Shares of Monster Beverage (NASDAQ: MNST ) rose nearly 5% Monday after the company's board of directors approved a $200 million share repurchase program. As management stated recently, the company had already used every penny of the $250 million it authorized for share repurchases less than five months ago, so it looks like they were just itching to continue increasing shareholders' slice of the pie.
Even so, I suppose this latest authorization shouldn't have come as much of a surprise considering the company managed to spend more than $737 million in 2012, buying back shares at an average price of $54.47 per share -- or about 3% below yesterday's closing price.
Does it make sense?
Okay, we get it; the folks at Monster are trying to send investors a not-so-subtle message that they think their stock is undervalued.
Top Penny Companies To Buy Right Now: Innovaro Inc(INV)
Innovaro, Inc. provides a comprehensive portfolio of end-to-end innovation solutions primarily in the United States and the United Kingdom. It helps clients develop compelling strategies to drive and catalyze growth, source externally developed technologies, create added value from their intellectual property, and gain foresight into marketplace and technology developments that affect their business. The company operates in two segments, Strategic Services and Technology Services. The Strategic Services segment offers strategic innovation consulting; business model and product development consulting; identify and develop new segments and markets; and create and act on game-changing strategies. The Technology Services segment provides futures scenario development and planning; custom and syndicated research; online information services; IP consulting; IP and market landscape analysis; technology search; In- and out-licensing; online marketplaces; and partner search and prof iling services. Its clients include consumer goods, consumer packaged goods, retail, medical, telecommunications, chemicals, media, financial services, energy, utilities, and government agencies. The company was formerly known as UTEK Corporation and changed its name to Innovaro, Inc. in July 2010. Innovaro, Inc. is based in Tampa, Florida.
Advisors' Opinion:- [By Bill]
Formerly known as Utek Corp., Innovaro helps companies enhance their innovation capabilities and create value from their intellectual property.
The stock spiked in February after Innovaro announced that it had entered into a consulting-services agreement with a major Asian telecommunications company. On Feb. 28 and March 22, following increased volume and a rapid increase in share price, Innovaro said the NYSE Amex had contacted the company and requested a press release regarding the increased market activity. Both times Innovaro declined to do so.
Current Share Price: $3.12 (March 29)
First Quarter Total Return: 118%
Analyst Ratings: No Wall Street firm has coverage of Innovaro. In addition, TheStreet Ratings doesn't currently have a rating on Innovaro.
Top Penny Companies To Buy Right Now: Sirius XM Radio Inc.(SIRI)
Sirius XM Radio Inc. provides satellite radio services in the United States and Canada. It broadcasts a programming lineup of approximately 135 channels of commercial-free music, sports, news and information, talk and entertainment, traffic, and weather on subscription fee basis through two satellite radio systems in the United States; and holds an interest in the satellite radio services offered in Canada. The company also simulcasts music and selected non-music channels over the Internet; and offers applications to allow consumers to access its Internet services on mobile devices. As of December 31, 2010, it had 20,190,964 subscribers. In addition, the company designs, establishes specifications, sources or specifies parts and components, and manages various aspects of the logistics and production of satellite radios; licenses its technology to various electronics manufacturers to develop, manufacture, and distribute radios under various brands; and imports radios distri buted through its Websites. The company?s satellite radios are primarily distributed through automakers, retailers, and its Websites. Further, it provides music services for commercial establishments; a satellite television service to offer music channels as part of certain programming packages on the DISH Network satellite television service; music and comedy channels to mobile phone users through mobile phone carriers; Backseat TV, a service offering television content designed primarily for children in the backseat of vehicles; Travel Link, a suite of data services that include graphical weather, fuel prices, sports schedules and scores, and movie listings; and real-time traffic and weather services. The company was formerly known as Sirius Satellite Radio Inc. and changed its name to Sirius XM Radio Inc. in August 2008. Sirius XM Radio Inc. was founded in 1990 and is headquartered in New York, New York.
Advisors' Opinion:- [By Chuck Carlson]
SIRI has seen steady gains since September 2010, and the company continues to put out new and exciting channels for its satellite radio such as the latest one, Studio 54.Regardless, some investors hav e expressed caution regarding the company. This article, also from Seeking Alpha, brings up some great points that are certainly worth mentioning. In many ways, Sirius XM has not taken full advantage of traditional Internet or the mobile market.Even some users of the company’s technology readily admit that its Internet and mobile services aren’t great. Sirius’s use of advertising and reaching out to certain demographics has also been lacking. Despite all these important points though, the fact remains that competition in the radio industry is quite weak. Net income for Sirius’s most serious (no pun intended) competitor Pandora (P) has been negative for 2 straight quarters now. SIRI also beats P in some other statistics. Gross margin and operating margin for SIRI are both about 20 percentage points higher. Additionally, price to sale ratio for P is a whopping 11.69, while SIRI’s is a much more reasonable 2.39. While more traditional radio broadcasters like Cumuls Media (CMLS) and Westwood One (WWON) have the best price to sale ratios (0.43 and 0.37 respectively), it is quite clear that these companies are a dying breed.
- [By Michael Brush]
Howard Stern lemmings piled into Sirius stock years ago when the shock jock moved his circus to satellite radio. Many lost almost all their money, as the company's stock fell under $1 from above $8.
But with a 2008 buyout of XM Radio and a bankruptcy scare under its belt, Sirius XM Radio (SIRI) is now a dominant force on the comeback trail.
Skeptics believe iPods and free Web radio services like Pandora will jam the signal at Sirius, which charges $12.95 a month. But satellite radio offers content that listeners can't find elsewhere on the radio -- not only Stern, but also Martha Stewart, Oprah Winfrey, Jamie Foxx, Barbara Walters and a Playboy channel, to name a few.
And recent trends confirm that drivers are willing to pay for that content. Sirius XM Radio's subscriber base grew last year by 8%, to 20.2 million. That helped drive revenue up 14%, to $2.82 billion. "It's kind of like the original cable TV, when everyone thought people wouldn't pay for TV because it's free," says Robert Routh, a media analyst at Phoenix Partners. "Sirius XM Radio has lot of stuff you can't get elsewhere." The reason: While terrestrial radio companies lack the funds to buy the big talent, Sirius XM Radio can buy wh atever it wants to fill its 135 channels, says John Tinker, an analyst with Maxim Group.
Two other keys to growth: Sirius XM Radio is available for free for a few months in 60% of all new cars. As car sales rise in an improving economy, subscriber growth should increase. A Sirius 2.0 upgrade and a possible rate increase later this year will also drive gains. All-important cash flow could hit $1 billion a year by 2015, predicts Morgan Stanley analyst David Gober. He says Sirius XM Radio will be announcing dividends and share buybacks -- music to investors' ears
- [By Tom Bishop]
Sirius XM Radio Inc. (SIRI) Sirius has a market cap of $6.86 billion with a price-to- earnings ratio of 44.63. The stock has traded in a 52-week range of $1.10 to $2.44. The stock is currently trading around $1.80. On August 2nd, the company reported revenue of $744 million compared with revenue of $700 million in the second quarter of 2010. Second quarter net income was $173 million compared with net income of $15.3 million in the second quarter of 2010.
One of Sirius XM’s competitors is Westwood One Inc. (WWON). Westwood One is currently trading around $4 with a market cap of $89.73 million and a negative price-to -earnings ratio.
Sirius XM has been in an upward trend. In the second quarter, the company increased net income by 1,013% from the second quarter of 2010. In 2010, the company announced that it had increased its annual net income by $572.2 million, when it reported its first ever profit of $43.1 million. The company has completed building its infrastructure and should be able to reduce costs. The company recently reaffirmed its guidance of 10% revenue growth and free cash growth of 75%. Sirius XM has a lot of debt but should be able to pay down debt with the additional cash. Investors like what they see in Sirius and have bid up the stock price by 62% over the last 52 weeks. Additionally, we don't see Pandora (P) as a serious threat. I rate Sirius XM Radio Inc. a buy.
- [By Louis]
Satellite radio broadcaster Sirius XM Radio Inc. (SIRI) is popular among penny stock investors. At $1.83, SIRI is up 67% in the last year, and 20% since mid-January. Investors should also note the company's quarterly revenue growth of 9% from last quarter.
Top Food Companies To Invest In 2014: Medallion Financial Corp.(TAXI)
Medallion Financial Corp., through its subsidiaries, operates as a specialty finance company in the United States. The company engages in originating, acquiring, and servicing loans that finance taxicab medallions and various types of commercial businesses. It offers commercial loans to finance the purchase of the equipment and related assets necessary to open a new business, or the purchase or improvement of an existing business; asset-based loans to small businesses; and secured mezzanine loans to businesses in various industries, including manufacturing and various service providers. The company also raises deposits; originates consumer loans for the purchase of recreational vehicles, boats, motorcycles, trailers, and hearing aids; and conducts other banking activities. In addition, it provides other debt, mezzanine, and equity investment capital to companies in various industries. The company was founded in 1995 and is headquartered in New York, New York.
Top Penny Companies To Buy Right Now: Wonder Auto Technology Inc.(WATG)
Wonder Auto Technology, Inc., through its subsidiaries, engages in the design, development, manufacture, and marketing of electrical parts, suspension products, and engine components. It offers starters, alternators, engine valves, and tappets in the People?s Republic of China, South Korea, and Brazil, as well as airbags and seatbelts in People?s Republic of China. The company?s products are primarily used in a range of passenger and commercial automobiles. It also manufactures and sells rectifier and regulator products for use in alternators; and various rods and shafts for use in shock absorbers, alternators, and starters. Its customers include automakers, engine manufacturers, and auto parts suppliers. Wonder Auto Technology, Inc. is headquartered in Jinzhou City, the People?s Republic of China.
Top Penny Companies To Buy Right Now: Empresas Ica Soc Contrladora (ICA)
Empresas ICA, S.A.B. de C.V., through its subsidiaries, engages in the construction and related activities in Mexico. The company?s Civil Construction segment focuses on infrastructure projects that include the construction of roads, highways, mass transit systems, bridges, dams, hydroelectric plants, tunnels, canals, and airports; and on the construction, development, and remodeling of multi-storied urban buildings, such as office buildings, hotels, multiple-dwelling housing developments, and shopping centers. This segment also engages in demolition, clearing, excavation, de-watering, drainage, embankment fill, structural concrete construction, concrete and asphalt paving, and tunneling activities. Its Industrial Construction segment focuses on the engineering, procurement, construction, design, and commissioning of manufacturing facilities comprising power plants, chemical plants, petrochemical plants, fertilizer plants, pharmaceutical plants, steel mills, paper mills, d rilling platforms, and automobile and cement factories. Empresas ICA?s Rodio Kronsa segment engages in sub-soil construction involving the construction of tunnels, underpasses, and retaining walls. The company?s Housing Development segment engages in the development, trading, ownership, sale, assistance, operation, and administration activities. Its Infrastructure segment involves in the operation and maintenance of concessioned airports, highways, bridges and tunnels, water supply systems, and waste treatment systems. The company also provides a range of services that include feasibility studies, conceptual design, engineering, procurement, project and construction management, construction, maintenance, technical site evaluation, and other consulting services. It serves public and private sector clients. Empresas ICA, S.A.B. de C.V. was founded in 1947 and is based in Mexico.
Top Penny Companies To Buy Right Now: Pizza Inn Inc.(PZZI)
Pizza Inn, Inc., together with its subsidiaries, operates and franchises pizza buffet, delivery/carry-out, and express restaurants in the United States and internationally. Its buffet restaurants offer dine-in, carryout, and catering services, as well as delivery services. The company?s delivery/carryout restaurants provide delivery and carryout services and are located in shopping centers or other in-line retail developments. Its express restaurants serve its customers through various non-traditional points of sale and are located in convenience stores, food courts, college campuses, airport terminals, athletic facilities, or other commercial facilities. The company operates restaurants under Pizza Inn trademark. As of July 1, 2011, it owned and operated 5 restaurants; and franchised approximately 300 restaurants. Pizza Inn, Inc. was founded in 1958 and is based in The Colony, Texas.
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