Stocks Of The Month: BIDU, CREE, ISRG

First, some housekeeping: Palm (PALM) was bought out by Hewlett-Packard, and I sold Biovail (BVF) after they announced a merger with Valeant...freeing up some additional cash for 3 high-flying non-dividend paying(!) stocks, 2 of which I've previously owned.

Baidu (BIDU)

Positives:
The Google of China.
High margins (36%), ROA (23%), ROE (42%).
No debt.

Negatives:
Very expensive P/E ratio of 96.

Cree (CREE)

Positives:
Designer and manufacturer of LEDs and LED-related hardware.
Excellent revenue (79%) and earnings (1012%!) growth.
$1B in cash, no debt.
Positive cash flow.

Negatives:
Somewhat expensive P/E ratio of 60.
Low ROA (5%) and ROE (7%).

Intuitive Surgical (ISRG)

Positives:
Super-cool surgical robots.
Excellent revenue (74%) and earnings (204%) growth.
No debt.
Positive cash flow.

Negatives:
Low insider ownership (1.3%).

Here's my current portfolio. As always, I believe in all of these stocks - until I sell them.

Apple (AAPL) 12.82%
Southern Copper (SCCO) 9.51%
Google (GOOG) 7.10%
Dominion Resources Black Warrior Trust (DOM) 6.60%
Annaly Capital Management (NLY) 5.08%
Ace Limited (ACE) 5.03%
The Distressed (ABK, AIG, BGP, BLOKA.PK, C, CRIC, ENER, ETFC, F, FNM, GIGM, JSDA, JTX, MOT, MTLQQ.PK, PCS, WFC, YRCW) 4.78%
Frontline (FRO) 4.73%
Hugoton Royalty Trust (HGT) 4.64%
BP Prudhoe Bay Royalty Trust (BPT) 4.41%
Prospect Capital (PSEC) 3.50%
American Software (AMSWA) 3.02%
Great Northern Iron (GNI) 3.01%
Vodafone (VOD) 2.90%
McDonald's (MCD) 2.88%
Tidewater (TDW) 2.53%
Blackstone (BX) 2.48%
DuPont (DD) 2.46%
Apache (APA) 2.35%
Intuitive Surgical (ISRG) 2.18%
Cherokee (CHKE) 2.08%
Cree (CREE) 1.94%
PDL BioPharma (PDLI) 1.87%
Baidu (BIDU) 1.79%

Stock Of The Month: NLY

June's SOTM is the same as January's SOTM.

Annaly Capital Management (NLY)

Positives:
Huge profit and operating margins (91% and 93% respectively).
+18% spread between ROE and ROA.
Positive operating cash flow ($11B).
Trailing P/E of 5, forward P/E of 6.
Whopping 14.9% dividend yield.

Negatives:
Huge debt ($55B)...of course, debt is their business.
Low insider holding (0.63%).

Here's my current portfolio. As always, I believe in all of these stocks - until I sell them.

Apple (AAPL) 12.25%
Southern Copper (SCCO) 9.80%
Google (GOOG) 7.51%
Dominion Resources Black Warrior Trust (DOM) 7.07%
The Distressed (ABK, AIG, BBI, BGP, C, CRIC, ENER, ETFC, F, FNM, GIGM, JSDA, JTX, MOT, MTLQQ.PK, PALM, PCS, WFC, YRCW) 5.72%
Frontline (FRO) 5.54%
Hugoton Royalty Trust (HGT) 5.08%
Ace Limited (ACE) 4.84%
Annaly Capital Management (NLY) 4.83%
BP Prudhoe Bay Royalty Trust (BPT) 4.36%
Prospect Capital (PSEC) 3.67%
American Software 3.53%
Biovail (BVF) 2.90%
McDonald's (MCD) 2.90%
Great Northern Iron (GNI) 2.81%
Vodafone (VOD) 2.67%
Blackstone (BX) 2.67%
DuPont (DD) 2.56%
Tidewater (TDW) 2.55%
Apache (APA) 2.47%
Cherokee (CHKE) 2.22%
PDL BioPharma (PDLI) 1.70%

Stock Of The Month: DOM

Dominion Resources Black Warrior Trust (DOM)

Positives:
9% dividend yield.
As a trust, has a 100% payout ratio and is a pure dividend stock.

Negatives:
Little to no opportunity for capital gains.

Here's my current portfolio. As always, I believe in all of these stocks - until I sell them.

Apple (AAPL) 12.53%
Southern Copper (SCCO) 9.55%
Google (GOOG) 7.76%
Dominion Resources Black Warrior Trust (DOM) 7.69%
The Distressed (ABK, AIG, BBI, BGP, C, CRIC, ENER, ETFC, F, FNM, GIGM, JSDA, JTX, MOT, MTLQQ.PK, PALM, PCS, WFC, YRCW) 5.91%
Frontline (FRO) 5.12%
Ace Limited (ACE) 5.05%
Hugoton Royalty Trust (HGT) 4.53%
BP Prudhoe Bay Royalty Trust (BPT) 4.46%
American Software 4.00%
Prospect Capital (PSEC) 3.84%
Biovail (BVF) 3.25%
McDonald's (MCD) 3.03%
Blackstone (BX) 2.99%
Great Northern Iron (GNI) 2.85%
Tidewater (TDW) 2.83%
Vodafone (VOD) 2.64%
DuPont (DD) 2.63%
Cherokee (CHKE) 2.55%
Apache (APA) 2.53%
Annaly Capital Management (NLY) 2.14%
PDL BioPharma (PDLI) 1.86%