Two new stocks on my watchlist

Posted on December 28, 2005 , filed under Stocks | Print This Post

I read a great Motley Fool article that gave me two ideas for stock picks. I’ve added FLWS, 1-800-FLOWERS.COM, Inc. to my watchlist. 1-800-FLOWERS.COM, Inc. operates as a gift retailer in the United States. It provides various gifts products, including flowers, plants, gourmet foods, cookies, cakes, candies, wine, gift baskets, and other gifts to customers worldwide. The company is enjoying strong YTD sales growth and is expected to continue to grow sales in 2006. 1-800-FLOWERS.COM, Inc. is a farily stable gift giving business and provides a service that almost anyone can use. I don’t see revenue suddenly growing, but I don’t see revenue suddenly dropping either. I expect consumer spending and confidence to be strong in 2006. I don’t see much of a reason for FLWS to remain so low. I am looking at a chance to pick up shares of FLWS at under $6.50. I expect shares of FLWS to trade above $7 in 3-6-months and $7.50 in 6 months-1 year.

I’ve also added BBBB, Blackboard, Inc. to my watchlist. Blackboard, Inc. provides enterprise software applications and related services to the education industry. It offers a suite of products, including Blackboard Learning System, Blackboard Community System, and Blackboard Content System. Taken frmo the Motely Fool article:

“Blackboard has more than 3,000 licenses with 2,225 institutions, serving students from kindergarten through graduate school. The average licensee pays close to $29,000 a year, and customers are renewing at a rate north of 90%. The firm is making inroads internationally, with more than 15% of its sales on foreign soil and a commitment to translate its software into eight languages by the end of this year.” Moreover, the company just bought its largest competitor.

I like the fact that so many Educational institutions are BBBB’s customers. Schools are notriously slow to change and when they adopt something they will usually stick to it for a few years till a new need arises. BBBB is a bit boring and traded volume is low suggesting the stock doesn’t have much public awareness or speculation behind it. I may look at purchasing shares of BBBB if the stock drops below $28. It looks to me like investors are merely taking profits in a stable growing company.

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3 Comments »

Comment by bull trader

2005-12-29 04:59:22

we use blackboard for a lot of classes at my school (uc berkeley), and it sucks!! the interface is very cluttered and it really does not enhance education. the administration is catching on, and were going to migrate to a proprietary blackboard-like system designed by ucberkeley in a few months.

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Comment by Andy

2005-12-30 08:54:20

Hmm, that’s good insight. Thanks for the comment.

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Pingback by RawGreed.com - Stock Updates, Raw Greed Awards, Business Gossip » Blog Archive » Purchasing 1-800-FLOWERS.COM, Inc.

2006-02-02 10:13:43

[...] Today I purchased 2000 shares of FLWS, 1-800-FLOWERS.COM, Inc. at $6.45. I wrote a post about FLWS, on December 28th, 2005. Please click the predictions link at the top of the page to view my price targets for the stock. [...]

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