2008 ~ Stock Picks 

 
 

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  • May 2008 (2)
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  •  
  •  
  • January 2008 (4)
  • February 2008 (5)
  • March 2008 (2)
  • April 2008 (4)
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    May 2008 Stock Picks
    Stock Name SYM Exch. Sector Industry Date Picked Pick Price
    (per share)
    ASG
    EOG Resources Inc.    EOG     NYSE     Energy   Oil & Gas Operations   05/02/08 $127.75   54.32 (Very Good)  
    Darling International Inc.    DAR     AMEX     Consumer/Non-Cyclical   Food Processing   05/09/08 $16.18   45.90 (Good)  

           EOG Resources Inc. (NYSE: EOG)  is one of the largest independent (non-integrated) oil and natural gas companies in the United States.  EOG  explores for, develops, produces and markets natural gas and crude oil in major producing basins in the United States, Canada, offshore Trinidad, the United Kingdom North Sea and select other international areas. As of December 31, 2006, EOG's total estimated net proved reserves were 6,802 billion cubic feet equivalent (Bcfe), of which 6,095 billion cubic feet (Bcf) were natural gas reserves and 118 million barrels (MMBbl), or 707 Bcfe, were crude oil, condensate and natural gas liquids reserves. On the same latter date, approximately 60% of  EOG's reserves (on a natural gas equivalent basis) were located in the United States, 20% in Canada and 20% in Trinidad.

     EOG's operations are all related to natural gas and crude oil exploration and production. As of December 31, 2006, 88% of  EOG's net proved United States and Canada reserves (on a natural gas equivalent basis) were natural gas and 12% were crude oil, condensate and natural gas liquids.Substantial portions of these reserves are in long-lived fields with well-established production characteristics.  EOG believes that opportunities exist to increase production through continued development in and around many of these fields and through application of new processes and technologies. EOG also maintains an active exploration program designed to extend fields and add new trends to its broad portfolio.

    The stock's price gained 51.0% over the past 3 months (vs. the Industry's 93.7%); 49.3% over the past 6 months (vs. the  Industry's 50.5%); and 74.8% over the past 12 months (vs. the Industry's 198.6%). The Company is classified as a large-cap growth company (with a market cap of $31.71B) that is rated to outperform the market over the next six months with a Risk Level of 2 (Less than average). The Company was organized on 1985, and its principal executive offices are located at Houston texas.
    The Company has 1800 employees.

    Sector: Energy; Industry: Oil & Gas OPerations; Ticker: EOG;  Exch: NYSE;  05/02/08 Closing Price: $127.75

    STOCK GRADE (ASG):  54.32  (VERY GOOD)               

    BUSINESS & FINANCIAL SUMMARY; KEY STATS (Yahoo)
    EXPANDED BUSINESS DESCRIPTION (Reuters)
    STOCK INFO/RESEARCH (MSN)
    COMPETITORS
    (CNN Money)
    OWNERSHIP (MSN)
    KEY DEVELOPMENTS (MSN), RECENT NEWS (MSN) & HEADLINES  (Yahoo)
    HISTORICAL PRICES (Yahoo) & PRICE CHART (IQChart)
    RISK LEVEL: 2 (Less than average) (MSN)
    COMPANY'S WEB SITE

    Management's Effectiveness (Trailing 12 Mo.) . . . Return on Equity:        17.31%
    Profitability (Trailing 12 Mo.) . . . Profit Margin:        26.99%
    Stock's Growth Record (Trailing 12 Mo.) . . . Revenue:         7.11%
    . . . EPS:      -16.48%
    . . . Price:       82.21%
    . . . Dividend:       50.00%
    PE & EPS (Trailing 12 Mo.) . . . Price/Earnings:       29.35
    . . . Earnings/Share:         4.37
    Price / Share (Pick Date, Closing Price) . . . Pick Date 05/02/2008:     $127.75

    COMMENT: The stock's pick price (of $127.75) is under the 13- and over the 50-day EMA price range; i.e., lower than
     the 13-day EMA price (of $130.55) and higher than the  50-day EMA (of $121.78) by -2.14% and 4.90% respectively. This suggests that the pick price IS presently timely AND advantageous buy price for the stock.  (Note: A stock's EMA price changes with time).

    . . .    
    Price / Share (13-day EMA) . . . 05/02/2008:      $130.55
    Price / Share (50-day EMA) . . . 05/02/2008:      $121.78
    Price / Share (13-day EMA) . . .         Current:
    Price / Share (50-day EMA) . . .         Current:
    Price / Share (Current) . . . Current Price       Quote
    Price / Share (Historical) . . . Historical Price       Quote

    SPECIAL NOTE:

    1. Amex Natural Gas Index hits all-time high. (MarketWatch; February 28, 2008)
    2. EOG expects 36% production growth in North Dakota. (SmartBrief; February 21, 2008)
    3. EOG strikes oil.
    (Forbes; February 2, 2008)
    4. EOG Resources  is an ACE'S re-pick: EOG was one of ACE'S picks for December 2000. As of May 2, 2008, the stock had a 7.33-year gain of 425% (or about 57.99% annually). NOTE: Stocks historical prices were based on Yahoo Finance's price table.

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        Darling International Inc. (AMEX: DAR)  is a leading provider of rendering, recycling and recovery solutions to the nation’s food industry. The Company collects and recycles animal by-products and used cooking oil from food service establishments and provides grease trap cleaning services to many of the same establishments. The Company processes raw materials at 39 facilities located throughout the United States into finished products such as protein (primarily meat and bone meal), tallow (primarily bleachable fancy tallow), yellow grease and hides. The Company sells these products nationally and internationally, primarily to producers of oleo-chemicals, bio-fuels, soaps, pet foods, leather goods and livestock feed for use as ingredients in their products or for further processing.

    Commencing in 1998, the Company's operations were organized into two segments; Rendering segment, the core business of turning inedible food by-products from meat and poultry processors into high quality feed ingredients and fats for other industrial applications; and Restaurant Services segment, a group focused on growing the grease collection business and grease collection equipment sales while expanding the line of services, which includes grease trap servicing, and the National Service Center (“NSC”), offered to food service establishments and food processors. The NSC schedules services such as fat and bone and used cooking oil collection as well as trap cleaning for contracted customers using the Company's resources or third party providers.

    The stock's price gained 32.8% over the past 3 months (vs. the Industry's -4.4%); 62.3% over the past 6 months (vs. the  Industry's -2.1%); and 95.9% over the past 12 months (vs. the Industry's 21.6%). The Company is classified as a mid-cap growth company (with a market cap of $1.32B) that is rated to outperform the market over the next six months with a Risk Level of 3 (Average). The Company was incorporated in Delaware in 1962 under the name “Darling-Delaware Company, Inc.”. The Company's principal executive offices are located at Irving, Texas.
    The Company has 1880 employees.

    Sector: Consumer/Non-Cyclical; Industry: Food Processing; Ticker: DAR;  Exch: AMEX;  05/09/08 Closing Price: $16.18

    STOCK GRADE (ASG):  45.90  (GOOD)               

    BUSINESS & FINANCIAL SUMMARY; KEY STATS (Yahoo)
    EXPANDED BUSINESS DESCRIPTION (Reuters)
    STOCK INFO/RESEARCH (MSN)
    COMPETITORS
    (CNN Money)
    OWNERSHIP (MSN)
    KEY DEVELOPMENTS (MSN), RECENT NEWS (MSN) & HEADLINES  (Yahoo)
    HISTORICAL PRICES (Yahoo) & PRICE CHART (IQChart)
    RISK LEVEL: 3 (Average) (MSN)
    COMPANY'S WEB SITE

    Management's Effectiveness (Trailing 12 Mo.) . . . Return on Equity:       25.85%
    Profitability (Trailing 12 Mo.) . . . Profit Margin:         7.06%
    Stock's Growth Record (Trailing 12 Mo.) . . . Revenue:       58.56%
    . . . EPS:     719.32%
    . . . Price:     101.96%
    . . . Dividend:         NA
    PE & EPS (Trailing 12 Mo.) . . . Price/Earnings:       29.10
    . . . Earnings/Share:         0.56
    Price / Share (Pick Date, Closing Price) . . . Pick Date 05/09/2008:     $16.18

    COMMENT: The stock's pick price (of $16.18) is over 13- and over the 50-day EMA price range; i.e., lower than
     the 13-day EMA price (of $15.51) and higher than the  50-day EMA (of $14.22) by 15.52% and 14.22% respectively. This suggests that the pick price is NOT presently timely NOR advantageous buy price for the stock.  (Note: A stock's EMA price changes with time).

    . . .    
    Price / Share (13-day EMA) . . . 05/09/2008:      $15.51
    Price / Share (50-day EMA) . . . 05/09/2008:      $14.22
    Price / Share (13-day EMA) . . .         Current:
    Price / Share (50-day EMA) . . .         Current:
    Price / Share (Current) . . . Current Price       Quote
    Price / Share (Historical) . . . Historical Price       Quote

    SPECIAL NOTE:

    1. Darling International Inc. have record results in Fiscal Year 2007. (Smartbrief; February 27, 2008)
    2. Technical trading alert: Darling International Inc. (StockProfit.com; February 4, 2008)

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      Last modified: 04/30/08