IMAX Corp: it is an entertainment technology company specializing in motion picture technologies and presentations. IMAX offers a unique end-to-end cinematic solution combining proprietary software, theater architecture and equipment to create the highest-quality, most immersive motion picture experience. The company has a theater network of 934 theater systems operating in 62 countries. Sales increased approximately 35% to $107.2 million from $79.2 million in the second quarter of last year. IMAX reported earnings per share of $0.40 in the latest reported second quarter versus $0.25 in the same quarter of last year.
Arista networks: It is a leading supplier of cloud networking solutions that use software innovations to address the needs of large-scale Internet companies, cloud service providers and next-generation data centers for enterprises. Key customers include eBay, Facebook, Microsoft and Yahoo. In Arista’s latest reported second quarter, sales increased approximately 42% to $195.6 million from $137.9 million in the second quarter of last year. Arista reported earnings per share of $0.54 in the latest reported second quarter versus $0.35 in the same quarter of last year.
National Oilwell Varco: It is a global leader in the design, manufacture and sale of equipment and components used in oil and gas drilling and production operations. It has a solid balance sheet, market leadership positions and a $10 billion backlog of business, which should help moderate the impact of slower near-term orders. As the global population would rise to 9 billion, oil is the only major sector to fulfill the long term energy demand. It has a yield of 4.3%.
Stage stores: is a specialty department store, operating under the Bealls, Goody’s, Palais Royal, Peebles and Stage nameplates, with 850 stores in 40 states. SSI’s principal focus is on consumers in small- and mid-sized markets, which the firm believes are underserved and less competitive. Some 64% of SSI’s stores are located in markets with area populations of less than 50,000 and they offer a diversified product mix of national brands (accounting for some 87% of sales). SSI has solid liquidity that is supported by operating cash flow and a $350 million revolving line of credit that does not mature until 2019. Using the low end of guidance, SSI shares trade for less than 11 times earnings and offer a very attractive 5.6% dividend yield.
Physician realty trust: a self-managed health care real estate company, has elected to be taxed as a REIT for U.S. federal income tax purposes. It was organized to acquire, develop, own and manage health care properties that are leased to physicians, hospitals and health care delivery systems. Total revenues for the second quarter of 2015 were $29.7 million, an increase of 159% compared to $11.43 million reported for the second quarter last year.
Geo group: is the world’s leading provider of correctional, detention and community reentry services with 106 facilities, and about 85,500 beds located in the United States, United Kingdom, Australia and South Africa. It is the first fully-integrated equity real estate investment trust specializing in the design, development, financing and operation of correctional, detention and community reentry facilities worldwide. Geo reported second quarter 2015 revenue of $445.91 million and net income of $28.33 million. Revenue posted for the same period in 2014 was $412.85 million and net income was $38.94 million. It has a dividend yield of 8%.
Douglas dynamics: a Milwaukee-based maker of snow plows, has a seasonal business, but valuation and yield (4.2%) make it an excellent long-term holding, one that serves a domestic market and is largely unaffected by exchange rates or economic problems around the globe. Its price to sales ratio is more than 25% below its five year average valuation, and it supports an enterprise value to EBITDA ratio 20% below the five-year average. Dividends are well-covered by cash flow and earnings, and have grown by 4% a year since Douglas Dynamics went public in 2010.
Orchid’s paper products: It is a great choice for a fat yield and consistent performance in a consumer staples industry. Pryor, Okla-based Orchids is a maker of paper towels and bathroom tissues sold mostly at dollar stores in the central U.S. The company has been a regular on the Forbes Best Small Companies. Revenue is expected to grow 18.8% to $169.6 million this year, with earnings up 21% to $1.34 per share. Sales have grown at an 8.3% annualized rate since 2010, and by 11.8% since 2005. The dividend, in addition to offering a high yield of 5.7%, is also secure. At $0.35 per quarter, annual dividends of $1.40 per share are well below $2.14 per share in operating cash flow generated over the past 12 months.
McKesson: is the largest distributor of ethical and proprietary drugs and equipment, and health and beauty care products in North America. Boosted by rising demand for pharmaceuticals and smart acquisitions, the company has enjoyed exceptionally stable earnings growth, which has averaged more than 14% annually over the past decade. The health consciousness of the people might help MCK continue its current streak of strong annual earnings growth and return its stock to the premium valuation it continues to merit.
Supervalu: is one of the largest grocery wholesalers and retailers in the U.S. Through the divestiture of nearly half of its revenue producing assets three years ago and the successful turnaround of its remaining operations, the company has staged a remarkable comeback from the brink of bankruptcy. But slightly weaker-than-expected sales in the final quarter of fiscal 2014, coupled with concerns over the anticipated termination of a key service agreement, had investors dumping the stock once again earlier in the year.
Author: Editorial staff of 70trades reviews blog