Terra Nitrogen Company, L.P. (TNH), Wynn Resorts, Limited (WYNN): Three Stocks that Screen for Profits in 2013

Page 1 of 2

I love playing around with screeners–to me it’s like sieving for gold. I love plugging data into the Motley Fool.com screener (under the CAPS community tab) and finding treasure. After looking around for mid and large caps with decent yields over 3%, double digit earnings and revenue growth, and low short interest, only three companies came up: Terra Nitrogen Company, L.P. (NYSE:TNH), Wynn Resorts, Limited (NASDAQ:WYNN), and Erie Indemnity Company (NASDAQ:ERIE).

Wynn Resorts, Limited (WYNN)

It’s somewhat of a strange brew with a casino, an insurance company, and a fertilizer play, but not a bad beginning for a diversified portfolio with a good amount of yield.

Growing your portfolio

Terra Nitrogen Company, L.P. (NYSE:TNH) is off some 25% from its 52 week high of $298.00, but at a 12.94 P/E and a 6.60% yield, this nitrogen fertilizer limited partnership out of Deerfield, IL is a good long term hold for a portfolio. With a profit margin of 41.16% and operating margin of 71.89%, it’s practically growing money.

Over the last three years the earnings growth rate has been 50.68% and the revenue growth rate has been 17.77%. The company has no debt, and it’s in an industry in which demand keeps growing. The company has a parental relationship with CF Industries Holdings, Inc. (NYSE:CF), which has a 75% stake in Terra Nitrogen.

As a domestic producer Terra Nitrogen Company, L.P. (NYSE:TNH) benefits from US demand because the majority of nitrogen used agriculturally must be imported. The company also benefits from low natural gas prices as an input cost. Nitrogen is a critical component for improving yield on fields that aren’t irrigated, i.e. good for drought-threatened crops. Also, Terra Nitrogen is positioning itself for increasing specialty nutrient demand by expending some capital (double the amount of 2011) to upgrade its facilities.

Doubling down on your holdings

The casino stocks have long been a favorite of mine, and Wynn Resorts, Limited (NASDAQ:WYNN), with a current yield of 3.3% and a P/E of 25.49, was one company that came up for its three year growth rates for revenue of 22.32% and EPS growth of 211.57%. Wynn also gives special dividends every so often, similar to what casino hosts call show-up money–a little cash just for patronizing their tables. Wynn’s return on equity is an impressive 49.53%, and its operating margin is 19.97%.

With just two properties in Asia Wynn Resorts, Limited (NASDAQ:WYNN) is at a disadvantage to rival Las Vegas Sands Corp. (NYSE:LVS), and is just beginning a project on the Cotai strip. Las Vegas Sands has three casinos in Macau and one in Singapore. MGM Resorts has the one Asian property, MGM China, but they will open another on the Cotai Strip in 2016.

Caveats for Wynn are that it has almost twice as much total debt to total cash. The company reported a net revenue decline in the Feb. 4 earnings release for Q4 and most of that revenue decline was from Macau. Also of concern was the decline in EPS from $4.88 in 2011 to $4.82 in 2012.

One other concern with Wynn is that the company is tied to namesake and CEO Steve Wynn, and his vision that a succession plan is always an issue. Elaine Wynn holds 9,659,355 shares as the second largest stakeholder behind Waddell & Reed Financial’s 14.89% stake of 15,039,402 shares, and is the likely reason for the high risk corporate governance rating for shareholders’ rights.  All that said, Wynn Resorts, Limited (NASDAQ:WYNN) is the best bet of the three casino stocks.

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 44 percentage points in 21 months Learn how!

Lists

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Top 10 Jobs for 2014 by Salary Gain (Predictions)

Top 5 Digital Trends for 2014

Top 6 Things You Can Do To Increase Your Productivity

Top 9 Trending Smartphones in 2013

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!