David Fried, Buyback Premium Portfolio - (TK) - (RCII)

David Fried, editor of the Buyback Premium Portfolio, updates investors on the long- and short-term performance of his portfolio. Check out the returns. Then find out what this featured expert has to say about two stocks that he is recommending. Read about Teekay Shipping and Rent-A-Center. Mid-October Update from October 16 Click here to find out more! The Buyback Premium Portfolio declined 4.76% vs. a gain of 2.46% in the S&P 500 last month. As of the close of trading September 29, 2006, this portfolio is up 129.33% since inception (August 2, 2000) vs. a decline of 7.09% in the S&P 500 over the same time frame. The Buyback Premium Portfolio is beating the S&P 500 by more than 136% since its inception (August 2, 2000). New Premium Portfolio Recommendation Teekay Shipping (TK) has its corporate office in Nassau, the Bahamas, operational headquarters in Vancouver, Canada, and it is incorporated in the Marshall Islands. The company’s 5,100 employees in 17 countries operate a fleet of more than 140 tankers carrying crude oil, condensate and petroleum products, and liquefied natural gas. They also perform maritime services for clients in the oil and gas drilling and refining businesses. Teekay Shipping says that it transports more than 10% of the world's seaborne oil. It has ventured into liquefied natural gas shipping through its Teekay LNG Partners unit. Over the past 12 months, Teekay has earned $309.38 million and generated $504.5 million in operating cash flow on total sales of $1.91 billion. The stock trades near $40, which is only eight times expected 2006 earnings per share. The company has a market capitalization of $3 billion. Rent-A-Center (RCII), the largest U.S. furniture rental chain, operates more than 2,880 company-owned rent-to-own stores in 50 states, Washington, D.C., Puerto Rico and Canada. The stores generally offer high quality, durable home furnishings to consumers under flexible rental-purchase agreements that generally allow customers to own the merchandise at the conclusion of an agreed-upon rental period. Their network of stores are called “Get It Now” or “Rent-A-Center,” and virtually anything you might want to buy for your home, they offer for rent -- consumer electronics (high definition televisions, home theater systems, video game consoles, stereos), appliances (refrigerators, washing machines, dryers, microwave ovens, freezers, ranges), computers (personal, laptop), and furniture (dining room, living room, bedroom) and accessories (pictures, lamps, tables). The only things you need to actually buy outright for yourself are food, clothing and sheets! Days ago, Plano, Texas-based RCII announced a $576 million deal to buy Erie, Penna.-based Rent-Way Inc., a rent-to-own chain operator. Shareholders of Rent-Way will vote Nov. 14 on that proposed sale, with the deal expected to be completed in the fourth quarter. If, for some reason, the shareholders reject the plan, Rent-Way owes RCII $21.6 million in termination fees and expenses. The first six months of the year have been financially good for RCII. Total reported revenues for the six months ended June 30, 2006 increased to $1.191 billion, a 0.8% increase from $1.182 billion for the same period in the prior year. Same store revenues for the six month period ending June 30, 2006 increased 1.4%. Reported net earnings for the six months were $80.2 million, or $1.14 per diluted share, an increase of 5.6% for the same period in the prior year. This article highlights the commentary of David R. Fried for the Zacks.com audience. David R. Fried provides insightful analysis, market commentary, and favorite recommendations on a timely basis in "Buyback Premium Portfolio" newsletter. Try it free for 30 days and see if you can improve your investment performance. Learn more about "Buyback Premium Portfolio" and 30-Day Free Trial. And get immediate access to current issues and special reports. Click here now. Here’s How You Can Profit from the Pros Find out what other leading experts are saying about the market. And what stocks they are recommending. For free. Just sign up for our free email newsletter, Profit from the Pros, where we’ll give you the commentary, advice, and insight from those rare few experts who consistently beat the market year in, year out. | Blog Home| VitalStocks Home