"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, August 11, 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.
The markets, to say the least, are quite confusing as they seem to be reacting more to the China trade deal than they are to the economy. This helps keep me on the bullish side of the fence simply because the economy is what's going to make the market continued decline, not China, although a deal with China would certainly help the market.
It seems like the other part of the market has to do with lower interest rates. There is much talk about the rates going to a minus in the real benefactor this move would be the housing market. The current low rates, if anything, will push a lot of people on the fence over to the side of buyers.
We will be coming out of the summer season, which is normally the part where we have lower volume, easier markets and in many cases lower earnings, but the fall season tends to turn everything around.
The Dow 30 is actually more than 1000 points off of the 52 week high set on July 13. Looking at the graph above we can see where the Dell 30 is off 1071.22 point from that high, but only a discount of 3.92%. Also, we see the Dow transports in correction territory with a -1363.63, or, -11.79% loss from the 52-week. Any loss over 10% is one way of measuring a correction.
Expecting the markets to turn back up again very soon would be the normal thing to do in this market because that's exactly what it's been doing. The Dow 30 can drop 700 points in one day turn around and get 500 back the next day, which is telling us there are lot of buyers sitting on the side waiting for the good deals they can pick up near the low end of this down cycle.
The feds met last Tuesday and Wednesday and and ended the meeting with the one quarter-point drop in interest rate, the first drop in many years. Trump has been beating on the Federal Reserve to lower rates but the markets would like to have seen something more than a quarter point. I say take what we can get and hope for more later.
I believe the tariffs against China are working. I believe their economic problems are growing daily. I believe that we will win in the end and hopefully that'll be in the next couple of month's.
Look at the secondaries like Intel Corp., because it has a low PE, 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 selloff as a reason to pick up more of a favorite or at least climb into the market so you can join the ride. Pick up a quality company with the low PE of which I I've already recommended Fonar Corp. FONR $23.53 (PE is 7.79), up about a 1 1/2 dollars from this past week or Intel Corp. INTC $45.98 (PE is 10.68), up around four dollars just since last week. 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.
I'm betting that the OTC stocks will outperform the blue and green chips once the OTC indices climb into positive territory for the year. I believe we are just starting to see major benefits from corporate tax breaks and this should continue throughout the year.
Looking at the chart above we can see that the current discount to the 52-week high is at -12.58%. 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 to -11.07% on 2/26/19, two months after hitting the bottom, but turned back up reaching -8.81% again. Remember this is the average of all 30 Dow industrial stock's.
The DOW 30 up 2959.98 (+12.69%) on the year and off -1071.72 (-3.92%) from the 52 week high and is no longer in correction territory for the 28th week.
Another stock I like his Walmart (WMT) $107.28 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 36.76 but the stock off more than $10 economy. Possibly a best entry on any deeper pullback.
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
NICE MOVE LAST FEW WEEKS !!!
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 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 is scheduled to release earnings on Tuesday.
AMD's top and bottom lines fell hard. Revenue was down 23% annually to $1.27 billion in the first quarter of 2019, while earnings were nearly halved to $0.06 per share. But the numbers were better than Wall Street's expectations. More importantly, AMD stuck to its goal of delivering high-single-digit sales growth for the year.
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. Sales of AMD's Ryzen CPUs (central processing units), EPYC server processors, and data center GPUs (graphics processing units) "more than doubled year over year."
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. fell hard from over $34 all the way down to under $20, moving back up over the last few weeks and seems to be holding quite well over the $30 area.
This stock tends to follow the market and is currently too high to buy.
"A Dow Jones Industrial Average Stock"
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 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 15.38.
A "Featured" "Spotlight Stock"
UP OVER 200% SINCE NOVEMBER/2016!!!
NICE MOVE RECENTLY !!!
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 foreword PE is 21.97.
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.
A "Giant Winner" "Spotlight Stock"
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:
As far as the trading range goes, 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.
A "Low PE"
Intel Corporation( INTC ) (52 week range 42.36 - 59.59 ), now at $45.98 off from $48.68 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 2 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 forward PE is 10.33 leaving room to climb. Almost too high for entry entry here but the low PE makes it worth taking a chance.
If wanting in, now might be a good time !
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, we won't tell us something.
Hold Here and have patience!
Qualcomm (QCOM) (52 week range 49.10 - 90.34), now at $71.50, up from $71.15 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.
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 $55 !
A "Low PE"
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 12.56. In my opinion the stock is OK for entry here, but still best if in under $22.
Big Winner for the Spotlight
TTEK has approximately 10,000 employees worldwide. The stock has moved from $71 on 6/17 to over $82 today, approximately 3 weeks. Credit goes to strong earnings.
The current price is too close to the new 52 week high which is too high for entry considering the forward PE is 22.96. A continued strong market could take the stock up over $90.
Consider lightening up on anything over $85 with entry anytime under $55 !
"STOCK to WATCH"
If you bought lower get out now if you haven't already sold
"SHOULD HAVE ALREADY SOLD"
Strong chance for a larger decline
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.
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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