Howdi stonedinvestors The market will hit a new high on Friday, Oct 12. Being the all too scary October period and being that we really haven't truly felt the pain of this mortgage situation, I think that would be a good time to take money off the table. People have accused me of being too bullish in the past of buying throughout downturns so I hope to follow my own advice in this case. I have been watching the 11th of Sept as a longer-term cycle momentum peak date for a market turn. With prices moving lower coming into the window, the low came in a day early- as did the turn. The point is we have a clear decline into the turn date and a change of direction from down to up within the turn window! This is what LT cycle investing is all about! The S&P 500 blasted above 1460 and chart resistance at last Wednesday's low, 1468: From a PRICE stand point, it's a perfect set up. The trend line is broke and the SPX closed well above the 1468 resistance line. 1440-1442 will be a little problamatic next week but I look for a consolidation with minor support at 1460'ish. Upside Fib extensions are around 1484 to 1486, which if reached will target the recent highs of 1500. Looking out a few days, the one thing we have to watch for is a rally up to 1500 that then completely stalls out. This would be typical of this market's mood right now. Short term traders would probably sell & wait to reload here. There is very likely a small downside reversal coming about one week from today. The NASDAQ is our friend though & has traced out the basic elements of a low level cup with handle formation. We still have a ways to go before we see a real upside breakout, at this point the pattern is still forming- but of course it carries a bullish message. The next Longer-term cycle turn date is Friday October 12, technically due to be a high. Total volume contracted from Monday, which obviously isn't the greatest action for the bulls. But once again it's where the volume is- Volume solidly to the upside- which makes volume analysis tough now on the market. Buying pressure does continues to improve, allbeit at a modest pace. Technically the market remains in an under bought condition. Even with the big upside price moves, the 5-day RSIs remain low. Now we have set the stage... what are the Best Ten Buys Right Now? To Be Continued Soon..... ~ stoney
Ok here's the deal. Naming 10 stocks that will all go up or not lose you money is damn near impossible, we have done it before on this site and we hope to do it again now. Usually I try to give 10 stocks I am looking at buying rather than giving any names I already own. It's not that I don't want to talk up my book- I love to! But rather it's sort of cheating research wise cause' I have so much prior knowledge of the stocks strengths and weaknesses, new ideas are always more fun. HOWEVER this is a narrow market so a few of these I own but the catch is I'm only giving names I am buying more of today and from here on out. * * * * * * * * The First Stock To Buy Is... 02 Micro (OIIM). Loyal readers of ET know I like this name. O2Micro . O2Micro has a strong position in the notebook computing market and a growing position in the LCD monitor and LCD TV markets. Management has focused investments into these new vertical markets, attempting to broaden its product portfolio. June quarter top-line was in line with the consensus estimate while bottom-line results outperformed consensus estimates. Forward guidance is for a 12-18% revenue increase. The LCD TV markets represent an opportunity to grow its revenue base and boost margins to the low sixties. I'm buying today at $15 with the same confidence I had at $9 which is saying something.
The Second stock To Buy Now Is Telular. I just did @ $6.10 WRLS. (WRLS) Telular raises Y07 Telguard guidance to $57-59 mln from $53-54 mln, with Q4 Telguard revs of over $20 mln. During the current qtr, co has seen a dramatic increase in sales of its fully digital line of security products fueled by the approaching analog cellular sunset date. Previously, co estimated Telguard product revenue was expected to grow 30% q/q for Q4 and now estimates that growth to exceed 90% q/q. CEO says, "Telular has seen sustained demand for new placements of digital cellular communicators and accelerated demand from its dealers for analog to digital upgrades. Telular's market-leading portfolio of digital solutions is supporting the economical and seamless conversion of wireless alarms from analog to digital." I've been hawking this name I love it but it is a small market cap, this stk will go to $8. ~ SI
I think I'm going to have to leave it at 3 for today folks the wife just called sounding plenty pissed off but the Third Stock To Buy Now is DG Fastchannel! (DGIT) Bet you haven't heard of that one! I bought it today and have been following for many months you can buy with confidence. I'd love to give you the glowing Oppenheimer research of earlier this week but i've misplaced it. Suffice is to say I love this company and their niche. DG FastChannel, Inc. provides digital media delivery services to the advertising and broadcast industries. It offers online creative research solutions consisting of an online database of content and credits of U.S. television commercials for the advertising and TV commercial production industry; media production and duplication services, including storage of client masters or storyboards, editing of materials, tagging content, dubbing, video duplication, and copying of media onto various physical multimedia formats; distribution services comprising electronic and physical distribution of broadcast advertising content to broadcast stations in the United States and Canada; media asset management solutions; and broadcast verification solution, which allows customers to monitor and confirm accurate airplay of their broadcast commercials. DG FastChannel has an online media distribution network used by approximately 5,000 advertisers and agencies, as well as approximately 21,000 online radio, television, cable, network, and print publishing destinations. Got to Go!
Dressed and awaiting my marching orders! Just time to slip in a quick one. The Fourth Stock you should buy now is... JAMBA Juice! Well you can't put out 10 without a comeback play or two and any look at that chart will tell you this will be a comeback. I was one of the fools who bought right off the bat with this name and had to bail. Now we have the first round of SIGNIFICANT insider buying since the IPO! JMBA Jamba Inc (NASDAQ GM) 7.11 +0.09 ( +1.28%) 11:36 AM ET 9/12/07 Last 10 Insider Actions Date Name Shares Transaction 9/07/07 RAMON MARTIN-BUSUTIL Director 7,300 Open Market Purchase Cost $49,932.00 9/06/07 DONALD D BREEN Chief Financial Officer & Senior Vice President 5,000 Open Market Purchase Cost $0.00 9/06/07 PAUL E CLAYTON Chief Executive Officer 50,000 Exercise of Stock Options at cost of $339,500.00 9/06/07 DE CHATELLUS GUILLET Senior Vice President-International 6,000 Open Market Purchase Cost $42,120.00 9/06/07 DONALD D BREEN Chief Financial Officer & Senior Vice President 5,000 Open Market Purchase Cost $35,200.00 9/05/07 RICHARD L FEDERICO Director 15,000 Open Market Purchase Cost $102,900.00 >> And it happens to coincide with a breakfast concept roll out yes stepping on SBUX's turf perhaps, they were at two conferences this week, one today at 2:30 I'm not expecting anything drastic out of them but this insider commitment is nice and puts a floor on these shares at $7 what's to lose? ~ SI
Stock's number 5 & 6 come from the retail patch where we just had a good round of panic selling. The fifth Stock You Should Buy Now Is ANF! @ $78 it's just a gift see ya at $90 x-mas time. The Sixth Stock You Should Buy Now Is LUX! Little more iffy here but it's been a slam down from $39, the Oakley merger is done and they are opening up stores like crazy in China. When you read through the earnings report you see this is really a company getting hurt by low dollar/Euro comparisons. If things were more normal there, the earnings would be through the roof. Still battling that headwind earnings are still damn good and the PE low.~ stoney
We need an infrastructure component to this portfolio and I think the best is Chicago Bridge & Iron! The Seventh Stock You Should Buy is CBI! I own it @ $36 but it's a steal anywhere under $40 and Hillary Kramer is out yesterday with coverage. The ever-increasing demand for energy has meant booming revenues for companies like Chicago Bridge & Iron Co. (CBI), which engages in construction and engineering services for natural gas, petroleum, and petrochemical companies. CBI also works with water, metals, and mining companies, among others, but it's best known for its work on refinery units, liquefied natural gas terminals, and the like. CBI is in a very competitive business, but it has been securing many contracts, and revenues have more than doubled over the past few years. But it's not all roses for this company; margins have been hurt by high construction costs, and the second quarter saw net income down by more than 20% compared to the second quarter of 2006 -- despite the fact that revenues were up 36%. Some analysts feel this company is too risky, but everyone agrees revenues are likely to keep growing steadily. The second quarter brought new awards of $2 billion, compared to $636.8 million in the second quarter of 2006; for the first six months of 2007, CBI has won contracts of $4.1 billion compared with $1.5 billion in the first six months of 2006. It's this impressive backlog that encouraged Bear Stearns to release a positive report on the company; the Bear analysts expect a strong second half and a strong 2008, and argue that this is a company that will see some short-term pains for long-term gains. I think they're right, and this is going to be a stock to own for the next few years. I also like CBI as a short term trading stock as the shares are very volatile these days so you can capture two or three points as it trades up and down within a range wide enough to offer some short term returns. Infrastructure companies like CBI are sensitive to interest rates changes because their projects are correlated to the cost of financing -- an important topic driving our fickle and hyper-sensitive stock market these days. Type of Stock: A construction and engineering company serving the energy industries and their increasing demand. Price Target: CBI has lost nearly $8 since mid July, and it lost about $5 in value after the second-quarter profits came in low. But I think this means you now have a chance to grab this at a discount and hold it through 2008. Bear Stearns expects the stock to hit $45 in the next 12 months. I think it's a good buy at $37, and anywhere below $40.
Alright home stretch Folks only three more stocks to buy. I know it's not easy just keep hitting the buy button. We are now in the area of the unbought as I have run out of funds. So These final three are in the loading dock as it were and may be changed out for something else in the near future stay tuned. The Eighth Stock we all should buy is defense contractor EDO! EDO Corp shares hit an all-time highrecently following a rating upgrade by CIBC World Markets, which cited the intent of the Defense Department to raise the ceiling value for the company's Spiral 2.1 CREW devices. According to a Pentagon statement, The Naval Sea Systems Command would like to procure an additional 10,000 devices, which are vehicle mounted and used to jam signals to radio-controlled roadside bombs. CIBC World Markets analyst Myles Watson said the new ceiling could add up to $700 million in revenue. He raised his rating on the stock to sector outperformer and lifted his price target to $53 from $40. "While the stock has had a strong run YTD, the new contract should continue the momentum," Walton said in a note to investors. EDO shares recently traded at $48.15 a record high for the stock... Ok now that very same CIBC analyst I believe has raised the target again to $57 just this week still crossing the t"s and dotting the i's on my DD. I do know Friedman Billing went to $63 from $55. So there's good momentum building here and a new project we can stand behind as Americans. Who wouldn't want to stop the roadside bombs in Iraq blowing up our kids? I've been waiting for some contractor to come up with an idea to defeat them and have been damn surprised it has taken this long. ~ SI
The Ninth stock I think we should buy is discovery Channel. (DISCA) @ $26. honestly this is not my favorite cable channel or group of assets but this comes solidly from the Hedge Fund Community a whole lot of group think is very long this name and the way these guys talk to each other I can only assume this is a buyout story and a good one at that. ~ SI
Alright we come to the end of our exercise in wealth creation and our Tenth Stock We Should Buy Now Is... I'm leaning towards Nighthawk @ $22-$23. NightHawk was a high flyer before a selloff earlier this year. Profits, however, are growing at an eye-popping pace thanks to acquisitions, NightHawk's efforts to tackle new mkts, and growing demand for its services. And though up, the small-cap health-care stock continues to fly under the radar. "It's basically a growth stock trading at a value price," says Craig Hodges, of Hodges Fund. "Current earnings growth makes it a compelling story, but the stock is undervalued." Stoney has sent this one upstream for analysis so back to you on that my other name I was considering is Harmonic Lightwave @ $10. There you have it the best of the best the creme de la creme- the AROD's of stocks from the research department of stonedinvesting to you free of charge. Peace & An Up Market To You All! ~ stoney