"Stocks To Watch"
"Stocks To Watch" are some of our favorite choices for the current market
with most having established trading ranges. We try to work with-in
the trading range and feel this group of stocks are active
stocks and are worth taking a closer look.
Sunday, December 1, 2019
The prices below are the closing prices on the last trading day
of each week and are compared to the closing price the week before.
The markets gave us 5 new all-time highs this past week with one of them being the NASDAQ, which is a very powerful sign as I feel the markets can never continue to rally without the big OTC stocks. The Dow 30, S&P 100 and S&P 500 are all blue-chip indices. Although they are narrow markets, meaning they have a small amount of stocks included in them, they are still followed by almost every fund and institution.
The bottom performers were the Dow Transports (only 20 stocks) & the Russell 2000 (2000 stocks) were both down a little over -6% from the record highs. We don't expect much of the transport but the negative here is with the RUT, because it has 2000 stocks and it is this index could catch up to the others it would be a very bullish sign.
It seems like the market is moving on any kind of news we here about the trade talks with China. Every time the trade talks stall markets go down every time you get back on track the markets come back up. So far, it seems as though they're coming up a little bit further than they're going down and that is a very good sign for the near-term.
Last year in December we had a major fall and lasted right up until Christmas Eve. I just don't see anything in front of us to cause the markets to take a big fall. There is just too much good economic news this year to offer big surprises on the downside. If anything, the surprise would be that the bull has been going on for a long time and might need to take a break because everything is getting too expensive to.
There's nothing wrong with using caution, meaning don't chase anything, and search for the values because this is one way of limiting the downside if we do get a big correction. If we don't then your choice might very well go up a bit.
So far the ridiculous impeachment hearing,s have had little effect on the market other than possibly a few hours and then it becomes old news.
We have to remember that nothing goes up forever and the time will come when the bull becomes tired and the bear takes over. I just don't believe that time is here yet and I'm not real sure that it is very close.
This brings me to this current bull market rally and what we should do. I believe that if we have a winner still acting good we stay with it but if we are entering the market with new money we need caution as we don't have profits on our new stock to fall back on, if we get a major drop.
This is where I say we find something in the secondary stocks that have not yet moved and this is where we park our new money. If we don't get a big fall in the first part of next year are secondary stock could take off and if we do get a big drop are secondary stock probably won't go down much at all.
The world economy is so complex and so confused that I still don't feel metals are a safe place to go. A lot of people, and a lot of nations, tend to move into the precious metals when things get hard to predict, but if the economy continues to grow you will find much new money coming into the market's and much of that money will come out of the metals.
Plus metals are trading near their higher end of the trading range meaning it would be a lot easier to fall then to continue climbing, therefore avoid the metal stocks at this point in time.
I still like the real estate industry right now, mostly because of such low interest rates, and I also like the bank stocks because of the growing economy loans are becoming more frequent, which in turn increases revenues for the banks. This could be a great area to be for a while.
Since I am a technician first, the fundamentals will always take a backseat while the trend will stay in the front. Due to the recent strong attempts to take the market lower and the resistance that it has run into it only makes me more bullish for the near-term.
The bottom line is the indices are setting new highs with the Dow Jones Industrial average reaching a new high on almost every up day over the past few weeks. If I am correct we should continue to buy on weakness.
As far as how high we are for the year, the lowest is the XMI, up 17.5% on year, while the leader is the NASDAQ, up 30.06%. The good part is we still have the final month of the last quarter in front of us.
Look at the secondaries like Intel Corp., because it has a low PE (has been climbing lately), and Fonar Corp., because it has a ridiculously low PE and a top selection, if you want to buy and hold.
I have a rule: As long as corporate earnings are strong and interest rates are low the markets cannot
become bearish. This only happens with poor corporate earnings and climbing interest rates.
I would use this current market strength as a reason to pick up a quality company with a low PE, of which I recommended Fonar Corp. FONR $19.87 (PE is 8.95), up over the last week, but I would hold off on Intel Corp. INTC $58.05 (PE is 13.59), due to up strong recently, making the stock to high to buy. I believe having an opportunity to own stocks like these may not come again for quite some time and I also feel there's little downside.
I'm betting that the OTC stocks will outperform the blue and green chips once the OTC indices reaching new highs for the year. I believe we are just starting to see major benefits from corporate tax breaks and this should continue throughout the year and into the next.
Looking at the chart above we can see that the current discount to the 52-week high is at -8.52%. On 12/3/18 the discount was setting at -8.81% and 2 weeks later, 12/24/18, it had fallen to -22.46% but it climbed back up on 2/26/19, two months after hitting the bottom, then turned back up reaching -8.81% again and has been bouncing around since. Remember this is the average of all 30 Dow Industrial stock's.
The DOW 30 up 4723.95 (+20.25%) on the year and off -112.59 (-0.40%) from the 52 week high.
Another stock I like his Walmart (WMT) $119.09, because it has become much more aggressive and it seems to be attacking Amazon. No matter how big Amazon is, Walmart is in a position to not only catch Amazon, but if they're smart they can overtake it. This is because each and every store is a warehouse making it possible to deliver things to you in just a few hours from the time you order, either online or on the phone. My only negative is a PE of 23.82 but this is near to the average of the S&P 500. Although stock has been setting new 52-week highs each week, possibly a best entry would be on any pullback.
Also, another best bet would be the lower-priced arena and you certainly need to use caution there, but there are some excellent opportunities if you just do the homework.
Wishing you the best! JR
NICE MOVE LAST FEW WEEKS !!!
Recommended Low BUY was $1.75
AMD recently expanded its desktop processor lineup with new processors that deliver superior performance, features, and near-silent operations. A couple of new processors (A10-7890K and Athlon X4 880K) offer increasingly powerful processor options available for anyone seeking outstanding gameplay and power efficiency for their desktop PC.
GPU titan NVIDIA (NASDAQ: NVDA) is AMD's prime rival, and it seems NVDA is losing ground in the data center GPU market. AMD's data center GPU sales increased significantly last quarter, driven by a double-digit-percentage increase in the shipment of Radeon Vega graphics cards, which were in high demand.
AMD stock rose 62% year-to-date because of the enthusiasm around its 7nm (nanometer) product portfolio. All the hype did pay off. In the third quarter, AMD launched its first set of Ryzen CPUs (central processing units), Navi GPUs (graphic processing units), and EPYC Rome server CPU. All three products are doing well in their respective markets. However, one product that has become popular—and scarce—is AMD’s new product in the Ryzen portfolio, the Ryzen 9 3900X
AMD might just turn into a company that is exactly what we want — a company that’s figured out how to harness growth, while cutting down its debt and boosting margins?
AMD could end up cornering 10% of the server CPU market by the end of next year thanks to the launch of its 7-nanometer Rome processor that's set to hit the market in a couple of quarters. AMD claims that Rome will deliver substantial performance improvements over EPYC, so don't be surprised if the company manages to eat further into Intel's server dominance.
The price of Advanced Micro Devices Inc. fell hard from over $34 all the way down to under $20, moving back up over the last several weeks and seems to be holding quite well near the $30 area.
This stock tends to follow the market and is currently too high to buy.
"A Dow Jones Industrial Average Stock"
CSCO is a very well-liked company and a very active stock. Recent earnings reports came in over estimates, always a good sign. Investors tend to buy any time the stock falls.
CSCO will issue its first-quarter fiscal 2020 financial results on November 13, with its adjusted Q1 EPS figure projected to jump 8% to reach $0.81 per share. Looking down the road, it appears that the historic tech firm’s expansion into areas such as IoT and its continued acquisitions will help drive growth.
The stock has been trading in a tight range until a big jump recently making it too high for entry. A major correction could easily bring the $40 level.
The current price is a bit too rich for entry here because the stock has reached several new 52-week highs recently with a forward PE of 13.33. However I do like the longer-term growth
A "Featured" "Spotlight Stock"
UP OVER 200% SINCE NOVEMBER/2016!!!
NICE MOVE !!!
Comtech has been receiving multi million dollar contracts all over the place. One in October from the U.S. Army valued at $98.6 million. Another contract for $7 million for high-performance transmission amplifiers also in October and another one just three days ago from the U.S. Army for $22.2 million.
Comtech shares have climbed from $10.09, a 200 percent move since the beginning of the year and a new 52 week high, before backing off to almost $20. The foreword PE is 21.23.
Comtech, which makes equipment used in satellite and other mobile communications systems, has a strong cash position and has been receiving new contracts repeatedly. The stock was up over 200% in the last 52 weeks. A "best guess" is a move to near $35 with not too much downside, with a longer-term target of over $50.
A "Giant Winner" "Spotlight Stock"
With so many years behind it, the best MRI scanner on the planet, far less shares because of a reverse split a couple of years ago is the real reason for this stock to be one of the best performers this decade, and it did it all in a few years.
Fonar released it's year-end results:
As far as the trading range goes, the stock has a low of $20 in December/18 after reaching $25 and November/18. The recent $23 was the highest price since November/18. With the low PE I believe it might be time to pick up some stock. The high was $33.15 in in October/17. We will see it again!
A "Low PE"
Big Jump On The Week
Intel Corporation( INTC ) (52 week range 42.86 - 59.59 ), now at $58.05 up from $57.61 last week. Intel is a great company to own for the longer term but too high to buy. The stock fell off a cliff after reaching the 52 week high in December, but bottomed out in February at just under $28 before setting several new highs.
Intel announced earnings that beat estimates and it sent the stock soaring a few weeks back, but recent news about QUALCOMM and Apple concerning the 5G network hurt Intel over the past few weeks.
Intel (NASDAQ: INTC), had to cut its full-year top-line expectations because of weak demand for its data center chips. Chipzilla's data center sales were down 6% year over year to $4.9 billion in the most recent quarter, while the market was anticipating $5.1 billion in revenue from the segment.
The current PE is 13.59 leaving room to climb. Almost too high for entry entry here but the low PE makes it worth taking a chance. My longer-term target is over $60.
If wanting in, now might be a good time !
Powin Energy had a patent approved on it's "Battery Pack Operating System". This system is used in Energy Storage and EV Charging stations (Electric Vehicle), but it is only two of the reasons that give us a peek at the future. NEWS
The stock trades by appointment, meaning it can move quickly in either direction. I don't believe it should be sold here. Without the company updating us on something (anything) it's hard to know what to do but I still feel because of the product and the industry it's a stock we should be holding.
I suggest watching here until we can get some kind of news and for those of us that already own it, just be patient, although it is a shame, they won't tell us something.
Hold Here and have patience!
Big Jump On The Last 3 Weeks
Decent drop last 2 weeks
Qualcomm (QCOM) (52 week range 49.10 - 94.11), now at $83.55, off from $84.89 last week. A very active stock, a fast growing company and a great industry. The stock is active and stays strong even in down markets.
Not that long ago the Modem-Licensing Saga had ended as Apple and Qualcomm Settle. The biggest technology licensing lawsuit of all time came to a surprise ending when Apple and Qualcomm suddenly settled all legal actions across the globe after two years of disputes.
Now it turns out that QUALCOMM is not so sure that the Apple settlement will cure it's problems. It seems like the judge is getting in the way with her ruling against QUALCOMM. Clicking on the following link will give you the story News.
The stock climbed too high for entry but fell off a cliff a few weeks ago but still to high to buy. Anytime we can get in near the 52 week low there is a strong chance we will own a money maker. Nice company to own on pullbacks.
Buy when near $65 !
A "Low PE"
A Big Winner for the Spotlight
TTEK has approximately 10,000 employees worldwide. The stock has moved from $71 on 6/17 to over $88 today, approximately 3 weeks. Credit goes to strong earnings.
TTEK recently announced that it has clinched a $85-million contract from the U.K. Department for International Development (“DFID”). Per the single-award deal, the company will support DFID’s Powering Economic Growth in Northern Nigeria (LINKS) program.
The current price is too close to the new 52 week high which is too high for entry considering the forward PE is 23.86. A continued strong market could take the stock up over $95.
Consider lightening up on anything over $90 with entry anytime under $65 !
Amy. And it's "HOLD HERE"
Money can be made on quick moves
Up almost 50% in last 2 week's in his
Know Labs, Inc. (f/k/a Visualant, Incorporated) (OTCQB:KNWN) a provider of identification, authentication and diagnostic solutions, announced today that on May 24, 2018, the Financial Industry Regulatory Authority (“FINRA”) approved the effectiveness of a change in the Company’s name from “Visualant, Incorporated” to “Know Labs, Inc.” and a change in the Company’s ticker symbol from “VSUL” to the new trading symbol “KNWN,”
Know Labs, Inc. designs scanning devices made with electronic, optical, and software parts to produce and capture the light in the United States. Know Labs is involved in all types of ID products, even the badge many workers wear to get into work.
The recent (about a year and a half a go) 1 for 150 share reverse (cheated all shareholders that believed in this company) left only about 1.8 million shares trading as the stock fell from over $9 dollars to the under $0.20. Hopefully the new boss will have a better idea of how to treat it's shareholders.
Recent big volume has moved the stock up strong just since June 13 when it set at 0.29 per share up to over $5 before turning and falling all the way back down. There is no telling where it is going to go from here but I do believe we are very close to a near-term by area.
We can make money with entry on anything under $1.20.
Shop for the bargains in the secondary stocks for potentially bigger profits. Many of the smaller stocks offer a greater opportunity for bigger profits. Looking there might be the place to be. Smaller stocks will move around on their own merits and not so much due to the changing economic situations.
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