6 U.S.-Based Picks for the Global Economy

3/12 - "Trico Marine Services, Inc. (TRMA) has been the benefactor of strong international growth and very favorable international tax regulations, both of which contributed to the company's very strong fourth quarter and full-year results, reported on Feb 19...Income for the quarter totaled $30.7 million on revenue of $65 million, producing earnings of $2.08 per share, well ahead of analyst estimates...The strong quarterly results mark the fourth time in four quarters that Trico has surprised and beaten estimates, having done so by an average of 20 cents, or 27%."

"Moving forward, the focus of the chart is the wedge formation that is squeezing shares into a consolidation pattern. As shares continue to establish higher lows within the channel and apply upward pressure to the top-side of the channel, momentum is clearly in this stock's favor. Look for shares to eventually breakout from the consolidation formation and advance to the 52-week high which is close by at just above $43."

3/24 - "We believe this provider of industrial services and products to mostly the steel, energy and infrastructure markets is well positioned to benefit from long-term capital spending trends around the globe in these industries. About 66% of Harsco’s revenue was generated outside of the United States and Canada in 2007. We see considerable opportunity for the company to add to its services offering and broaden its potential customer base. For example, much of the work it does at steel mills can also be provided to facilities processing other metals. We also expect an expansion in Harsco’s geographic footprint, with a focus on faster-growing markets in Eastern Europe, Latin America, and Asia."

"Harsco has augmented its growth over the past four years through fill-in acquisitions. In our view, these carefully screened purchases have strengthened its core business segements by adding technological expertise and new products and boosting overall scale."

"Equally blending our relative P/E and discounted cash flow methodologies, we arrive at our 12- month target price of $73."

2/7 - "WW recorded another great Q, w/ revs of $447M beating us by $25M. The Q’s 22% YoY growth is the highest recorded by our model, as recent European acquisitions contributed to topline, and organic growth (in cc) remained impressive at 9% YoY. EBITDA was $12.4M above our est., w/ 17.4% margin beating us by 190bp. EPS of $0.82, beat us by $0.13."

"As was evidenced in its FY2Q08 results, we believe that WW continues to see healthy demand across practice lines and geographies and remains well positioned to overcome any near-term disruptions from a potential economic downturn given its global mix of business, well diversified portfolio of offerings, (several of which are relatively acyclical), and a substantial proportion of recurring revenues."

"Our $55 PT presumes a P/E multiple of 17x our CY2008 EPS of $3.21, in line with the mean of where the peer group trades. Moreover, due to the strong cash flow characteristics, shares also look cheap on EV/EBITDA, trading at just 6.7x CY08 EBITDA, a 13% discount to peer average, and a 2009 FCF yield of 4.9% (2008 is understated due to acquisition). Our DCF ranges from $52- $60 (WACC 10.2%). Risks include a global economic slowdown, share overhang, integrating acquisitions and regulatory changes."