Three Stocks I’m Watching

Here are three stocks I’ve been watching.
optionsXpress Holdings (OXPS) is an online broker. As the name suggests, the company specializes in options, an area not well-served by the larger online brokers.
The company has experienced very fast growth. For the last quarter, sales were up 73% and profits jumped 84%. Still, it reported 29 cents per share which was merely inline with forecasts so the stock has pulled back some.
The company now has about 180,000 customers. I’ve never used the service so I can’t say how good it is, but others seem to like. My fear is that the big online guys will move to squish OXPS.
Cintas (CTAS) is one of the largest companies that no one knows. The company makes business uniforms and other pieces of flair.
The stock did very well through the 1990’s, but this decade has been rough. The business is still doing very well, but its valuation has crumbled. The P/E ratio has plunged from about 60 at the beginning of 1999 to just 22 today.
This isn’t a fast-growing business, but it’s a solid, well-run company that has consistently delivered earnings. For this year, Cintas said its expects earnings of $1.92 to $1.96 a share compared with $1.74 last year.
Investors Financial Services (IFIN) is similar to SEI Investments (SEIC). The company provides asset-administration services for the financial services industry. IFIN had a bad first quarter but the company still sees profits for the year of $2.32 a share.

Posted by on May 17th, 2006 at 9:39 am


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.