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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, October 13, 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, October 11, 2019

Discount to the 52 week high on the major indices

The markets are still up to the same old tricks, up one day and down the next. There is a positive on this past week. Earlier in the week we had as many as five indices in correction territory but ended the week with the same old two indices.

It's always a positive when we have major down days then followed by strong up days. This tells us the investor is not gone but trading in the market, which is a bullish sign.

October is a strange month and anything can happen but I believe the worst of it is behind us, of course the markets are falling on just about any kind of news. China is holding the front page, but rumor has it talks with China are going pretty good and we just may have a deal with them which was the main reason for Friday's strong market and I believe the main reason for continued strengths until the end of the year.

Last week's jobs report is quite strong showing economy is still growing due to jobs tax cuts corporations are still investing. Also this past week Michigan's consumer sentiment index came out at around 90% which is quite high in telling us that consumers will leave the economy is going to continue to get better.

The bottom line is the indices are holding their own with the Dow Jones Industrial average only -1.98% away from a record high. Not quite in bear market territory. I can't see any reason for the markets to Turn bearish anytime in the near term, which means if I am correct we should continue to buy on weakness.

This is certainly not the market you want to be a seller. We either hold are big winners and research for a better value and either get in, or stay in, this current market. Thought of any recession is only on the minds of those that know nothing about what it is truly happened with the economy. We are so far away from a recession it'll be hard to get one next year.

We still have problems with Iran but Iran has not been able to have much effect on the daily trading of the markets. We still have problems in the UK over the Brexit, but this is something that's probably going to drag on for some time and it also doesn't have the same effect on a day to day market.

We do have two indices in correction territory, the DJT and the RUT, with the real concern having to do with the RUT as it has a couple of thousand big OTC stocks in it, while the DJT only has 20 stocks. It's a lot easier to figure out what the markets are going to do when we have a couple of thousand companies, as opposed to a small basket of them.

Another thing to keep in mind is several of the indices are only a little under -3% from record highs, this means we could see those go to new highs with just a few strong days. I'm not saying the markets are going to new highs this coming week, but I am saying they're not going to new lows either.

As far as how high we are for the year, the lowest is the DJT, up 12.23% on year, while the leader is the DJU, up 21.56%,but with only 15 stocks it doesn't count. This is followed by the the NASDAQ, up 21.43 %. The good part is we still have the whole last quarter in front of us.

The metals have been bouncing around, just like the market, but much of that is because of the unrest with Iran and the threat of lower interest rates, which can make institutions lean toward the safety of holding the metals but a favorable deal with China would make the dollar rally and in turn put the metals back down.

I believe the near-term playing the metals is quite risky and holding off for much lower ground may be a better bet right now. Also, we still have the same problem, and that is all the top stocks have reached the point where they're just to high to buy forcing some investors to buy the metals.

We will have to look for bargains in the secondary stocks in order to have a better chance on this final quarter, as the rally could last all the way through the end of this year.

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 strength as a reason to pick up a quality company with a low PE, of which I recommended Fonar Corp. FONR $19.88 (PE is 8.82), down over the past 2 weeks or Intel Corp. INTC  $52.09 (PE is 11.71), up slightly 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 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 -11.19%. 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, then turned back up 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 up 3489.13 (+14.96%) on the year and off -542.57 (-1.98%) from the 52 week high and is no longer in correction territory for the 37th week.

Another stock I like his Walmart (WMT) $120.24, 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 27.19 but this is near to the average of the S&P 500. Although stock has been setting new 52-week highs each week, possibly a best entry would be on any 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


Advanced Micro Devices (AMD) (52 week range 16.03 - 35.55 ), now at $29.75 up from $29.01 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 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 several weeks and seems to be holding quite well near the $30 area.

We watched AMD fall into bear market territory by dropping more than 20% from the 52 week high. This happened several weeks ago when stocks fell due to higher interest rates. I said we would see over $30 again and it did but where to from here. AMD as a forward PE of 28.07.

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 40.25 - 58.25), now at $4.56, off from $47.52 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 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 13.08.
Lighten up over $55 with a best entry under $40

A "Featured" "Spotlight Stock"


Comtech Telecommunications ( CMTL ) (52 week range 20.95 - 36.61), now at $31.20, up from 31.11, 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 foreword PE is 17.53.

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 with best entry near $21 !

A "Giant Winner" "Spotlight Stock"
Fonar Corp. ( FONR ) (52 week range 18.85 - 25.77), now at $19.88, off from $20.37 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 8.32.

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 !

A "Low PE" 

Intel Corporation
INTC ) (52 week range 42.36 - 59.59 ), now at $50.09 off from $50.92 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 current PE is 12.10 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 - (OTC-BB) (PWON), (52 week range 0.50 - 3.00 ), now at $1.40, flat from $1.40 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, we won't tell us something.

Hold Here and have patience!

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

QCOM) (52 week range 49.10 - 90.34), now at $76.70, off
from $77.49 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 18.22, 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 $55 !

A "Low PE" 
Symantec Corp. ( SYMC) ( 52 week range 17.43 - 26.07), now $23.56, up from $23.48 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 12.67. In my opinion the stock is OK for entry here
, but still best if in under $22.
Entry best under $20!

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

TetraTech (TTEK) ( 52 week range 48.52 - 87.62), now at $85.62 up from $83.48 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 $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 24.20. A continued strong market could take the stock up over $90.

Consider lightening up on anything over $85 with entry anytime under $55 !

Money can be made on quick moves

Know Labs (KNWN) formerly Visualant Inc. (VSUL) (52 Week Range - 0.85 - 4.65 ), now at $1.35, flat from $1.35. 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 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 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.

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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