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Mr.Market,
TXRH Texas Roadhouse doesn't seem nearly as good as the rest. The other 4 are hard to choose among. STAR has the best earnings with TIS and VPRT a bit lagging. SNX might be a little weaker . I'll go with earnings and say it's nearly a tossup between TIS and STAR. I pick STAR and think TIS is too extended in price right now.
i like all of them but i would go with TXRH over the rest of them as it is the cheapest and most consistent trend up. one thing of importance that i see with all 5 of them is that all their moving averages, and i use the expotential averages (ema's) over the simple (ma's) are tracking the exact same way with the 20 ema over the 50 ema and the 50 ema over the 100 ema. this is significant when looking for the long side move for the shorter time frame moving average to be tracking above the next higher moving average. so the 20 ema should be above the 50 ema and the 50 ema above the 100 ema. all 5 are very nice charts for the long side play.
STAR because of overall earnings and the fact that the number of institutional funds purchasing STAR has increased form 73 to 97 in the last quarter indicating real institutional support.
i would be careful with STAR and that recent gap up. it could easily correct and fill that gap. that would then be the spot for an entry. TXRH is also correcting and digesting some of those recent gains. it looks to be in a nice spot for an entry right around this level.
Hello MrMarket. I like STAR's business model, earnings, and chart, especially yesterday's action that ended in a near hammer and almost filled the gap. It hasn't held the 9 dma but recovered above the 20 dma yesterday. It has support at about $17.75. Looks nice for a bid near there.
In comparison, in reading parts of TIS's 2008 annual report, I was startled to read about this particular business risk: (Oklahoma is tornado country but the last major tornado in Pryor, OK was in 1942; the risk seems minimal for that, but really old machines? I think no long term hold for this one)
"Our paper mill may experience shutdowns due to unforeseen operational problems or maintenance outages which may cause significant lost production which will adversely affect our financial position and results of operations.
We currently manufacture and process our paper at a single facility in Pryor, Oklahoma. Any natural disaster or other serious disruption to this facility due to tornado, fire or any other calamity could damage our capital equipment or supporting infrastructure and materially impair our ability to manufacture and process paper. Even a short-term disruption in our production output could damage relations with our customers, causing them to reduce or eliminate the amount of finished products they purchase from us. Any such disruption could result in lost revenues, increased costs and reduced profits. Three of our four paper machines are approximately 50 years old. Unexpected production disruptions could cause us to shut down our paper mill. Those disruptions could occur due to any number of circumstances, including shortages of raw materials, disruptions in the availability of transportation, labor disputes and mechanical or process failures. If our mill is shut down, it may experience a prolonged start up period, regardless of the reason for the shutdown. Those start up periods could range from several days to several months, depending on the reason for the shutdown and other factors. The shutdown of our mill for a substantial period of time for any reason could have a material adverse effect on our financial position and results of operations."
Here are my five favorites from the most recent data dump. I will buy one of these in the next few days:
SNX STAR TIS TXRH VPRT
Which one do you like?
SNX and TIS are the standouts. VPRT would be third and I wouldn't touch STAR or TXRH with a ten foot pole.
SNX hasn't gone up on high volume, which would be a concern of mine. TIS has such low market cap that I think holding short term (<30 days) would produce gains, but it's too volatile to hold any longer than a few weeks. VPRT is going to a be a victim of profit taking once it does pop again. I'd buy VPRT on volume (over 1 million) midday and dump it before the day is over for a couple percentage point gain.
SNX: buy if holding 30-60 days
TIS: buy if holding <30 days
VPRT: buy if holding <1 day
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