This week, in his Suncoast Equity model, Donald Jowdy added Visa Inc (NYSE: V). Jowdy focuses on things like cash flow when deciding what to add and V’s net cash flow has been increasing steadily since 2006. In quarter two of 2010, their net cash flow hit $1.2 billion, up from $609 million the previous quarter. Jowdy also values companies with low liabilities and in the second quarter of 2010, V spent $54 million on reducing long-term debt which was more than double the $22 million they spent the prior quarter.
Raymond Stoudt added EMC Corp (NYSE: EMC) to his Innovative Companies model. Inside the model Stoudt focuses on tech stocks but will add any company that he thinks has a unique idea. EMC develops and supports information infrastructures including backup and recovery management solutions, archiving and information security measures. The company has created its own EMC Innovation Network in which its researchers work with academic institutions and technology experts to develop solutions for IT innovations. The company has a fairly high price to earnings ratio and their net revenues fell in 2009 as did their earnings per share. According to CNN.com, their stock price grew over 24% between August 11th 2009 and August 12th 2010.
The last new position we’ll look at this week is ADPT Corp (Pink OTC Markets Inc: ADPT) which Walter Lu added to his Flexible Value model. Within Flexible Value, Lu focuses on value buying while taking advantage of arbitrage and other special situations that offer unique buying opportunities. ADPT provides optimization and other solutions to data centers. At the end of July they were delisted by Nasdaq. Since then their stock price has dropped from its July 30th closing price of $3 per share to a $2.73 closing price on August 12th. The company’s net revenues have fallen steadily since 2007 and in 2010 were equal to about half their net revenues for 2009.
