If you are in the Central New York area, you may want to pick up the May 14th Financial Quarterly edition of the Central New York Business Journal. In that edition will be found the views and projections of this writer. It is a proud addition to the citations this blog and writer have gained over the years. The article will also be found in the Mohawk Valley Business Journal, and Greater Binghamton Business Journal, Financial Quarterly.
Excerpts of part of what will be found in the newspaper articles follows:
“…Today there is little better that I can see coming in the months ahead. Unemployment continues to exceed 9% nationally, and regionally. Many of the short-term benefits of the 2009 Stimulus have come and gone, with jobs like the Census soon to come to an end further impacting the unemployment rate.
Energy costs continue to move higher. Gasoline cost are edging up closer to all-time highs even before the impact of the oil spill in the Gulf being considered. The potential of off-shore drilling being suspended or any refinery shutdowns only adds to the cost of gasoline and other refined oil products. Thus the intermediate-term costs will go higher, likely exceeding the highs of 2009 and 2008.
Another factor that is not often discussed is the international instability. Whether the question is Greece, Afghanistan, a nuclear Iran, or attempted attacks on America it all has an effect on the markets. The current instability of Greece and its effect on the Euro might be devastating to Europe and thus America as well…”
“…The company has total cash of $59 million vs total debt of $40 million with a current ratio of 5.59. Book value (11.13/share) is 1.31x the current price. The forward P/E is targeted at 10x, with 78% institutional holding.
The negative is that potential slowdown in sales related to Lockheed Martin have not been factored in. Giving a discount to book of 10%, and factoring in a similar discount to cash while increasing debt proportionately, the company maintains an attractive overall balance…”
“…It is unlikely that all these things will happen, or to the degree mentioned. In fact none of this may happen. But the markets react based on emotion and the perception of what might happen. Investors that remain calm and evaluate the circumstances stand the best long-term advantage.
Remain calm in commotion, evaluate situations to determine if changes in a company are fundamental or market driven, have a long-term objective and strong fundamental reasons for owning any investment. Plan for a degree of the unknown occurring, establish downside limits. And always speak with a trusted investment professional before acting on an investment…”
There is more to the article and the answers than the excerpts above. But it gives a small indication of the information that will be found in the Financial Quarterly. [Note, the article was written on Thursday May 6, 2009 for publication deadlines, and all stock data is based on those closing date prices.]
If you have the chance, do purchase the respective Journals for the full article. Thank you for your support.