Sunday, October 05, 2014

Treat Your Portfolio to Halloween Stocks

Halloween Pumpkin
Halloween comes from the words All Hallows' Evening. Although Halloween originally came about from religious related celebrations, it has now become a very commercialized October 31, involving not only the purchase of candy, but also costumes, party food and beverages, pumpkins, decorations, and DVDs and admission tickets to scary movies.

Let's start with the horror films. Netflix (NFLX) has many scary motion pictures that you can watch on Halloween night. The company has a price to earnings ratio in the nosebleed area of 138, and a scary high forward PE of 70. Earnings for the latest reported quarter were up an incredible 141%, on a 25.3% spike in revenues. The next earnings report is scheduled for October 15. The company should benefit from Redbox shutting down its video streaming service on October 7.

There is also Lions Gate Entertainment (LGF), a top producer of scary movies, such as See No Evil, Route 666, The Devil's Rejects, American Psycho, Ginger Snaps, House of the Dead 2, and Saw VI.  The stock trades at 27 times trailing earnings and 18 times forward earnings. Quarterly earnings rose an unbelievable 218% on a drop of 21% in revenues. The stock even pays a dividend, currently at 0.9%.

Candy companies should be the biggest beneficiaries of Halloween. WallStreetNewsNetwork.com has turned up a list of a dozen candy companies. The Hershey Company (HSY) is the largest chocolate and confectionery company in North America, famous for Hershey Bars and Hershey Kisses. The stock has a trailing price to earnings ratio of 25, a forward PE of 21, and pays a tasty yield of 2.3%. Quarterly earnings up 5.4%, with a 4.6% increase in sales.

Tootsie Roll Industries (TR) has a niice variety of trick-or-treater candy including Tootsie Rolls, Sugar Daddys, Charms, Blow-Pops, Blue Razz, Zip-A-Dee Pops, Cella's, Tootsie Roll Pops, Caramel Apple Pops, Mason Dots, Mason Crows, Junior Mint, Charleston Chew, and Sugar Babies. The stock trades at 28 times earnings and pays a yield of 1.1%

Rocky Mountain Chocolate Factory (RMCF) is a candy maker headquartered in Durango, Colorado. The company produces such candies as caramels, clusters, creams, mints, and truffles. The stock trades at 21 times trailing earnings and 14 times forward earnings. The dividend payout rate is a delicious 3.5%.

Additional candy and chocolate stock can be found at WallStreetNewsNetwork.com, which also includes various financial and company information. Hopefully, some of these stocks won't trick your portfolio but will provide it with a treat.

Disclosure: Author did not own any of the above at the time the article was written and has no plans to do so in the next 72 hours.

By Stockerblog.com

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