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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, June 9 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, June 7, 2019



Discount to the 52 week high on the major indices

The markets had a decent rally this past week, but three of the indices remain in correction territory. The DJT, a narrow market, teaches us little, but the Russell 2000 and the SPREAD our both quite broad markets that tend to lean toward the big old OTC market.

The positive is just a few days ago we had over 5 indices and correct territory and now only three and with just a little bit of help in the coming week the other three will climb out of correction territory.

The rally this past week was blamed on the chance that the feds may decide to lower interest rates. It just shows that the market was ready to go up on just about any news although it had been showing some weakness because of the tariffs on Mexico.

According to many, the tariffs were supposed to be terrible for the market and terrible for the US but it turns out that it looks like Mexico's going the play the game. Apparently, when it comes to Mexico the tariffs were worse for them.

The markets seem to be movement on any kind and news having to do with politics but I don't believe that's really the case. It is because of the strong recovery over the last few weeks and credit for this goes to a growing economy. When the markets fall on bad economic news, we have to work, but when there is no bad economic news the markets can't stay down.

The week ahead will open with an economy that grew 3 1/2% in the first quarter greater than all of the estimates. This is one big reason to remain bullish and I don't see many reasons to change. At this point I just don't see any poor economic news over the horizon.

The biggest problem right now is finding something that we can buy that has not already moved too far.

I have a rule that 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 sell off 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 would recommend Fonar Corp. FONR (PE is 6.35) or Intel Corp. INTC  (PE is 9.94). I believe having an opportunity to own stocks like this 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 this correction has run its course. I believe we are just starting to see major benefits from corporate tax breaks and this should continue throughout the year.

Dow 30 discount

Looking at the chart above we can see that the current discount to the 52-week high is a -11.03%. On 12/3/18 the discount was setting and -8.81% and by 12/24/18 it had fallen to -22.46% climbing back to
-11.07% on 2/26/19, two months after hitting the bottom, but turned back up reaching -8.81% again before backing again. Remember this is the average of all 30 Dow industrial stock's.

The DOW 30 up 2656.48 (11.39%) on the year and off -844.45 (-3.15%) from the 52 week high and is no longer in correction territory for the 20th week.

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, another 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

NICE MOVE LAST WEEK !!!

Advanced Micro Devices (AMD) (52 week range 14.54 - 34.14 ), now at $32.41 up from $27.41 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'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 near the $27 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. A move to over $30 again it is very possible. AMD as a forward PE of 32.41.

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

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 - 57.53), now at $55.93, up from $52.03 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 16.55.
 
Lighten up over $55 with a best entry under $40
 

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

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

Comtech Telecommunications ( CMTL ) (52 week range 20.95 - 36.94), now at $27.21, up from 21.15, 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 23.06.

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.

Buy here while near $21 !


"BUY HERE"
A "Giant Winner" "Spotlight Stock"
 
Fonar Corp. ( FONR ) (52 week range 18.85 - 28.80), now at $20.06, up from $19.20 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 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 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 6.75.

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 !


"BUY HERE"
A "Low PE" 

Intel Corporation
(
INTC ) (52 week range 42.36 - 59.59 ), now at $46.03 up from $44.04 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 10.16 leaving room to climb. On most two-entry here but the low PE makes it worth the 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 $1.51, flat from $1.51 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!


"From $56 to $89 Just In The Last 3 Weeks"
And Down Fast

Qualcomm
(
QCOM) (52 week range 49.10 - 90.34), now at $68.69, up
from $66.82 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.

Last week 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 $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 12.91. Leaving room to grow with the average S&P 500 overpriced at around 20 -25.

The stock climbed too high for entry but fell off a cliff two 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 !
 

"BUY HERE"
A "Low PE" 
 
Symantec Corp. ( SYMC) ( 52 week range 19.23 - 24.77), now $19.15, up from $18.73 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 10.30 In my opinion the stock is OK for entry here because of the low PE
.
  
Entry best under $20!
 

- Nice Long-Term Stock -
Big Winner for the Spotlight
 NICE MOVE LAST WEEK !!!

TetraTech (TTEK) ( 52 week range 48.52 - 72.56), now at $73.67 up from $67.52 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 current price is too close to the 52 week high which is too high for entry considering the forward PE is 22.12. A continued strong market could take the stock up over $75.

Consider lightening up on anything over $70 with entry anytime under $50 !


***
 
"STOCK to WATCH"
If you bought lower get out now if you haven't already sold
HIGH RISK!!!
"SHOULD HAVE 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 $1.49, off from $1.57. 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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