Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Three Buys From the Baker Ellis Portfolio: Alexander & Baldwin Inc (ALEX), Baxter International Inc. (BAX), Google Inc (GOOG)

Page 1 of 2

Baker Ellis Asset Management LLC, the fee-based investment advisory firm, invests mainly in Exchange Traded Funds and in the consumer goods sector. Both make up about ~43.5% of the funds’ total portfolio. In the last quarter ending December 2012, Baker Ellis’s performance was better than S&P 500 as the fund gave a return of ~1.36%, compared to S&P’s return of ~0.38%. Looking at its current holdings, I have chosen three stocks from their portfolio that provide an exciting investing opportunity. They are Alexander & Baldwin Inc (NYSE: ALEX), Baxter International Inc. (NYSE: BAX) and Google Inc (NASDAQ: GOOG). All these stocks have their long term growth intact and will give returns to the income investors on a constant basis. Let’s discuss each of them in detail.

Alexander & Baldwin Holdings Inc (NYSE:MATX)Alexander & Baldwin Inc (NYSE: ALEX)

With the recovery in the US housing market, the Hawaii residential market is gaining strength. The average price for homes on Oahu has recovered significantly and is nearly back to the pre-recession level. This has helped Alexander in the sale of its properties. Recently, the company announced that it had pre-sold nearly 80% of its 341 units in the Kewalo Development project under 259 contracts, which has helped the company bring down the ~$120 million in construction financing. The project is a joint venture of Alexander with BSC Waihonua and Armstrong Homes at Waihonua, Kewalo. It is estimated that the units are selling at an average rate of ~$725 per square foot, and will be delivered in early 2015. I believe that the project will continue to see a positive trend and the remaining units will be cleared soon enough. Additionally, Alexander’s One Ala Moana Tower, an ultra-luxury tower, was a success. All the units of the project were sold within 24 hours from the commencement of bids in December, 2012, with an average rate of ~$1200/sf.

Apart from this, Alexander is also diversifying its portfolio; it recently entered into an agreement with the local utility on Kauai to put in a six megawatt solar farm.  The total cost of the project is estimated to be ~$23.5 million and the company will sell the power generated for the next 20 years. Because of the tax credits and tax savings incentives, ~70% of the project’s costs should be recovered by the end of 2013. This project will add ~$1 million of operating profit to the agribusiness segment of the company and ~$2 million in its operating cash flow.

Baxter International Inc. (NYSE: BAX

Recently, Baxter International declared befitting results for 4Q 2012. The quarterly sales was up ~4% year-over-year (y/y) and adjusted EPS was up ~8% y/y. Analyzing the 2013 guidance declared by the company, I feel that the main focus of the year will be on the R&D milestones. Most prominent of them being Phase III 18 month IVIg Alzheimer’s data, which it will declare by 2Q 2013. The company expects more than a 20% success rate in the futility analysis, which began in January 2012. The probability for achieving statistical significance in the tests includes either one or both of its primary endpoints. Along with that, it has many products in the pipeline waiting for regulatory approval such as HyQ, for which the approval from the European Union is pending. The decision will come by the end of 1H13, and Baxter has also confirmed a meeting with the FDA in 2Q13. The outcome of the meeting will determine the future regulatory path of the product.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

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 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!