The market is on the road to recovery. Don't believe the latest
Wall Street worry worts who sit and fret about a "double-dip"
recession. The positive trends, such as the improving jobs market,
increasing consumer spending, and inventory rebuilding on the
wholesale level will drive our economy -- and this market --
forward for the remainder of the year.
Now I'm not saying we're out of the woods yet. I'm still
expecting a U-shaped recovery. After the first-quarter
earnings are announced, I expect the market's overall breath and
power to narrow. As we enter the second quarter, there will be a
"flight to quality" as Wall Street rewards only those companies
with the best fundamentals.
) is a company that acts as an intermediary between pharmaceutical
companies, hospitals, pharmacies, doctors, and other health care
providers that dispense drugs. The company operates mostly in
Canada and the United States, distributing generic, branded, and
over-the-counter drugs, as well as some medical supplies and other
products. It also has a specialty distribution unit that
concentrates on sensitive and complex biopharmaceuticals, cancer
drugs, vaccines, and plasma products.
In its latest quarter, ABC's earnings rose 44.4% to $151.3
million, or 52 cents per share, compared with $111 million, or 36
cents per share, in the same quarter in 2008. The analyst community
was expecting a 46-cents-a-share return, so ABC posted a 13%
earnings surprise. During the same period, the company's sales rose
11.5% to $19.3 billion compared with $17.3 billion.
The company also reaffirmed its outlook, stating it expects
fiscal 2010 earnings from continuing operations to range from $1.89
per share to $1.98 per share. The company also expects sales growth
to be between 7% and 8% and expects to buy back about $350 million
of stock this fiscal year, both very good indicators for this
Dr. Pepper Snapple Group Inc.
) is the bottler and distributor of Dr. Pepper soda and Snapple
drinks. It is the third-largest soft drink company in North
It serves Canada, Mexico, and the United States. Formerly called
Cadbury Schweppes Americas Beverages, DPS has a substantial
portfolio of non-alcoholic beverages, including flavored,
carbonated beverages and non-carbonated soft drinks, along with
juices, juice drinks, mixers, and teas.
In the fourth quarter, the company's earnings rose to $114
million, or 44 cents per share, compared with a loss of $621
million, or $2.44 per share, in same quarter in 2008, which
included $1 billion in a non-cash impairment charge. The analyst
community was expecting earnings of 43 cents per share on sales of
$1.36 billion, so the company's earnings were 2.3% better than
expected and its sales were in line with estimates.
Louis Navellier owned shares of ABC and DPS in personal or
client portfolios as of this writing.