INVESTING STRATEGIES

http://www.thestreet.com/story/13502519/1/why-you-should-look-to-losing-stocks-for-a-winning-investment-strategy.html?

EYES ON BX

Expecting future returns from BX,

https://twitter.com/InvestWithConf/status/694723496614707200

https://twitter.com/RatingsNetwork/status/694631080922583042

Stock Talk: ADDITIONAL COMMENTS

For additional comments, check out:  Ernie Z - Twitter

GETTING TO LIKE ESNT

Showed up in our latest research ESNT could turn out to be a stock to own.
http://lulegacy.com/?p=680631

CBI IS DUE FOR A POP

Nice chart pattern, holding above its 50 dma, good volume make CBI a good prospect.
https://t.co/IW1lTEpLo7

RDC TREND

RDC may continue its upward trend as oil rises, only a matter of time.
https://t.co/ToVNU8ejip

INVESTING IN ETF'S

ETF's simplified:  https://t.co/jyMq2ORsXi

GOING LONG ON CCJ

Back in the game with CCJ, trading today at 11.82; betting that it could find support now at a seven year low.

AYR HOLDS FIRM

Markets down about 1.5% this morning, AYR is holding at 20.57 with a slight gain aided by insider buying. This action could be viewed as a sign of resilience.

WHAT WE HAVE LEARNED FROM MARKET CRASHES

Today may turn out to be one of the worst market days in recent history.
We are keeping our eyes on securities that have the most resistance to the trend; in other words, track the stocks that hold their value while the rest plunge.  Soon enough these companies will present buying opportunities as the dust settles.
Meanwhile, hold on tight, it's going to be a rough ride!

NOT DONE YET - TRS

Another dismal day for TRS.  It is obvious that the selloff is not over, we must be patient in finding a comfortable entry point.  Trading this morning at 16.55, down another 11%.

TROUNCING OF TRS - IS IT AN OVERREACTION?

Since July 1 of this year, we have seen the price of TRS deteriorate from the 29.60 level.  

This morning, after an earnings report that missed estimates coupled with lower forecasts, the stock is trading at 18.90, down 17% for the day and a 37% loss in just over one month. 

Trading volume in the first ninety minutes is triple the daily average.  At this point, I believe that we are experiencing and overreaction and could see a partial bounce back in the next few weeks.  

HAPPY RETURNS FROM GDOT

Looking back at our February 10, 2015 post we saw possibilities for a turn around on GDOT (then at 15.22).
It is obvious that patience paid out in a big way.  Yesterday the stock closed at 21.52 after a surge of 6.21, a gain of 40.56% for the day.
After four and one half months, we see a 41.39% return on the suggestion.

CYBER SECURITY PLAY UPDATE

Back on February 16 of this year an obvious play on cyber security came into view.  In that post HACK (an ETF), then trading at 28.24 was mentioned as a good candidate for future upside potential. Yesterday's closing price of 32.46 represents an approximate gain of 15% compared to a loss of the S&P 500 of close to 1% for the same period (four months).  To date, investing in HACK has proven to be a good move... not done, yet.

UPDATE ON FAX

This may be an opportune time to add to FAX (5.38) holdings.  Read following link and decide for yourself.  FAX was mentioned in this blog on 10/20/14 and on 2/16/15...  a bit early, but patience may pay in the long run.

http://www.cnbc.com/id/102513830

FOLLOWING IYG

One way to profit from the Costco decision to cut ties with American Express and go with Citi Visa is by investing in IYG (90.39), an ETF with sizable holdings on C and V.

http://www.marketwatch.com/story/costco-names-citi-visa-as-credit-partners-2015-03-02-81032148?mod=MethodeStories&link=sfmw

OIL WILL REBOUND

If you think that oil will rebound in the near future, then a good stock to place your bets is in ATW.  Expect support at the 50 dma (approx. 29.90).  Trading this a.m. at 30.62, it presents us with a buying opportunity provided support holds.

LONG ON HLX

This morning HLX is down 17% at 15.76 on lower than expected earning forecasts.  Once the dust settles, we may see a buying opportunity on the premise that today's drop is an overreaction. Slowly going long on HLX.

CYBER SECURITY PLAY

As more cyber attacks are perpetrated on banks, insurance companies and retailers; the logical sector to benefit is cyber security.  Rather than choosing one company, I'd opt to invest in HACK (28.24), a cyber security ETF.

FAX IS STILL IN FAVOR

I still like to stash some cash is in Aberdeen Asia-Pacific Income Fund, Inc. (FAX) Friday at 5.49.  Annual dividend at about 7.5% paid monthly and a strong US$ vs AUD make FAX a good prospect for continued returns which would increase as the AUD regains strength.

BETTING ON THE RETURN OF HLX

Perhaps a little bit early but this may be the right time to start buying HLX (19.00) again.  Expecting a comeback of higher oil prices, this oil services company will see better days in the future.

GDOT COULD BOUNCE BACK

After taking a beating on 1/30/15, GDOT may have found support at this level.  Trading today at 15.22 this could be an entry point since the stock appears to be oversold.

CONSIDER EWM (MALAYSIA ETF)

Closing yesterday at 13.09 EWM is ready for a turn-around.
https://www.tradingview.com/v/PDIeW260/

HLSS IS TAKING A BEATING

HLSS (14.29) cannot find support.  Cutting losses, walking away from this one.

FINISHED WITH FNSR... FOR THE TIME BEING

FNSR (19.09) has not shown enough strength to continue the near term bullish move.  We are taking about a 14% profit after 8 weeks (posted comments on 11/10/14, 11/17/14 and 12/24/14).

MORE ON FNSR

In this blog on 11/10/14 FNSR looked attractive trading at 16.82.  On 11/17/14, then at 16.67, we expected a surge as it crossed the 50 dma; it did.  Now at 19.77, FNSR still appears poised to tackle the 200 dma at 20.53.
Holding on to our long positions.

DON'T FOLLOW THE MASSES

Dow at 18,000: A buy signal for retail crowd?

.http://www.cnbc.com/id/102253774

Don't be impressed by round numbers.  Concentrate on value and quality holdings.  Be ready to exit positions when euphoria reigns

MORE ON OIL

Check out other views on oil:  http://cnb.cx/1Dsq1y8 

MARKET CYCLES "B-R-O"

It seems that over and over we see cycles in the stock sectors.  What is hated and out of favor today will turn around and become the honey of Wall Street.

From the lows of early October '11 financials and major banks have, in many cases,  doubled up in price.  This move has not seen the top and may continue.  An  ETF that follows the action of major banks is KBE.  Along those lines, a similar action has taken place in REIT sector.  Check out IYR.

Which areas of the stock market are bound for a turn-around?  In my opinion, I believe that in the coming months we'll continue experiencing trend reversals in "B-R-O" (banks, REIT's, and then oil).

The oil sector is at its worst in several years.  Patience in finding a base and an entry point where we can profit on the inevitable turn is the sign of a good investor.  The oil industry is followed closely by XOP, an ETF.  Several months from now I expect to see a reversal in prices for oil, stock value for oil producers, and the oil service industry.  It's a matter of time.

LQDT IS GETTING TRASHED AGAIN THIS MORNING

The only question left is: "what's next?".  Pre-market trading at 8.50, a new multi-year low, LQDT is taking a major beating for the third time in eight months.  Looked attractive in late April, wrong call, my bad.

RIDE THE MHLD TRAIN

Dividend at 4.0%, P/E at 10, book value at .85, and increasing earnings.   MHLD at 13.06 is hard to ignore.

FNSR UPDATE

FNSR (trading at 16.67) is still holding just below its 50 dma (now at 16.71).  Expect a spike in stock price if and when the 50 dma is breached.

TAKE NOTE OF FNSR

The stage is set for FNSR to confirm and break above the 50 dma (now at 16.87).  A close above this level could give us some happy returns.

CONSIDER BX

With dividend in the range of 6.4%, Blackstone Group (BX) closing at 29.89 today, appears to be poised for a renewed upward trend.

TAKING PROFITS ON HLX

In at 22.33 on 9/30/14, out today at 25.20.  Happy to take profits on HLX, that would be a 12.9% return in about three weeks.  Will keep an eye on this one for buying oportunities.

PARK SOME CASH IN FAX

In my opinion, rather than cd's a better way to park some cash is in Aberdeen Asia-Pacific Income Fund, Inc. (FAX) today at 5.84.  Annual dividend at about 5.6% paid monthly and a strong US$ vs AUD make FAX a good prospect for continued returns which would increase as the AUD regains strength.

A Base for HLX

Expecting support for HLX (22.54) somewhere around low 22's.  Considering going long.

BOTTOM FISHING FOR RETURNS

How long can FNSR (19.26) can be held down?  The stock price needs to close above 19.97 in the next few trading sessions for a positive sign.

AN EYE ON CYS

Great dividend, may continue its upward trend.  Worth a look CYS (9.32)

READY TO RISE ABOVE THE 200 DMA

On a day in which most stocks are down, CCJ (20.81) manages to show some strength.  This stock has crossed above its 200 dma (20.78), should it close above that level I would view it as a positive signal and confirm this blog's comments of 5/20/14 (then at 19.61).

CLAWING BACK OUT OF THE BASEMENT

ACAT (38.52) has the potential to turn around and realize some profits for those who have patience.

STILL IN FAVOR

HLSS could resume its uptrend (22.80)

NO GO

A bit early on HERO.  Will it find support at 4.12 (a 22 month low)?  This stock is not behaving as expected.

READY, SET, GO!

Willing to take a chance, HERO down 8% (4.51) this a.m. on not so glamorous report.  My take is that this could be a good entry point.

LOOKING BETTER NOW

HERO (4.88) may have turned the corner.  Formed a base, crossed above the 50 dma, time to consider loading up on this stock.

MOVING ABOVE THE 200 DMA

HLX (24.26) has crossed above its 200 dma.  Upward momentum is evident, expect this trend to continue.

IN AND OUT

OVTI - in at 14.74 on 2/3/14, out today at 22.96 = 55.77% profit in less than 4 months!

BACK IN THE GAME

Betting on CCJ (19.61) to hold at this level , form a base and show some returns.

BOUNCE OFF THE 200 DMA

Holding up above the 200 dma, BX (29.62) could pick up momentum in the near future.

EXPECT SAFE RETURNS

Liking MHLD at 12.58 on a pull back and a weak day at the market.

NOT JUNK

Since 3/31/14, LQDT has lost about 1/3 of its value (from 26.05 down to 17.65 today) . I believe that, at this point, the sell-off may have been overdone and we may see a bounce back to the low 20's in the next few weeks.

POOR TIMING ON REGI

Quarterly earnings report was not taken kindly by investors this morning (11.38 down 9%).
However, I still like the stock and, if today REGI closes above the 50 dma (11.46), I'd be a buyer on this pullback.

A MELTDOWN AT CCJ?

CCJ at 22.16 on 2/25/14... today at 22.60, crossing below the 50 dma,  I choose to bail out and stay on the sidelines.

TAKING A POSITION ON RENEWABLE ENERGY

A stock in a recovery mode has surfaced:  REGI (closed on 4/1/14 at 12.04).

DOUBLE BOTTOM IN PLACE

Going back to the comment of 1/24/14, HLSS chart has formed a "double bottom".  Now we face the next test, can the stock price (closing yesterday at 21.30) rise above the 50 DMA?  Should HLSS close above 21.35 in the next three trading days, we can expect a jump in price.  Meanwhile, those who got in earlier can enjoy an 8.5% dividend with the next monthly distribution of .15/share scheduled for 3/27/14.

READY TO PULL THE TRIGGER

At 4.78 this morning, HERO looks inviting.

QUICK PROFIT

Cashing in on AMRI:  in at 11.07 on 1/24/14, out today at 15.86 (3/5/14)...  a 43.27% profit in 40 days.

DOUBLE BOTTOM ALERT

On a day like today NOG (13.92, down 9.3%) we may see an opportunity to load up on this stock.

NUCLEAR PROSPECT

This Canadian uranium producer has enough power to keep on going up:  CCJ (22.16)

AGAINST THE GRAIN

There could be a buying opportunity in this pull-back:  OVTI (14.74)

A PLAY ON NATURAL GAS

There are possibilities in NOG (14.52)

PICKING UP THE WOUNDED

May see a double bottom on HLSS (21.56)

BOTTOM FISHING

Keep an eye on AMRI (11.07)

A DEAD CAT BOUNCE?

Can this one be saved?  Looking (just looking) at HERO (4.80); it is risky, but there may be some bounce in this stock.

TODAY'S PICK

Four letters:   CVRR (22.76), you decide.

Still Patient With KRO

About one month ago I expected KRO to continue its upward momentum and surpass the near term overhead resistance of 25.55, that event did not come to fruition.
The stock price retrieved and formed a small base at 22 before recovering and, in the past four trading sessions, it has crossed and maintained above the 50 day moving average of 23.54
Again, I look for this stock to test and breach the resistance level.  Trading this morning at 24.22, KRO shows some signs of resilience.
.

Are You Ready to Gamble on EZPW ?

Painfully, EZPW opened this morning with a downward spiral.  Hitting an intraday low of 25.82 at about 11:00 am EDT; now, two hours into the trading day, with close to six times the average trading volume it is selling at 26.07.

The question is:  are we willing to take a gamble and buy into a possible over reaction looking for a correction and an oversold condition?  If you  believe in the "Dead Cat Bounce" theory, it may be worth taking a chance.

Cancel All Buy Orders on EZPW !

Yesterday EZPW stock looked promising.  This morning, after last night's disappointing earnings and future outlook, the price could see a 5.75% drop in early trading.
At this time I would take a wait-and-see stand.  Hopefully none of the readers jumped and went long on this one.

EZPW Looks Promising

We have been following EZCORP, Inc. (EZPW) for close to six months. During that period, our opinion on its future performance has improved thus giving us a buy signal.

EZCORP, Inc. provides specialty consumer financial services. The company offers pawn loans on personal property, including jewelry, consumer electronics, tools, sporting goods, and musical instruments.

The following are a few observations that may prove to be positive signs for EZPW:

Improving chart pattern
Stock price ready to rise above the 50 day moving average (now at 31.28)
P/E at 12 Average daily volume at 295,000 (a bit low for my taste)
Earnings pre share have risen for over the past seven years
Low debt

Selling this morning at 30.69, I feel this is a good entry point for the stock.

What's Next for KRO ?

Since November 6, 2011 we have seen KRO go from 22.67 to 24.84 (a 9.5% gain, not including dividends, in less than five months). The stock is now trading above the 50 and 200 day moving averages, the chart shows a nice base and slow upward momentum.

Within the next two weeks, I'd like to see the closing price to be above 25.55 which is the next resistance level, thus climbing to new eight month highs.

Very heavy short positions exist countered by long term insider buying. I am taking the insider's view and staying long on this stock.
.

Have a comment, thought or question on a stock?

Feel free to bring up any findings or opinions, I'm open to suggestions and willing to look into any opportunities. Brainstorming is a way to learn from others and expand our views. Changing markets require constant adjustments.

Since most of us are not "experts" in the field, let's communicate in basic terms.

I would like to hear from you, just click on the "comments" link below and contact me. Our communication will be published in this blog or, if you so choose, it will not be posted.
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EBIX Gave Us a Good Run

Back on November 2, 2011 we saw a buying opportunity in EBIX (trading at 15.53).
After a nice run, a seesaw stock price behavior and an uncertain direction, I am pulling the plug.
Trading today at 21.85, the investment turned out a 40.7% gain in a period of just over four months; happy to cash in.
.

Update on KRO

Waiting to see if KRO stock price crosses above the 200 day moving average (at about 23.68). If this materializes within the next five trading days, we should see wether or not this stock has legs and experience a sizeable pop. Trading today at 23.16

EBIX Performs as Predicted

In less than one month, EBIX has moved from 15.53 (see this blog 11/2/11) to over 21.00, that's a 35% return in in my book.

I am tempted to hold on to the stock provided it closes any day this week above 20.95, thus getting near a seven month high. Any significant rise in volume combined with an increase in price could trigger further buying to cover massive short positions.

We'll wait and see.
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KRO , a Stock to be Considered

Consistent insider buying over the past three months, coupled with an upside-down head-and-shoulders chart pattern, Kronos Worldwide, Inc. (KRO) has caught my eye.

Kronos Worldwide, Inc. engages in the production and marketing of titanium dioxide pigments primarily in North America and Europe.

Good trading volume, low P/E and adequate yield make this stock a fair prospect. It may be a bit early in the cycle but I am willing to inch into this opportunity, believing that a short term support level exists at 19.50 (closing on Friday at 22.67).
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More Comments on EBIX

The article in this morning's Seeking Alpha seems to go along with my earlier post.


2 Tech Stocks To Buy On Any Pullback

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EBIX Could Make a Turnaround

Having lost about 50% of it's value since March 24 '11, EBIX Inc.'s (EBIX) stock has found a base and could be poised for a rebound.

Ebix, Inc. provides on-demand software and e-commerce solutions to the insurance industry.

Here are some of the positive aspects:

1. 3 month support base at about 15.
2. Crossed and held above the 50 dma for 7 trading days; note that
yesterday it broke the pattern and, if not reversed, could retest
the lows.
3. Price support at about 15, limiting the downside exposure.
4. Adequate average daily volume of about 527 thousand shares.
5. Earnings have increased annually for at least 8 years, with a slight
decrease estimated for '12.
6. Forward P/E ratio is estimated around the mid 9's.
7. The stock is heavily shorted, so the bearish pressure could keep it
down for a while, or propel it on a "short squeeze".

Closing yesterday at 15.53, EBIX is a stock to be considered.
.

Here We Go Again With AVT

What can I tell you? It has been a love-hate relationship with Avnet Inc (AVT).

Looking back at the notes of July 18, 2011, we saw continuing deterioration of AVT's price (then at 28.91). Soon after that date, on August 9 to be exact, AVT saw a new 52 week low at 23.69.

With good support at 25.00, it crossed above the 50 day moving average and had solid gains in the last four sessions despite an erratic and uncertain market behavior.

I am tempted to consider AVT a buy on a pullback between 26.25 and 27.50.
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Some Back Up Information on the State of the Markets

This article was published earlier today at cnbc.com, including observations by Jon Najarian whom I consider a very qualified commentator and investor. Something worth reading along the lines with my previous blog.

Nice to know that a knowledgeable advisor shares similar opinions.


Jon Najarian: Buy the Fear, Technical Signs Suggest Lows Hold

One Final Blowout

At this time, I'd like to see the S&P500 hold above the 1120 level and a final blowout like the one we are experiencing today combined with heavy volume. This action could be viewed as a healthy, and painful, purge of the markets.
We shall see if this holds true in the coming weeks.
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The Ongoing Bear Market May Find Support Soon

Alright, we are piling up paper losses and it seems like there is no end to this downward spiral.
Looking at the S&P500 chart, i see a hint of some near term support. Should the S&P500 index close at or above 1120 within the next two weeks, I would expect this point to be the bottom and we could see a turn around of the markets.
Look for stocks in the heavy construction sector to be the leaders in this cycle. Some of these candidates are: Granite Construction Inc. (GVA 18.20), Terex Corp. (TEX 14.32), Foster Wheeler (FWLT 21.40) and KBR Inc. (KBR 27.26) to name a few.
Extreme caution should be taken before going "all in" at this time, we must be very selective in our choices.
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The Future of Shopping (by CSCO)

CSCO seems to have a clue. Thank you SIB for sending me this info.

Click on the link below to view:

The Future of Shopping.

The Bottom is Falling, the Bottom is Falling!

It appears that this is the one-two punch that we hoped would not occur.

With no significant support level in sight, I am not sure how long this free fall will continue. One thing is certain, the markets are oversold and there may not be too many sellers left holding securities. Simply put, an oversold market could be recognized when 80% or more of the stocks have dramatically fallen below their 200 day moving average.

Thursday's rout left us numb, Friday's see-saw behavior eliminated those who placed "stop loss" orders and today's trounce could have weeded-out many of the willing and unwilling sellers remaining. Meanwhile, a serious blow has been inflicted to our markets.

Questions remain:
Are we near the next bottom?
Have we seen the worst of it?

After the dust settles, the few left standing will get to fight another day.
.

Put Up Your DUK 's

While we are getting hammered in the markets, there is no evidence of a let up. Times like these are when traders start to look for signs of stock market capitulation as a signal marking the unpredictable bottom. Capitulation is associated with routs as investors “give up” on stocks entirely and move into less risky investments. What we would see is panic selling on big volumes while the crowd runs for the exits. Although it is usually brief and somewhat terrifying, true capitulation often means that the sell off has finally run its course, and prices begin to feel for the bottom.

To stick our necks out and go long in this environment requires great intestinal fortitude. With that mindset, I feel that a safer route at this time is to load up on Duke Energy Corp. (DUK).

Over the past twenty months, we contemplated DUK as a good alternative to the miserable returns that banks were offering through their CD's and savings accounts. DUK was mentioned in this blog's watch list on 12/1/09 when it was trading at 16.68; then on 6/30/10 we got serious and saw a buying opportunity at 16.10.

The yield that we receive from DUK at the present time is 5.40%, ex-dividend coming up in less than one week (8/10/11), the stock is trading at 18.25 and holding steady (down .20) in an uncertain climate.
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An Article With Some Merit

Just released, an article by Cody Willard:

http://blogs.marketwatch.com/cody/2011/08/04/time-to-buy-stocks/?reflink=yhoof

This young stock analyst has gotten it right several times in the past. I tend to agree with his opinion on the timing of the market. Only time will tell.
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Political Tug of War

While our elected officials in Washington wage a "Political Tug of War" we see our savings and investments deteriorate. The markets react to the fateful statements and predictions we hear from the politicians and in the news.

This is a time when a vast majority of investors and not so wise advisers seek safety outside of the stock market. I say go against the grain.

If we can weather these dismal times and events, we could see an improvement in the markets. Sure, this turn around will take several months and perhaps one to two years to develop but I believe that it is too late to try to save what is left of our investments. Stay put, no time to panic.

My guess is that, at the eleventh hour, there will be a compromise in Capital Hill on the debt. Let's just hope that no long lasting and permanent damage was inflicted to our economy.
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Better Late Than Never, Goldman Sachs Likes CSCO

Today Goldman Sachs raised its 12-month price target on Cisco Systems by 34% to $21. On these news, CSCO jumped almost 3% this morning to 16.15.

http://www.cnbc.com/id/43926665?__source=yahoo%7Cheadline%7Cquote%7Ctext%7C&par=yahoo

Welcome news.
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Keeping Track

Past performances and current holdings mentioned in this blog can be viewed and tracked at the following link:

http://spreadsheets.google.com/pub?key=pF1ZoCuXStgcL_toVzhZuEw&output=html
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Abandon the AVT Ship!

We have held our expectations a bit high for an early choice, Avnet Inc. (AVT).

Caught our eye on 6/5/08 at 30.33.
Resurfaced on our watch list on 10/17/10 for a chance to lower the average cost and buy it at 27.63. Overall, the average cost was 28.98.

Stock action for AVT has been less than desirable. I say, let's drop it and call it even.

Technically, the stock price has deteriorated from the highs on 5/12/11 of 38.00; at this point, trading at 28.91 I see no support level until it reaches 22.50, a possible scenario.
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Does GM have Enough Power and Momentum to Climb the Hill?

After many years of turmoil in the auto industry, emerging from bankruptcy and reissuing new stock in mid November '10; General Motors (GM) could be a buy candidate for the longer term.

These are some of the interesting signs:

1. Early developing chart with a possible upside-down head and shoulders pattern.
2. Recent break up above the 50 dma.
3. Price support at about 28.60, limiting the downside exposure.
4. Excellent average daily volume of about 14.3 million shares.
5. Estimated earnings continuing to climb.
6. Forward P/E ratio is estimated around the low 6's.
7. Number of funds owning GM has increased over the last 3 quarters.
8. Price well under the recent IPO (33.00).
9. A public push to "buy American".

Trading at this time at 30.84, GM is worth keeping an eye on.
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We Have Hit the Jackpot with SUG

During the last three years SUG was mentioned on many occasions in this blog as a buy candidate.
Commented on 5/23/08 at 26.42.
Liked it even better on 1/29/09 to lower the average cost and buy it at 13.30.
Added to choice stocks on 7/25/09 at 19.80.
Featured on the watch list on 8/19/09 at 19.04.
Again included in the watch list on 8/22/09 at 20.85.

We have had several opportunities to load up on SUG. For those who took advantage of these observations, kudos to you!


Today, Energy Transfer Equity announced that it is buying Southern Union Co. (SUG) for 33.00 per share... JACKPOT!!!

Trading at this time for 33.15 on the news, I am glad to cash in on a long awaited result.
This transaction represents a 25.5% return from the original comment price, not including an average yield of about 2.5%.
Had those of you who followed this security bought into weakness, you may have realized a total profit of nearly 75% over the past three years while the S&P 500 experienced an 8% loss, nothing to sneeze at.
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PWER Keeps on Drawing Attention

This morning we received another write-up about PWER, this time from seekingalpha.com:

http://seekingalpha.com/article/269969-short-squeeze-ideas-9-highly-shorted-cash-rich-stocks-with-institutional-buying?source=yahoo

Professional stock researchers and investors are taking positions in this stock.
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More Positive Comments on PWER

Today's article on "thestreet.com":

http://www.thestreet.com/story/11118748/5/5-stocks-setting-up-to-break-out.html

Two weeks after the comment on this blog (and a 7.19% gain), another article confirms our views.

We'll see in the coming weeks if we still stand firm on our convictions.
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More Comments About PWER

This morning I came across this article from stockpickr.com, it talks about the posibility of a short squeeze.
We could be on to something with PWER.

http://stockpickr.com/roberto-p/portfolio/earnings-short-squeeze-plays-05-02-2011/

We'll see after the earnings are released.
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It is Not Lights Out for PWER

PWER has been trading below its 50 and 200 day moving averages since 2/4/11, thus missing the ride up that the market has enjoyed. During this period, the technology sector has been lagging and oil prices have skyrocketed.
Again, eyes are turning to alternative energy. A cycle we have witnessed in the past.

Power-One, Inc. (PWER) designs, manufactures, and markets power conversion and power management solutions for the renewable energy, communications infrastructure, and other high technology markets.

PWER's chart pattern begins to look attractive and if, in the next week or so, it breaks and closes above the 50 dma at 8.27 (8.21 at the close of 4/28/11), it could take us to the 10.50 level within 3 months.

Now, this prospect is somewhat risky since there are sizeable short positions in the stock. As a contrarian investor, I am expecting a two stage surge in the stock price and a "short squeeze".

With a volume of 4.7 million shares in daily trading , a chart pattern at a crossroads and the connection to the alternative energy sector, I would consider PWER a candidate to place some bets with risk capital.
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CEPH Receives a Hostile Bid

Had my eye on this one (CEPH) since November '09. Kept it in my watch list into February '10. Pulled the trigger on November 24, '10 at 64.10.
Today, CEPH received a hostile bid from Valeant for 73.00 per share. With a trading price of about 75.20, it is a good time to exit.

Sure, hostile takeovers may attract other suitors and higher bids... but then, the deal could fall apart.

Sudden spikes concern me and, with gains of 17.30% in four months, I would not hesitate to cash in.
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An Update on CSCO

Today's article from thestreet.com reinforces a view published in this blog about CSCO on 2/10/11:

http://www.thestreet.com/_yahoo/story/11053420/1/cisco-the-case-for-buying-the-stock-now.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA

Closing at 17.39 yesterday, this may be a good time to own or double up on this giant and consider it as a long term investment.
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Do Not Sell Into a Panic!

History has proven that panic selling is not a wise move.
The markets are off about 2.5% this morning, for those who have the intestinal fortitude, this may be the time go long in the market.
Read this article just published:

http://www.marketwatch.com/story/it-rarely-pays-to-sell-into-a-panic-2011-03-15?siteid=yhoof

Stay calm and take advantage of the investment opportunities out there.
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Stocks to Watch - March 7, '11

Watch list for March 7, 2011

BX------------18.18
STO-----------27.67

BX is into asset management; I still like STO.

We'll be checking the performance of these picks in a few weeks.
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Results for "Stocks to Watch - Oct 17, '10"

It has been a while, four and one half months to be exact, since I wrote about a stock watch list.
Unpredictable turn of events led to choppy markets and a more difficult environment for a stock picker.

For the period of 10/17/10 thru 3/4/11, this was our watch list and outcome:


Stock Symbol-------10/17/10------------------3/4/11

AVT------------------27.63-------------------34.18 (up 23.71%)
STO------------------22.08-------------------27.67 (up 25.32%)
WATG----------------10.07--------------------6.85 (down 31.98%)

The outcome was not so good, WATG has been on a slide and was the only pick that kept the average returns down, bad choice.
Our average gain for this period was 5.68% while the S&P 500 rose about 12.32% in the same stretch of time.

We'll sharpen up our pencils and try to do better.
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