Get ready for
kicks off the fun on Monday, followed by a big slate of blue chips.
By the end of next week, we'll have a clear tone in place for the
remainder of earnings season.
Before then, let's look back at companies in the news from this
past week. Here are some of the most compelling stocks from this
week's Street Authority Winners and Losers.
Taseko Mines (AMEX:
Shares of Taseko Mines have rebounded a bit from Tuesday's
as we noted then
. Investors may have gone too far in their zeal to unload shares.
As we noted, the company's primary active mining site, known as
Gibraltar, is probably worth around $4 a share based on projected
cash flows -- right around the current share price. So even as the
company's promising-yet-troubled second mine, Prosperity, is beset
by a daunting local ecological assessment, investors are assigning
zero value to it.
That looks to be short-sighted. There's a decent chance the mining
venture will get the green light from federal regulators in Ottawa
at the end of the summer. If that happens, investors will quickly
push shares up, perhaps past the 52-week high of $6.21 as the new
mine has even greater potential than the existing mine.
Action to Take -->
In a best case scenario, shares could rise +150% to the $10 mark if
both mines produce vigorous amounts of copper and lead. Full
production wouldn't come until around 2013, so it would take time
to hit that target.
Investors should always maintain a wish list containing great
companies that currently appear to be fully-valued. Any time one of
these companies gets pulled down on near-term worries, long-term
investors should take advantage of that myopia. In recent weeks,
Best Buy (NYSE:
Bed, Bath & Beyond (Nasdaq:
as clear examples. This week, we have another example -- Kohl's.
The retailer posted monthly sales that were good -- not great --
shares took a hit
. They're now off roughly -20% in the past few months, which spells
Citigroup's Deborah Weinswig sees shares rising from a recent $47
to $68, noting that Kohl's "has a significant opportunity to emerge
as a major player in the moderate retail space," adding that "a
combination of industry
and company-specific initiatives should enhance both top-line and
performance at Kohl's." The retailer's annual per share profits
have been stuck on the $3 to $4 range during the past four years,
but should move past the $4 mark in fiscal (January) 2012 and
closer to $5 in the subsequent year if the economy hangs in there
and starts to modestly rebound.
Big Five Sporting Goods (Nasdaq:
It's tough to buy stocks when the news is bad. But often times,
that's the only way to make money. Big Five Sporting Goods, which
operates a chain of retail stores primarily in the Western United
States, noted that unfavorable weather in May has
led to a quarterly shortfall
. That bad news is good news for investors not yet in this stock,
as it's a rare misstep that has temporarily weakened shares. Yet in
the long-term, there is much to like about this retailer's
slow-and-steady growth trajectory.
Action to Take -->
We recently took a fairly deep look at the company's operations,
a winning retail formula
. Shares traded for $30 back in 2005, but can now be had for around
$10. As consumer spending starts to rebound -- which probably won't
happen before 2011 -- this could start to be a solid growth story
one again. Long-term investors will likely bid shares back up
before such an upturn is fully in evidence.
-- David Sterman
David Sterman has worked as an investment analyst for nearly two
decades. Most recently, he served as Managing Editor of
RealMoney.com, the premium website of TheStreet.com. David has made
numerous media appearances over the years, primarily on CNBC and
Bloomberg TV, and has a master's degree in management from Georgia
Tech. Read More...
Disclosure: Neither David Sterman nor StreetAuthority, LLC hold
positions in any securities mentioned in this article.
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