance, and investigation costs. Not sure what WFT is trying to do, but I believe all of the negative news is priced into the stock. Normally I would cut and run, but the future for this company is promising. They just need to cut out the 1 time charges. The bright spot was the North American business. North America was stronger than expected and should continue through the remainder of 2011. The sore spot was the Middle East, North Africa, and Asia business. Revenues decreased $109 million sequentially, which means it dropped drastically from last qtr. Europe, West Africa, FSU, and Latin America were all dogs as well compared to the previous qtr. WFT was gradually gaining my confidence, but with this fiasco they have been knocked down a few notches. I still have confidence and the current share price is very enticing. Next qtr earnings are to be between $0.15 to $0.17 a share. I still want to hold onto WFT. International operations were very poor, but the numbers can only go up from here. Increased drilling activity due to high oil prices should keep WFT busy for the remainder of 2011 and into 2012. It's a no brainer even if they had a dog of a qtr. I’m a buyer!
Well that’s all I have for tonight. We still have many weeks of earnings to go. Caterpillar the Peoria Powerhouse is set to report on Friday. $$$. I almost forgot! Today is the official 1 year anniversary of my blog the Stock Market Monster! I appreciate everyone that has been along for the ride. Your input is very welcome. I hope the information that I have provided has helped everyone with their investment portfolios. Or at least I was able to provide some sort of entertainment value. LOL! I’m here to stay. Now if I could only get my portfolio to take off. 2011 should continue to be a great year for stocks!
Clay-
Thursday, October 28, 2010
Apple and Caterpillar Results
I did my research over the past few days and this is what I came up with. First let’s start with the tech giant Apple (AAPL).
Apple (AAPL) reported record revenue and had the highest earnings in company history. They reported revenue of $20.34 Billion and net quarterly earnings of $4.31 billion. That comes out to $4.64 per diluted share. This time last year Apple made $12.21 Billion with earnings of $2.53 Billion or $2.77 a share. They earned 67.5% more a share from a year ago. $4.64 vs. $2.77. That’s works out to be $1.87 more a share. That is a phenomenal number! Apple sold 3.89 million macs, 14.1 million iPhones (Up 91% from last year), 9.05 million iPods, and 4.19 million iPads. All products were up in unit growth – the iPod which was down 11% from a year ago. International growth continues to drive sales.
The numbers are very promising for Apple in the near future. As of today Verizon is now offering the iPad in stores. I’m interested to see next quarter numbers with the addition of Verizon. The iPhone is the largest revenue driver for Apple and with the new release of the white iPhone (Different Color) in the coming months, there should be a nice spike in iPhone sales. Also, the introduction of Apple TV should add another line of revenue to the company.
The Holiday is always a great time for tech gadgets and Apple should benefit nicely from the Christmas season. Apple continues to improve the strength of their business and I don’t see this company letting up anytime soon. This is still a strong buy for me. I can’t even explain what Apple has in store next as the conference call was full of exciting up and coming business. You have to listen for yourself to understand the positive outlook for Apple’s future. Check it out!
Conference Call
http://www.apple.com/quicktime/qtv/earningsq410/
Next let’s move onto the Peoria Powerhouse! Better known as Caterpillar (CAT)
Caterpillar (CAT) had a great number as I mentioned last week. Compared to last year Caterpillar is on a roll! They earned $1.22 vs. $0.64 this is a $0.58 a share increase from 2009 3rd quarter earnings. That’s an increase of 90.6% in earnings per share. Now here is my take on the earnings. CAT is doing extremely well! The increase in sales volume, favorable pricing, and an improvement in manufacturing costs helped Caterpillar rise to the top for the 3Q 2010 earnings. Other positives include an increase in 2010 sales and revenue from a range of $39 to $42 Billion to a revised number of $41 to $42 Billion. This is slightly higher, but definitely an improvement. The 2011 outlook continues the upward trend at a projection close to $50 Billion. The potential for an $8 Billion increase in sales and revenue should attract new investors. Caterpillar continues to increase their exposure internationally, which should drive sales for 2011.
From browsing over the numbers all sales and revenue were up in all geographical regions compared to the 3rd quarter last year (2009). Much of the growth has come from the machinery side of the business. Machinery sales and revenues were up 89% in North America, 121% in Latin American, 60% in EAME, and 81% in Asia/Pacific. Over 60% of sales and revenue was generated internationally. Engine sales were up 21% from 2009, but I see the bulk of the money being made in machinery. The outlook for 2011 is promising due to the favorable growth rates of the developing countries. The standout for growth has Asia/Pacific in the lead projected to grow at 7.5%.
With increased pricing in commodities into 2011 the demand for Caterpillar’s products should strengthen. The last thing I would like to say is even in hard times Caterpillar was still able to add 6,200 Full time jobs and 9,000 agency/part-time workers in 2010. The Peoria Powerhouse makes money and creates jobs! It’s flat out beautiful to see a company make tremendous strides from a year ago. My take (CAT is a strong BUY!) The story of the Peoria Powerhouse continues on! Yeah Buddy!
P.S. Westport Innovations (WPRT) just received a big purchase order for 180 Peterbilt liquefied natural gas (LNG) trucks including Westport HD Systems. The purchasing company is Robert Transport out of Boucherville, Quebec. Looks like this natural gas thing may be catching on. Hmm! My take (WPRT goes higher!)
Have a great night. I will be back in action on Thursday!
Clay-
Have a Question? Send Questions to wheatleycsmk@gmail.com
New Content every Thursday.
Occasional Stock Market Commentary during the week.
Feedback Welcome!
Interested? Please become a follower (This gives me an accurate number of readership) I would like to see this number grow! Click the follow button on the right hand side of the screen and follow the prompts. It's easy!
Apple (AAPL) reported record revenue and had the highest earnings in company history. They reported revenue of $20.34 Billion and net quarterly earnings of $4.31 billion. That comes out to $4.64 per diluted share. This time last year Apple made $12.21 Billion with earnings of $2.53 Billion or $2.77 a share. They earned 67.5% more a share from a year ago. $4.64 vs. $2.77. That’s works out to be $1.87 more a share. That is a phenomenal number! Apple sold 3.89 million macs, 14.1 million iPhones (Up 91% from last year), 9.05 million iPods, and 4.19 million iPads. All products were up in unit growth – the iPod which was down 11% from a year ago. International growth continues to drive sales.
The numbers are very promising for Apple in the near future. As of today Verizon is now offering the iPad in stores. I’m interested to see next quarter numbers with the addition of Verizon. The iPhone is the largest revenue driver for Apple and with the new release of the white iPhone (Different Color) in the coming months, there should be a nice spike in iPhone sales. Also, the introduction of Apple TV should add another line of revenue to the company.
The Holiday is always a great time for tech gadgets and Apple should benefit nicely from the Christmas season. Apple continues to improve the strength of their business and I don’t see this company letting up anytime soon. This is still a strong buy for me. I can’t even explain what Apple has in store next as the conference call was full of exciting up and coming business. You have to listen for yourself to understand the positive outlook for Apple’s future. Check it out!
Conference Call
http://www.apple.com/quicktime/qtv/earningsq410/
Next let’s move onto the Peoria Powerhouse! Better known as Caterpillar (CAT)
Caterpillar (CAT) had a great number as I mentioned last week. Compared to last year Caterpillar is on a roll! They earned $1.22 vs. $0.64 this is a $0.58 a share increase from 2009 3rd quarter earnings. That’s an increase of 90.6% in earnings per share. Now here is my take on the earnings. CAT is doing extremely well! The increase in sales volume, favorable pricing, and an improvement in manufacturing costs helped Caterpillar rise to the top for the 3Q 2010 earnings. Other positives include an increase in 2010 sales and revenue from a range of $39 to $42 Billion to a revised number of $41 to $42 Billion. This is slightly higher, but definitely an improvement. The 2011 outlook continues the upward trend at a projection close to $50 Billion. The potential for an $8 Billion increase in sales and revenue should attract new investors. Caterpillar continues to increase their exposure internationally, which should drive sales for 2011.
From browsing over the numbers all sales and revenue were up in all geographical regions compared to the 3rd quarter last year (2009). Much of the growth has come from the machinery side of the business. Machinery sales and revenues were up 89% in North America, 121% in Latin American, 60% in EAME, and 81% in Asia/Pacific. Over 60% of sales and revenue was generated internationally. Engine sales were up 21% from 2009, but I see the bulk of the money being made in machinery. The outlook for 2011 is promising due to the favorable growth rates of the developing countries. The standout for growth has Asia/Pacific in the lead projected to grow at 7.5%.
With increased pricing in commodities into 2011 the demand for Caterpillar’s products should strengthen. The last thing I would like to say is even in hard times Caterpillar was still able to add 6,200 Full time jobs and 9,000 agency/part-time workers in 2010. The Peoria Powerhouse makes money and creates jobs! It’s flat out beautiful to see a company make tremendous strides from a year ago. My take (CAT is a strong BUY!) The story of the Peoria Powerhouse continues on! Yeah Buddy!
P.S. Westport Innovations (WPRT) just received a big purchase order for 180 Peterbilt liquefied natural gas (LNG) trucks including Westport HD Systems. The purchasing company is Robert Transport out of Boucherville, Quebec. Looks like this natural gas thing may be catching on. Hmm! My take (WPRT goes higher!)
Have a great night. I will be back in action on Thursday!
Clay-
Have a Question? Send Questions to wheatleycsmk@gmail.com
New Content every Thursday.
Occasional Stock Market Commentary during the week.
Feedback Welcome!
Interested? Please become a follower (This gives me an accurate number of readership) I would like to see this number grow! Click the follow button on the right hand side of the screen and follow the prompts. It's easy!
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