October 2007 Peak Stock Pick (Acquired by Home Depot)

With the Markets Reaching 5 year highs I circled back today to find out what I said in October 2007.

In October 2007 I was able to find an undervalued stock at the market highs that I picked in my weekly newsletter. US HOMES Systems would get acquired in less than 4 years by Home Depot for an 80% return while the S&P 500 index declined 7.8% over  the same period.

October 23,2007 Pick :U.S.Home Systems $6.93
October 12,2012 USHS Acquired by Home Depot for $12.50 cash

Equities Research Archives USHS



click to Equities Research favorite stock YAHOO (NASDAQ:YHOO)

top 2012 Warnings:

Chipotle Mexican Grill decline 47%

Included in link below is a link to CNBC TV video of +Herb Greenberg
April 20,2012 Chipotle Mexican Grill (CMG ) Warning $430 

October 22,2012 low $236
click here to Read an article by Herb Greenberg discussing the importance of Cash Flow with legendary investor Bob Olstein

Under Armour decline 14%

June 11,2012 Under Armour (UA) Warning $52.50

July 11,2012 low $45.27

APPLE 24% decline 3 months

November 5,2012 Apple (AAPL) Warning @ $582

January 25,2013 low $440

Don't know what to do with Market at a 5 year high?   

My February 2012 Newsletter is ready, subscribe now! 

 Take my fundamental work and use your technical skills to build positions for the long term.

Bullish call at bottom of 1st Quarter 2009 (10 recommendations, 5 acquired)

55 Stockdiagnostics Upgrades acquired in 2012 

Equities Research Maintains SELL RATING on CMG & UA

My work (Equities Research, Tommy Renna) is mentioned near the two minute mark of this CNBC TV clip.
CMG
After being bullish on Chipotle Mexican Grill (NYSE: CMG) for nearly 6 years and watching the stock soar from $50 to $440, on the morning of April 20,2012 I became bearish. Since my Sell rating ($430.78) that morning shares have declined $47 or -11% vs. the S&P500 index which has decline 1.62% over the same 11 week period.
click to view my sell call mention on CNBC TV 4/20/2012  (approx. 2 minutes into clip)

UA
I issued a Sell rating on Under Armour (NYSE: UA) four weeks ago when shares hit a new all time high @ $105. Since the call, shares of UA have declined $13 or -12.55% vs the S&P500 index which is up 2.19% over the same period.

Earnings Season kicks off this week and I will be busy examining 10Qs & 10Ks looking for companies with weakening fundamentals trading at premiums that I will recommend as short picks.
Companies growing fundamentals that are trading at discounts in the market place will be included in by long picks.

All my research is 100% objective, give it a try and subscribe today.
A newsletter subscription is well worth the time and energy that I will save you from doing the work.

*Remember, I am only looking for value stocks that are growing on the long side and overbought stocks trading at premiums with weakening fundamentals on the sell side.

**Warren Buffett, Chairman of Berkshire Hathaway: 2000 Annual Report:

"Common yardsticks such as dividend yield, the ratio of price to earnings or to book value, and even growth rates have nothing to do with valuation except to the extent they provide clues to the amount and timing of cash flows into and from the business. Indeed, growth can destroy value if it requires cash inputs in the early years of a project or enterprise that exceed the discounted value of the cash that those assets will generate in later years.
Market commentators and investment managers who glibly refer to growth and value styles as contrasting approaches to investment are displaying their ignorance, not their sophistication. Growth is simply a component--usually a plus, sometimes a minus-- in the value equation."