Caterpillar Q2 2012 Earnings Breakdown!

So I was able to put in a little work last weekend.  I listened to CAT and Westport's conference call.  Both calls were very positive.  I want to focus on Caterpillar's numbers tonight.  LOL!  Only because I wrote down the key stats of the call. Westport will come later.  Apple and Weatherford are still in the Que.  I can happily say all of these stocks are up quite substantially since the last time I wrote!

I know a lot of you are looking for a Westport (WPRT) update.  The progress towards natural gas infrastructure and the adoption of this phenomenal technology is gaining tremendous momentum!  If that isn't enough of a sneak peak, then all I can say is there was a reason for the +12.86% pop last Friday 08/03.  Westport has a great future!  I can say that my largest stake in all of my brokerage accounts is in Westport Innovations.  I'm putting my money where my mouth is!

Now let's move onto the Peoria Power House!  Better known as Caterpillar! (CAT)  Another great performance.  I wouldn't expect nothing less than greatness!

Let the list begin

-Had record quarterly profits. The highest profit in it's 87 year history
-yoy $2.54 eps vs. $1.52 (earnings per share) That's a 67.10% increase vs last year!
-Sales and Revenue came in at $17.374 billion vs. $14.230 billion (a 22.0% increase vs 2011)
-Full year outlook increased from $9.50 a share to $9.60 on roughly 68-70 billion in revenue
-Inventories decreased in China, as equipment has been allocated to other areas of the world
-Backlog of equipment is still at a solid $28.2 billion (An increase of 11% vs last year)
-Gas compression business is doing quite well
-Some mining equipment have lead times into 2014
-A 31% organic growth in mining

This is a small list that I derived from the call, but this is only the start.  From what I heard Caterpillar's management is confident in their earnings outlook through 2012.  They did provide caution in China and slow growth in United States and other areas of the world for 2012, but did mention they see a brighter future in 2013.  That being said we are investing for the future earnings!  With the continued monetary easing in China and other areas of the world CAT believes this will help improve the global economy, which should spark growth in the next 12-24 months.  With the current commodity prices many companies still continue to have an appetite for CAT's equipment.  The backlog is impressive and should be a positive indicator as to the strength of this company.

In my personal opinion CAT has more than came through this quarter.  Even with the economic headwinds this company was able to generate record profits.  The management is excellent and they know how to execute to create strong results.  Although caution was given the stock has been destroyed.  At $87.22 a share the stock is trading at a P/E of 9.75 vs the S&P 500 P/E of 14.6.  This is substantially lower.  CAT should easily be trading at the same P/E level as the S&P 500.  Put that into the equation and this stock would be trading at $130.00 a share.  Last earnings call I mentioned Caterpillar should be trading at $130.00 a share by year end and I believe it still has a chance.  If anything it should break through its 52 week high of $116.95 by year end.  A 35% price appreciation in the next 5 months is definitely not out of the question. 

In the end CAT is a steal at $87 a share and should be bought at these price levels.  Once it blows through $92 a share the momentum will carrier this solid company past the $100 mark and onto its 52 week high!  Plus the stock currently pays a dividend that provides a 2.40% yield

Currently I have a nice position in Caterpillar and plan on purchasing more in the near future.  I have confidence and so should you!

Have a great night!

Clay-

Current Holdings:
Cosi Inc. (COSI)-Monster Portfolio
Caterpillar (CAT)
Westport Innovations (WPRT) Monster Portfolio
Kinder Morgan Energy Partners (KMP)

I'm not a licensed financial advisor. All recommendations is strictly my personal opinion and the information is intended for learning purposes only. Invest at your own risk!

Westport Innovations +12.41% today

All I'm going to say is Westport Innovations (WPRT) up +30.70% in 4 days.  Looks like some big money is flowing back into this growth machine.  Keep a close eye on this fast mover.

Have a great night!

Clay-


Full Disclosure

Current Holdings:
Cosi Inc. (COSI)-Monster Portfolio
Caterpillar (CAT)
Westport Innovations (WPRT) Monster Portfolio
Kinder Morgan Energy Partners (KMP)

I'm not a licensed financial advisor. All recommendations is strictly my personal opinion and the information is intended for learning purposes only. Invest at your own risk!

Quick post... The pitfalls of growth stocks

So I made a big bet on Westport (WPRT) and thus far I have been wrong. LOL!  That's the risk you take when investing.  I moved in hard in the low 30's and have been punished by the short sellers.  Westport's earnings call for Q1 2012 on Tuesday was actually quite good in terms of progress.  I know they lost more money than they did vs. last year's quarter, but they are increasing sales quite nicely.  I think this stock has been taken down beyond what is right.  I know the nay sayers would argue that this company hasn't turned a profit in years, but you have to fuel the growth some how!  You need cash.. And enough cash is what they have.  If their wasn't progress than I would say the heck with this stock.  I believe Westport will surprise everyone especially the short sellers in the coming weeks.  I'm looking for a short squeeze in the near term.  There needs to be a catalyst to change the aggressive downward trend.  I'm confident WPRT's management will  have some good news to get the big fish investors back on board.  Plus a change needs to be made because I'm sick of losing money! 

I'm still a big Westport Innovations fan even if I lose a little cash in the short term.  I didn't expect this high growth engine to get cut in half in the past few months, but it happens to the best of them.  The thing with growth stocks is as followed...

When any negative news poses a threat to the growth of a fast growing company investors do not hesitate to turn on a once loved company.  The money will flow out like a huge hole in a boat and the short sellers will step in to accelerate the downturn.  When this happens the momentum takes over and stocks go down until the sellers are exhausted.  This is what happened to Westport.  Other growth companies have gone through the same thing.  Here are just a few stocks that had similar rapid downfalls.

Starbucks (SBUX)
Hansen Natural (MNST) AKA Monster Energy Drinks
NetFlix (NFLX)
Taser (TASR)

A few of the companies have rebounded nicely from when they plummeted, but rapid growth can't continue forever and neither can straight up stock prices.  It hurts to see your money slip through your hands from time to time, but the excitement of catching the next big trend is always worth the risk in my eyes.

Stay positive with WPRT.  Loyal shareholders will prevail.

Have a great night!

Clay-


Full Disclosure

Current Holdings:
Cosi Inc. (COSI)-Monster Portfolio
Caterpillar (CAT)
Westport Innovations (WPRT) Monster Portfolio
Kinder Morgan Energy Partners (KMP)

I'm not a licensed financial advisor. All recommendations is strictly my personal opinion and the information is intended for learning purposes only. Invest at your own risk!

I'm Back!!!!

I first would like to start out and say it’s great to be back!  Do to some unforeseen circumstances I was unable to blog for the past 4 weeks.  Unfortunately the past 4 weeks have been devastating to the stock market, at least for those stocks that I follow.  The only stock that held up was Apple (AAPL), which has pulled back off its high of $644.00 a share.  No worries as Apple can buck the trend of most markets as Apple is in a world of its own!

Earnings have started off pretty well and it appears as of today that buyers are starting to step back into the market.  The headlines have been pretty negative as worry that the economy is slowing in the US, China, etc, housing issues, high oil prices, European trouble, and banking issues to name a few.  If I listened to this garbage day in and day out I would never invest in stocks.  As an investor you have to look past all the negative news and filter out all the junk that is being put onto the news wires.  I scan each of my investments throughout the week and look for anything that could negatively impact the business.  If the story hasn’t changed I continue to own that particular investment.  Of course the price of the stock may go down during that period of time, but that is to be expected.  The reason I’m bringing the subject of negative news is mainly focused on the recent price action in Westport Innovations (WPRT)

Westport has been recently brought back down the earth.  After hitting an all time high of $50.19 on March 21^st 2012 it has plummeted roughly 33% as of yesterday’s close of $33.47 a share.  Talk about being punched in the gut!  Very disappointing!  This downturn could force someone to quit investing in stocks all together.  I’m here to tell you not to panic.  This has happened before too many high flying growth companies and they have rebounded nicely after a sharp downturn.   Since I started investing in Westport back in July of 2010 the stock has had extreme volatility.  On 4 occasions WPRT has went from peak to trough in excess of 25%.  Below is a list of date ranges to where WPRT traded crazy!

July 27^th 2010 high $21.34
Aug 25^th 2010 low $15.51

Equates to a 27.32% downturn

April 6^th 2011 high $27.90

June 8^th 2011 low $19.66

Equates to a 29.53% downturn

July 13^th 2011 high $28.05

Aug 8^th 2011 low $20.01

Equates to a 28.66% downturn

Sep 20^th 2011 high $34.23
Oct 4^th 2011 low $22.63

Equates to a 33.88% downturn

As you can see this isn’t out of the ordinary for Westport to trade from one extreme to the other.  Don’t worry about the wild price movements.  If negative news comes out that is detrimental to the company then I would be worried.  Yeah I would like to side step downturns, but sometimes they aren’t avoidable.  The story hasn’t changed for Westport.  I wouldn’t put too much time into the recent news that Cheniere Energy (LNG) is building the first LNG export facility in the US.  The US has an abundance of natural gas and one facility isn’t going to drive natural gas prices up over night.  As of today natural gas has hit an all time low of $1.95!  Some say it could hit $0.75.  Westport will still benefit even if the price of natural gas goes up 50% it’s still a $1.00 cheaper than a gallon of gas.  Also, remember that 150 fueling stations are being built as we speak to support the natural gas revolution.   That’s right millions of dollars are being spent on natural gas taking hold as a major alternative to foreign oil.  Be patient and WPRT will give back to loyal shareholders in the near future.

Clay-


Full Disclosure

Current Holdings:
Cosi Inc. (COSI)-Monster Portfolio
Caterpillar (CAT)
Westport Innovations (WPRT)-Monster Portfolio
Kinder Morgan Energy Partners (KMP)

I'm not a licensed financial advisor.  All recommendations is strictly my personal opinion and the information is intended for learning purposes only.  Invest at your own risk!

Westport Innovations (WPRT) Insider Buying!!!

Westport Innovations is back on the radar! I just got done performing my daily research of my current holdings and I came across some information that must always be shared.  That's right!  Insider buying. 

I'm surprised I didn't catch this over the weekend, but Kevin Douglas one of the largest shareholders purchased 500,000 shares or $22.3 million worth of stock.  That is by far one of the largest insider purchases I have ever seen.  The last time Kevin Douglas purchased stock was back on 07/16/2010 at much lower prices.  Obviously, this guy made a ton of money since then!  This recent purchase shows tremendous confidence in WPRT!  $22.3 million worth of confidence.  That's a lot of money to put on the line no matter who you are.  Although, the stock has run up almost 10% since the buy, this purchase adds to the positive outlook for WPRT in 2012.

Money has been pouring into this company like crazy!  Since the beginning of the year this stock has run up +46.54%  All I can say is cha ching... $$$

Have a great night!  Below is an update of my Monster Portfolio as of Friday 03/16/12

MONSTER PORTFOLIO 2011

Balance: Inception 01/07/11
$1,977.32 Stock
$13.65 Cash
Total $1,990.97

Balance: As of Friday 03/16/12

$2,988.66 Stock
$8.96 Cash
Total $2,997.62

Since Inception: 20.15%

Back out cash inflow and we have a balance of $2,392.12

Clay-

Full Disclosure

Current Holdings:

Cosi Inc. (COSI)-Monster Portfolio
Caterpillar (CAT)
Procter & Gamble (PG)
Westport Innovations (WPRT)
Weatherford International (WFT)-Monster Portfolio
Kinder Morgan Energy Partners (KMP)

Westport (WPRT) will shine in 2012

Hello everyone and welcome back!

First off I would to say I just bought some Westport Innovations (WPRT) in after hours today. I've been meaning to get back in and now I have some skin in the game. Very exciting!

Today I'm going to list the key points and the reasons why I believe Westport will shine in 2012. Here are the numbers of their recent earnings call.

Recent quarter results

-Record Revenue on the quarter $100.6 vs. $39.5 for the same period last year, an increase of 154.7%

-the key revenue drivers were Westport LD, CWI, and Westport HD

-Westport LD $22.6 million vs $7.8 million prior year period. An increase of 189.74% in revenues

-CWI $57.7 million vs. $31.1 million prior year period. An increase of 85.53% in revenues

-Westport HD $10.5 million vs. $0 prior year period

Full year results

-Consolidated revenues were $264.7 million for the twelve months ended December 31, 2011, an increase of 83.3% over the $144.4 million reported for calendar 2010.

-CWI revenue was $163.9 million, compared to $117.1 million in 2010; an increase of 40.0%.

-Westport LD revenue was $66.6 million for the twelve months ended December 31, 2011, up from $16.3 million in calendar 2010, an increase of 308.6%. Of this increase, $34.4 million came from the acquisition of Emer and AFV in 2011.

-Westport HD revenue was $19.9 million for the twelve months ended December 31, 2011, up from $7.0 million in calendar 2010, an increase of 185.4%.

-Weichai Westport Inc. (WWI) revenue reached $109.8 million for the twelve months ended December 31, 2011, up from $44.8 million in calendar 2010; an increase of 145.1%. Note that WWI is not consolidated and is accounted for using the equity method. 

All numbers were pulled from the earnings call transcript on westport.com
http://www.westport.com/investors/financial

Key points from conference call

-2012 Revenue guidance between $400-$425 million

-Launch of Ford's F250, F350 in the 2^nd qtr. should add about $5 million in revenues for 2012

-trucking infrastructure is building faster in China than in North America, which means a large addressable market to be had in China

-Increased international growth

-interest developing in Europe due to high diesel prices

-engine in development to run engine for rail in 2013 and to be up and running in 2014

The information I have provided above is more than enough to tell you WPRT will thrive into 2012. The growth of each of their product lines is staggering. This environment is perfect for WPRT to capitalize on high oil prices. The management team did a phenomenal job in 2011 and have set this company up for success. Companies can no longer ignore the fact that natural gas is drastically cheaper than diesel. It makes complete sense for transportation to utilize a cheaper fuel. Westport already has quite a few big players on their side and it appears the automotive industry is taking notice.

When I first started investing in Westport I thought the United States government passing an energy bill would help WPRT. It's been over a year now and look where we are. Westport doesn't need the U.S. government to succeed and they proved that in 2011. They have so much going on I can't even keep track of all the companies that have shown interest in Westport's technology. The numbers don't lie. Accelerated revenue growth is all I need for this gem of a company. The cash they are using is fueling the growth of the business.

Although, WPRT reported a net loss of $60.2 million or a $1.26 a share on the year, you have to take into account the growth factor. They projected 2012 revenues to be roughly 50-60% higher vs. 2011. That's a whole lot of growth! Many companies start off losing money year after year, but as long as rapid growth is part of the formula and progress towards profitability continues there is no need to worry. What Westport is selling is a need. A need to cut fuel costs and reduce the reliability of foreign oil. It's a product that benefits both parties, but the big beneficiary will be WPRT after all the smoke clears!

What I'm trying to say is buy Westport and you should have some extra cash in your pockets for 2012. Any purchase between $37-$42 a share would be a solid price to get in on WPRT.

Have a great night!

P.S. I loaded up even more on WFT last week.

Clay-

Full Disclosure

Current Holdings:

Cosi Inc. (COSI)

Caterpillar (CAT)

Procter & Gamble (PG)

Westport Innovations (WPRT)

Weatherford International (WFT)

Kinder Morgan Energy Partners (KMP)

WPRT-The Growth Machine

I was able to sift through Westport Innovations (WPRT) recent earnings release and full year results over the weekend.  I have to say that this company is growing like crazy.  Although the company hasn't turned a profit, the tremendous growth keeps this stock powering higher.  With crude oil prices highly elevated Westport's popularity will only increase with companies looking to save money on fuel costs.  That being said I believe 2012 will be another year of strong growth for WPRT. 

Come back on Tuesday as I will have the specific details on Westport.  More $$$ will be made in the future.

Clay-

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-

Apple has done it again!

Apple continues to amaze me!  Here is the breakdown of their recent earnings report today.

-Record quarterly revenue of $46.33 Billion on profits of $13.06 Billion
-$46.33 Billion vs. last yrs results of $26.74 Billion equates to a 73.2% increase in revenues
-Gross margins were 44.7% vs. last yrs results of 38.5%

Sales Results by product

-37.04 million iPhone sold- 128% increase vs. last year
-15.43 million iPads sold- 111% increase vs. last year
-5.2 million Macs sold- 26% increase vs. last year
-15.4 million iPods sold- 21% decrease vs. last year

-Numbers were derived from apple.com

On the surface Apple looks extremely strong, but I still must listen to the conference call.  I did hear on the way home from work that Apple may have a plan for the large amount of cash they have on hand.  That current number is a solid $97.7 Billion.  My vote is to pay out a dividend to all of the loyal shareholders!!! LOL! 

Apple is trading at $451.20 a share in after hours.  Up +7.34% Another 52 week high

It seems like the 52 week high trend continues when I'm out of my favorite stocks.  I have 0 shares of Apple (AAPL) at the moment.  Oh wait!  And I have 0 shares of Westport Innovations (WPRT), which conveniently hit a 52 week high as well closing at $38.06 a share.  Up +6.91% on huge volume.  It appears the big boys are betting Westport is going to go higher.  I'm guessing that with the current prices of natural gas vs. oil prices that natural gas is becoming very enticing.  Enticing as a bridge fuel to replace the reliance of crude oil.  It just so happens that President Obama will be addressing energy and job concerns tonight at 9:00pm.  The State Of The Union Address could uncover the recent upside action in Westport today. 

Congratulations to those that own Apple and Westport as of today.  I know someone is making money! 

P.S. Weatherford is currently on my radar.

Happy Trading!

Clay-

1 month to go! Time to take some risk.

MONSTER PORTFOLIO 2011



Balance: Inception 01/07/11
$1977.32 Stock
$13.65 Cash
Total $1990.97

Balance: End of Week 45 11/25/11

$2,257.32
$4.95 Cash
Total $2,262.27

Since Inception: -16.79%

Back out cash inflow and we have a balance of $1,656.77

I think I can honestly say that the past 2 weeks in the stock market has been detrimental to my Monster Portfolio.  I managed to lose 12.5% of my portfolio. Ugh!  This market hasn’t been to kind to my high growth stock picks.  With a month left for 2011 I’m downgrading my outcome to finish in the black for the year compared to my original goal of a 10% gain on the year.  Europe destroyed my chances.  Even though today we had a major market rally the volatility is still on the table.  Stocks are extremely unstable unless you invested in solid dividend paying companies.

Now I’m not saying my picks won’t work, but to come back 26.79% with roughly a month to go is next to impossible!  My only shot would be to choose one of my picks and let it ride for the next 30 days. Hmm… LOL!  That actually sounds pretty enticing.  Here is what I’m up against to pull off this highly not recommended strategy. 

Including the big move today the end of year goal is set at +21.15% ($421.08 to be exact) now let’s compare the options

After transaction fees of $21.00 I will have a purchasing power $2353.49 to work with today’s closing prices

Current price purchasing power

WFT-168 shares at $13.96

WPRT-86 shares at $27.21

AAPL-6 shares at $376.12

To obtain my goal

WFT must close at $16.59 a share

WPRT must close at $32.36 a share

AAPL must close at $449.80 a share

All of my options have to move fast!

Now the hard part...

Should I choose the turnaround story, much approved, higher oil price beneficiary known as Weatherford International (WFT)

Or-

The high price energy alternative, double digit growth, and more than enough business for years to come also referred to as Westport Innovations (WPRT)

And lastly-

Apple (AAPL) The company that brings the greatest gifts for the holiday, the highest profit margins per cell phone, and a stock that has yet to see the true potential sales of its iPhone 4S

As of today my decision will be a mystery if I choose to go all in.  For the next month my portfolio results will be offline until the end of the year.  I have some choices to make and a lot of work to reach a 21.15% return by year end.  Wish me luck!

Have a great night! 

Clay-

“When in doubt buy more!”

Current Holdings:
Apple (AAPL)
Cosi Inc. (COSI)
Weatherford International (WFT)
Westport Innovations (WPRT)

Monster Portfolio Week 44 Results

MONSTER PORTFOLIO 2011


Balance: Inception 01/07/11
$1977.32 Stock
$13.65 Cash
Total $1990.97

Balance: End of Week 43 11/11/11

$2,495.64 Stock
$19.92 Cash
Total $2,510.56

Since Inception: -4.29%

Back out cash inflow and we have a balance of $1,905.06

Well I hope some of you read my piece on Westport Innovations (WPRT) last week!  In the last 5 days the stock has surged +10.79%.  Most of the gains came from today, but who’s counting. LOL! Money is money.  It’s definitely exciting to see a stock move rather quickly, but as many of you may know I always tend to sell into a big move like today.  Westport closed up +8.59% just a few minutes ago as I had the day off.  This means I was able to watch this stock blow up today.  Very exciting!

I was very busy today as I purchased more Apple (AAPL) as I believe the stock price is currently undervalued.  I also picked up some Westport in my other accounts.  Then as the day went on I ended up selling a portion of my Westport holdings in my Monster Portfolio.  The main reason is that I won’t be able to watch my accounts over the next few days due to limited internet access.  I would hate to come back on Sunday to see my portfolio lower because I failed to sell some of my stock.  

I just found out the recent surge in Westport may have something to do with a tax credit plan.  See for yourself.  http://finance.yahoo.com/news/Clean-Energy-Supports-bw-4144486892.html?x=0&l=1

It appears the tax credit for natural gas vehicles has been put back into play, which adds tremendous value to Westport.  Although, Westport moved rather dramatically I can almost bet that this trend will continue for another few days.  My recommendation is to watch the volume and if you see the stock waiver at all I would sell into strength. 

P.S.  For those of you who are looking for a great dividend yield I also picked up some Kinder Morgan Energy Partners (KMP) last week in my IRA.  Currently the dividend yield is at 6.20%.  This stock is great for people who like to sleep well at night. LOL!

(All research was done at yahoo finance)

Have a great night! 

Clay-

“When in doubt buy more!”

Current Holdings:
Apple (AAPL)
Cosi Inc. (COSI)
Weatherford International (WFT) (Sit tight with WFT it will go up eventually)
Westport Innovations (WPRT)

Positive Westport Research-Week 43 Results

MONSTER PORTFOLIO 2011


Balance: Inception 01/07/11
$1977.32 Stock
$13.65 Cash
Total $1990.97

Balance: End of Week 42 11/04/11
$1,506.28 Stock
$1,059.87 Cash
Total $2,566.15

Since Inception: -1.52%

Back out cash inflow and we have a balance of $1,960.65 

Stocks are extremely resilient over the past few days!  I’ve seen a lot of strength in the energy sector with oil reaching $96.87 a barrel.  This is the strength I have been looking for.  The overwhelming need for energy brings Westport Innovations (WPRT) back into mind. 

I know I haven’t covered WPRT in quite some time, but you can’t deny the fact that Westport has been performing extremely well announcing big name deals with Caterpillar, Shell, GM, and Ford.  WPRT has also made some strategic acquisitions and Chesapeake/Clean Energy announced it plans on investing $300 million into LNG refueling infrastructure.  That being said a small $1.33 Billion company like Westport has plenty of room for growth. 

Westport’s recent earnings announcement had a lot of good information indicating that Westport sees strong growth continuing on into 2012.  The CEO David Demers sees 2011 as a tipping point for Westport.  Other positive remarks are as followed

-record revenue for the quarter of $80.2 million
-80% Growth year over year in revenue
-raised guidance on the year to generate $240-$250 million in revenue
-record revenues for the CWI business unit with $49.2 million in sales
-shipments of 85 Westport HD units up from 19
-expectation of more HD units to ship in the 4^th qtr

The list above is just a glimpse of what I researched from Westport’s earnings.  I wish I had the opportunity to ride this big move since I have been out of WPRT since July 6^th when the stock closed at $24.55, but once it took off I never saw a chance to get back in.  Now is the time as the stock is well of its 52 week high of $34.23.  17.67% off the high to be exact!  I will be looking for another chance to buy even more WPRT very soon. 

My last piece of evidence that Westport is going higher is what the CEO David Demers had to say about the investment of LNG infrastructure in regards to Chesapeake, Clean Energy and Shell.  Here is what he had to say “That’s a lot of infrastructure, a lot of fuel and there’s going to have to be a lot of trucks to use up that much fuel.”  That is all I needed to hear.

Have a great night! 

Clay-

“When in doubt buy more!”

(All research was derived from Yahoo Finance and Westport.com)

Current Holdings:
Apple (AAPL)
Cosi Inc. (COSI)
Weatherford International (WFT)
Westport Innovations (WPRT)

Portfolio Trade Action! WPRT

I bought some Westport Innovations (WPRT) today!  I tried to pick some up on Friday, but my order came in a little low and I missed about a 6% price move.  I listened to Westport's conference call last week and I really liked what they had to say.  I'll explain a few details tomorrow. 

Weatheford (WFT) up 3.03% today. Keep the money flowing!  Although I decreased my stake in WFT I'm still very happy with the outcome.

Clay-

Monster Portfolio Week 42 Results

MONSTER PORTFOLIO 2011

Balance: Inception 01/07/11
$1977.32 Stock
$13.65 Cash
Total $1990.97

Balance: End of Week 41 10/28/11
$1,506.05 Stock
$1,059.87 Cash
Total $2,565.92

Since Inception: -1.53%

Back out cash inflow and we have a balance of $1,960.42. 

Welcome back everyone!  So I was able to dig into Weatherford’s (WFT) 3^rd qtr. earnings transcript last week and I’m here to say that WFT appears to be doing all of the right things. (All of the right things that are within their control.)  The positives outweigh the negatives.  First I will cover the negatives to get them out of the way.  These are the issues that negatively impacted their earnings.

Negatives

1.      An increase in the effective tax rate reduced the earnings by $0.01

2.      Foreign exchange book losses accounted for a $0.03 hit against earnings

3.      Middle East, North Africa, and Asia Pacific revenue declined $45 million due to increased start up costs in Saudi Arabia, Kuwait and Iraq, contracts in Algeria lapsed and WFT was forced to demobilize and relocate outside of the country, and lastly higher incurred costs in Iraq due to shut down costs, idling costs, and problems with recent started operations

4.      Net debt increased roughly $301 million for a grand total of $7.3 billion in debt

Positives

1.      Quarterly revenue reached a record high of $3.4 billion

2.      Year on year revenue growth of 33%

3.      Sequential quarterly growth of 11% (Always a positive to see revs higher on back to back quarters.)

4.      Continued positive outlook for North America (Conservatively)

5.      Positive outlook for Canada which has lagged for years

6.      Increasing margins and volume in certain product lines including artificial lift, production optimization, formation evaluation, and open hole completion for North America in 2012

7.      Positive outlook in Latin America, Russian, and European operations

8.      Increased activity in North Africa (Libya and Algeria)

9.      Margin improvements internationally for the 4th qtr. and strengthening into 2012

10.  15-20% of North America earnings is from fracking, which means more room for growth

In conclusion of the earnings I still continue to believe that WFT is a viable investment.  There is much room for improvement!  That being said I believe Weatherford is on the right track to increase revenue and improve their operations.  The one thing that is a slight concern is the increased debt, but as a company grows to increase market share in a competitive industry taking on debt to grow is quite normal.  If the debt to equity continues to increase passed Q3 of 2012 I may change my tune.  So my recommendation is to continue to buy WFT on the dips well into 2012 as the strength in earnings will continue with elevated crude prices.

I would also like to disclose that I sold a large stake in WFT on Thursday and Friday as selling into strength is what I do.  This was mostly because I had to much invested in WFT and I had to reduce my risk.  Since October 4^th Weatherford has increased in value by 35.97% as of Friday’s close.  A run like that deserves a little profit taking.  You have to lock in your profits while the gettin is good!  Remember I try to think like the big fund managers. And currently they are selling as we saw some profit taking today.  My objective is to make as much money as I can while reducing my risk along the way!

Westport Innovations (WPRT) reports tomorrow.  Depending on the outlook I may try to sneak back into the speculative alternative energy play for the remainder of the year.  I still have a goal to finish up 10% on the year and I have to pick my stocks wisely as I’m running out of time. LOL!


All research was derived from Weatherford’s website and can be viewed by clicking on WFT (hyperlinked)

Have a great night! 

Clay-

“When in doubt buy more!”

Current Holdings:
Apple (AAPL)
Cosi Inc. (COSI)
Weatherford International (WFT)

Monster Portfolio 2011 Week 34 Results

MONSTER PORTFOLIO 2011


Balance: Inception 01/07/11
$1977.32 Stock
$13.65 Cash
Total $1990.97

Balance: End of Week 33 09/02/11

$2,341.13 Stock
$100.38 Cash
Total $2,441.51

Since Inception: -7.78%

Back out cash inflow and we have a balance of $1,836.01. 

It was a pretty quiet week for stocks last week.  Smooth sailing until Friday.  Today the market started deep into the red, but made its way to close well above the lows.  Weatherford International (WFT) took a big hit today earlier in the morning and closed down on the day.  One thing that caught my eye was WFT opened near the low of the day at $15.21 a share and paired its losses to close near the high of the day at $15.94.  That is a 4.79% move to the upside throughout the day.  Pay close attention tomorrow to the oil service companies. (Hint SLB, HAL, BHI, and WFT)  I’ve seen this chart many times and the buying action on the dip today increases the likelihood that increased buying is yet to come.  If I was a gambling man I would put my money on a positive day for the oil service companies tomorrow. 

Until next time “when in doubt buy more”


Buy List
Westport Innovations (WPRT) Stock is to cheap vs. the potential.  Chart shows increased buying action near the end of the day.  Remember energy isn't a want, but a need!

Kinder Morgan Energy Partners (KMP) Currently pays out a 6.60% or $4.60 a share.  I don't know about you, but your savings account pays less than 1.00%  If your looking for some income this is the perfect stock for you.  If the stock didn't go anywhere you would double your money in 10.9 yrs (Rule of 72 72/6.60=10.90)  This a great stock to have for retirement. 

Current Holdings:
Apple (AAPL)
Cosi Inc. (COSI)
Weatherford International (WFT)

Clay-

“When in doubt buy more!”

Monster Portfolio 2011 Week 31 Results

MONSTER PORTFOLIO 2011


Balance: Inception 01/07/11
$1977.32 Stock
$13.65 Cash
Total $1990.97

Balance: End of Week 30 08/12/11

$2,418.54 Stock
$47.88 Cash
Total $2,466.42

Since Inception: -3.89%

Excluding cash inflow of $553.00 we have a balance of $1,913.42. 

I’m glad last week is over!  I took a big hit in my portfolio, but I’m confident investors will steadily come back into stocks.  I remain cautious at the current moment after seeing the wild swings from last week.  It’s time to sit back and relax and let your current positions work in your favor.  If you’re currently on the side lines it wouldn’t be a bad idea to go shopping for stocks as they are currently on sale.  I’m still extremely bullish on oil! If I had some money to put to work that is where I would look first… hint… Energy

P.S. Westport Innovations (WPRT) sure bounced back fast.  If only I had more money. LOL!

Current Holdings:
Apple (AAPL)
Cosi Inc. (COSI)
Weatherford International (WFT)

Clay-

Monster Portfolio 2011 Week 26 Results

MONSTER PORTFOLIO 2011

Balance: Inception 01/07/11
$1977.32 Stock
$13.65 Cash
Total $1990.97

Balance: End of Week 25 07/08/11

$1,260.93 Stock
$1,117.47 Cash
Total $2,378.40

Since Inception: -3.92% excluding cash inflow

I’m getting closer to breaking even!  I’m sad to say I sold out the rest of Westport Innovations (WPRT) on Wednesday of last week at $24.45 a share.  WPRT took a big hit yesterday and I was hoping to slide back in over the next couple days.  Unfortunately, I will not get that chance because of the exciting news that Chesapeake Energy (CHK) will invest $150 million into Clean Energy (CLNE) the infrastructure play on natural gas.  What does this have to do with Westport?  According to yahoo finance linked through cnbc.com

http://www.cnbc.com/id/43725400?__source=yahoo%7Cheadline%7Cquote%7Ctext%7C&par=yahoo

“The plan is to ultimately build 150 stations along interstate highways to provide natural gas, as well as put pumps into existing truck stops.”  This is great news for Westport as it’s one step closer to push the acceptance of natural gas into the United States.  Click on the link above to read the full story.  With the current close of $26.30 up 8.59% on the day I gave up roughly a $40.00 gain.  I’m not too upset as I’m sure I helped some of you make some serious money over the past few weeks with WPRT.  I continue to back WPRT, but I would not chase this stock at its current level.  In the meantime I will have to sit on the sidelines and hope this dynamite stock pulls back to a level I’m comfortable with putting money to work! 

As of today I reinvested some of my money back into the out of favor oil service company Weatherford International (WFT).  I can’t and will not give up on this company!  They have too much potential, as they are set perfectly to take advantage of elevated oil prices.  I’m hoping the stock will trade down into the low to mid 17’s.  If I don’t get that opportunity I will gladly add to my position reaching no farther than a high 17 price point.  Sometimes you have to make a big bet on an ugly stock!  My recent purchase of WFT will not reflect in my portfolio until next week.

Have a great night!     

Current Holdings:
Apple (AAPL)
Cosi Inc. (COSI)
Weatherford International (WFT)

 Clay-

Monster Portfolio 2011 Week 25 Results

MONSTER PORTFOLIO 2011


Balance: Inception 01/07/11
$1977.32 Stock
$13.65 Cash
Total $1990.97

Balance: End of Week 24 07/01/11
$1,727.04 Stock
$593.53 Cash
Total $2,320.57

Since Inception: -5.94% excluding cash inflow

Thank you Westport Innovations!  Since I made a bet on WPRT a few weeks ago I was able to bring the monster portfolio back from a massive deficit.  Last week I was able to gain +9.87% with WPRT doing the heavy lifting.  In 2 weeks I went from being down -20.16% to narrowing my losses to a sweet -5.94%.  It was pretty grim for awhile. LOL!  I still have plenty of time to get back into the green on the year.  I’m determined to do so!

Last week was phenomenal for stocks.  From the recent strength in stocks I was able to sell a large position in WPRT.  I still like the stock, but when a company increases in value +16.5% in 5 days you would be crazy not to lock in some profits.  Now that I have some cash on hand I will be set up for the next money making opportunity.  Stocks are back in favor and money should continue to flow back into the stock market.  Especially my favorite stock Apple.  Since Apple bottomed on June 20^th it has run up +10.81% as of today’s closing price of $349.43. $$$ I also have refocused my attention back to Weatherford International (WFT).  The current price is still below the insider purchase that occurred back on 05/17/11 at $19.18 a share.  I may start a position in WFT with some weakness over the next few days.  With earnings right around the corner WFT should gradually work its way higher. 

As you can tell I always work my way back to my favorite stocks.  If a company continues to make me money I’m happy.  Why change a good thing?   

Current Holdings:
Apple (AAPL)
Cosi Inc. (COSI)
Westport Innovations (WPRT)

Clay-

Monster Portfolio 2011 Week 24 Results/WPRT Boom!

MONSTER PORTFOLIO 2011

Balance: Inception 01/07/11
$1977.32 Stock
$13.65 Cash
Total $1990.97

Balance: End of Week 23 06/24/11

$2,052.63 Stock
$54.06 Cash
Total $2,106.69

Since Inception: -15.81% excluding cash inflow

Finally the momentum of the Monster Portfolio has turned into the right direction.  Since last week’s results my picks have gained +5.44%.  This move doesn’t include the recent positive action in Westport (WPRT) after yesterday’s announcement that Westport and GM plan to develop natural gas engines.  (More detail in Reuters article)

http://www.reuters.com/article/2011/06/28/westport-idUSL3E7HS27R20110628?feedType=RSS&feedName=rbssEnergyNews&rpc=43

Shares of Westport surged +11.57% in yesterday’s trading!  Westport’s chart is been in an uptrend for the past 8 trading sessions.  I will be paying close attention to the trading action tomorrow.  I believe the stock has another couple of days to run until the buying volume slows down.  That means I may sell into strength over the next few days.  Could we break through $26 a share?  It definitely is a possibility! 

In closing I would suggest for anyone that has been investing for a few years to venture into the world of options.  Options are a great way to control more shares of a company with minimal capital and a tool to hedge against downward moves.  I recently started paper trading options with https://www.optionsxpress.com/ and it’s a great way to learn and test your option skills. If your good and picking stocks that move higher options will add some muscle to your portfolio.  There are many different ways to make money in options.  You can make money in any market with options and that is what enticed me to learn how to add this investing tool to my portfolio.  Plus options will make you pay attention to your money!

Current Holdings:
Apple (AAPL)
Cosi Inc. (COSI)
Westport Innovations (WPRT)

Have a great night!

Clay-

Monster Portfolio 2011 Week 23 Results

MONSTER PORTFOLIO 2011

Balance: Inception 01/07/11
$1977.32 Stock
$13.65 Cash
Total $1990.97

Balance: End of Week 22 06/1/11

$1,966.02 Stock
$36.56 Cash
Total $2,002.58

Since Inception: -20.16% excluding cash inflow

Well I think my portfolio is done going down.  Apple I believe has bottomed and the momentum in the market has gone from overly pessimistic back to a positive outlook.  Stocks are oversold and my portfolio is a perfect example.  Down 20%!  Nothing has changed to negatively impact my stocks and that is why I continue to hold them even when they were tanking.   The month of May is always tough.  We should start to see the big money step back in and buy stocks on the cheap to drive prices higher.  Apple (AAPL) will be one of the stocks surging higher as well as my wild card gunslinger stock Westport Innovations (WPRT)

And for those of you who caught my message last night about Apple hitting the bottom here is why I believe the pain has come to an end.  From the books I have read the following candlestick chart tells a story of Apple.  Yesterday’s trading created a hammer (a small body with a shadow at least 2 times the body), which signals that a possible reversal in the trend could change.  A strong move to the upside in the day following this signal confirms that the trend has changed into the bulls hands.  As of today Apple moved up 3.17% or $9.98 a share.  I would say the tides have turned.  Chart provided by yahoo finance

http://finance.yahoo.com/q/ta?s=AAPL&t=3m&l=on&z=l&q=c&p=&a=&c=

Turnaround Challenge
Goal $352.91
Current $-247.58/352.91
% of Goal -70.15%

Current Holdings:
Apple (AAPL)
Cosi Inc. (COSI)
Westport Innovations (WPRT)
 

Clay-