Category Archives: ADP

Automatic Data Processing 10-Year Targets

Posted on March 11, 2019 by | Leave a comment

Below are the valuation targets for Automatic Data Processing Inc. (ADP) for the next 10 years. Continue reading →

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Posted in 10-year Targets, ADP, Altimeter

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Nasdaq 100 Watch List

Posted on March 20, 2010 by | 1 comment

Below are the Nasdaq 100 companies that are within 20% of the 52-week low.

Symbol Name Price P/E EPS Yield P/B % from Low
QCOM QUALCOMM 40.05 32.14 1.25 1.70% 3.17
12.94%
FSLR First Solar, Inc. 113.3 15.05 7.53 N/A 3.65
14.78%
GILD Gilead Sciences, Inc. 47.87 16.96 2.82 N/A 6.7
15.88%
ERTS Electronic Arts Inc. 18.42 N/A -2.31 N/A 2.33
17.32%
ATVI Activision Blizzard, Inc 11.82 139.06 0.09 1.30% 1.39
20.00%
This list is strictly for the purpose of researching whether or not the companies have viable business models or are about to go out of business. These companies are deemed highly speculative unless otherwise noted.

Nasdaq 100 Watch List Summary

This week, the top performing stock from last week's watch list was Genzyme Corp. (GENZ) which was up 4.36%.  The worst performing Nasdaq 100 stock from last week was First Solar (FSLR) which fell -1.93%.

Below is the list of the highest yielding stocks that are components of the Nasdaq 100.  This isn't an endorsement of the companies on the list.  However, it is noted that the majority of the companies that pay a dividend are related to the chip sector.  Clustering of companies in a specific industry may indicate that the entire sector is undervalued.  If the companies have high dividend yields on a relative basis (compared to their historical high yields), then these companies may be worth considering despite the fact that they are not within 20% of the new low.    Linear Technology (LLTC), ADP (ADP), and Paychex (PAYX) are Dividend Achievers as well as members of the Nasdaq 100 index. 

Before pursuing any of these companies, be sure to verify the dividend history as well as the earnings capacity to pay the dividend (more commonly known as payout ratio).

  

Symbol Company Price P/E EPS Yield P/B % from low
MCHP Microchip Technology 28.25 31.6 0.89 4.80% 3.53 43.69%
MXIM Maxim Integrated Prod. 19.14 71.69 0.27 4.20% 2.31 48.49%
PAYX Paychex, Inc. 32.17 23.52 1.37 3.90% 8.43 39.87%
LLTC Linear Technology 28.36 24.22 1.17 3.20% N/A 39.98%
ADP ADP 44.6 16.57 2.69 3.00% 3.91 34.10%
INTC Intel Corporation 21.99 28.41 0.77 2.90% 2.94 53.26%
PPDI Pharma Prod. Dev. 22.71 16.94 1.34 2.60% 1.98 26.38%
XLNX Xilinx, Inc. 26.6 24.43 1.09 2.40% 3.68 46.48%
AMAT Applied Materials, Inc. 12.49 N/A -0.07 2.20% 2.37 23.91%
CMCSA Comcast Corp. 17.53 13.9 1.26 2.20% 1.17 40.35%
KLAC KLA-Tencor Corp. 28.79 N/A -0.39 2.10% 2.25 49.25%
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Posted in ADP, amat, atvi, cmcsa, erts, fslr, GILD, intc, lltc, mchp, mxim, payx, PPDI, qcom, xlnx

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Stock Checkup: Automatic Data Processing, Inc. (ADP)

Posted on December 15, 2009 by | Leave a comment
I initiated a write up on Automatic Data Processing (ADP) on July 15th followed with a checkup on the July 30th. My original thesis of ADP was that the stock discounted the unemployment rate. The chart below shows the previous peak in the unemployment in the 1980's. Shortly after, shares of ADP peaked in May 1983. The stock didn't trade higher than the 1983 level until May 1985, two years follow.
As a result, I believe it may be time for investors to begin unloading shares of ADP. At the current price of $41.90, it is trading 34% above the yearly low and 3.6% away from the yearly high. I see this as a 34% downside risk and 3.6% reward profile, which is not much of a compelling argument to buy.
If you were to hold shares of ADP, you'd be sitting on a yield of 3.8% (assuming the original purchase price of $35). Surely that return is much greater than the average CD account and fractionally higher than treasuries. However, your principal has returned a whopping 23% is sold at or near the current price. While the company can and has raised the dividend at a double digit rate (15% CAGR since 1993), I assume that the company may not be able to retain such a pace unless growth return to the employment market.
I'm not suggesting that investor be short sighted and take any gain that comes their way, but I suggest investors to look at the valuation and the technical aspect of the stock. Currently, ADP is trading near its 2007 peak ($46.25). How likely is it that they can better their all-time high? And if they break that level, how much further can it go? See chart below.
As mentioned before, I see ADP as a bargain below $41. At $42.90, it would be wise to take some, if not all, of the profits and search for a better opportunity in the New Low Observer Watch List.

P.S. Exxon (XOM) and SUPERVALU (SVU) are currently dislike by Wall Street for various reasons. They may prove to be a better opportunity. - Art

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Posted in ADP, Art, Automatic Data Processing

Watch List Update

Posted on July 24, 2009 by | Comments Off on Watch List Update
This week the market took me by surprise. The Dow rose 4%. My watch list shrank from 15 companies to 11 companies. Here are the companies on my watch list as of July 24, 2009.
Dividend Achiever Watch List

Nasdaq 100 Watch List The companies that are within 10% of the low offer a great opportunity to do research and consider buying.

Market Action

The biggest development was the Dow Theory confirmation of a bull market that occurred on Thursday. The Transports confirmed the Industrials with a big move (see charts below).With this action, Richard Russell recommended people to buy Goldman Sachs (GS). I would suggest you consider either the names I recommended on this blog in the watchlist above or the Dow index (DIA) or S&P 500 index (SPY).

Recent Analysis

On July 22, 2009, I wrote an article about the current market and a comparison to the 1980's. It also contained some information and important news on real estate. Also, I did a review of my investment strategy for the Dividend Achiever Carlisle (CSL) on the July 23rd. It was a great position for those who followed my advice.

News & Video

U.S. Home Vacancies Hit 18.7 Million on Bank Seizures

Art

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Posted in ABT, ADP, BCR, CAH, CEPH, ED, FLIR, GENZ, HRB, MATW, MKC, PPDI, SRCL, SYY, WEYS, WMT