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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, February 17, 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.
Closing prices on Friday, February 15, 2019

Discount to the 52 week high on the major indices

The markets seem to be climbing quite well when we consider the discount to the the two week high on all Dow 30 stocks was -7.22% in October falling to a low of -22.46% on 12/24enclosed data -9.50% on 2/15. This means the entire Dow 30 is just a little over 2% from its high point in the last 52 week's. Not a bad rally over two months.

The DOW 30 up 2555.79 on the year and off -945.14 or 3.52% from the 52 week high and is no longer in correction territory for the 4th week.

Another positive is all the indices are out of correction territory except for the DJT & NY. just last week several of the indices were still in correction territory and most were broad markets.

Since I believe the big OTC stocks lead any rally, or correction, it is a strong positive with the broad markets gaining ground.

Also, corporate earnings are coming in strong and it appears the US economy  is operating on all cylinders. Thanks to the government not closing it appears getting the budget out of the way, perhaps politics will take a backseat to the things that really matter. I suppose the strongest thing in front of us is the talks with China and if we get positive news on that front I would expect the markets to continue climbing.

As for the current market - I would stay with the low PE value stocks. I like stocks like Fonar Corp. (FONR) and Apple Inc. (AAPL). I like Fonar Corp. because it is a medical product that has an extremely low PE for the current market. I like Apple Inc. simply because it has already backed off a fair amount, holds a low PE and not only is an innovative company but they're setting on gads of cash.

Another stock I like his Walmart (WMT) 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 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.

Also, 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 $23.68 up from $23.05 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 over the last 2 weeks but down again this past week

We watched AMD fall into bear market territory by dropping more than 20% from the 52 week high. This happened 7 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 forward PE of 24.16.

This stock tends to follow the market.

If bottom fishing get in when under $20!

"Take Some Profits when over $47 or Buy Insurance With PUTS"
"A Dow Jones Industrial Average Stock"

Cisco Systems ( CSCO ) (52 week range 40.19 - 49.68), now at $49.43, up from $47.19 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 with a forward PE of 14.67.
Lighten up over $47 with a best entry under $33

A "Featured" "Spotlight Stock"


Comtech Telecommunications ( CMTL ) (52 week range 21.66 - 36.94), now at $27.20, up from $25.35, 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 forward PE is 22.48.

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! Buy under $25 !

A "Giant Winner" "Spotlight Stock"
Fonar Corp. ( FONR ) (52 week range 19.63 - 30.10), now at $22.50, up from $21.68 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 5% to $9.4 million for the six month period ended December 31, 2018, versus same six month period one year earlier.
  • Diluted Net Income per Common Share available to Common Shareholders decreased 15% to $0.99 for the six month period ended December 31, 2018, versus same six month period one year earlier, due to the Company's need to re-evaluate its deferred tax valuation allowance and record a full Provision for Income Taxes in the amount of $2.3 million.
  • Total Revenues – Net, increased 6% to $41.9 million, for the six month period ended December 31, 2018, versus same six month period during prior year.
  • Income from Operations increased 9% to $11.5 million, for the six month period ended December 31, 2018, versus same six month period during prior year.
  • 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.
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 until a couple months ago. The current PE is 7.66.

As far as the trading range goe
s, 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.

If wanting in now might be a good time !

Intel Corporation( INTC ) (52 week range 42.36 - 57.60 ), now at $51.66 up from $48.84 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 forward PE is 10.92 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!


Powin Energy - (OTC-BB) (PWON), (52 week range 0.50 - 3.00 ), now at $2.80, up from $0.80 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, which is why made such a big jump last week from $.50 to two dollars and not that many shares traded. I don't believe it should be sold here either. Without the company updating us on something it's hard to look for work but I still feel because of the product in 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.

Hold Here and have patience!

"Buy Here while Near $50"

QCOM) (52 week range 48.56 - 76.50), now at $51.98, up
from $50.29 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 11.98. 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 near $50 !

Symantec Corp. ( SYMC) ( 52 week range 17.43 - 29.20), now $23.15, up from $22.66 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 forward PE is 13.01 In my opinion the stock is very near the bottom and, with a low PE, entry in here should be OK.
Entry best under $20!

- Nice Long-Term Stock -
Big Winner for the Spotlight
TetraTech (TTEK) ( 52 week range 46.30 - 72.56), now at $58.90  up from $56.09 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 forward PE is 18.12. A continued strong market could take the stock up over $70.

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 - 0.23 - 5.75 (pre-reverse) 52 Week Range - $0.21 - $18.00 (post-reverse) ), now at $1.40, off from $1.05. 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, with entry on anything under $0.80.

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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