Hot Pick Of The Day

[New-born baby]

Beautiful!

$pike:
You did it! You actually cut the head off that dirty old snake ELN! Mucho congrats!

Seen any ascending triangle setups you'd like to post over here? You've been making me some money this past week. I traded CERS from $12.29 to $13.08 (let $13.15 slip out of my hand); INSM (traded twice for lunch money); AAPL short was nice; PTF was a money maker too, but I entered too early. Should have waited for your entry. I entered at $19.89 and $19.58. But I had sworn off ELN in 2004, so I didn't trade that one.

MM isn't the only one making us money. Thanks $pike!

[Lyehopper]

MM isn't the only one making us money.

I know of a little "manure spreader manufacturer" that might make you some money.

Sure has been good to me....jejeje

http://www.gehl.com/

[spikefader]

Lye, that crud scooper is HUUUGE hehe



P.S yer welcome NB! Thnx fer the props.

[New-born baby]

10 Cheapies

Yeah, MM likes the OB stocks. Can't even buy 'em if you have a broker like IB. So what's an investor to do? Buy these stocks!

10 Low-Priced Stocks to Buy Now
Low-priced stocks are tempting, because they offer the prospect of getting rich quick. Every one of the stocks here has the potential to do that for you. On the other hand, low-priced stocks bring higher risk to your portfolio, so if you’re prudent, you’ll reduce that risk by making smaller investments in these stocks and/or setting close stop losses in case a stock goes the wrong way.

So why are these stocks our favorites? They’re underappreciated and they have great potential for fundamental growth! Some are outperforming the market, meaning investors have been accumulating them, while others have just had steep corrections, meaning they’re available at bargain prices. We like them all.


#1 - AMERICAN ORIENTAL BIOENGINEERING (AOB) may be the most speculative investment here, simply because it’s a small company in China, where the accounting rules are looser than in the U.S., and the government has occasionally acted heavy-handed when private companies aroused its displeasure. Nevertheless, we like AOB because it has huge potential, simply because it serves a huge mass market – China – with basic consumable products. The company develops herbal medicines and health food supplements to treat a variety of ailments and disorders. Much of its output, from basic health foods to medicines, includes a soybean protein peptide that is produced by a proprietary technique. The company also produces Cease Enuresis Soft-Gel, the only Chinese FDA-approved first grade prescription medicine that is especially formulated to alleviate bed-wetting and incontinence. What’s more impressive than the products is the company’s financial results. In 2004, revenues grew 53% to $32 million, while earnings also grew 53%, to $.23 per share. In the most recent quarter of 2005, we see revenues up 98% and earnings up 60%. Profit margins are a fat 28%. The stock has been trading on the American Exchange only since July 2005, so it’s undiscovered by most investors. But if this growth keeps up, the stock is likely to be a lot better known in the years ahead.

#2 - CUISINE SOLUTIONS (FZN) prepares food for the Super Bowl, Costco, the first-class cabins of American Airlines and Air France, the MGM Grand in Las Vegas and large hotel chains like the Westin and Hyatt. But the company is more than an industrial kitchen; it’s actually a pioneer in the industry, using sous vide technology – literally, under vacuum – to prepare food that tastes better than it might normally under those conditions. The vacuum keeps all the flavor in the food, instead of releasing it into the surrounding air and water, and the low temperatures used in the cooking process mean less damage is done to the food. The company has been in business since 1970, and grown fairly steadily over the past decade. But the past year has seen acceleration of the company’s growth; the latest quarter saw revenues grow 70%, earnings jump 380% and profit margins hit a delicious 10.3%. We like the revolutionary nature of the product, and the potential for far greater growth in the mass market. Our biggest reservation: the stock is rather illiquid, with daily trading volume averaging less than 20,000 shares.

#3 - ENCORE MEDICAL (ENMC) has two main divisions. One designs, manufactures and sells artificial hips, knees, shoulders and spinal repair devices. The other focuses on patient rehabilitation, in both the clinical setting and the home, via electrotherapy, physical therapy tables, traction and chiropractic. These are obviously great growth areas in America, as the population ages and health care spending increases. And Encore has been busy acquiring complementary companies, while divesting operations that don’t fit well or that have thinner margins. As a result, the company has posted terrific growth numbers in recent years, growing revenues from $43 million in 2001 to $152 million in 2004. Profit margins are decent, at 4%. And the stock looks like a good value, selling at less than one year’s revenues.

#4 - GREY WOLF (GW) provides onshore contract gas drilling services in Arkansas, Louisiana, Texas, Mississippi, Alabama and the Rocky Mountain regions. Thus it’s benefited tremendously from the increased activity in the industry in the past year. But we don’t think the trend is over. And GW’s chart earns it a place as the sole energy stock in this collection. In short, the stock’s established uptrend appears not to have been broken by the sector’s big sell-off in October 2005. Furthermore, revenues have grown steadily in recent years, while earnings have soared in recent quarters. The deciding factor in whether this investment works out, of course, is likely to be the trend of energy prices. But as we write, the chart tells us investors in the know are betting that the long-term trend is still up.

#5 - LIVEPERSON (LPSN) is all about enabling companies to provide top-notch customer service, efficiently and affordably. Its core application allows customer service reps to chat (via web access) in real time with customers and prospective customers. Other integrated features enable the tracking of contacts made via telephone and e-mail. The program boasts more than 3,000 corporations as users, including EarthLink, Microsoft, Hewlett Packard, Qwest and Verizon. Revenues have grown every year since the company’s founding in 1995, while profitability was first achieved in 2003. In the latest quarter, revenues grew 31% from the year before, while earnings doubled. In this age of dwindling personal contact, LivePerson clearly provides value. It’s the leader in its industry, and we expect great success going forward.

#6 - MESA AIR (MESA) is one of the largest regional airlines in the country, operating 184 aircraft with over 1,100 daily departures to more than 167 cities in 45 states, Canada and Mexico. Most of its flights are under the names of America West Express, United Express, US Airways Express and Delta Connection. And it’s growing. In fact, since 1999, revenues have grown from $405 million to $897 million. The earnings track hasn’t been as steady, but there’s no doubt the main trend is up. In fact, Mesa was named Regional Airline of the Year by Air Transport World Magazine in 2005. And in 2006 it will start a new inter-island Hawaiian air service. So the company is well managed. But the real story here is the opportunity presented by the implosions of major carriers, who are saddled by pension obligations and union contracts. Mesa is clearly taking advantage of this opportunity, adding routes while majors drop them. And it’s operating efficiently, too, posting a profit margin of 5.5% in the latest quarter. High fuel costs? No problem for Mesa!

#7 - NUANCE COMMUNICATIONS (NUAN) was previously known as ScanSoft, and recently changed its name to better convey the entire range of its business. The ScanSoft business, which brings in 42% of revenues, develops software for scanning and optical character recognition (OCR), and these products are used by virtually every major vendor selling products used for scanning and OCR. These include Autodesk, Brother, Dell, Filenet, Hewlett-Packard, Lexmark, Microsoft, Symantec and Xerox. But the main segment of the business, contributing 58% of revenues, focuses on voice recognition software; these products are used by people calling directory assistance, receiving account information over the phone, dictating patient records, and much more. Customers include AOL, Bank of America, British Airways, CitiGroup, Daimler Chrysler, GE and Nokia, among others. The company’s growth has been terrific in recent years, with revenues growing from $43 million in 1999 to $178 million in 2004. Profit margins are healthy, at 10.5%. And the stock, which had a long slow correction from 2002 through 2004, is now uptrending again and looks attractive to us.

#8 - QUIDEL (QDEL) is the market leader in point-of-care rapid diagnostic tests for detection of medical conditions and illnesses. Its first test was the dipstick-based pregnancy test in 1984. These are still the company’s biggest product, accounting for 29% of revenues. But they’re complemented by tests for strep, influenza, H pylori, Chlamydia, infectious vaginitis, mononucleosis and more. Revenues here show a general long-term uptrend, interrupted by the occasional blip when the company divests a weak product and acquires an attractive one. Most recently, for example, it divested its urinalysis business. In any event, management is clearly focused on growing the business, suggesting that a long-term investment here will pay off well.

#9 - READYMIX (RMX) is in the cement business, with three concrete batching facilities in Las Vegas and two in Phoenix. It operates its own quarry in Nevada, which provides a very high-grade product. And business is booming, thanks to good management and the construction boom in both states. But the main reason to buy this stock is that it’s a profit-making growth company that’s available cheap. Revenues have grown from $20 million in 2000 to $59 million in 2004, yet the company, as we write, is valued by the market at $45 million. Also, it’s been profitable in every quarter since the first quarter of 2002. Finally, the stock is young. It came public in August 2005 at 11, peaked soon after at 17, and then fell back to 12, in October. Our guess is that the path from here will be up.

#10 - TATA MOTORS (TTM) is the largest manufacturer of vehicles in India, with revenues of $3.2 billion in 2004. That’s up from $2.0 billion in 2003 and $1.6 billion in 2002 – growth Ford Motor would die for! And it’s profitable, too, though the numbers may not be quite as trustworthy as Ford’s. So we see opportunity here, partially because the stock is rather young and unknown. Sure, the company is old; it’s been around since 1945, and captured 25% of the Indian vehicle market in 2004. But the company just came public in late 2004, around 9. And it hasn’t got far since then. To us, it looks attractive.


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[New-born baby]

Update

FDG dropped to $38.00, and has since bounced back up to the $39.25 mark or so. Right now I think she is based, preparing to pop higher . . . .

I recommended FDG a few weeks ago. Now she's at $41.50 and making a divy run. Divy is to be about $1.68 or so (Canadian exchange rate on the payout day will determine the exact dollar amount). Still rates a buy.

[New-born baby]

Xle

XLE is at a crossroads. XLE needs to move past the $55.50 mark to continue its advance, but it appears in the pre-market that that is not going to happen. It is beginning to look like oil is going to again retreat back down to the $55-$56 in the next few days. That means the oil stocks are going to be bearish this week. Again, one bomb in Saudi Arabia could change things very quickly. Expect VLO to retreat today.

[Adam]

VLO retreating.

TTM I had this one on my watch list two months ago. I was a little weary to jump in. I guess you feel there is still strenght left. It's been pretty steady.

[Adman]

VLO retreating.

TTM I had this one on my watch list two months ago. I was a little weary to jump in. I guess you feel there is still strenght left. It's been pretty steady.

I like Tata Motors a lot. As a matter of fact, I like India a lot. I have a ton of IFN that I've owned for 3 years, with a total cost basis of $16 (now over 50, with some legs left). I picked up REDF on 1/24 at 15.01 and had a programed sell for 33, which hit on 2/8. That's the exception, not the norm, but I digress. TTM: I am in for 1200 shares, bought in 3 trades of 400 shares each, for a cost basis of $12.78. I bought 10/28 at 10.27, 12/2 at 12.16 and 2/2 at 15.93. I am looking for it to hit 24 in mid March, at which time I will sell off 600 of my shares, and look to sell the rmaining 600 in the 28.70-29.10 range by 4/14.
Normally I would walk right now with 6,200 on a 15,300 investment in a 3 or so month period, but there is a lot of action and traction to come in the next 7-8 weeks. To be fair, I have a sell in on the downside at 17.16, to protect myself from any unforeseen circumstances.

[Adman]

Another one that I like, but have not bought yet is VTSS. At $3.15, Vitesse could be a short term play for a quick 10%. I can see this going over $3.50 in a short run (week or two). I will wait and see what it opens at in the AM. It trades on heavy volume, so going in for 5000 shrs will be enough to make me happy, even with only a ten cent move.

[Bean Stocks]

TRID or SMSI. I own neither.

[Adman]

EH quote on VTSS has a 3.07 bid with a $3.25 ask. Last nights close was $3.15. I am puttting in a limit for 5000 at 3.12. Let's see what happens.

[Adman]

TRID or SMSI. I own neither.

Both are nice. I got in to both Smith & Trident last spring at 3.50 and $7.40, respectively. I sold 50% off last Wednesday of the Smith, and 50% of Trident yesterday. I love them both and believe there is still room to run on them, but, bulls make money, bears make money, pigs get butchered.

[New-born baby]

Cooper picks?

Here's a couple of possible Cooper 1-2-3-4 turnarounds:
NVDA and SHLM.

[DSteckler]

Neither of those are Cooper candidates, NB. The RS rank is too low, 90 and 77, respectively. It needs to be 95 or higher to be a Cooper stock.

[New-born baby]

Thanks, Dave!

Neither of those are Cooper candidates, NB. The RS rank is too low, 90 and 77, respectively. It needs to be 95 or higher to be a Cooper stock.

Thanks for the correction, Dave I appreciate it very much!