ROAD TO RECOVERY EDITION
1 October 2009
TWO STEPS FORWARD, ONE STEP BACK . . .
Economic Rebound Slow But Sure
The news on the economy is a mixed bag. The bad news: The economy is still shrinking. The good news: Not at the pace that analysts predicted. So, while your reporter declares we are not yet out of the woods, the numbers do show signs that there is a light at the end of the proverbial tunnel.
Where do long-term investors look in these turbulent times? A quick perusal of the day's news from Wall Street is, in the case of SC Member and frequent contributor Danny Matthews, followed by an ongoing focus on what else but . . . dividends, of course.
Onto this week's headlines . . .
REAPING THE REWARDS
Dividends Boost Future Returns, SC Member Declares
"The recent market turmoil will show the power of compounding in future years for those who use dividend reinvestment as a tool," says SC Member Danny Matthews. "Although market drops are painful on the price side of returns, these are times when the dividends can really boost future returns.
"Speaking of dividends, I try to keep the Barron's forum full of articles that might foster a good discussion or give ideas to my fellow SC members. With over 4,000 views, this forum seems to be piquing the interest of many members."
Perhaps that's because this forum offers such a wealth of information, from the nine stocks that recently announced dividend increases, to the 13 companies — with reputations for consistently raising dividends — that have put a freeze on those dividends at their current rate.
Check out these companies on the forum and while you're there, don't forget to add your two cents. Danny, who declares that "SC members are one of SC's best assets," will be looking for you.
FIRST THINGS FIRST
Site Navigation, Tools Are Key to StockCentral's Popularity
Why are investors everywhere flocking to StockCentral? Your inquisitive reporter has set out on a cross-country journey in a determined search for the answers to this very question.
"My favorite aspect of the StockCentral site is the ease in which one can navigate between the forums," SC member Danny Matthews told your roving reporter in an exclusive interview this week. "The tools — like Take Stock — are a great help in digging beyond just the SSG and allowing different perspectives.
"The online Stock Screener is extremely easy to use and the ability to save screens is a great timesaver when you want to revisit a previous screen," he divulged. "In the Learning Library, access to all classes and other saved presentations is a most valuable asset when it comes time to review materials."
To join in on this search for the truth and add your own insights, please submit your comments to GazetteReporter@iclub.com.
A GOOD GROWTH CANDIDATE
Is PetMed Express a Good Buy, Even Near 52-Week High?
Your warm and fuzzy reporter, who admits to a fondness for pets (four dogs, a fish, and a toad, at last count), suggests there may be one more reason to love animals: pets are a big — and growing — business. So contends Guru Gerlach in the PETS forum. "My club bought this company in May 2008 . . . It's appreciated more than 20 percent since then."
But, as PETS approaches its 52-week high, your reporter begs the question: Is this the right time to buy? "While the current price of $18.59 is near its 52-week high price of $19.37, it still appears to have good total return prospects based on a conservative growth rate of 15 percent," Gerlach writes, noting that The Motley Fool, which recently featured the stock as a good growth candidate, is in agreement.
To that, SC Member Nick A. DiVirgilio offers food for thought, concluding that he "would buy PETS under $16." He posted both his SSG and ITK studies — which savvy investors might wish to compare and contrast with the SSG and commentary that Guru Gerlach posted. For the rest of the story — and to add your own chapter — drop in on the forum.
SO, WE MEET AGAIN . . .
Toolkit 6 User Group Convenes Tuesday
Want to learn more about Toolkit 6 or just have a few questions? Then the Toolkit 6 User Group is the place you'll want to be this Tuesday.
The group meets the first Tuesday of each month and, as Guru Gerlach describes, is "really just a Q&A session where people bring their questions and suggestions, and I demonstrate how to do things in the program."
The User Group has also steadily gained in popularity since its inaugural meeting back on June 2. "We have 370 people signed up, and 150-200 will show up at a typical meeting."
So, what are you waiting for? You need only sign up once for this ongoing group, you can attend from the comfort of your own home, and, what's more, it's free!
TODAY'S ENTIRELY RELEVANT QUOTATION
"Growth should be solidly positive."
- Mark Vitner, economist at Wells Fargo Securities, commenting on the U.S. economy.