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When I dropped my kids off at college, I thought about how messy their dorm rooms would soon become:
However when I think about messy dorms, the only image that really comes to mind is radio DJ Dale Dorman from 68 WRKO:
I remember when he played “Start Me Up” by the Rolling Stones three times in a row because he liked the song. Boston has had its share of exciting rock ‘n’ roll disc jockeys, but Dale Dorman is its legendary master craftsman. With his lightening fast reflexes and a gift for genuinely clever patter, he did what few others have ever done — he remained a force and a positive influence on radio and music for 45 years. It all really began when he was starting out in Syracuse in 1964. He sent a tape to an up-and-coming programmer named Bill Drake at KYNO/Fresno who was gaining a national reputation for his unique style of broadcasting. Drake liked what he heard, hired Dale, and under his tutelage Dale became part of an approach that revolutionized popular music radio.
Dale was a master craftsman of rock ’n roll and Boston listeners were the beneficiaries. His local career included extended stays on WRKO (1968-197
; WXKS-FM (1978-2003); and WODS (2003-200. In its day, WRKO was considered somewhat of a radio monster, boasting Dorman in morning drive. It was practically unthinkable back then that AM radio would be vulnerable. But as Dorman recalls, “We knew FM would take over, just because of the quality sound of the music. We had long discussions about that and also owned an automated station [WRKO-FM, later WROR] that played Oldies.” One day at a meeting, Dorman suggested that management flip WRKO-AM to WRKO-FM and let WRKO-AM do Talk. “The music sounded great in stereo on FM,” he says. The rest is history.
History indeed. WRKO wanted to make money. So does $$$MR. MARKET$$$. Today I bought DORM at 35.22. I will sell it in 4 – 6 weeks at 40.60. Here’s why I like DORM:
You got to love the chart. The stock is up 145% off of its 52 week low AND its PE is still only 15. It’s a growth stock. It’s a value stock. It’s both. It’s a steal. What a deal. Actually I think the most recent sell off let me pick up some of this baby at a bargain. For once my market entry might actually be somewhat fortuitous.
Dorman Products, Inc. supplies original equipment dealer automotive replacement parts, and fasteners and service line products primarily for the automotive aftermarket. It designs, packages, and markets approximately 103,000 automotive replacement parts, including brake parts. The company offers original equipment dealer parts, which include intake manifolds, exhaust manifolds, oil cooler lines, window regulators, radiator fan assemblies, power steering pulleys, and harmonic balancers; and replacement parts, such as window handles, switches, door hardware, interior trim parts, headlamp aiming screws and retainer rings, radiator parts, battery hold-down bolts and repair kits, valve train parts, and power steering filler caps. It also provides application specific and general automotive hardware, such as body hardware, general automotive fasteners, oil drain plugs, and wheel hardware; a selection of electrical connectors, wires, tools, testers, and accessories; and a line of home hardware and home organization products designed for retail merchandisers.
What’s in the news today? The GM IPO. Ford kicking butt. Autozone…get into the zone. Cars are roaring and anything to do with cars is going to continue to make money. Credit is dirt cheap and the banks are starting to loosen up Sandy baby and lend money.
With the auto parts stores doing so well, you gotta believe that auto part makers will be spanking too since its their junk that is flying off of the shelves. Dorman’s revenues are up over 20% in its most recent 3rd quarter earnings report last month. Earnings per share were 71 cents compared to the consensus of 56 cents. That’s 61% better than last year when they were 44 cents.
The company plans on pumping out a lot of new products for car buyers to spend quatloops on so 2011 looks robust. The company is betting on it as it is putting capital into expanding its distribution system. The Return on Equity is up around 18%, so why not do a little investing in itself??
Dorman has grown its revenue each and every year since 2002:
2002 $215 MM
2003 $222 MM
2004 $250 MM
2005 $278 MM
2006 $296 MM
2007 $328 MM
2008 $342 MM
2009 $377 MM
That’s a progression I can live with. Dorman has paid off all of its long term debt. DORM generates more sales from the use of its assets than nearly any other company in the Auto Parts & Equipment group. During FY 2010, DORM spent $7.8 MM on CAPEX. This is a steady increase in spending over the last 4 years which is clearly a bullish sign from management.
ANAL-ysts predict $2.74/share on revenues of $484 MM for 2011. That’s not quite right. They will actually pop up to $515 MM of revenues in 2011 which will spin off $3.03 per share. If you take these earnings, and multiply them by the still very modest PE of 15, that drives the share price to: $3.03 x 15 = $45.45. That’s way over my sell target. Yep..it will be yet another $$$MR. MARKET$$$ winner.
You can get that from the horse’s mouth himself:
Mr. Richard Berman, Chairman and Chief Executive Officer, said, "Our customers' success with our New to the Aftermarket products continues to drive Dorman's sales growth. We continue to make further investments in our new product development capabilities as we believe the opportunities for further growth are significant. As a result, we are planning on having the largest number of new product releases in our history in 2011, for both new and existing product lines. These investments along with the publication and distribution of our tri-annual Dorman Stocking Guide and our monthly new product alert program will help further support Dorman's leadership position in delivering new products and revenue growth to the Aftermarket."
So..I am planning on knocking one out of the park with Dorman, and I’ll be able to give my fat doorman a fat Thanksgiving tip. Happy Thanksgiving to all!! If you make money on this pick, hopefully you’ll take the time to give back to those in need. No one should be hungry over Thanksgiving. It’s an American holiday and, to me, that’s the American way. Remember, nobody wins unless everybody wins.
Go Quakers! Beat Cornell. I-V-Y CHAMPS!
I am HUGE!!
$$$MR. MARKET$$$
www.mrmarketishuge.com
However when I think about messy dorms, the only image that really comes to mind is radio DJ Dale Dorman from 68 WRKO:
I remember when he played “Start Me Up” by the Rolling Stones three times in a row because he liked the song. Boston has had its share of exciting rock ‘n’ roll disc jockeys, but Dale Dorman is its legendary master craftsman. With his lightening fast reflexes and a gift for genuinely clever patter, he did what few others have ever done — he remained a force and a positive influence on radio and music for 45 years. It all really began when he was starting out in Syracuse in 1964. He sent a tape to an up-and-coming programmer named Bill Drake at KYNO/Fresno who was gaining a national reputation for his unique style of broadcasting. Drake liked what he heard, hired Dale, and under his tutelage Dale became part of an approach that revolutionized popular music radio.
Dale was a master craftsman of rock ’n roll and Boston listeners were the beneficiaries. His local career included extended stays on WRKO (1968-197
; WXKS-FM (1978-2003); and WODS (2003-200. In its day, WRKO was considered somewhat of a radio monster, boasting Dorman in morning drive. It was practically unthinkable back then that AM radio would be vulnerable. But as Dorman recalls, “We knew FM would take over, just because of the quality sound of the music. We had long discussions about that and also owned an automated station [WRKO-FM, later WROR] that played Oldies.” One day at a meeting, Dorman suggested that management flip WRKO-AM to WRKO-FM and let WRKO-AM do Talk. “The music sounded great in stereo on FM,” he says. The rest is history. History indeed. WRKO wanted to make money. So does $$$MR. MARKET$$$. Today I bought DORM at 35.22. I will sell it in 4 – 6 weeks at 40.60. Here’s why I like DORM:
You got to love the chart. The stock is up 145% off of its 52 week low AND its PE is still only 15. It’s a growth stock. It’s a value stock. It’s both. It’s a steal. What a deal. Actually I think the most recent sell off let me pick up some of this baby at a bargain. For once my market entry might actually be somewhat fortuitous.
Dorman Products, Inc. supplies original equipment dealer automotive replacement parts, and fasteners and service line products primarily for the automotive aftermarket. It designs, packages, and markets approximately 103,000 automotive replacement parts, including brake parts. The company offers original equipment dealer parts, which include intake manifolds, exhaust manifolds, oil cooler lines, window regulators, radiator fan assemblies, power steering pulleys, and harmonic balancers; and replacement parts, such as window handles, switches, door hardware, interior trim parts, headlamp aiming screws and retainer rings, radiator parts, battery hold-down bolts and repair kits, valve train parts, and power steering filler caps. It also provides application specific and general automotive hardware, such as body hardware, general automotive fasteners, oil drain plugs, and wheel hardware; a selection of electrical connectors, wires, tools, testers, and accessories; and a line of home hardware and home organization products designed for retail merchandisers.
What’s in the news today? The GM IPO. Ford kicking butt. Autozone…get into the zone. Cars are roaring and anything to do with cars is going to continue to make money. Credit is dirt cheap and the banks are starting to loosen up Sandy baby and lend money.
With the auto parts stores doing so well, you gotta believe that auto part makers will be spanking too since its their junk that is flying off of the shelves. Dorman’s revenues are up over 20% in its most recent 3rd quarter earnings report last month. Earnings per share were 71 cents compared to the consensus of 56 cents. That’s 61% better than last year when they were 44 cents.
The company plans on pumping out a lot of new products for car buyers to spend quatloops on so 2011 looks robust. The company is betting on it as it is putting capital into expanding its distribution system. The Return on Equity is up around 18%, so why not do a little investing in itself??
Dorman has grown its revenue each and every year since 2002:
2002 $215 MM
2003 $222 MM
2004 $250 MM
2005 $278 MM
2006 $296 MM
2007 $328 MM
2008 $342 MM
2009 $377 MM
That’s a progression I can live with. Dorman has paid off all of its long term debt. DORM generates more sales from the use of its assets than nearly any other company in the Auto Parts & Equipment group. During FY 2010, DORM spent $7.8 MM on CAPEX. This is a steady increase in spending over the last 4 years which is clearly a bullish sign from management.
ANAL-ysts predict $2.74/share on revenues of $484 MM for 2011. That’s not quite right. They will actually pop up to $515 MM of revenues in 2011 which will spin off $3.03 per share. If you take these earnings, and multiply them by the still very modest PE of 15, that drives the share price to: $3.03 x 15 = $45.45. That’s way over my sell target. Yep..it will be yet another $$$MR. MARKET$$$ winner.
You can get that from the horse’s mouth himself:
Mr. Richard Berman, Chairman and Chief Executive Officer, said, "Our customers' success with our New to the Aftermarket products continues to drive Dorman's sales growth. We continue to make further investments in our new product development capabilities as we believe the opportunities for further growth are significant. As a result, we are planning on having the largest number of new product releases in our history in 2011, for both new and existing product lines. These investments along with the publication and distribution of our tri-annual Dorman Stocking Guide and our monthly new product alert program will help further support Dorman's leadership position in delivering new products and revenue growth to the Aftermarket."
So..I am planning on knocking one out of the park with Dorman, and I’ll be able to give my fat doorman a fat Thanksgiving tip. Happy Thanksgiving to all!! If you make money on this pick, hopefully you’ll take the time to give back to those in need. No one should be hungry over Thanksgiving. It’s an American holiday and, to me, that’s the American way. Remember, nobody wins unless everybody wins.
Go Quakers! Beat Cornell. I-V-Y CHAMPS!
I am HUGE!!
$$$MR. MARKET$$$
www.mrmarketishuge.com
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