Stocks Of The Month: FFIV, YRCW

For this month, I've added a new high-flying non-dividend paying stock, and bought a little more of a distressed (and dangerous) transport stock.

F5 Networks (FFIV)

Positives:

Solid quarterly earnings (46%) and profit (78%) growth.

No debt.

Positive cash flows.

Possibly the next Cisco Systems, or a takeover candidate.

Negatives:

Somewhat expensive P/E ratio of 55.

Low insider ownership (0.5%).

YRC Worldwide (YRCW)

Positives:

Business headed towards profitability, after narrowing loss in latest quarter.

Negatives:

Probably one more lousy quarter away from bankruptcy.

Horrible fundamentals.

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

Apple (AAPL) 11.68%

Southern Copper (SCCO) 9.35%

Dominion Resources Black Warrior Trust (DOM) 7.31%

Google (GOOG) 7.16%

The Distressed (ABK, AIG, BGP, BLOKA.PK, C, CRIC, ENER, ETFC, F, FNMA.OB, GIGM, JSDA, JTX, MOT, MTLQQ.PK, PCS, WFC, YRCW) 5.41%

Ace Limited (ACE) 4.71%

Hugoton Royalty Trust (HGT) 4.52%

Frontline (FRO) 4.46%

Annaly Capital Management (NLY) 4.43%

BP Prudhoe Bay Royalty Trust (BPT) 4.07%

Prospect Capital (PSEC) 3.24%

American Software (AMSWA) 3.01%

Vodafone (VOD) 2.86%

Great Northern Iron (GNI) 2.75%

McDonald's (MCD) 2.71%

Blackstone (BX) 2.68%

DuPont (DD) 2.65%

Tidewater (TDW) 2.41%

Apache (APA) 2.37%

F5 Networks (FFIV) 2.18%

Cherokee (CHKE) 2.14%

Intuitive Surgical (ISRG) 2.03%

Cree (CREE) 1.94%

Baidu (BIDU) 1.92%

PDL BioPharma (PDLI) 1.91%

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%