February Idea of the Month: Clean, Hot Water

by stock | February 17, 2012 4:44 pm

Screening for momentum stocks with cheap valuations yields an interesting industrial idea with steady earnings and a kicker

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Source URL: https://www.stockgumshoe.com/2012/02/february-idea-of-the-month-clean-hot-water/


10 responses to “February Idea of the Month: Clean, Hot Water”

  1. rfgosman says:

    we keep hearing about water investments but have had little appreciation in those stocks. hope this one will be better.

  2. blufox says:

    Thanks for an extremely well done, thorough analysis Travis. And, based on your observations, AOS should be followed. I have two issues: where AOS is in terms of China and price. I spent a lot of time attempting to invest in stocks that should do well in China (I am waiting to see what happens with AAPL) and many have fallen by the wayside because China’s semi-capitalistic system is in early stages and there are few means of prosecuting stolen concepts, patents et al. That’s issue number one, number two price: as I am one who prefers bottom fishing the only way I could buy at this price of $46.60 is based on enormous expansion as they are at a top now. So I just have to wait and see. I never buy momentum stocks but many do.
    But I certainly admire your presentation, succinct and well done. Thanks. /* Phil */

  3. Tatabear says:

    Travis – I grew up very near to Milwaukee. The giant clock at the AO Smith factory is still a landmark there. I enjoy reading the commentaries you offer as they are so much more relaxed than the high power sales pitches in some of the newsletters I have seen. One thing that bothers me on AO Smith is that I see a lot of insider option executions accompanied by selling of shares.

  4. john says:

    Hi Travis. Nice analysis. Since it appears some of the recent reports on housing are anything but stellar and China growth continues to slow, do you still feel as strong about AOS as you did 5 weeks ago?

  5. docjools says:

    What do you think of TPX Tempur-Pedic? It was about $87 on April 18, then plummeted all the way down $20.90 on Jun 26.
    The company has a P/E ratio of 6.3. TPX improved earnings per share by 26.5% in the most recent quarter compared to the same quarter last year. The company has demonstrated a pattern of positive earnings per share growth over the past two years. For 2012, it is expecting a contraction of 15.1% in earnings ($2.70 versus $3.93 that was previously expected). I like this because TPX might have been oversold. What do you think?

    Articles:
    I am particularly intrigued by this significant insider buy: http://www.marketwatch.com/News/Story/Story.aspx?guid=6DC716DB-8083-4065-BB34-9DD30E273249&siteid=yhoof2

    http://seekingalpha.com/article/667631-why-tempur-pedic-international-is-likely-poised-for-a-rebound?source=yahoo

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