Integrated Silicon Solution, Inc. (ISSI), Chesapeake Granite Wash Trust (CHKR), Insmed Incorporated (INSM): Three Stocks to Get on Your Watchlist

Page 1 of 2

I follow quite a lot of companies, so the usefulness of a watchlist to me cannot be overstated. Without my watchlist, I’d be unable to keep up on my favorite sectors and see what’s really moving the market. Even worse, I’d be lost when the time came to choose which stock I’m buying or shorting next.

Today is Watchlist Wednesday, so I’m discussing three companies that have crossed my radar in the past week — and at what point I may consider taking action on these calls with my own money. Keep in mind that these aren’t concrete buy or sell recommendations, nor do I guarantee I’ll take action on the companies being discussed. What I can promise is that you can follow my real-life transactions through my profile and that I, like everyone else here at The Motley Fool, will continue to hold the integrity of our disclosure policy in the highest regard.

Integrated Silicon Solution, Inc. (NASDAQ:ISSI)

Integrated Silicon Solution, Inc. (NASDAQ:ISSI)
It’s time to take a look at a longtime favorite of mine in Integrated Silicon Solutions, a fabless semiconductor company providing integrated circuitry to the automotive, communications, and medical industries.

Normally the time to sell integrated circuit makers is when things are going perfectly, and you buy them when they’re losing money and investors want nothing to do with them. For Integrated Silicon Solution, Inc. (NASDAQ:ISSI), we’re somewhere in between pure avoidance and everything going great.

In ISS’s most recent quarter it delivered a 20% increase in revenue, meeting the high-end of its previous forecast, with automotive revenue providing the biggest boost, up 44% over the year-ago period. As new cars continue to become more hi-tech, Integrated Silicon Solution, Inc. (NASDAQ:ISSI) is going to reap the rewards. In addition, electronic costs generally fall over time, meaning these conveniences are being found in even cheaper and smaller vehicles, giving ISS a broader market audience.

Integrated Silicon Solution, Inc. (NASDAQ:ISSI) is also very well capitalized. It ended the first-quarter with $111.4 million in cash, or nearly $4 per share. The company tends to be very conservative with its cash, banking it for a rainy day and living off of it during recessionary times. However, having followed this company for the better part of a decade, I’m of the opinion that it could pay out a 1%-2% yield without too much difficulty.

You have to understand that this is a cyclical company and not a stock you’d hold for the next decade, but I do, once again, like its prospects over the next 12 to 24 months.

Chesapeake Granite Wash Trust (NYSE:CHKR)
There’s absolutely no sugarcoating that it’s been a miserable past year for royalty trusts. A former holding of mine, BP Prudhoe Bay Royalty Trust (NYSE:BPT), was creamed after multiple sources questioned whether the trust’s share price was grossly overvalued based on the finite future of its dividend payments. In short, BP Prudhoe Bay would need oil prices to rise drastically to make up the difference of its relatively fixed oil-equivalent production.

For Chesapeake Granite Wash Trust (NYSE:CHKR), it’s been a far different story. Yes, the distributions that shareholders are receiving have come in below expectations on a disturbingly regular basis, but it’s been more an effect of lower natural gas production and realized prices. The appeal of Chesapeake Granite, which boasts considerably more natural gas reserves than liquid reserves in the Anadarko Basin of Oklahoma, is that natural gas usage is expected to soar over the next decade.

Between 2007 and 2012, according to data from the Energy Information Administration, natural gas end-use jumped by 2.4 trillion cubic feet. While we did see a slight decline in residential and commercial usage, power generation by electric utilities spiked by 33.6%. If President Obama is serious about freeing American from its dependence on foreign oil, then tapping further into America’s natural gas reserves is going to go a long way to accomplishing these goals and stabilizing natural gas prices.

Although its yield is certainly subject to change, at an annualized 18%, this is an income investors’ dream stock!

Insmed Incorporated (NASDAQ:INSM)
Investors are certainly getting excited about the opportunity surrounding Insmed’s leading drug candidate, Arikace, for non-tuberculosis mycobacterial infections.

However, I would like to take this time to remind investors that in all of Insmed Incorporated (NASDAQ:INSM)’s years as a publicly traded company it has never turned a profit, nor does it have an a drug currently approved by the Food and Drug Administration. Insmed has churned $223 million in negative operating cash flow over the past decade while spitting out a mid-stage failure for Iplex, its experimental myotonic muscular dystrophy drug, in 2009.

Another factor worth considering is that Arikace, no matter how exciting the recent data has been, is still many years away from being approved. Insmed Incorporated (NASDAQ:INSM) still needs to run late-stage trials in two of its three ongoing Arikace trials and may not see the light of day until 2015. The FDA is also particularly stringent when it comes to the approval of inhalable devices.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

The 20 Most Underrated Movies of All Time

The 10 Fastest Growing Companies in America

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!