In Focus

The Chicks' June Investment Options

Part 1: The Companies | go to Part 2: The Analysis
by Chick Karin

It's that time again! It's time to buy some stock! The Chicks have spent the last week furiously researching, reading and posting, (some more than others as this is almost my favorite time of the year. My birthday week comes in a notch ahead.) Every three months we have accumulated $1500 to invest in the market and we need to vote where we think would be the best place to put it. Should we reinvest it in one of the companies we already own, or do we buy one of the fifteen new stocks being proposed? I thought I'd give you a run-down on each of the companies, both old and new (meaning reinvest or buy a new company), and see how they fare in our Chicks Dozen criteria.

First, The Reinvestment Option... We own the following companies:

AOL-Time Warner (AOL)  Sector: Technology, Industry: Computer Services AOL-Time Warner, Inc. is the parent company of America Online, Inc. and Time Warner Inc. The Company is engaged in AOL Internet services, cable, filmed entertainment, television networks, music and publishing. 

Cisco (CSCO)  Sector: Technology, Industry - Computer Networking. Cisco Systems, Inc. provides networking solutions that connect computing devices and computer networks, allowing people to access or transfer information without regard to differences in time, place, or type of computer system.

Coca-Cola (KO)  Sector: Consumer/Noncyclical, Industry: Beverages (Non-Alcoholic) The Coca-Cola Company is a manufacturer, distributor and marketer of soft drink concentrates and syrups, and also markets and distributes juice and juice-drink products. 

EMC (EMC)  Sector: Technology, Industry: Computer Storage Devices. EMC Corporation and its subsidiaries design, manufacture, market and support a range of hardware and software products and provide services for the storage, management, protection & sharing of electronic information. 

General Electric (GE)  Sector and Industry: Conglomerates. GE is a diversified industrial corporation whose products include appliances, lighting products, aircraft engines and plastics. GE also provides television, cable, internet, distribution, engineering and financial services. 

Nokia (NOK)  Sector: Technology, Industry: Communications Equipment. Nokia is a supplier of telecommunications systems & equipment. The Company's core businesses include the development, manufacture and delivery of operator-driven infrastructure solutions and end-user-driven mobile phones. 

Oracle (ORCL)  Sector: Technology, Industry: Computer Software and Programming. Oracle Corporation develops, manufactures, markets and distributes computer software that helps corporations manage and grow their businesses, including systems software and business applications software.

Pfizer, Inc. (PFE)  Sector: Healthcare, Industry: Major Drugs. Pfizer Inc. is a global pharmaceutical and consumer products company which discovers, develops, manufactures and markets innovative medicines for humans and animals. 

Sun Microsystems (SUNW)  Sector: Technology, Industry: Computer Hardware. SUNW provides products, services & support solutions for building and maintaining network computing environments. SUNW sells scalable computer systems, high speed microprocessors and a line of high performance software. 

The Gap, Inc. (GPS)  Sector: Services, Industry: Retail Apparel. The Gap, Inc. is a global specialty retailer which operates stores selling casual apparel, personal care and other accessories for men, women and children. GPS's brands include Gap, Banana Republic & Old Navy.

Yahoo! Inc. (YHOO)  Sector: Technology, Industry: Computer Services. Yahoo! Inc. is a global Internet communications, commerce, and media company that offers a branded network of services to millions of users daily.

The New Investment Option... The new companies we are looking at this quarter to invest our $1500.00 are:

Alcoa, Inc. (AA)  Sector: Basic Materials, Industry: Metal Mining. Alcoa, Inc. is an integrated aluminum company producing and selling aluminum, semi-fabricated and finished aluminum products and alumina.

AFLAC, Inc. (AFL)  Sector: Financial, Industry: Insurance. Alfac operates in the insurance industry and primarily sells supplemental health insurance in Japan and the U.S.

Anheuser Busch (BUD)  Sector: Consumer Non Cyclical, Industry. Anheuser-Busch Companies, Inc. is engaged in the production and distribution of beer, and aluminum beverage containers. BUD also operates a chain of theme parks.

Callaway Golf (ELY)  Sector: Consumer Cyclical, Industry: Recreational Products. Callaway Golf Company designs, manufactures and markets high quality, innovative golf clubs and golf balls. ELY products include metal woods, irons, woods, and putters.

Chevron (CHV)  Sector: Energy, Industry: Oil and Gas. CHV provides administrative, financial and management support for its U.S. & foreign affiliates, which engage in petroleum, chemical and coal mining operations.

Costco (COST)  Sector: Service, Industry: Retail (Specialty) Costco Wholesale Corporation operates warehouses that offer low prices on a limited selection of nationally branded and selected private label products in a wide range of categories in no-frills, self-service warehouses.

CVS Pharmacy (CVS)  Sector: Services, Industry: Retail Drugs. CVS is a drugstore chain specializing in prescription drugs, over-the-counter drugs, photo finishing services and film, greeting cards, beauty & cosmetics, convenience foods and seasonal merchandise.

Enron (ENE)  Sector: Utilities, Industry: Natural Gas. ENE delivers physical commodities & financial & risk mgt. services; develops & operates energy facilities; produces electricity & natural gas; offers broadband services; and is developing a network platform to facilitate online business.

General Mills (GIS)  Sector: Consumer Non Cyclical, Industry: Food Processing. General Mills, Inc. is a producer of packaged consumer foods, including, cereals, desserts, flour and baking mixes, dinner & side dish products, snack products, beverages, yogurt products and foodservice products.

Krispy Kreme (KKD)  Sector: Services, Industry: Restaurant. Krispy Kreme is a branded specialty retailer of premium quality doughnuts which are made throughout the day. 

Medtronics (MDT)  Sector: Healthcare, Industry: Medical Equipment and Supplies. Medtronic, Inc. is a medical technology company engaged in manufacturing and selling device-based medical therapies. The Company's product lines include cardiac rhythm management, neurological, and spinal, vascular and cardiac surgery.

Procter and Gamble (PG)  Sector: Consumer Non Cyclical, Industry: Personal and Household Products. The Procter & Gamble Co. markets a broad range of consumer products worldwide in 5 business segments: Laundry and Cleaning, Paper, Beauty Care, Food and Beverage, and Health Care.

Southwest Airlines (LUV)  Sector: Transportation, Industry: Airlines. Southwest Airlines Company provides shorthaul, high frequency, point-to-point, low-fare air transportation services. LUV's 344 aircraft provide service between 55 cities in 29 states throughout the U.S.

Stryker (SYK)  Sector: Healthcare, Industry: Medical Equipment and Supplies. SYK develops, manufactures and markets specialty surgical and medical products, including orthopedic implants, powered surgical instruments, endoscopic systems and patient care and handling equipment.

Tyco (TYC)  Sector and Industry: Conglomerates. Tyco Int'l through its subsidiaries, designs, manufactures, & sells electronic components, undersea cable, disposable medical supplies, fire suppression and detection equipment, security systems and flow control products.

Walmart (WMT)  Sector: Service, Industry: Retail (Department and Discount). WMT operates discount department stores (Wal-Mart), warehouse membership clubs (Sam's Clubs) and a combination full-line supermarket & discount department store (Wal-Mart, Supercenters) in the U.S., Puerto Rico, Mexico, Indonesia, Canada, Argentina, China and Brazil.

Phew. There are the twenty-six companies to choose from. For my analysis, and my opinion on where I think the Chicks should put our money, read on. »