(May 16, 2011 update: All future stock posts will appear on my new subscription-only website at www.GoodfellowLLC.com. Please visit!)
"The company is focused on developing advanced powertrain technologies that help improve fuel economy and reduce emissions, allowing auto manufacturers to comply with increasingly stringent emissions standards around the globe." -- Standard & Poor's research, April 16, 2011
"We believe the top-line growth and margin power from unique secular growth opportunities should allow BWA to double earnings and revenues in the next 3-4 years. BWA remains our top-pick in the supplier group and an MS Best Idea." Morgan Stanley research, February 10, 2011
Projected consensus EPS growth is 37%, 25% and 17% for fiscal years 2011 through 2013. The PE is 17, which is low for such a high-growth company.
During the last decade, BorgWarner stock rose steadily until the financial meltdown of 2008. The stock later broke past the previous high in September 2010, and has been climbing in a two-steps-forward-one-step-back pattern. Today's price reflects the one-step-back, and represents a good purchase price. The stock reached the low 80's several times in February and April 2011. A retracement of those recent highs would net an easy 10+% for a short-term trader.
S&P and Citigroup each maintain a $79 price target on BWA (based on April 2011 research reports).
Investment Disclaimer
Release of Liability: Through use of this website viewing or using you agree to hold www.TheRightHuff.blogspot.com and me, Crista Huff, harmless and to completely release www.TheRightHuff.blogspot.com and Crista Huff from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur. I am not paid to promote nor disparage any investment. My recommendations are based on hypothetical situations of what I would do, not advice on what you should do.
The information provided herein is obtained from sources believed to be reliable but is not guaranteed as to accuracy or completeness. Investments are risky, and can go down in value. Past investment results are not indicative of future returns. I am not a licensed investment advisor nor a tax advisor. Consult with a licensed investment advisor and a tax advisor to determine the suitability of any investment. This is not a solicitation to buy or sell any security.
Release of Liability: Through use of this website viewing or using you agree to hold www.TheRightHuff.blogspot.com and me, Crista Huff, harmless and to completely release www.TheRightHuff.blogspot.com and Crista Huff from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur. I am not paid to promote nor disparage any investment. My recommendations are based on hypothetical situations of what I would do, not advice on what you should do.
The information provided herein is obtained from sources believed to be reliable but is not guaranteed as to accuracy or completeness. Investments are risky, and can go down in value. Past investment results are not indicative of future returns. I am not a licensed investment advisor nor a tax advisor. Consult with a licensed investment advisor and a tax advisor to determine the suitability of any investment. This is not a solicitation to buy or sell any security.
* * *
The Right Huff is Crista Huff's blog for politics and items of sociological or financial interest. Crista Huff also managesGoodfellow LLC, a subscription-only stock market website. We strive to identify financially healthy companies in which traders and investors can buy shares and earn dividends and capital gains. Seedisclaimer for the risks associated with investing in the stock market. See your tax advisor for the tax consequences of investing. See your estate planning attorney to clarify beneficiary and inheritance issues associated with your assets.
No comments:
Post a Comment