Stock Talk - Jim Mueller, Motley Fool

Spent much time out of Springfield. -- have been out there. Really he's throughout their advocates for hockey and it is a tough account. It's and I ain't got confirmation of that from 413 and work in Springfield in this area needs all the jobs it can get very tough economy. No doubt they had some really tough weather blow through their last year too which didn't help things that. So that -- worse. Well I. -- -- -- -- take the car with you Texan in the 603 -- -- so to the other day I've been following the economy hard since 2000. IE you know wish I had the money. Tibet short on FaceBook my name is scoop. So to keep track of my comments yeah I live in the real world and I talked to the working peaks. Well I'd live in the world world through an evidence follow in the economy since 1978 us -- idea it's it's tough out there this one. I I will lose its just my opinion but in terms of bad economies this one doesn't feel as bad as the recession of 7980. And 81 that we had. However it's longer and there's no sign of -- coming out of that that recession you're too young to remember that that was a period of time June when. You know unemployment was very high was actually higher. Back in 1981. Then it was in 200820092010. The difference was we came out of we -- there was a reason for optimism we had a very optimistic president at the time knows President Reagan. And use a real good cheerleader -- great speaker and he made America. Feel better about themselves because -- -- down in the dumps at apple as a great actor Jimmy Carter said to put on a sweater don't turn up the heat -- yeah -- and that was he was very unpopular. Any and we didn't feel we were proud of ourselves with our hostages being held in Iran and as soon as Reagan got elected right Iran released the hostages in America started to feel proud again. This time I can tell -- this recession. I as I look at what's going on I don't think we're going off a cliff. Into a deep depression and that's the scoop is suggesting. -- is no evidence that we're gonna go into a deep depression anger. They sometimes think technology is to blame as well I mean our entire lives have been shaken up and restructured if you will because of things like the Internet and because of technology that's why a lot of people lost their jobs a lot of jobs have just gone away. A lot of skills have gone to the wayside because computers. And Internet and technology has taken over in these people can't get back into the job blah market well that's maturity there's two distinct societies people who have an education can -- work right near unemployment rate is well under 5% but if you don't have a skill if you don't have. Some kind of something different then you're in tough shape in terms trying to find work they were joined by our next guest is name is Jim Miller from the Motley Fool is got to. Stock picks force Jim good morning and welcome to the show. -- -- your first one is a company I've never looked at before I believe the X symbol is EXPD. Expedite her international of Washington is Aaron. What do they do. The area global logistics companies that means tea take. Shipments that many different companies are sending out of the country bundle a bundle them together put them on an airplane. Planes or ships can move across to where they need to be. Then. Take on the part. And then through customs and have a monitor destinations. And must be a pretty profitable business if you like the stock I mean it's a 38 dollar stock today. Looks a little pricey with a price to earnings ratio 22 to one in my reading it wrong. Yet knowing you're not reading it wrong. Remarkably that's on the most for this company historically has been up in the thirties and even in the top forty what kind of -- and -- Revenue grows generally about ten to 15% a year it's coming down -- it's. It's not a client that right now because of the recessions end and the problems in the slow recovery. But when when things are going well this company really related as well. So they rely on a lot of international trade. Oh yeah and that's what price so 37 dollars a share we think the stock might be worth and a couple years. More than it is today. Hopefully. 4050. Fifty dollar and I'd be pretty happy at pound shares were among shares -- seven years and just added my position recently. And you get the dividend on that one and a half percent right. -- a little -- Take it raised better than better what you get in the -- obviously money in the -- What about BP this is British Petroleum symbol is BP and the -- trading at about 38 dollars this year. Read it it is also has merit low and for the past year. And analysts are expecting very much about 5% annual growth over the next. So -- years while the industry they're expecting almost 17%. So BP does better than what analysts are expecting and I think that's the case. And I wanted to suspect. Other's company could this stock Prescott really turn around. I think people are expecting not very much because they're still worried about. The legal liabilities in the cleanup from the gulf oil disaster. From the macondo well that they were running. The Arab but they've reserved for that from what I've read. They have they've. Divested themselves -- bunch of noncore assets getting cashed. Put in a bank and and pay out when they need to. They've done over 23 billion dollars so far. And their cash flow is up. It reported last quarter. 2.4 billion for the first quarter up from 2.4. A year ago they have a very interested in and that five point 2% so expeditors. -- is that sustainable can they continue to pay that dividend is that's a robe oh yeah that and it is. Oh -- their payout ratios. 2030%. So that that's certainly sustainable. If this is a stock that a lot of people dumped right when he when they had the right oil slick and they just haven't gotten back into yet it appears. Possibly. Possibly I pick. The best on the body. Stocks and companies that are that are well run. BP and especially expeditors or when people aren't part in favor of them and so when he but actually be in. Do pretty well. Now listen with what. League how long do we have the waitresses get back when he gets back up to like fifty maybe sixty dollars a share again. It was up there as little as last year. But a year after the macondo well now I happen and so. It. Its share price is at that time is tied to the oil price and oil and coming down so. When oil stabilizes or return back up and recession fears. Stayed away again then I think there's this one's going to Iraq. Are -- -- Jim thank you very much for your time you always give us some great acts thank you. Thank you as Jim -- from the Motley Fool joining us today his two stocks knicks were Expedia. Well I'll give it that main port it's expedite here's. Symbols EXPB. And of course British Petroleum the symbol for British Petroleum is BP.