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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, April 14, 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, April 12, 2019

Discount to the 52 week high on the major indices

The markets seem to be continuing their upward trend in this past week was the 2nd week without any indices in correction territory and that's a positive.

It seems earnings reports are coming in quite strong and every time the market tries to sell off another strong earnings report comes out takes right back up. I'm giving credit to the top tax cuts for the stronger earnings and I believe this is going to continue for the rest of the year.

I would use decent sellouts as a reason to pick up more of a favorite or at least climb into the market so you can join the ride along with everyone else.

Also, recessions don't happen in a growing economy such as the one we will be in for the next couple of years, therefore the idea of a recession should go on the back burner. This is especially good for the longer-term investor because now you can handle more of the risk as the markets continue going up and back down and up again. We can expect more of that all the way through this year and probably next.

I'm betting that the OTC stocks will outperform the smaller indices while both continue heading back up again as this is one hard market to keep down.

I believe we are just starting to see major benefits from corporate tax breaks and this should continue throughout the year, assuming Queen Pelosi and her crew are not successful on taking the tax breaks away.

Dow 30 discount

Looking at the chart above we can see that the current discount to the 52-week high is a -8.58%. On 12/3/18 the discount was setting and -8.81% and by 12/24/18 and had fallen down to a -22.46% climbing back to
-11.07% on 2/26/19, two months after hitting the bottom, but turned back up again now is trading at -8.57% better than it was before the correction. Remember this is the average of all 30 Dow industrials stock's.

Unfortunately many the good bargains at the bottom of the correction have went into hiding
because of the quick rally, but there are still many bargains to choose from. Stocks like Apple, Amazon and Walmart have not recovered from where they were and these are just some examples.

The DOW 30 up 3084.84 (13.22%) on the year and off -416.09 or 1.55% from the 52 week high and is no longer in correction territory for the 12th week.

As for the current market - I would stay with the low PE value stocks. I like stocks like Fonar Corp. (FONR). 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 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, 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 9.56 - 34.14 ), now at $27.85 off from $28.98 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.

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 over the last few weeks.

We watched AMD fall into bear market territory by dropping more than 20% from the 52 week high. This happened 8 weeks ago when stocks fell due to higher interest rates. A move to over $30 again it is very possible. AMD as a forward PE of 28.18.

This stock tends to follow the market.

If bottom fishing get in when under $20!

"Take Some Profits when over $55 or Buy Insurance With PUTS"
"A Dow Jones Industrial Average Stock"

Cisco Systems ( CSCO ) (52 week range 40.25 - 56.61), now at $56.29, up from $55.21 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.

The stock has been trading in a tight range until a big jump recently (several new 52 week highs) 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, especially if earnings-per-share means anything
. The stock has reached several new 52-week highs recently with a forward PE of 16.73.
Lighten up over $50 with a best entry under $40

A "Featured" "Spotlight Stock"


Comtech Telecommunications ( CMTL ) (52 week range 20.95 - 36.94), now at $23.78, up from $23.18, 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 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 19.92.

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.

Hold Here! Buy under $25 !

A "Giant Winner" "Spotlight Stock"
Fonar Corp. ( FONR ) (52 week range 19.31 - 30.10), now at $20.15, off from $20.44 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 6.60.

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 $56.42 up from $55.60 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 11.90 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 $1.45, flat from $1.45 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 $56.95, off
from $57.99 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 13.14. 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 $23.96, up from $22.99 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 13.71 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 $60.93 up from $60.35 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 18.73. 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 $1.60, up from $1.33. 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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