Potential buying opportunity. UPS

UPS came out the end of last week and said "its first quarter earnings per share would be much higher than it had expected and raised its outlook for the year". I know what your saying. "yea so what?" Well thats not the only thing that is blowing up my skirt.
In the past 3 months, 4 analyst's have come out and given UPS an upgrade to either buy or outperform. Also if you look at UPS's competiton Fedex (FDX) they are dominating them. UPS has better operating margins and makes much more money. Practically $15 billion more. The biggest selling point to me is the fact that there has been "significant acceleration" in international shipping with daily volumes up 18% in the quarter compared with a year ago. This is huge and will be huge for UPS and it's business.

One drawback is that the company is a little overvalued. With a PEG ratio of over 2.6 and a P/E of 31.83 its not a buy and hold but rather a get in and get out.

Take a look and let me know.

Research tip of the week! PEG Ratio

Research tip of the week

PEG and im not talking about some peg board. PEG ratio is a stock's price/earnings ratio divided by its year-over-year earnings growth rate. In general, the lower the PEG, the better the value, because the investor would be paying less for each unit of earnings growth.
so what does all this crap mean? Basically all it means is the lower the number the more undervalued a stock is. When Im doing my research, I look for a PEG ration of between .5 to 1.5 but especialy between .5 and 1.0. This is means that if you were to purchase shares of stock in company x you will be getting them at a fair if not below fair value. Thats all for now. Happy hunting!

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Profit from the Goldman Sachs Scandal!

The markets were hit with a bomb today when it was announced that Goldman Sachs(GS) was being charged with fraud from the SEC. Many people are running scared from the financial sector but you can do the opposite and make a bundle of cash. Many people feel that Goldman is the first of many to be hit by the SEC. Among others are Merril Lynch and Citigroup. The financial industry is probably looking to continue on the downside, so how do you make money? Puts baby. If you own long positions in the banking industry I would by puts in companies like Citigroup, Goldman Sachs or Credit Suisse. You may also want to look into defensive stocks like Target or Proctor and Gamble who should benefit from this fallout.

Puts are very risky so make sure to consult a professional if you are unsure.

Intel 1Q profit nearly quadruples from a year ago!

Intel Corp. said Tuesday its net income in the first quarter nearly quadrupled over last year and reflected an overall bump in spending on technology by companies. The results sent Intel shares higher.

Among other things, Intel got a lift from sales of new chips for computer servers -- the kind of purchase that many companies delayed in the recession. And Intel's chief financial officer, Stacy Smith, said in an interview that demand for processors for higher-end laptops was stronger than expected as corporations upgraded their workers' computers.

Stock Pick of the week! 4/13/10

Target Corporation (TGT)
Company operates over 1700 stores. Great financials. Better margins than Wal-Mart. Just implemented a recycling program to help the environment and attract more customers. Expanding food department to offer fresh vegetables and meat.

Oracles consensus: Strong buy up to 62