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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, January 12, 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, January 3, 2020



Discount to the 52 week high on the major indices

The markets finished the second week of the new year off a little but not that much. The worst performance was the DJT which is something were getting used to followed by the RUT another one we're getting used to. Both are off close to a -5% while the rest of the indices are mostly off under 1%.

This is telling us we can expect to continue seeing new record highs on most of the indices, 6 last week, but what we want to see is for the Dow Jones transportation's and the Russell 2002 to show up for the party.

Since I am bullish and what this means to me would be that the markets still have quite a bit of room to climb with opportunities to enter the market on pullbacks. The VL & NASDAQ are less than a 1% away followed by the spread little over 1% of reaching a new record high.

Unfortunately, the RUT still more than -4% from its previous record high, but this -4% could be wiped out pretty easy. Another thing that it is telling us is there are still many good values in the big OTC stocks, meaning all we have to do is our homework and we should be able to find some pretty good buys.

We can continue to give credit to the tax cuts, as it has given more money to corporations and the people that buy their products. It turns out our biggest problem in front of this may be the fact that we don't have enough workers  to cover all the job openings, a totally different problem than we've come accustomed to under Obama.

Still, with so many stocks trading so near the high I find myself not wanting to lean toward any specific industry, but more-so into individual stocks that seem to be offering us new stories and new products. I feel this is where we will make our greatest percentage return.

There's just no reasons out there for this market to have a big correction at this point in time because of the continued growing economy I don't see anything in the first quarter that would take the marked down too far.

The two problems that could've affected us a fair amount would be China & Iran, but it appears China is getting ready to do some deals with the good old USA. This can only be positive for the US market's as it will help put more money in the pockets of Americans, especially the farmers.

When I say a stock is to high to buy it does not mean that we should sell it. If it's been doing well in the market than hang on because it will probably continue to climb. All it really means is, it's the wrong time to sell, but also it is another way of saying, if we are worried, we might have to look somewhere else for the bigger bargain.

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 metals at this point in time.


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 ran 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.

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 $20.01 (PE is 9.05), up over the last week, but I would hold off on Intel Corp. INTC $60.10 (PE is 13.99), 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.

My long-term pick, a stock that could be held for the next 20 years, would be Apple Inc. although the stock climbed near the $300 mark it's the kind of company that won't stop growing. They've got a lot of money and are very creative and now they're going to be, factor in the television market.

There is no stopping the stock, up from $150 in the last year moving over $300 mark this past week. There are no real resistance or support levels available work with but in this market possibly a 10%  correction in the stock would be the time to move in, or something in the area of $260.

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 $1.05 and the 52 week low is $1. The company just announced they will be doing a $6 million secondary offering or 6 million shares at one dollar.

I say jump on this stock right now I will bring more of this company you soon but don't wait for me
with 6 million new dollars the stock of the 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 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.

Dow 30 discount

Looking at the chart above we can see that the current discount to the 52-week high is at -7.86. 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 has been bouncing around since. Remember this is the average of all 30 Dow Industrial stock's.

The DOW 30 off -133.13 (-0.46%) on the year and -133.13 (-0.46%) from the new 52 week high.

Another stock I like his Walmart (WMT) $115.58, 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 23.12 but this is near the average of the S&P 500. Although the stock has been setting new 52-week highs often, possibly a best entry would be on a decent pullback in the markets.

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 a Happy New Year. Wishing you the best! JR

NICE MOVE LAST FEW WEEKS !!!
Recommended Low BUY was $1.75
Almost 3000%

Advanced Micro Devices (AMD) (52 week range 19.02 - 49.96 ), now at $48.165 off from $48.60 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.

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. just doesn't want to stop climbing and, as a habit, continues to set new highs. This is been one of my top choices with the return of several thousand percent from my $1.75 buy and all I can say is if the market keeps climbing so while AMD. AMD has a forward PE of 43.74.

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

Too high to buy, hold here with best entry under $25!
 

"Consider short term buying here"
"A Dow Jones Industrial Average Stock"

 
Cisco Systems ( CSCO ) (52 week range 43.00 - 58.25), now at $47.13, off from $47.63 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 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 t
he stock has reached several new 52-week highs recently with a forward PE of 14.60. However I do like the longer-term growth
 
Lighten up over $55 with a best entry under $40
 

*****
A "Featured" "Spotlight Stock"

UP OVER 200% SINCE NOVEMBER/2016!!!
NICE MOVE !!!

Comtech Telecommunications ( CMTL ) (52 week range 20.95 - 38.00), now at $36.52, up from 35.56, 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 three days 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 20.95.

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.

Hold here with best entry near $21 !


"BUY HERE"
A "Giant Winner" "Spotlight Stock"
 
Fonar Corp. ( FONR ) (52 week range 18.85 - 25.25), now at $19.51, off from $20.10 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 it all in a few years.

Fonar released it's year-end results:
  • Income from Operations increased 12% to $22.1 million, for the fiscal year ended June 30, 2019, versus previous fiscal year.
  • Net Income decreased by 19% to $20.5 million for the year ended June 30, 2019, versus previous fiscal year. This is in part due to an income tax provision of $2.0 million for the fiscal year ended June 30, 2019 vs. an income tax benefit of $5.7 million recorded in the previous year.
  • Diluted Net Income per Common Share decreased by 28% to $2.22, versus previous fiscal year. This is in part due to an income tax provision of $2.0 million for the fiscal year ended June 30, 2019 vs. an income tax benefit of $5.7 million recorded in the previous year.  The number of shares fully diluted increased 1% to 6.5 million for the fiscal year ended June 30, 2019, versus previous fiscal year.
  • Total Revenues-Net increased by 7% to $87.2 million for the fiscal year ended June 30, 2019, versus previous fiscal year.
  • Working Capital increased by 35% to $71.0 million during Fiscal 2019.
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 9.11.

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. We will see it again!

If wanting in now might be a good time !


"BUY HERE"
A "Low PE"
Big Jump On The Week 

Intel Corporation
(
INTC ) (52 week range 42.86 - 60.97 ), now at $58.94 off from $60.10 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 13.97 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 - (OTC-BB) (PWON), (52 week range 0.50 - 3.00 ), now at $1.10, off from $1.20 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.

Hold Here and have patience!


"From $56 to $89 Just In Just A Few Weeks"
Nice Move Last Few Weeks

Qualcomm
(
QCOM) (52 week range 49.10 - 94.11), now at $90.26, up
from $87.02 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.
 
QCOM is setting on $14.36 billion in cash with a book value at $4.49 with cash per share at $11.81. A positive would be the forward PE of only 14.91, 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 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 !
 


- Nice Long-Term Stock -
A Big Winner for the Spotlight
 NICE MOVE LAST FEW WEEKS !!!

TetraTech (TTEK) ( 52 week range 48.52 - 90.34), now at $87.08 up from $87.04 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 23.82. A continued strong market could take the stock up over $95.

Consider lightening up on anything over $90 with entry anytime under $65 !


***
"HOLD HERE"
Money can be made on quick moves
Up 100% in 3 weeks

Know Labs (KNWN) formerly Visualant Inc. (VSUL) (52 Week Range - 0.90 - 2.97 ), now at $2.50, up from $2.39. This stock is dangerous anywhere, but a few months back 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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