Only one stock "made the grade" this week. The singular selection is engaged in the transportation and handling of petroleum products (such as gasoline, jet fuel, coal, petroleum coke, and other similar products).
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Kinder Morgan Energy Partners (NYSE: KMP; Sector: Energy; Industry; Oil Well Srvcs & Equipment). In a nutshell, KMP moves petroleum products in 16 states over 8,000 miles of pipelines. Those products includes gasoline, diesel, jet fuel, natural gas liquids and natural gas. Kinder Morgan also operates bulk terminals that handle coal and other petroleum products.
Closing Price (10/27/00): $47.38 per shr.
Fundamentals*: Profit Margin - 37%; Management Effectiveness - 11% ROE; EPS - 2.62; PE - 18.51; Total Debt/Equity - 0.67; Market Cap - $3,114M; No. Employees – 1,200.
ACES Stock Grade**: 11.1067
* - Numbers are approximate.
** - A proprietary number devised by ACES that combines a stock's profitability, management's performance, per share earnings, PE, financial strength and other selected variables in one number. A higher Grade (number) is preferable than a lower Grade.
October 20, 2000 Selections:
ACE'S STOCK ACES
TABLE OF ALL SELECTED STOCKS
Stock Name,
(Business sector)SYM
ASG
Pick Dt
Pick Dt
PrceEval. Dt
Eval. Dt
PrceCum. Div.
Shr. Prce
+Div.Days
%
Appr.
Iberiabank
(Banking)IBKC
11.0024
10/20/00
$18.81
11/20/00
$18.69
---
$18.69
30
(0.01)
Kinder Morgan
(Oil Well Srvcs)KMP
11.1067
10/27/00
$47.38
11/27/00
$47.31
---
$47.31
30
(0.15)
NVR Inc.
(Home Construct'n)NVR
15.0145
10/20/00
$82.40
11/20/00
$91.25
---
$91.25
30
10.74%
AVG. DAYS \ % APPRECIATION
30
3.52%
SYM - A stock's symbol.
PICK DT - Date when a stock was "picked".
PICK DT PRICE - A stock's closing price at its pick date.
EVAL. DATE - A stock's evaluation date (when the stock's market performance is determined).
EVAL. DATE PRCE - A stock's closing price at its evaluation date.
CUM. DIV. - Cumulated dividends paid (if any) by a stock since its pick date.
SHR. PRCE + DIV. - A stock's evaluation date price + its cumulated dividends.
DAYS - Number of days between a stock's pick and evaluation dates.
% ANN. APPR. - A stock's annualized appreciation. Formula: (((Shr. Prce+Div.)/Days) X 356 X 100).
.....................Note: Appreciation rate does not include broker fees.
To begin the mission: For the week ending October 20, 2000, ACES has identified the stocks below as its maiden pick. The first stock does banking and the second is into residential home construction services. Not your most exciting nor glamorous stocks. But there is a discipline required by the selection process ..., that discipline leads to some glimmer of insight ..., and following that lead requires a degree of courage. Among the group of stocks that ACES run thru the process during the past week, these stocks were the ones that emerged with the best combination of price growth potential and safety of value.
IBERIABANK Corp. (NASD: IBKC; Sector: Financial; Industry: Banking). IBKC is the holding company for IBERIABANK, a chartered commercial bank. The company provides residential, commercial, construction and consumer loans. The company presently have about 45 full service offices located mainly in Louisinia.
NVR Inc. (AMEX: NVR; Sector: Capital Goods; Industry; Construction Srvcs.). NVR constructs & markets residential homes, and also provides financial services. The homebuilding operation markets homes under three names; Ryan Homes , Fox Ridge Homes and NV Homes. NVR’s financial services operation is undertaken by its NVR Mortgage Finance and First Republic Mortgage. 
15.0145 (Highest among ACES selections)