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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, March 29, 2020

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, March 27, 2020

Discount to the 52 week high on the major indices

The markets continue with their mystery as to which way they're going to go from one day to the next and I would expect this to keep up for quite a while. We have never before experienced such a drastic situation as we have in the US today, or should I save the entire world and I do not believe there will be an easy way out.

My problem is I don't like this market very much, simply because I think there is more room the fall. Right now I have the SPREAD down almost 35%, as is the RUT but the NASDAQ is only offer around 23%. Since I feel the NASDAQ will lead the way for the market's then they have to either catch up with the SPREAD, or the SPREAD will have to catch up to the NASDAQ.

The problem we have right now are not going away next week or next month and the best we can hope for is that things get better because the one thing investors would like to see more and anything else is that were getting a handle on this virus situation and there will be a light at the end of the tunnel.

Another problem I have is my entire 40 years in this business I've always said that there's great buys even in bear market's. As a matter of fact bear market's often create opportunities for us to enter higher-quality situations at lower prices. What I'm talking about his stocks like Apple computer that if they make a big drop by because it will come back. A growing come me with lots of cash knowing for their creativeness is almost a no lose situation.

On the other hand this is a up to him and he to find some excellent situations in the small stock category, although this requires research as there are many misleading low-priced stocks. If we can find one of these companies will have a chance to make strong profits while everyone else is waiting and this is because smaller stocks tend to move on their own and have little to do with the virus, other than investor confidence.

You will find such a stock in this article called cbdMD. It is in a great industry for our problems today and I feel they are quite innovative and could have a strong chance of becoming one of those stocks that has the ability to double and triple in this kind of economy.

The price of gold had been bouncing like a basketball recently moving over the $1670 per ounce level before falling like a rock down under $1500 and back up again. I still don't feel metals are a safe place to be, especially once stocks start moving back up. In my opinion the only way metals have to go in the near term is down.

Plus metals are trading near their higher end of the trading range, and it is a lot easier to fall from the top then to continue climbing, therefore avoid the metals at this point in time. Once this virus problem is solved I believe metals will take a quick and hard drop.

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 giant fall in the market and a virus problems that promises to continue for some time to come I have solid fundamentals all window and certainly can't count on the recent trend of any stock.

The bottom line is the indices are setting new lows and I believe there is still more new lows to set.

Look at the secondaries like Intel Corp. and Fonar Corp. (after falling from over $22 near $12 per share.) A good stock if you want to buy and hold.

My long-term pick, a stock that could be held for the next 20 years, would be Apple Inc. although the stock climbed over the $300 mark before dropping, currently around $230 a share. It's the kind of company that won't stop growing. They've got a lot of money and are very creative.

My near-term pick, is a stock that hasn't been trading that long and currently is near the 52 week low. The name of the stock cbdMD. Inc., It trades on the NASDAQ and the symbol is YCBD. The current price is about a $0.88 and the 52 week low is $ 0.50. The company just announced the completion of an $18 million secondary offering at one dollar. I would expect the stock to move a bit lower from here simply because of the market's, but anything lower from here is a buyers dream.

I say jump on this stock right now! I will bring more of this company you soon but don't wait for me
with 18 million new dollars the stock could easily climb over the previous $7.24 52 week high,. a hell of a move from here.

I'm betting that the OTC stocks will outperform the blue chips once the  viruses is behind us and the markets are climbing again. I believe we were finally starting to see major benefits from corporate tax breaks and this should continue once things get back to more normal.

Dow 30 discount

Looking at the chart above we can see that the current discount to the 52-week high is at -32.65%. 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 further reaching -8.81% again and had been bouncing around since until the markets stepped off a cliff. Remember this is the average of all 30 Dow Industrial stocks.

The DOW 30 -6901.66 (-24.18%) on the year and -7914.64 (-26.78%) from the new 52 week high. All 11 of the indices are in bear market territory by losing over 20% from their 52-week high. WOW!

Another stock I like his Walmart (WMT) $115.13, 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.

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

Recommended Low BUY was $1.75
Over 3000%

Advanced Micro Devices (AMD) (52 week range 25.83 - 59.27), now at $46.58, up from $39.61 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's data center GPU sales increased significantly over the last two quarters, driven by a double-digit-percentage increase in the shipment of Radeon Vega graphics cards, which were in high demand.

AMD stock has been climbing almost nonstop 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 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. 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 ofAdvanced Micro Devices Inc. just didn't want to stop climbing finally gave in 2 weeks ago, due strictly to the market falling on virus fears. This is been one of my top choices with a return of several thousand percent from my $1.75 buy and all I can say is if the market keeps falling, so will AMD, but judging by the big jump this past week when the markets climb again so will AMD. AMD has a forward PE of 29.30

This stock tends to follow the market and is currently too high to buy.

Too high to buy, hold here with best entry to be discovered as the market falls!

"Consider short term buying under $35"
"A Dow Jones Industrial Average Stock"

Cisco Systems ( CSCO ) (52 week range 32.40 - 58.25), now at $38.82, up from $35.60 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.

CSCO increase revenue and earnings in 2019. 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 within the breakout promising to move past $50 a share. The current major correction could easily bring the $33 52-week low. The trailing PE is 15.14.

The  current price is closer to the 52 week low that it is the high and could be worth a second look anywhere in this level. The drawback is how long will take to move but your downside should be limited even in a decent correction.
However I do like the longer-term growth. Entry would be best if under $35.
Best entry to be determine

A "Featured" "Spotlight Stock"


Comtech Telecommunications ( CMTL ) (52 week range 12.45 - 38.00), now at $14.99, up from 14.09, 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 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 a month ago from the U.S. Army for $22.2 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, before backing off to almost $20.  The forward PE is 12.49.

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", due to the bear market, is a move to near $25, which at this point would be excellent entry-level.

Hold here with best entry near $12 !

A "Giant Winner" "Spotlight Stock"
Fonar Corp. ( FONR ) (52 week range 11.00 - 25.25), now at $14.40, up from $12.20 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 recently business has slowed some waiting maybe even better have, at least till this falling market finds a bottom.

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.

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 6.75.

As far as the trading range goe
s, the stock had a low of $20 in December/18 after reaching $25 and November/18. The recent $23 was the highest price since November/18. The high was $33.15 in in October/17. Will we see it again?

If wanting in wait until we have a better idea of this correction and were it will end !

A "Low PE"
Buy On Weakness!

Intel Corporation
INTC ) (52 week range 42.86 - 69.29 ), now at $52.37 off from $55.83 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 11.12 leaving room to climb, but not even Intel is going climbing this current market environment.

If wanting in, wait until we know more about the virus !

I will be removing this stock from my "Stocks to Watch" due to lack of news and little activity,
although I will continue to watch the stock

Powin Energy - (OTC-BB) (PWON), (52 week range 0.70 - 2.00 ), now at $1.94, flat from $1.94 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, 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.

Not a good stock to play in this to particular kind of market!

"From $56 to $89 Just In Just A Few Weeks"

Qualcomm (QCOM) (52 week range 55.79 - 96.17), now at $66.59, up from $60.98 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.

QCOM recently unveiled Snapdragon-backed third-generation 5G modem — X60. Upping its 5G chip dominance in the global market, the much-awaited launch is likely to boost network performance and provide flexibility to operators with optimized spectrum resources, in the face of universal migration from 4G to full-fledged 5G ecosystem. Clicking on the following link will give you the story News.
QCOM is setting on $11.42 billion in cash with a book value at $4.29 with cash per share at $9.99. A positive would be the forward PE of only 11.01, with the average S&P 500 overpriced at around 20 -25.

The stock climbed too high for entry but fell off a cliff a few weeks ago and still have more room on the downside. 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.

Hold here! Buy price is to be determined at a later date !

- Nice Long-Term Stock -
A Big Winner for the Spotlight

TetraTech (TTEK) ( 52 week range 57.31 - 99.34), now at $69.18 up from $67.92 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.

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 18.35. A continued strong market could take the stock up over $95.

Hold here with best entry anytime under $63 !

Money can be made on quick moves

Know Labs (KNWN) formerly Visualant Inc. (VSUL) (52 Week Range - 0.90 - 2.90 ), now at $1.02, off from $1.10. This stock is dangerous anywhere, but year ago it 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 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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