Coach Inc (COH) 2012 Review

Coach Inc (COH) designs, produces and markets high quality hand bags, business cases, luggage, leather outer wear and men’s and women’s accessories.

The company has grown profits 30%+ annually for the last ten years earnings a 40%+ return on equity. Its dividend has grown from $.08 in 2009 to an expected $1.12 in 2012. COH was not immune to the declines in consumer spending in 2007-2009; however, as the economy has improved, it has benefited from:

(1) improving comparable store sales and rising margins due to:

(a) product innovation,

(b) a market savvy pricing strategy,

(c) effective cost control program.

(2) continuing to expand geographically, especially in emerging markets

Automatic Data Processing (ADP) 2012 Review

Automatic Data Processing (ADP) provides payroll and tax filing services, brokerage services, comprehensive human resource services and financial services to auto and truck dealerships.

The company has grown profits and dividends 7-14% over the last 10 years and has earned an 18-20% return on equity. While the 2008-2009 recession impacted ADP somewhat, it did very well relative to other companies. Long term, the company should continue to prosper based:

(1) the economic recovery has led to an increase in both customers and the number of checks processed,

(2) the contribution from the recent acquisitions [8 in the last year],

(3) a dedicated effort to technological upgrades,

(4) its stock buy back program.

McGraw Hill (MHP) 2012 Reveiw

McGraw Hill Co. (MHP) is a global information provider serving the financial, education and business markets via Standard & Poor’s, McGraw Hill Education, Business Week, Aviation Week and Platts.

MHP earns an amazing 35%+ return on equity and has grown profits and dividends 8-12% annually over the last 10 years. While the company experienced profit difficulties in 2009, it recovered in 2010 and continues to grow as a result of:

(1) rapid growth in digital sales,

(2) improvement in the domestic corporate new issue market as well as the credit market services division,

(3) management’s significant efforts to streamline operations and lower costs,

(4) an expanded stock buyback program.

Schlumberger (SLB) 2012 Review

Schlumberger (SLB) is the world’s leading oilfield service company providing wireline, drilling and measurement and well testing services, completion, artificial lift, data and consulting services, land and marine seismic services and reservoir services.

Schlumberger has grown profits at a 16% pace over the past ten years; the dividend growth rate has been lower rate but management has stated that it intends to increase it in the near term. In addition, the company has earned a 11-25%+ return of equity over the last ten years. While the company experienced lower earnings in 2009, SLB profits resumed their up trend in 2011 and should continue to grow at an above average over the long term as a result of:

(1) its financial strength and technological leadership positions it to benefit from increased activity in oilfield services and simulation and completion services,