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"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 9, 2018

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.
Closing prices on Friday, December 7, 2018

Discount to the 52 week high on the major indices

The markets continuing the end the week lower with this past week losing over 1100 points on the Dow Jones 30. Of my 11 indices, 8 are in correction territory with only three of them staying above the 10% correction mark (see table above) and they are all narrow markets. This is a sign of probably more lower ground in front of us.

One thing important about this correction is it has mostly to do with wishes, dreams and hopes. Much of it has to do with talks of new tariffs on imported and exported goods. Adding to that we have worry over increasing interest rates, but it's only worry, as the Feds have decided they might be best to hold on a bit. Given time we will discover that other countries need us more than we need them and in the long run the tariffs will be probably the best thing we've done many many years.

What this means is this correction is a phony correction. It is not one that is happened on bad economic news because the economy is cooking on hot. Corporate America is filled growing. Jobs are still growing. Manufacturing is coming online all the time, therefore there is little economic reasons for the markets to fall. It has always been my belief that markets that fall on hearsay can never stay down because rumors are rumors.

The Trump tax breaks are still continuing to change things for the better they will continue to do so going in the 20 19th unless the Liberal Democrats can find some way to screw up a good economy and believe me bill be looking anyway they can. I find it amazing that we have politicians in Washington DC that can't walk into gum at the same time and there called Democrats.

It is because of this it's making it hard to figure out what kind of market were going to happen the first quarter of next year. The new Democratic Congress has already said they will do everything in her power to make it really costs on the Trump administration but the Republicans controlled the Senate, therefore in most cases we will see a do nothing go nowhere Washington DC.

We do have to worry about a possible government shutdown, which could put the nail in the confidence far as the correction, dropping the markets an additional chunk, which in my opinion would be a timely jump on this Christmas wagon because I believe Santa Claus will have a big sleigh ride for us before the end of the year.

As far as what we should do before the end of the year is just about anyone's guess. I say stick with with your favorites if they are working for you and continue to ride the wave. I am expecting one more driver lower before the markets climb higher again.

Of course, for those of us that are looking for something new then value will be the name of the game. For the rest of this year and going into as much as the first quarter. After that it is very hard to read my crystal ball and will have to wait and see.

As always, our best bet may be into 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

Advanced Micro Devices (AMD) (52 week range 9.04 - 34.14 ), now at $19.46 off from $21.30. last week.

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.

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? Overall revenue for 2017 jumped 25%, while analysts are looking for another 18% increase in 2018. They also expect earnings to more than double from 17 cents per share to 39 cents per share in fiscal 2018. In 2019, forecasts call for EPS of 54 cents.

Also, recently we heard that Advanced Micro Devices Inc. has been quietly working on a program to help Tesla Inc. design its own self-driving car chips. Tesla (TSLA) previously said it wants to own the major parts of its supply chain, so that it doesn't have to rely on partners for expensive and hard-to-get components.,

AMD’s new GPUs are going head to head with rival Nvidia Corporation’s (NASDAQ:NVDA) and winning in price and performance. Meanwhile, AMD is stealing market share from semiconductor giant Intel Corporation (NASDAQ:INTC) on multiple fronts, with Epyc outperforming Intel Broadwell server chips and Ryzen is grabbing market share from Intel’s Core PC lineup.

The price of Advanced Micro Devices Inc. fell hard from over $34 all the way down to under $20, moving back up slightly this past week.

We watched AMD fall into bear market territory by dropping more than 20% from the 52 week high. This happened 5 weeks ago when stocks fell due to higher interest rates. This is a stock that you might want to consider picking up and buying puts at the same time. The puts are going to be a lot less of a percentage with the possibility of a strong comeback and a move to over $30 again. AMD as a trailing PE of 62.98.

This stock tends to follow the market.

Hold here! If "bullish". If bottom fishing get in when under $20!

"Take Some Profits Here or Buy Insurance With PUTS"
"A Dow Jones Industrial Average Stock"

Cisco Systems ( CSCO ) (52 week range 37.17 - 49.47), now at $46.44, off from $47.87 last week. Recent new 52-week high. This Dow Jones Industrial Average stock (replaced GM).

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, but it will be the months ahead we have to worry about.

CSCO has turned the corner in a painful transition, with the first quarter of revenue growth since 2016 showing success in the networking giant’s quest to become a subscription-based business.

The stock has been trading in a tight range until a big jump recently (new 52 week high) making it too high for entry. A major correction could easily bring the $30 level.

The  current price is a bit too rich for entry here, especially if earnings-per-share means anything
. The stock has reached several new 52-week highs recently but trailing PE is 177.25. I guess this one's not going to trade on earnings.
Lighten up over $47 with a best entry under $33

A "Featured" "Spotlight Stock"


Comtech Telecommunications ( CMTL ) (52 week range 19.30 - 36.94), now at $28.44, up from $25.54, last week. Our original buy under $4, in 2003, carried all the way to over $50 and split twice along the way. CMTL has become a stock to own for the long term again after trading near $9 in Oct. 2016.

Comtech reported fiscal second-quarter net income of $15.8 million. On a per-share basis CMTL said it had profit of 66 cents. Earnings, adjusted for pretax gains, came to 7 cents per share. Revenue of $133.7 million in the period, exceeded analysts surveyed by Zack's expecting $124 million. 

Comtech expects full-year earnings to be $1.08 to $1.23 per share, with revenue in the range of $570 million to $585 million.

Comtech shares have climbed from $10. 09, a 200 percent move since the beginning of the year and a new 52 week high.  The current PE is 22.94.

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 is up over 200% in the last 52 weeks. A "best guess" is a move to near $40 with not too much downside.

Hold Here! I am moving my buy under $14 to under $25 !

A "Giant Winner" "Spotlight Stock"
Fonar Corp. ( FONR ) (52 week range 21.08 - 30.10), now at $21.18, off from $22.03 last week. I first started following Fonar in 1982 and have followed it every day since. The stock is very liquid, as it usually trades strong volume daily. Great products would be the reason to own this stock, but play it short-term only.

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 all in a few years.

Fonar released it's year-end results:
  • Income from Operations increased 16% to $5.5 million, for the quarter ended September 30, 2018, versus same quarter one year earlier.
  • Net Income decreased by 2% to $4.5 million for the quarter ended September 30, 2018, versus same quarter one year earlier, as a result of the Company’s requirement to record a full tax provision for 2018 in the amount of $1.1 million as compared to $0.2 million in 2017. The increase in the 2018 provision is due to a re-evaluation of the need for a deferred tax valuation allowance.
  • Total Revenues-Net increased by 7% to $20.7 million for the quarter ended September 30, 2018, versus same quarter one year earlier.
  • Cash and cash equivalents increased by 8% to $21.2 million at the quarter ended September 30, 2018 versus the fiscal year ended June 30, 2018.
  • Diluted Net Income per common share was $0.48, and was also adversely impacted due to the re-evaluation of the need of the deferred tax valuation allowance.
It was a great ride and still is if in near the low end of the range. The stock fell from $27 to under $10 on August 31/16, started up again and never looked back. The current PE is 6.92.

As far as the trading range goe
s, the stock has a low of $22 in November/17 after reaching a low of 17.45 in mid April and had worked its way higher to over $33 a share but fell like a rock a few months ago with no real news telling us why and has been trading between $22 and $29 most of the year. With the low PE I believe it might be time to pick up some stock. If the markets continue to sell we could see something under $22.

If wanting in now might be a good time !

Intel Corporation( INTC ) (52 week range 42.04 - 57.60 ), now at $46.24 off from $49.31 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.

The current PE is 14.45 leaving room to climb with an average PE near 25 on the S&P 500. Too high for entry here. If the markets correct so will this one.

Hold here, with best entry under $40!


Buy This Stock - You Heard It Here First

Powin Energy - (OTC-BB) (PWON
(52 week range 1.18 - 5.00 ), now at $1.50, off from $1.70 last week. Powin was formed as an Oregon corporation on November 15, 1990. Powin Energy is the new company due to a recent merger between Powin Corp nd Powin Energy. "ENERGY STORAGE" I believe will put Powin Energy on the map.

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 and if you do not already have one I suggest you make one. The stock fell slow and easy after a reverse 3 years ago (before it was Powin Corp.) and found a bottom at $0.30. The float is under 2 mil shares and every one still owns the stock higher even after moving up. Make sure to visit the website. It is well done and explains the story in detail. You will learn so much more about this story. Clicking here will take you there.

Recent news tells us PWON has secured construction to term project financing from leading renewable power company Brookfield Renewable Partners L.P. ( TSX : BEP.UN ) ( NYSE : BEP ) for its 8.8 MW/40.8 MWh Stratford Energy Storage Project in Stratford, Ontario, Canada. Clicking
here will take you there.

Several months ago PWON signed a contract with San Diego Gas & Electric (SDG&E) for a 6.5 MW/26 MWh battery energy storage system project.The project is finished and operating. Its located in an historic orange processing facility in Escondido, California, where it is efficiently integrating with the electrical grid and enhance electricity reliability.

This is big news and is only the 3rd contract of I am sure will be many. The contract could be worth several million dollars. Clicking here will take you there.

I see a much higher price in the near future. The stock recently jumped from two dollars to $3.50, to $5 and worked its way back down to $1.70, on only a small amount of shares it jumped again to $5 a few weeks ago before moving back down again, on low-volume . The market makers have no shares, which is why it will move up so easy.

I suggest putting in a bid a little bit higher than the current bid and hope to find a seller, or buy a small amount of shares at the offer (a small amount is all that is available anyway.) Don't miss out on this one. The "sky" is the limit. The recent jump in price can be expected but on such small volume the stock could back off again with anything near $2 a great buy.

Buy Here and have patience!

"Hold Here with Entry Under $50"

QCOM) (52 week range 48.56 - 76.50), now at $55.99, off
from $58.26 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.
QCOM is setting on $35.91 billion in cash with a book value at $15.70 with cash per share at $24.44. A positive would be the forward PE of only 12.67. Leaving room to grow with the average S&P 500 overpriced at around 20 -25.

The stock climbed too high for entry but 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 under $50 !

Symantec Corp. ( SYMC) ( 52 week range 17.49 - 29.73), now $21.78, off from $22.11 last week. SYMC helps our computers run better ( Norton ) and one of the leaders in computer virus protection.

The stock topped out at the end of January, bottomed at $23.28 at the end of March, but stopped near $25, worked right back down to the $20 area before turning back up in reaching new highs, but fell off a cliff a few weeks ago due to an investigation of possible breach of fiduciary duty to investors. The PE is 12.09. In my opinion the stock is still a little too pricey here after a decent jump last week.
Entry OK under $20!

- Nice Long-Term Stock -
Big Winner for the Spotlight
TetraTech (TTEK) ( 52 week range 44.65 - 72.56), now at $54.59  off from $60.96 last week. A very nice young company in a great industry (Technical Services). Tetra Tech is a leading provider of consulting, engineering, program management, construction, and technical services addressing the resource management and infrastructure markets.

The Pentagon, with the U.S. Department of Defense awarding only four contracts last year worth a total of just $87.6 million. And yet, the small volume of contracts available just made tiny project management firm Tetra Tech’s (NASDAQ:TTEK) wins look bigger by comparison.

TTEK has approximately 10,000 employees worldwide.

The current price is too close to the 52 week high which is too high for entry considering the PE is 22.56. A major correction could bring the stock down near $50.

Consider lightening up on anything over $70 with entry anytime under $50 !

If you bought lower get out now if you haven't already sold
Strong chance for a larger decline

Know Labs (KNWN) formerly Visualant Inc. (VSUL) (52 Week Range - 0.01 - 0.70 (pre-reverse) 52 Week Range - $0.21 - $18.00 (post-reverse) ), now at $3.20, up from $2.87. This stock is dangerous anywhere, but recently made a big move after changing the name.

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 ago) 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 settling at $3.20 today. If in before the move watch close. There is no telling where it goes from here.

Last March/2017 Visualant announced another non-brokered private offering at $.70 a share. This was dated March 6, 2017 meaning six months from that date (September 6, 2017) the private investors could sell. Sorry for the Private investor because the stock fell to far too fast for them to get out. Expecting the current big run could be another pump and dump as the $0.70 holders get out. We can make money playing the pump & dump on the stock.

You should be out of this stock by now. If not just get out and move on.

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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