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First there was Julius Caesar
Now this guy was basically a total loser. Look how he dressed.
Then there was Caesar’s Hotel and Casino in the Vegas…
I love the Vegas…bet bet bet bet BA BA BA bet bet bet!
Of course the most famous Caesar of all time was this guy:
Yup..Cesar Romero. Just 100% badass. Now after all these excellent things about Caesar, wouldn’t you want to design your kitchen countertops with something named Caesar? Of course you would.
Today I bought stock in CaesarStone Sdot-Yam Ltd. (CSTE) at a price of 31.22. I will sell it in 4 to 6 weeks at 36.15. Here’s why I like CSTE:
Look at this chart…look at how it just rests in my hand. The stock is up 146% over the last 52 weeks and yet its PE ratio is only 23. What’s better is its forward PE ratio is only 15. What’s going on here? It’s real simple. People are building houses and people are fixing up their kitchens.
Caesarstone Sdot-Yam Ltd. manufactures and sells engineered quartz surfaces under the Caesarstone brand primarily in Australia, the United States, Canada, and Israel. Its products consist of engineered quartz slabs, which are used as kitchen countertops in the renovation and remodeling end markets, as well as other applications, including vanity tops, wall panels, back splashes, floor tiles, stairs, and other interior surfaces in various residential and non-residential construction applications. Caesarstone Sdot-Yam Ltd. sells its products directly to fabricators and sub-distributors; and indirectly through a network of independent distributors to fabricators. The company was founded in 1987 and is based in MP Menashe, Israel.
The pace of new home building increased in May, helped by more buyers coming to the market and a scarcity of houses for sale. Ealier today we saw housing starts crumble, falling 9.9% month-over-month (MoM) in June to an annualized 836,000. This widely missed expectations for a 5.5% rise. However, the number is just be a blip in the long-term upward trend. The bigger picture is that homebuilding is still very much in recovery mode. The surge in July's homebuilder confidence number puts it now at a 7.5-year high. This as a really good leading indicator for starts, and homebuilder sentiment points to a doubling in housing starts by next year. That’s a lot of kitchen countertops boys and girls.
But these are smoking good countertops. The Consumer Reports magazine rates the synthetic quartz countertops made by Israel’s kibbutz-based Caesarstone Sdot Yam Ltd. the best of 14 materials that were tested. “Quartz was tops in our tests, whether polished or matte finish. Sharp knives, abrasive pads, hot pots, and most stains didn’t damage it plus it’s easy to maintain and doesn’t require sealing,” according the survey. “Quartz also comes in vivid colors such as Caesarstone’s Apple Martini and Red Shimmer.” Reality star Kim Kardashian recently gave a big plug for the NASDAQ-listed company by choosing its quartz countertops for her Beverly Hills mansion. That’s right. Kim Kardashian.
Anyone got a problem with that? In the Hollywood “keeping up with the stars” crowd, her neighbors followed suit (not bathing suit).
The housing revival in the U.S., Caesarstone’s fastest-growing market and the second-biggest source of sales after Australia, is bolstering the outlook for profit after net income doubled last year. After sales of new U.S. homes climbed more than forecast in May to the highest level since July 2008, the Israeli company will report the highest revenue in at least six years, according to the average of four ANAL-ysts’ estimates. This has been a product story with an enormous macroeconomic tailwind. It’s like A-Rod on steroids.
Already popular in countries like Australia and Israel, the quartz countertop market is now growing in the U.S, where engineered quartz has a 5% share. It makes up 9% of the Canadian countertop market. Not long ago the global quartz countertop market was tiny, but it has grown about 16% per year in the last decade to be a roughly $5 billion industry, and investors clearly believe the surface will play a bigger role in the key U.S. housing market as it recovers. Caesarstone is serious about the American market and is getting ready to build a manufacturing facility in the U.S. southeast.
Quartz countertops are pretty and durable. Benchtops are an important element in the kitchen as they can significantly influence the appearance and functionality of the area. However, it is not an easy feat selecting the best surface to suit your lifestyle, budget and aesthetic needs. Each slab is made from 93 per cent natural quartz and other raw materials. From start of the finish, their manufacturing process assures the final product is only the best in the industry. More and more homeowners are choosing Caesarstone for their kitchen benchtops. Here are some of the advantages of selecting Caesarstone for your kitchen:
Consistent pattern - Each slab of natural surface, such as marble or granite, features different patterns and textures. If you are looking for a cohesive look, Caesarstone can produce pieces with a similar colour scheme and design to your kitchen, and the presented sample will always match the final product.
Versatility - Since quartz and other materials undergo an extensive manufacturing process, it is easier to produce panels with different styles and hues. In return, you can effortlessly find and match the countertops to your kitchen's overall style.
Hygienic and durable - Quartz is one of the strongest minerals you can find today. This means it doesn't crack easily, even when exposed to high impact or pressure. Quartz is also a non-porous material, meaning it is resistant to stains, scratches and mildew.
When it comes to choosing kitchen benchtops, don't pay attention to aesthetical appearance alone. Consider other characteristics such as durability, life expectancy and stain resistance. Engineered quartz stone from Caesarstone is a great option as it is designed and created to satisfy functionality and design appeal needs.
They have evolved the process and have become a trendsetter in the field. Their countertops are heat and scratch resistant and carry a lifetime warranty for residential use. Styles run from classic up to contemporary and everything in between. The Caesarstone line of countertops can resist stains, scratches and cracks. Most fluids like wine, coffee, soft drinks and even food coloring in liquid form will not stain the surface and can easily be wiped up using a mild detergent and water. Although they are scratch resistant, it is always best to use a cutting board to avoid direct cutting on the surface. Unlike granite countertops, Caesarstone quartz countertops do not require any type of sealing ever. They are made of a non-porous material, which makes for easy maintenance. Since it’s a high density material, its luster will remain and it will never have to be polished or oiled in any way. The countertop will continue to look as good as it first did when it was initially installed.
Alright..we’ve established it is an amazing product. I mean with the money I make in this stock, I may go out right now and buy some Caesarstone countertops. But what will this great product do for the stock price? Well, once again, it’s all about the earnings.
Back in May, the company reported their first quarter 2013 earnings, which were pornographically good:
Revenues in the first quarter of 2013 increased by 13.5% to $76.4 million compared to $67.3 million in the same quarter of the prior year. Growth in revenues was experienced in each region, but was primarily driven by continued increases in sales in the United States and Canada, up 26.3% and 21.8%, respectively, compared to the same period in the prior year. On a constant currency basis, first quarter revenue growth was 13.9% compared to the same period last year.
Gross margin in the first quarter was 44.8% compared to 41.8% in the same period in the prior year. Operating expenses in the first quarter were $21.1 million, or 27.7% of revenues. This compares to the prior year’s first quarter level of $21.0 million, or 31.2% of revenues. Operating income in the first quarter increased by 82.5% from the first quarter of 2012 to $13.1 million, a margin of 17.1%. This compares to operating income in the first quarter of last year of $7.2 million, or 10.6% of revenues. Diluted earnings per share for the first quarter were $0.30 on 35.0 million shares compared to $0.18 per diluted ordinary share on 27.5 million shares in the prior year’s first quarter.
The Company’s balance sheet as of March 31, 2013 remained solid with a cash balance of $73.2 million. Net cash grew by $3.1 million from December 31, 2012 and was $52.9 million as of March 31, 2013. The Company continues to believe its cash position and expected cash flows will be sufficient to fund its need for capital expenditures and working capital for the foreseeable future.
The company is well managed. Return on Assets is 10.4%. Return on Equity is 20.8%. The Company reiterated its revenue guidance for the full year of 2013 in the range of $330 million to $340 million. The Company also maintained its adjusted EBITDA guidance of a range of $76 million to $80 million, but now believes, given the strong first quarter performance, that its results will be in the upper part of this range. EPS growth is 70% and sales growth is 13.5%...here we go!
Punch line is that the ANAL-ysts think the stock will come in at $1.57 per share for this year. Ha! We’re talking quartz here. They will do $1.83 per share this year. If you take the $1.83 x PE of 23, you get a share price of $42.09. That is kah-freakin-ching.
Here’s what the boss had to say:
Yosef Shiran, Chief Executive Officer, commented, “We are pleased to have begun the year with a good first quarter. Our growth in North America continues to be strong and we are excited to build our presence into the fast-growing U.S. and Canadian markets as they embrace quartz as a superior material. We are also pleased to see growth in sales and margins following a strong global response to our innovative Super-Naturals product line. In summary, things are going well across the business. We are capture growth in our key markets, building new capacity, delivering innovative new products and reinforcing our brands. So, for the Super Natural, we started to launch the Super Natural in the States in March, and the progress is very good so far, so I don't know if have not managed to see it in New York, so maybe we can refer you to some more specifics, but it's available in the market not to full extent. It takes time until the launch to the whole country will be completed, but this is in progress.”
Think about slicing those limes on your quartz countertop and putting them in an ice cold Corona. Glug glug glug….aaaaaaaah!
I am HUGE!
$$$MR. MARKET$$$
www.mrmarketishuge.com
Now this guy was basically a total loser. Look how he dressed.
Then there was Caesar’s Hotel and Casino in the Vegas…
I love the Vegas…bet bet bet bet BA BA BA bet bet bet!
Of course the most famous Caesar of all time was this guy:
Yup..Cesar Romero. Just 100% badass. Now after all these excellent things about Caesar, wouldn’t you want to design your kitchen countertops with something named Caesar? Of course you would.
Today I bought stock in CaesarStone Sdot-Yam Ltd. (CSTE) at a price of 31.22. I will sell it in 4 to 6 weeks at 36.15. Here’s why I like CSTE:
Look at this chart…look at how it just rests in my hand. The stock is up 146% over the last 52 weeks and yet its PE ratio is only 23. What’s better is its forward PE ratio is only 15. What’s going on here? It’s real simple. People are building houses and people are fixing up their kitchens.
Caesarstone Sdot-Yam Ltd. manufactures and sells engineered quartz surfaces under the Caesarstone brand primarily in Australia, the United States, Canada, and Israel. Its products consist of engineered quartz slabs, which are used as kitchen countertops in the renovation and remodeling end markets, as well as other applications, including vanity tops, wall panels, back splashes, floor tiles, stairs, and other interior surfaces in various residential and non-residential construction applications. Caesarstone Sdot-Yam Ltd. sells its products directly to fabricators and sub-distributors; and indirectly through a network of independent distributors to fabricators. The company was founded in 1987 and is based in MP Menashe, Israel.
The pace of new home building increased in May, helped by more buyers coming to the market and a scarcity of houses for sale. Ealier today we saw housing starts crumble, falling 9.9% month-over-month (MoM) in June to an annualized 836,000. This widely missed expectations for a 5.5% rise. However, the number is just be a blip in the long-term upward trend. The bigger picture is that homebuilding is still very much in recovery mode. The surge in July's homebuilder confidence number puts it now at a 7.5-year high. This as a really good leading indicator for starts, and homebuilder sentiment points to a doubling in housing starts by next year. That’s a lot of kitchen countertops boys and girls.
But these are smoking good countertops. The Consumer Reports magazine rates the synthetic quartz countertops made by Israel’s kibbutz-based Caesarstone Sdot Yam Ltd. the best of 14 materials that were tested. “Quartz was tops in our tests, whether polished or matte finish. Sharp knives, abrasive pads, hot pots, and most stains didn’t damage it plus it’s easy to maintain and doesn’t require sealing,” according the survey. “Quartz also comes in vivid colors such as Caesarstone’s Apple Martini and Red Shimmer.” Reality star Kim Kardashian recently gave a big plug for the NASDAQ-listed company by choosing its quartz countertops for her Beverly Hills mansion. That’s right. Kim Kardashian.
Anyone got a problem with that? In the Hollywood “keeping up with the stars” crowd, her neighbors followed suit (not bathing suit).
The housing revival in the U.S., Caesarstone’s fastest-growing market and the second-biggest source of sales after Australia, is bolstering the outlook for profit after net income doubled last year. After sales of new U.S. homes climbed more than forecast in May to the highest level since July 2008, the Israeli company will report the highest revenue in at least six years, according to the average of four ANAL-ysts’ estimates. This has been a product story with an enormous macroeconomic tailwind. It’s like A-Rod on steroids.
Already popular in countries like Australia and Israel, the quartz countertop market is now growing in the U.S, where engineered quartz has a 5% share. It makes up 9% of the Canadian countertop market. Not long ago the global quartz countertop market was tiny, but it has grown about 16% per year in the last decade to be a roughly $5 billion industry, and investors clearly believe the surface will play a bigger role in the key U.S. housing market as it recovers. Caesarstone is serious about the American market and is getting ready to build a manufacturing facility in the U.S. southeast.
Quartz countertops are pretty and durable. Benchtops are an important element in the kitchen as they can significantly influence the appearance and functionality of the area. However, it is not an easy feat selecting the best surface to suit your lifestyle, budget and aesthetic needs. Each slab is made from 93 per cent natural quartz and other raw materials. From start of the finish, their manufacturing process assures the final product is only the best in the industry. More and more homeowners are choosing Caesarstone for their kitchen benchtops. Here are some of the advantages of selecting Caesarstone for your kitchen:
Consistent pattern - Each slab of natural surface, such as marble or granite, features different patterns and textures. If you are looking for a cohesive look, Caesarstone can produce pieces with a similar colour scheme and design to your kitchen, and the presented sample will always match the final product.
Versatility - Since quartz and other materials undergo an extensive manufacturing process, it is easier to produce panels with different styles and hues. In return, you can effortlessly find and match the countertops to your kitchen's overall style.
Hygienic and durable - Quartz is one of the strongest minerals you can find today. This means it doesn't crack easily, even when exposed to high impact or pressure. Quartz is also a non-porous material, meaning it is resistant to stains, scratches and mildew.
When it comes to choosing kitchen benchtops, don't pay attention to aesthetical appearance alone. Consider other characteristics such as durability, life expectancy and stain resistance. Engineered quartz stone from Caesarstone is a great option as it is designed and created to satisfy functionality and design appeal needs.
They have evolved the process and have become a trendsetter in the field. Their countertops are heat and scratch resistant and carry a lifetime warranty for residential use. Styles run from classic up to contemporary and everything in between. The Caesarstone line of countertops can resist stains, scratches and cracks. Most fluids like wine, coffee, soft drinks and even food coloring in liquid form will not stain the surface and can easily be wiped up using a mild detergent and water. Although they are scratch resistant, it is always best to use a cutting board to avoid direct cutting on the surface. Unlike granite countertops, Caesarstone quartz countertops do not require any type of sealing ever. They are made of a non-porous material, which makes for easy maintenance. Since it’s a high density material, its luster will remain and it will never have to be polished or oiled in any way. The countertop will continue to look as good as it first did when it was initially installed.
Alright..we’ve established it is an amazing product. I mean with the money I make in this stock, I may go out right now and buy some Caesarstone countertops. But what will this great product do for the stock price? Well, once again, it’s all about the earnings.
Back in May, the company reported their first quarter 2013 earnings, which were pornographically good:
Revenues in the first quarter of 2013 increased by 13.5% to $76.4 million compared to $67.3 million in the same quarter of the prior year. Growth in revenues was experienced in each region, but was primarily driven by continued increases in sales in the United States and Canada, up 26.3% and 21.8%, respectively, compared to the same period in the prior year. On a constant currency basis, first quarter revenue growth was 13.9% compared to the same period last year.
Gross margin in the first quarter was 44.8% compared to 41.8% in the same period in the prior year. Operating expenses in the first quarter were $21.1 million, or 27.7% of revenues. This compares to the prior year’s first quarter level of $21.0 million, or 31.2% of revenues. Operating income in the first quarter increased by 82.5% from the first quarter of 2012 to $13.1 million, a margin of 17.1%. This compares to operating income in the first quarter of last year of $7.2 million, or 10.6% of revenues. Diluted earnings per share for the first quarter were $0.30 on 35.0 million shares compared to $0.18 per diluted ordinary share on 27.5 million shares in the prior year’s first quarter.
The Company’s balance sheet as of March 31, 2013 remained solid with a cash balance of $73.2 million. Net cash grew by $3.1 million from December 31, 2012 and was $52.9 million as of March 31, 2013. The Company continues to believe its cash position and expected cash flows will be sufficient to fund its need for capital expenditures and working capital for the foreseeable future.
The company is well managed. Return on Assets is 10.4%. Return on Equity is 20.8%. The Company reiterated its revenue guidance for the full year of 2013 in the range of $330 million to $340 million. The Company also maintained its adjusted EBITDA guidance of a range of $76 million to $80 million, but now believes, given the strong first quarter performance, that its results will be in the upper part of this range. EPS growth is 70% and sales growth is 13.5%...here we go!
Punch line is that the ANAL-ysts think the stock will come in at $1.57 per share for this year. Ha! We’re talking quartz here. They will do $1.83 per share this year. If you take the $1.83 x PE of 23, you get a share price of $42.09. That is kah-freakin-ching.
Here’s what the boss had to say:
Yosef Shiran, Chief Executive Officer, commented, “We are pleased to have begun the year with a good first quarter. Our growth in North America continues to be strong and we are excited to build our presence into the fast-growing U.S. and Canadian markets as they embrace quartz as a superior material. We are also pleased to see growth in sales and margins following a strong global response to our innovative Super-Naturals product line. In summary, things are going well across the business. We are capture growth in our key markets, building new capacity, delivering innovative new products and reinforcing our brands. So, for the Super Natural, we started to launch the Super Natural in the States in March, and the progress is very good so far, so I don't know if have not managed to see it in New York, so maybe we can refer you to some more specifics, but it's available in the market not to full extent. It takes time until the launch to the whole country will be completed, but this is in progress.”
Think about slicing those limes on your quartz countertop and putting them in an ice cold Corona. Glug glug glug….aaaaaaaah!
I am HUGE!
$$$MR. MARKET$$$
www.mrmarketishuge.com
Talk About CSTE
Here are some of the key questions that led us to rate CSTE a 8, or crushable like marble:
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