The first stock that appeared to fit my usual criteria for inclusion in my blog and my own trading portfolio was Haemonetics (HAE), and I purchased 50 shares at $51.54. This purchase was determined as 1/2 of the average size of my remaining positions. HAE closed at $52.38, up $2.79 or 5.63% on the day.
Briefly, Haemonetics today reported 2nd quarter results for the quarter ended September 27, 2008. Revenue climbed 20% to $145.9 million, and earnings came in at $14.8 million or $.57/share up from $11.2 million or $.42/share last year. This exceeded expectations of profit of $.52/share on revenue of $136.3 million according to analysts polled by Thomson Reuters.
The company also went ahead and raised guidance for fiscal 2009 to $2.38 to $2.44/share, up from prior guidance of $2.33 to $2.43/share. They also expect revenue growth of 12 to 14% from prior range of 10 to 13% expected revenue increases.
The "5-Yr Restated" financials from Morningstar.com appear solid.
The stock looked good to me and I added Haemonetics to my portfolio.
Again using my reduced position size strategy, I found BE Aerospace (BEAV) on the top % gainers lists and decided to purchase 215 shares of BEAV at $11.19. BEAV actually closed at $9.74, down $(.02) for the day. (BEAV appears to be trading at $10.99 after hours, so it is not clear whether I shall be clearing this stock out of my own portfolio or not.)
With BEAV at $9.74, this would represent a loss of $(1.45) or (13)% since purchase. This is still above my (16)% loss limit with these last five holdings but just barely above a sale.
What drove the stock to the top % gainers list (at least when I was looking at it) was the announcement of 3rd quarter results today with revenue climbing 37% to $587.8 million. Net income came in at $51.8 million or $.54/share up from $44.5 million or $.48/share last year. Analysts had been expecting earnings of $.53/share, so they exceeded analysts expectations.
The Morningstar.com "5-Yr Restated" financials on BEAV appear relatively solid.
It was my hunch that purchasing shares of an airplane interiors manufacturer might well be the benefit from the declining oil price. I hope that wasn't a stretch!
