Street Justice

Street Justice: Doin' what I can.

2008-08-26T11:05:00.000-07:00

Hey all, did you miss me? I'm truly sorry for leaving you all hangin' for so long, but I am going through some transitions in my social and business world that have all but filled up my schedule. I have not given up on you, my loyal readers just yet though. Things will be back to normal by September 20th and I'll have a few new surprises for you by then also. So if you all can hang in there with me, it will be well worth the wait, I promise.

It would seem the market has stopped the bleeding since my last post. When I left you, the DOW was down 3 days in a row showing no signs of reversal. This week however is starting off much stronger(compared to last week) and the DOW looks to gain back some lost ground. There is talk in the financial world today also of Fannie and Freddie. It would seem some analysts are now saying that two GSE'S may not need to be bailed-out by the Fed after all. I guess all this means is that they really have no idea what to expect and thanks to a certain Hurricane named Gustov, any rally we may have seen due to the Freddie/Fannie news was stopped cold. That's right another mass of tropical weather has managed to throw a monkey wrench in the works. If Gustov were not going to have an effect on the US, I would have predicted oil dipping down to around $100 a barrel by the end of the week. Oh well, I guess we'll have to wait another week to see what's really goin on.

It would seem the dollar is for real. A week ago I was hard pressed to find an analyst that believed the USD's recent rally was anything but a fluke. They were wrong. Any of you that have been following Street Justice since it's inception will know that I've been bullish on a USD rally since June. So I was a little early on my call and lost a few bucks because of it, but I am soooo glad I was right. The amount of money I lost being early was nothing compared to what I raked in thanks to the comeback. We just gotta keep the faith, cause we ain't done yet.

I'm sure some of you noticed that I didn't provide any stock picks today. No, I didn't forget. I just haven't had the time to research that I wanted and refuse to recommend any stock I can't research fully. I must stress to all of you that Street Justice will be back and better than ever by September 20th and I ask that you hang in there with me until then, cause we're all in this together. Thanks for reading.

Street Justice: You Gotta Believe

2008-08-21T13:07:00.000-07:00

Hey all, how's it goin? Looks like another down day for the dow today. Things could be worse though. It would seem investors are expecting a Fannie/Freddie bailout before it's safe to call a bottom. Still, There are plenty of safe places to put your money now. As a matter of fact I've got 3 for you today.
First up is IT/Gartner Inc. They provide solutions for research and analysis on information technology, computer hardware, software, communications and related technologies. IT operates in the US, Canada, Europe, The Middle East and Africa. The relative value and timing for IT are great, but the relative safety is pretty low(0.76 of 2.00). They have a P/E ratio of 24.36 and a 6% net margin. IT's ROE is 1,301% and EPS were up 88% over last year. Sales for IT were up 12% for the year and net income increased 26% over last year. IT is up(price) 55% YTD, 27% over 12 weeks, 22% for 1 month and 1% over the past 7 days. Next is CBR/Ciber Inc. They provide information technology system integration consulting and other I.T.(information technology) services. Their services are offered on a project or strategic staffing basis and their customers consist mainly of government agencies, fortune 500 companies and middle market companies, across most major industries. CBR like IT has excellent relative value and timing with not so hot relative safety. CBR has a 6% ROE and a P/E ratio of 13.52. EPS were up 10% over the last fiscal year and 6% of the past 5 years. They have had sales increase 13% over last year and net income was up 17% for the year. CBR has a 14% forecasted earnings growth rate and a 3% net margin. CBR has climbed(price) 33% YTD, 15% over the past 12 weeks, 24% over the past month and 4% over the past 7 days. Last, but not least on today's list is EME/Emcor Group. They design, integrate, install, start-up, operate and maintain mechanical and electrical systems. EME provides lighting, low-voltage, voice and data, communications, heating and ventilation systems to customers n The US, Canada, The UK, The Middle East, South Africa and Europe. EME has killer relative numbers across the board(value, timing and safety). They have a P/E ratio of 12.24 and an 18% ROE. EME has a 2% net margin a forecasted earnings growth rate of 26%. Sales for EME have climbed 18% for the year and net income has risen 46% over the same year with EPS jumping 60%. EME is up(price) 38% YTD, 16% over the past 12 weeks, 20% for the month and 5% over the past 7 days.
Despite the fact that the market was down today, I am still satisfied with the way the market continues to take blow after blow and refuses to go down(below 11,000). What else can I say other than You gotta believe. You gotta believe that the US is not going to let this recent dilemma bring it down, just like it hasn't let challenges in the past destroy it. This is a market that gets stronger and smarter everyday because WE(the investors and citizens) get stronger and smarter everyday.
So what do you think about the Fannie/Freddie situation? Is it time for the government to step in a do what they have now been given the job to do? Will the bailout move us one step closer to Socialism? Let me know.
It would seem we have hit a snag in the dollar rally. A combination of factors including a kick back up in oil and the Freddie/Fannie issue have stopped the dollar dead in it's tracks and even caused a slight reversal. There are some who believe the dollar is overvalued at it's current prices, but I'm on the opposite end of that debate. I see the USD continuing it's climb after this short break. Though I would be mindful of entry points and stop/loss levels or you could have some trouble.
Due to events out of my control, I will be writing my posts from school for the next month or so. I don't anticipate any problems but if something comes up and I miss a day or something, don't fret I will double up the next day. Just bare with me, cause we're all in this together. Thanks for reading.

Street Justice: Motion Sickness

2008-08-19T16:23:00.000-07:00

Welcome back. From where I'm sitting, both the market and the weather looked pretty dreary today. Lucky for me this isn't my first hurricane or my first day investing. I know the media tends to hype bad days for the market like they do cyclonic weather formations approaching the US. I understand the losses sustained over the past 2 days are real, but heck! We can't go up everyday. Still, I'll feel a lot better when we get a bit further away from 11,000. Having taken the day off yesterday, I was able to find 4 companies for you to check out.
This first company might be considered a speculative buy because until recently they were priced at under $5. The company is MITI/Micromet. They develop proprietary anti-body based products for treatment of cancer and auto-immune diseases. Their drug platform of which the majority is still in clinical trials is an antibody-based format that leverages the cytotoxic potential of T-cells. MITI has one of the lowest relative values I have ever seen(0.07 of 2.00), the relative safety is decent and the relative timing is THE highest I've seen(1.99 of 2.00). They are currently trading below earnings(-10.76 P/E ratio) and have a -6% forecasted earnings growth rate. Sales for MITI are up 43% over last quarter. MITI is up(price) 193% over the past 52 weeks, 22% over the last month and 32% over the last 7 days. Next up is KEX/Kirby Corp. They provide marine transport and diesel engine services. This includes inland transportation of petrochemicals, black oil products, refined petroleum products, agricultural chemicals and dry-bulk cargo to tank barges. KEX operates a fleet of 913 active inland tank barges, 258 active inland towboats, 4 offshore dry cargo barges, 4 offshore tugboats and 1 shifting tugboat. KEX has great relative value and safety, but the relative timing isn't so great(0.81 of 2.00). They have an 11% net margin and a P/E ratio of 15.36. Sales for KEX are up 5% over last quarter and net income is up 29% over last year. They have increased(price) 30% over the past 52 weeks, 6% over the last month and 3% for the week. USPH/Us Physical Therapy is next on today's list. They provide outpatient physical and occupational therapy through clinics offering post-operative care and treatment for a variety of orthopedic related disorders and sports related injuries. USPH offers services such as ultrasound, electronic stimulation, hot packs and iontophoresis as well as several exercise programs in their 379 outpatient clinics which are spread throughout 43 states nationwide including Tennessee, Texas, Michigan, Oklahoma, Wisconsin, Virginia, Florida, Indiana, Maine and Arizona. USPH has great relative value, timing and safety. They have a 6% net margin and a P/E ratio of 20.97. Sales for USPH are up 5% over last quarter and 10% 5 years historically. USPH has a forecasted earnings growth rate of 18% and net income was up 39% for the year. They are up(price) 56% over 52 weeks, 22% over 4 weeks and 9% over 1 week. Today's "bonus" company is HWK/Hawk Corp. They sell friction products used in industrial, aircraft, agriculture and performance applications. These products include parts for brakes, clutches and transmissions used in construction, mining and agriculture vehicles as well as trucks, motorcycles and race cars. They have achieved significant market share in their industry using proprietary formulations and designs of composite materials and metal powders. HWK has decent relative value, timing and safety and a 30% forecasted earnings growth rate. They have a 4% net margin and a P/E ratio at 19.51. Sales for HWK are up 9% for the quarter and 3% 5 years historically with net income climbing 483% for the year. HWK is up(price) 77% over 52 weeks, 43% over 1 month and 5% over the past 7 days.
So far this week oil, gold and the dollar aren't behaving. As a result the DOW is again slipping ever closer to that icky 11,000 mark. It's still too early for me to tell if these recent trends will continue, but I am an optimist and believe it'll be short-term. It is very possible oil it's finding is real value or price around $110-$115 a barrel.
There has been a lot of talk in financial circles as to whether or not global growth may be outpaced by the US soon. Do you think the US is finally closing the growth gap versus the globe? Will emerging and foreign markets continue to outperform? Let me know.
Today the dollar was a prime example o9f what goes up must come down. The USD has peaked and pulled back against virtually every major cross, most notably the EUR and GBP to which the USD gave back over 100 pips. I am NOT following this trend and would strongly recommend you don't either. I can assure you the USD has not finished it's comeback, especially against the EUR. I have widened my stop/loss margin for my USD long positions, but am supremely confident we've not seen the last of the dollar's rally. This may even be a good time to get long some USD, though you must be careful where you get in . When trading Forex(margin trading) you can get stopped out or margin called if you're not careful.
we haven't exactly seen the week start the way I wanted. All the more reason for me to spend every waking hour researching. I'll do what I can, cause we're all in this together. Thanks for reading.

Street Justice: 13,000 or Bust!

2008-08-17T18:14:00.000-07:00

I've got to get to bed early tonight because fall semester starts tomorrow. Still, I managed to find a company you may wanna get in on before the week is underway(or soon after open).
The company is TACT/Transact Technologies and they design, develop, manufacture and sell world class transaction printers under the brand names Epic and Ithaca. The printers are used by customers worldwide for printing receipts, tickets(lottery and such), coupons and other specialty documents. TACT has customers in North America, South America, Europe, Asia and Australia. They have a market cap of $122 million. TACT has decent relative value and safety and killer relative timing. The yearly numbers(sales, net income and earnings) for TACT show they had some trouble, but based on the quarterly numbers(sales up 14%, net income up 142%), TACT has shown a turnaround. They are trading at 22 times forward earnings and have a 6% ROE. TACT is up(price) 113% over the past 52 weeks and 74% over the past month.
As long as oil and the dollar continue to cooperate next week, I think the market will be in good shape. It would seem as long as we can avoid the tri-fec-ta of rising oil, the falling dollar and rising gold, we can expect to see more healing.
Will the latest storm threatening the Florida Coast have any affect on oil and nat gas prices? Let me know.
Well, Forex trading opened 3 1/2 hours ago and the dollar isn't starting out the way I'd hoped. As a matter of fact we are down by at least 50 pips against virtually all major crosses. Not what I was looking for, but I'm gonna give it till the US market opens before I get worried.
Good night everyone. I'm going to bed. I will be out of school about 2 hours after the market opens tomorrow, so I'll most definitely be back with some good stuff, cause we're all in this together. Thanks for reading.

Street Justice: Good Enough For Me.

2008-08-16T22:20:00.000-07:00

Hey all, how's it goin? I'm gettin ready for next week. I have high hopes(expectations) after last week. Still, these are volatile times and anything can happen. The only way to survive is to keep up on our homework. I've got 3 companies for you today I did some homework on and maybe you should too.
DVA/Davita Inc. is first up. They provide full dialysis and related services for patients suffering from chronic kidney failure. They operate 1,359 outpatient dialysis centers in 43 states across the US as well as dialysis centers in 700 hospitals nationwide. The relative value, timing and safety for DVA are all great and they have an 8% forecasted earnings growth rate. EPS for DVA are up 13% over last quarter and they have a P/E ratio of 16.31. Sales were up7% over the last year and 5% over last quarter with net income increasing 31% for the year and 9% for the quarter. Davita has a ROE of 21% and a 6.6% net margin. They have climbed(price) 11% over the past 52 weeks and 13% over the past 4 weeks. Next under the spotlight is SNDA/Shanda Interactive. SNDA develops and operates online video games and related businesses is China. Their games include role playing games and classic games like checkers and chess. They also provide access to literature, music, movies, news and e-commerce. The only relative number worthy of mention for SNDA is the relative value at 1.45 of 2.00. They have a P/E ratio of 11.26 and a ROE of 34% with a 45% net margin. EPS are up 3% for SNDA over last quarter. Sales are up 13% over last quarter and 59% over last year with net income up 2% over last quarter and 182% over last year. SNDA is up(price) 13% over 52 weeks and 12% over 1 month. Today's final company is one of the few oil and nat gas companies still good to get in on. OXY/Occidental Petroleum drills for and sells (crude)oil and nat gas. They have operations in several states in the US including Texas, California and Oklahoma with international wells in such countries as United Arab Emirates, Columbia, Yemen, Russia, Pakistan and Ecuador. The relative value and safety for OXY are among the highest I've seen, but the relative timing is not so hot. OXY has a 30% forecasted earnings growth rate and get this, a P/E ratio of 7.63! They have a ROE of 29% and a 29% net margin. EPS for OXY are up 27% over last quarter and they have a very high growth to P/E ratio of 3.93(1.00 or greater signifies the stock is undervalued). Sales for OXY were up 18% over last quarter and 6% over the last year with the net income jumping 24% for the quarter and 29% over the last year. OXY has gone up(price) 43% over the past 52 weeks and 1% over the last month. They pay a $1.28(1.69%) per share dividend with an 18% dividend growth rate.
Well, I don't think we could've expected much more than we got from the market last week. Based on what I've seen I think these positive trends(USD, oil, DOW) will continue through next week, though maybe not to the same extent. In other words the healing has begun.
The USD has made a serious comeback against most of it's major crosses as of late. Do you think this will continue? Is the dollar done rallying? Let me know.
It's a lot of fun making money trading Forex, but it's even more fun when I can do it betting on the dollar. That being said, I think next week is gonna be another fun one. I don't see any major hurdles for the dollar next week.
I don't have to work till late tomorrow so I may pull an all-nighter in order to prepare for next week. Either way I'll be back before open on Monday, cause we're all in this together. Thanks for reading.

Street Justice: Discount Shopping

2008-08-14T23:05:00.000-07:00

Welcome back everyone. I hope your enjoying the week as much as I am. The market continues to show it won't go down without a fight and today we got some good news for the good guys. I'll elaborate on that later. Right now I've got 3 companies for you that are selling at a discount to say the least.
First is SHOO/Steven Madden Ltd. They design, market and sell footwear brands for women, men and children. Their footwear is sold through their 96 retail stores, an e-commerce website, catalogs and department stores. Their brands include Steve Madden, David Aaron I.e.i, Stevis and Steven Madden Men's and are sold to such departments stores asBloomingdale's, Bon Marcke, Burdine's, Macy's, Foley's, Lord and Taylor, Victoria's Secret and Finger Hut. SHOO has great relative timing and safety, but the relative value was low(0.73 of 2.00). They have a P/E ratio of 14.94 and a ROE of 13%. EPS for SHOO are up 70% over last quarter with sales up 9% over last quarter. Net income for SHOO was up 272% over last quarter(nice). Even in what some consider a slow economy, SHOO manages to make money for it's investor's as well as itself. They are up(price) 7% over the past 52 weeks and 30% over the last month. Next up is GSI/General Steel Holdings. They manufacture hot rolled carbon and silicon steel sheets that are used to build tractors, agriculture vehicles and in other specialty markets(think pipelines). They sell their products to distributors, service centers and manufacturers worldwide. GSI has relative value and timing, but the relative safety was bad(0.67 of 2.00). They have a P/E ratio of 10.68(low) and a forecasted earnings growth rate of 45%. GSI has an annual sales growth of 556%, but has seen a rather large decrease in net income for the quarter(1,200%) due to steel prices. One number that really caught my eye though was the growth to P/E ratio which is 4.22. Generally, if a stock has a growth to P/E ratio of greater than 1.00, it is considered to be undervalued. Today's final company is GG/GoldCorp Inc. They acquire, develop and operate precious metals mines throughout North America, South America and Australia. Their main reserves are of Gold and Silver, but they also mine Copper, Lead and Zinc. The only attractive relative number for GG is the relative safety which is good because that's why I want to buy a gold stock, for safety. GG has a P/E ratio of 36.38 and a 22% net margin. Sales were up 29% over last quarter, but net income was down 104% due to the drop in the price of gold. GG pays a dividend of $.17 per share and although it has a 0% dividend growth rate it odes have a high dividend safety rating(meaning it prob. won't go down). Goldcrop is up(price) 31% over the past 52 weeks, but down 32% for the month(4 weeks). This is directly related to the price of gold falling and if you believe gold will continue to drop then wait to buy GG.
In addition to the normal good news(oil dipping, the dow and dollar up) today we saw some Street Justice get served. several major investment banks have been ordered to payback over $30 billion to investors that purchased "auction rate securities". This development comes from an ongoing investigation by N.Y. State Attorney General Andrew Cuomo into the representation of these investments by the banks. Some may not see this as good news, but it is a necessary step toward the transparency needed in wall street and the Business world abroad.
So, that's my opinion on what's going on today. What's your take? should these investors have gotten their money back, was justice served? Is the government wrong for interfering? Let me know.
I'm gonna steal a few lines of today's post to pat myself on the back and wonder what happened. It would appear I called that double top in the EUR/USD chart right on. Today it hit a 6 month low and after looking at the chart again I can see the two peaks and subsequent cliff dive that is following. I think I should become a technical analyst(just kidding). O.k. now that's outta my system. The USD continues to make it's run more historic than it's descent as we see it at levels similar to the beginning of the year. I would expect to see the dollar continue to gain against the euro(EUR) and the franc(CHF), but would be cautious with the crosses that are more closely connected to commodity prices(AUD and CAD).
I have added a very special element to my blog-site and any of you that have any interest in hedge-funds what so ever(news,ratings, anything) will love it. It's called Street Justice Supports and it's a series of links to what can only be described as the Ultimate Source of Hedge-fund News, period. There is literally anything you need to know about what's going on in the hedge-fund industry as well as the financial world. So check it out! It's just for you, cause we're all in this together. Thanks for reading.

Street Justice: Rose Colored Glasses

2008-08-13T21:23:00.000-07:00

Hey all! Welcome back. At a quick glance the market seemed to be up to it's old tricks again today(dropping like a rock). Some say this is the end of our rally. I see things a bit different though. I see a market that is weathering all sorts of attacks. More on that later. First, I have 2 new additions to the Street Justice One Watch list to drop on you.
HLF/Herbalife is 1 of the 2 most recent companies to meet the standards of Street Justice. HLF sells nutritional supplements for weight management and personal care products. They also sell sales aids, informational audio tapes, video tapes, DVD's and CD's to their 1.8 million independent distributors. These independent distributors sell HLF's products in 63 countries worldwide. HLF has awesome relative value and timing, but the relative safety isn't so hot(.84 of 2.00). They have a forecasted earnings growth rate of 24% and a P/E ratio of 12.02. Sales for HLF were up 14% over last year and 6% over last quarter with net income increasing 33% for the year and 7% for the quarter. HLF has a 10% net margin and a ROE of 97%(NICE!). Herbalife is up(price) 17% over the past 52 weeks and 22% over the last month. They have made 8 upward estimate revisions for fiscal 09' over the past month and have increased earnings estimates 88% for next fiscal year. HLF pays a dividend of $.80 per share and has a dividend growth rate of 30%. MORN/Morningstar is the other new addition to my list. They provide data on investment offerings worldwide through Internet, software and print based products for individual investors, financial advisers and institutional clients. They have and continue to provide data on more than 21,000 mutual funds in the US, 89,000 mutual funds in the international markets, 12,000 stocks, 7,300 separate accounts, 2,300 close end funds, 92,000 variable annuity sub-accounts, 1,400 ETFs(exchange traded funds), 7,700 hedge funds and 80 state sponsored college savings plans. These are the guys who give the stars to the "five star" mutual funds you hear about or invest in. MORN has decent relative value, timing and safety. They have a 23% forecasted earnings growth rate and a P/E ratio of 28.52. EPS for MORN are up 42% over the past 5 years. Sales for MORN are up 38% over the last year and 5% for the quarter with net income up 42% for the year and 21% for the quarter. They have a ROE of 22% and an 18% net margin. MORN has climbed(price) 12% over the last 52 weeks and 6% for the month. They have made 2 upward estimate revisions for this fiscal year over the past month and have increased earnings estimates revisions for next year by 50% over the past 4 weeks.
So the bears can say whatever they want. I am quite happy with the way the market is reacting to such negative world happenings. I mean take a look at what's going on. US Financial Institutions continue to make huge write-offs and there are several factors that should've sent oil back up to $140. Still, the DOW and the Dollar keep on chuggin'. If all of these current events(write-offs,Russia war,gas supply decrease) had happened a month ago we'd be in serious trouble.
So what's your take on today's minor dip in the DOW and bump in oil? Was the rally a fluke, are we headed back down to 11,000(DOW) and $150(oil)? Will the DOW and the Dollar overcome oil and gold? Let me know.
Somebody needs to tell all the buyers of the USD that the US is in trouble because based on what I've seen in Forex trading, the dollar is the strongest it's been since February. As of today I have doubled my money in my practice Forex account($50,000 to $100,000). The USD continues to take back against it's major crosses, like the GBP which took a 5 hour 300 pip beating from the USD this morning. I can't believe there are people with college degrees that can't see the trends of the past 8 months are reversing(oil, the dollar, the dow). I guess we all see what we want to see.
It'll be interesting to see how this week plays out. I will be using all the resources at my disposal as I watch the market like a hawk for any changes. As usual I will post anything I learn, cause we're all in this together. Thanks for reading.

Street Justice: Banking On Bruker

2008-08-12T13:55:00.000-07:00

I don't know about you, but I'm convinced we're on our way out of the darkness. It may just be a matter of taking 2 steps forward and 1 step back. Even with all this scary news swirling lately(Russian war and the financial world woes), the market manages to hang on to last weeks gains if just barely.
As I promised I have a "special presentation" for you today. You probably guessed the name of the company(it's in the title of today's post). That's right, it's BRKR/Bruker Corp and I have dug up all the relevant data I could find on them. I had planned on having a comment from a BRKR executive to add to today's post, but I had a deadline(which I already broke) and although I was assured it would, it hasn't arrived yet(they're busy making money). O.k, BRKR/Bruker Corp. is a leading provider of high performance scientific instruments and solutions for molecular and material research as well as for industrial applied analysis. BRKR is the publicly traded parent company of Bruker AXS, Bruker Biospin, Bruker Dlatonics Inc, and Bruker Optics. Bruker AXS is a leading global developer and manufacturer of analytical x-ray systems, optical emission spectrometers and combustion analyzers for elemental analysis, material research and crystallographic investigations. They have customers in many industries including chemistry, pharmaceutical, steel, semiconductor, cement, mining, automotive, forensics, environmental art and conservation, nanotechnology and life sciences. Bruker Biospin is THE global market and technology leader in analytic magnetic resonance instruments including NMR, preclinical MRI and EPR. They are also the leading global manufacturer of superconducting high and ultra high field magnets. Bruker Daltonics manufacturers mass spectrometry(MS) instruments and accessories for life sciences, pharmaceutical and chemical research. They are also a global leader in nuclear, biological and chemical detection utilizing a vast array of technology. Bruker Optics manufactures and develops advanced infrared and neer infrared spectrometers for academic and industrial research and quality control. With these 4 segments BRKR supplies the services and technologies needed for companies and governments across the globe to thrive. BRKR($2.36 billion market cap) was 1 of the 14 companies that met the Street Justice One requirements and their relative numbers(value, timing and safety) are great. BRKR has a forecasted earnings growth rate of 36% and a P/E ratio of 25.82. EPS for Bruker were up 160% over last quarter and 72% 5 years historically. Sales for BRKR were up 137% over last year and 30% over last quarter with net income jumping 3,265% for the quarter and 70% for the year. BRKR offers a 30% ROE and has a 6% net margin. BRKR is up(price) 98% over the past 52 weeks and 15% over the last month. The executives at BRKR have a lot of faith in themselves as well. There have been 5 insider buys over the past 3 months and 12 over the last 12 months for Bruker, with only 2 sales. The CEO Frank Laukien has bought over 100,000 shares himself since May 2008 and has spent $200,000 on BRKR stock in August alone. Talk about putting their money where their mouth's are. BRKR has 2 upward sales revisions(for next fiscal year) over the past 4 weeks and they have raised fiscal 09's sales estimates by 33% over the last month as well. Any stock screening program I use says the same thing, BRKR is undervalued and poised for great growth.
There's no denying today was a bit of an off day, but considering the state of things I don't think it's as bad as it could've been. I mean any other day oil would've taken off like a Russian missile in response to the news from overseas(Russia and Georgia) and we've all seen what the market is capable of when it comes to bad news from the financial world(JPM and Company). Still with all this scary stuff going on the market is relatively unscathed.
JP Morgan and Goldman Sachs both took a big hit today(Goldman was downgraded and JP Morgan announced $1.3 billion in write-offs). Was this a surprise to you? Or, is this just the next obvious step in the financial worlds woes? Let me know.
I've had some good runs in both my practice and real investments since I've started about 12 years ago, but none were as awesome as the action I saw in Forex trading over the past week or so. The dollar mounted an unprecedented comeback run against the euro and rallied against other key crosses. The best part is, we aren't done yet. Oil and Gold keep coming down giving the dollar momentum and the world is beginning to experience the same slowdown the US is dealing with. Even in the face of uncertainty the dollar maintains it's comeback run.
When I receive the comment from BRKR I will add it to the next post and I'll be back tomorrow with a few stocks that just made the Street Justice One cut, cause we're all in this together. Thanks for reading.

Street Justice: Is This Really It?

2008-08-10T19:31:00.000-07:00

Hello everybody. I hope you enjoyed your weekend and got plenty of rest. I got a chance to relax and went and saw a movie(pineapple express). Still, I can't wait till morning. I wanna see if we can hold the momentum from last week. I'm sorry to say that I don't have any stocks to recommend today. I am working on a "special presentation" for you guys and it's taken up all my research time(and then some) for the weekend. I will be highlighting 1 company which I have researched very heavily(more than usual) and posting the results for you. I won't tell you the name of the company yet, but I will let you know that i got to have a little chat(via e-mail) with one of their executive officers about their future and will be including our correspondence in the "special presentation". Don't misunderstand, I DON'T have any insider info, more like info from and insider. Anyway, I had to devote extra time to this project so I have no stocks today.
Based on what I've seen so far. I'm confident the dollar will continue to rally which should keep oil down and the market stable at the least. Though I could be wrong, at least about oil. As of right now(10pm EST 8-10-08) oil is up slightly from it's close Friday. Still, I am convinced there is enough working in our favor globally and here to keep the momentum up.
So, what do you all think next week has in store for us? Will we continue to see a US comeback? Was it just a flash in the pan rally? Let me know.
I must say I never expected to see the gains I'm seeing in my Forex accounts this soon. I have already doubled my real money(and then some) and pulled $30,000 profit from my practice account this week. It got quite crazy during trading in my practice account. At one point I made $12,000 in a series of trades that took all of 40 seconds(man I wish it was real!!). I have collected most of the profits in my real money EUR/USD short and put a bit of it back in. All I can tell you is the dollar shredded last week and is poised to continue it's rally next week.
I am planning on having the "special presentation" ready and posted by the end of the day tomorrow. If it's not ready, I will find something to give you, cause we're all in this together. Thanks for reading.

Street Justice: Eur-o Not So Tough!

2008-08-08T20:38:00.000-07:00

Finally, we ended a week on a good note. That'll keep the bears quiet(till Monday). Hey all. No offense to those that consider themselves bearish investors. Someones gotta do it. I've got a bunch of stuff to go over today. So, first things first. I found 3 companies for you to look over this weekend, each of which I ran through the Street Justice ringer.
AAP/Advanced Auto Parts is up first. They are a retail distributor of automotive products(hence the name). These products include replacement parts, accessories, maintenance items, batteries and automotive fluids for cars and small trucks(SUV's, Pick-ups, mini-vans and vans). AAP operates over 6,000 stores throughout the US, Puerto Rico and the Virgin Islands. They also have a wholesale distribution network which consists of independently owned and operated dealer locations. AAP's relative value, timing and safety are all within a solid range and they have an 8% forecasted earnings growth rate. Sales for AAP have increased 5% over last year with net income increasing 3%( net income less than sales due to higher production costs which are subsiding). AAP has a ROE of 23% and have climbed(price) 36% over the past 52 weeks and 17% over the last month. AAP pays a dividend of $.24 per share with an 8% dividend growth rate. Next in line is WDR/Waddell+Reed. They provide investment management, investment product underwriting and distribution. Basically WDR is an investment bank(don't be scared). They cater to high net worth families and businesses. They also manage several funds and provide service to those customers. WDR has great relative value, timing and safety. They have a forecasted earnings growth rate of 21% and a P/E ratio of 16.10. WDR's net income has jumped 172% over the last year and 24% over the last quarter. ROE for WDR is 37% and they have a net margin of 14%. WDR has climbed(price) 33% over the past 52 weeks and 1% over the last month. EPS were up 27% for the quarter as well. As if they needed to they pay a dividend of $.76 per share with a dividend growth rate of 13%. COCO/Corinthian College is last up for today. As I'm sure you guessed they operate as a college. COCO provides degree and diploma granting, for-profit post-secondary schools devoted to career training program training primarily in the health-care, electronics, information technology, criminal justice, auto repair and diesel technical fields. They offer a variety of associates, bachelors and masters degree and diploma programs through 93 colleges in the Us and 17 in Canada. COCO has good relative numbers and a 16% forecasted earnings growth rate. EPS were up 45% over last quarter for COCO and sales were up 3% for the quarter. Net income for COCO was up 46% over last quarter and they have a ROE of 8%.
So even with all the negative buzz coming out of the financial world, we have still managed to close this week on an up note. Investor confidence(and the dollar) continues to rise as oil continues to fall. If these trends continue next week, I have no doubt the market will keep it's momentum.
I know somebody had a good week thanks to the stock market(me). What about you all? How did my readers fare this week? Let me know.
I almost didn't recommend any stocks today because I have so much to go over regarding Forex trading, more specifically the EUR/USD. I'm sure any of you that keep up on economic news know the dollar has been on an upward run against the Euro among other crosses. Do you know how much we've gained though? Let's put it this way, we are at the same levels we were at back in late February. The EUR/USD has dropped below all true support numbers including it's 200 day SMA(simple moving average). Support is now basically being determined by real-time buy prices. I have also found what is almost definitely a "double top pattern" while reviewing the EUR/USD charts. Technical Analysts(which I am not) say a double top pattern signifies a reversal in a trend. The pattern I found begins in the ladder part of February 2008 and reached it's second peak in the beginning of July 2008. If this is indeed a double top pattern the end results(according to the tech rule) would put the EUR/USD at the lowest levels of the year by early September. All this and Europe is feeling some tight economic times too. The ECB hesitated to raise interest rates overseas and don't plan to anytime soon(according to Trichet). The dollar isn't the only currency that the Euro is struggling against. The JPY and GBP have been chipping away at the EUR since mid July. The latest developments with oil and gold(price drop) may just be the straws that break the Euros back(they are priced in USD). I see a whole slew of factors that lead me to believe the Euro is highly overvalued and coming down more.
Have a great weekend everybody and Happy Birthday Mom. I will be back sometime before Monday to make sure we're all ready for the week, cause we're all in this together. Thanks for reading.

Street Justice: I Love This Game!

2008-08-07T18:05:00.000-07:00

I think all my loyal bulls out there know that every day of this recovery isn't going to be filled with monumental gains. Hi everybody. I'm feeling quite chipper today considering the market gave back a lot of it's gains for the week. I know that in a year from now the DOW will be using 13000 as support and not resistance and you can quote me on that. We may be in unprecedented times, but we are taking unprecedented mesures to ensure a quick and robust recovery(quicker than you think). A few TV personalities and so-called analysts try to show how smart they are by bashing "The 3 Wise Men"(Paulson, Cox and Bernankie) and the work they've done. The truth is "The 3 Wise Men" inherited most of the problems they are trying to fix and in my humble opinion they are doing a fine job. Alright, enough of my ranting. I managed to find 4 stocks for you to check out today.
ENZN/Enzon Inc. is first on the list today. They are a biopharmaceutical company which develops and manufacturers pharmaceutical products for the treatment of cancer and other life threatening diseases. They have a vast product line used in the treatment of various types of cancer and lymphoma which are sold in the US, Europe and around the globe. ENZN was a tough one for me to recommend. There weren't a lot of positive numbers. For example, the relative value was the lowest I've seen yet (0.06 of 2.00) and their forecasted earnings growth rate is -11%. So, you wondering why I am backing it. Fair enough. ENZN's net income has increased 290% over last year and they beat earnings estimates by 90% last report. Enzon has climbed(price) 24% over the past 52 weeks and 17% over the last month. Unfortunately, there aren't any cures for cancer only treatments. Until this changes, ENZN has room to grow and with a recent price dip now may be a good time to snatch some ENZN up. Next is IIVI/Ii-Vi Inc. They manufacture, develop and market materials and derivative products for precision use in medical, military, security and aerospace applications. These products include precision optical infrared sensors, thermoelectric coolers, x-ray and gamma ray sensors, laser lenses and engineered semiconductor materials. IIVI sells these products to original equipment manufacturers, system integrators, laser end users, aerospace customers and the military. The numbers for IIVI were slightly more impressive than ENZN. The relative value, timing and safety are all excellent and they boast an 18% forecasted earnings growth rate. Net income for IIVI was up 251% over last year and 13% over last quarter. They have a net margin of 20% over the past 12 months. IIVI has climbed(price) 46% over the last year and 28% over the past 4 weeks. TS/Tenaris SA is number 3 today. TS manufactures and sells steel pipes and associated products. They sell large steel pipes used in pipelines primarily for the oil industry as well as equipment used in oil extraction and electrical conduits. They have customers in North America, South America, Europe, The Mid-East and Asia. Ts has decent relative numbers and an 8% forecasted earnings growth rate. Sales for TS were up 30% over last year and net income was up 1% over last year(steel prices). They have a net margin of 20% over the last 12 months . TS has seen gains(price) of 24% over the past 52 weeks and is down 9% for the month(time to buy!). Tenaris also pays a dividend of $0.60 per share with an 8% dividend growth rate. Last up today is VOLC/Volcano Corp. They develop and manufacture intra-vascular ultrasound and functional measurement products used in the diagnosis and treatment of vascular and structural heart disease. They make stand-alone and custom units that can be easily integrated into hospitals worldwide. The only relative number for VOLC that impressed me was the relative timing at 1.70 of 2.00. They do have a forecasted earnings growth rate of 30% though. VOLC beat earnings expectations by 25% and sales were up 26% over last year. VOLC has only seen gains(price) of 3% over the past 52 weeks, but they have jumped 23% over the last month.
With the market taking a dip, today was a great day for reviewing our portfolios and looking for opportunities to add to certain positions. I say it was only a dip because oil didn't jump crazily and the dollar held it's ground. If the market were in trouble again we would see more volatility in the other indices. Even in a time of healing there will be some pain.
well, you all know my opinion about today's losses. What do you think is going on? Are we headed back down into the bear cave? Are these just growing pains? Let me know.
The stock market may still have a few bouncing betty's lurking around that can blow your portfolio to pieces, but Forex trading couldn't be better(well it can always be better). I have stumbled onto some smokin strategies and the dollar is pretty hot itself. The biggest gains I've seen have come from shorting the AUD, EUR and JPY. Though a AUD/JPY short also brought me some big bucks. Bottom line is the USD is makin some solid moves back up. Watch for further USD catchup versus the AUD and CAD because they are linked big time to oil and gold.
I must say I'm quite happy with the progress of my blog so far. Thanks to you(my readers) I have acquired some key sponsors(Investing System and Zack's Investments) which have provided me with the tools needed to keep Street Justice going strong.Thank You for your support and I will continue to bring any info I can, cause we're all in this together. Thanks for reading.

Street Justice: Basking In The Glow.

2008-08-06T19:28:00.000-07:00

Wow! It feel like I've been away for a week. How's it goin? I'm sorry for leaving y'all hangin for a couple days. I've been really busy , but I'm here now and that's all that matters. Right? when we left off I had been back-testing some screening strategies and I said I wasn't going to list the criteria in the Street Justice One Strategy. I changed my mind. I realized these are important factors for anyone to take into consideration when selecting stocks, not just those of us that use stock screeners.
Each of the 19 requirements I'm going to list are equally important and most effective when used together as a strategy. There is no order to importance other than this first one. The stock price must be greater than $3usd(I break this rule only when speculating). Next, it must have increased in price greater than 0% over the four weeks prior to the date screened as well as a price increase of at least 10% over the past 52 weeks. another must is an increase of greater than 0% in EPS surprises over the last 4 week and they must have beat earnings estimates by greater than 0%. The qualifying company must also have either met or beat sales estimate over the past 4 weeks. Their 3-5 year estimated earnings increase must be greater than 10% with 5 year historic earnings growth at least 5%. Sales must also be strong with no less than a 0% gain in sales over the previous quarter and 10% 5 years historically.The company must also have a gain over the previous fiscal year. Net income must have seen gains greater than 10% over the previous fiscal year and 0% over the previous quarter. A ROE(return on equity) of 20% or greater over the past 12 months is a must as well as a net margin increase of greater than 0% over the last 12 months. I look for companies that have at least 1 upward estimate revision over the past 4 weeks and 0 downward revisions. An increase of greater than 0% in EPS and sales estimates for the next fiscal year are the icing on the cake. No one can guarantee(ligitimately) you will make a fortune in the stock market, but i can guarantee you will increase your chances exponentially if you use these criteria when selecting you stocks.
What can I say? we're lookin pretty good today. Oil continues right back down the same ladder it came up, the dollar kept it's momentum upward giving little back and I'll be darned if the market retained most of it's gains from yesterday. This all sounds like good new to me. The essence of a bottom is the end of a downward trend, which we are seeing. Let's hope it'll hold on.
O.k. so oil dropped below $120. Is the bubble broken? Are we headed back down under $100? Maybe the real price is coming out and it's stabilizing? Wait, wait it's just on a dip before we see $150? Let me know.
The equities market isn't the only exciting place to be trading these days. I've had a blast trading the AUD versus the USD and JPY. sure, I didn't make any money(practice account), but I learned a lot and had fun to boot. It won't be long before I can throw more money at my Forex account and get into some short-term stuff instead of just my EUR/USD short.
I promise I won't be gone for 2 days next time. I already don't sleep, but I will start using my spare time more efficiently in order to keep the blog here going strong, cause we're all in this together. Thanks for reading.

Street Justice: It's In The Numbers!!

2008-08-03T23:19:00.001-07:00

I've got a special treat for everyone today. I pulled an all-nighter and did some serious screening and back-testing last night and today. I got a bunch of very useful info from this back-testing marathon. So lets get started!
My first goal last night was to create a stock screening definition with parameters designed to select stocks that would yield as high a return as possible over a multi-year period of time. I was quite pleased with my final results. I created a screen definition for which qualifying stocks must meet 19 requirements and through back-testing, this screen definition which I have named Street Justice One, has proven to be extremely effective. Using a hold time of 52 weeks and folowing the parameters of Street Justice One from August 2000 until now would've yielded a return of 200% versus the S&P which was at -7.6% for the same period of time. I am not going to post the criteria for Street Justice One, but if anyone using a stock screener wants the list, let me know and I will email it to you. A couple of the major criteria were stocks over $3 per share and stocks that regularly make positive sales and earnings estimate revisions. I am going to post the names of the 14 companies that my Research Wizard(blog sponsor plug) Street Justice One Screen Definition selected as of Friday, Aug 1st, 2008. Here they are: ACL/Alcon Inc, SRCL/Stericle, SIAL/Sigma Aldrich, VMI/Valmont Industries, BUCY/Bucyrus Intl, DXPE/DXP Enterprises, TISI/Team Inc, SOHU/Sohu.com, APH/Amphenol Corp, TDY/Teledyne Tech, BRKR/Bruker Corp, WAT/Waters Corp, WGOV/WoodwardGovener and AMTD/Td Ameritrade. According to my back-testing calculations if you bought these 14 stocks this week and held them for 52 weeks, you would see a return of around 20%. After 52 weeks however, you must run The Street Justice One Screen Definition again, as my results are based on a holding period of 52 weeks. The more time that passes though the higher the returns, like I mentioned earlier 200% from 2000-2008. Something else worthy of mention was a pattern I noticed while back-testing. These are the results I noticed the pattern in, see if you can find it. Street Justice One selected 0 companies for both 2000 and 2001(not the pattern). It selected 2 companies for 2002 with gains of 31%. 5 companies were chosen for 2003 with 32% gains. 6 came up for 2004 with 40% gains and 10 companies were chosen for 2005 with 4.5% gains. 2006 saw 7 companies with 25.5% gains and 2007 had 17 companies with a loss of 5.6%. It was easier to see the pattern with a line graph(which I have). Basically, the biggest gains came every other year. So it may be wise to check out he 14 companies I named since this(2008) is one of the every other years. I can almost guarantee using the parameters in Street Justice One when picking stocks will beat The Street(Wall Street) every time. The best part about utilizing a good stock screener is it takes the emotion out of the equation, which is crucial.
I have added a few new weapons to my research arsenal. Investing System has granted me use of their software SotckPicker RT and Zack's Investment Research has given me The Research Wizard to help me spread the wealth. I am also planing on acquiring a proprietary stock picking software program in the future.
Keeping on the subject of stock screeners, I'd like to know your opinion on them. Do you use screeners as a big part of your investments strategy? Or, are they a waste of valuable time? Let me know.
My Forex strategy is pretty much the same going into next week. I see no reason for the AUD to make any comebacks versus the USD or the JPY. As usual I'm still short the EUR/USD too. I don't know for certain, but I'd bet(and am betting0 the USD continues it's slow return.
I'll see everybody tomorrow. I have the whole day off, so I will be up to my ears in research. I should have plenty to share with you all for Tuesday, cause we're all in this together. Thanks for reading.

Street Justice: We Shall Overcome!!

2008-08-02T19:39:00.000-07:00

Hey everyone, hope your weekend is going well. I've been hard at work as usual, though I'm not complaining. I love it. This is a very exciting time to be an investor. The media may paint a bleak picture of our future, but that's only because fear equals good ratings and sales. We know better though, we know this will all pass(hopefully sooner rather than later) and as long as we do our homework, there is nothing to fear. So here are 3 companies for you to do some homework on.
First up is CFSG/China Fire Safety+Security. As you may have guessed by the name, they design, develop, manufacture and sell fire protection products and services for industrial customers in China. They market these products and services primarily to the iron and steel, power and petrochemical industries. CFSG has very good relative value and timing, but low relative safety. They have a P/E ratio of 11.33 and a forecasted earnings growth rate of 24%. Net income for CFSG was up 141% last year and 17% for the quarter with sales climbing 4% for the quarter. China Fire has climbed(price) 33% over 52 weeks, 28% for the month and 12% over the past 7 days. CCC/Calgon Carbon is next up. CCC provides services, products and solutions for purifying water and air. These include carbon and UV filtering products as well as products utilizing their proprietary filtering technology called ISEP(ionic separator). CCC's customers include companies in the potable water, processed food, environmental water and air industries in the US and around the globe. Calgon has awesome relative numbers across the board and sales were up 20% over last quarter. Their net income was up 296% last year and 22% for the quarter. CCC was up 58% over the past 52 weeks, 30% for the month and 19% last week. I'll let you decide what to do with the final company today. They are connected closely to fuel prices and some speculation may be required when making your decision. The company is ANW/Agean Marine. They operate as a marine fuel logistics company that supplies and markets refined marine fuel and lubricants to ships in port and at sea. They provide fueling services to oil tankers, container ships, dry-bulk carriers, cruise ships and ferries. They service ships in the port of Piraeus, Greece with a fleet of 18 double hull tankers. Relative value and safety for ANW were a okay, but the relative timing was poor(0.82 of 2.00). They have a P/E ratio of 16.53 and a forecasted earnings growth rate of 35%. Net income for ANW was up 14% for the fiscal year and 20% for the quarter. They climbed(price) 90% over the past 52 weeks, 2% over 1 month and 7% over the past 7 days. ANW pays a $.04 dividend per share with a 104% dividend growth rate.
Well, we didn't see the strong finish I was lookin for Thursday and Friday. The market didn't take too bad of a hit though. One name of personal interest to me(I own 2000 shares) that made a big comeback Friday was AWEC/Ameriwest Energy. They bounced back $.12(24%) on Friday after a rough past couple of weeks. As for the DOW, I'm sure we'll hold on next week and may just see that bottom everyone is waiting for.
So what do you think next week hold in store for us? Is it time for the healing to begin? Or, is the wound going to continue to FESTER? Let me know.
I sure wish the $50,000 in my practice Forex account was real this week. The little adventure I went on shorting the AUD would have made me some booku bucks. I was up over 200 pips shorting the AUD/JPY this week and 100 pips on a AUD/USD short. Bottom line was the Aussies gave some back this week. I am up with my real Forex money too. It may not be $50,000, but I'm up around 300 pips on my EUR/USD short(avg buy 1.5902) and there's still a bunch of long-term room left.
Everybody have a nice weekend and get plenty of rest for Monday. I'll be back sometime in the next 36 hours with a pre-week pep talk and some hopefully useful info, cause we're all in this together. Thanks for reading.

Street Justice: Don't spill the beans!!

2008-07-31T20:59:00.000-07:00

Although days like today don't send me into a panic, I do have to wonder just how fragile this current market is. Hey all. Don't worry I'm still as optimistic and bullish as ever. I'm not jumping ship. It is amusing watching analysts on t.v. make fools of themselves trying to predict trends though. Still, I'd sacrifice that entertainment for some consistency. The 3 companies I've lined up for today oughta provide some consistent gains for your portfolios.
The 1st company, CRY/CryoLife Inc. develops and markets bio-material, implantable medical devices and preserved human tissue for cardiac and vascular transplant. Their products include bio-glue, bio-prosthetic devices like heart valves and vascular grafts as well as preserved cardiac, vascular and orthopedic tissues for transplants. CRY sell products on 6 major continents. The relative value, timing and safety are all solid and CRY has a forecasted earnings growth rate of 25%. Net income for CRY was up 1900% over last year and 40% over last quarter. Over the past 52 weeks CRY has climbed(price) 36% with a 19% gain for the month and a 1% increase over the past 7 days. CRY is 1 stock that won't make you cry. This next company is a great Ag buy. IPHS/Innophos Group produces specialty phosphates used in fertilizer and detergent applications. The phosphates for their fertilizer applications are highly engineered and crucial to taste, texture and performance of foods, beverages, pharmaceuticals and oral care products. IPHS operates in the US and Mexico. I like the relative value, timing and safety numbers. They were all within range. IPHS has a forecasted earnings growth rate of 34% and their EPS was up 189% over last quarter. Net income for IPHS was also up 33% over last quarter and 83% over the last year. They have climbed(price) 140% over the past 52 weeks, 2% over 1 month and 12% for the week. IPHS pays a $.68 per share dividend with a 43% dividend growth rate. I can't believe I didn't see this next company sooner. I've heard of it , but until this week I hadn't done much research on them. It's CVA/Covanta Holdings and they develop, construct, own and operate energy generation facilities and water/water-waste facilities. They also provide insurance services in several countries around the world. CVA has decent relative value, timing, and safety and a P/E ratio of 27.98. EPS for Covanta were up 190% over last quarter and net income jumped 203% for the quarter. CVA has a 54% 5 year historic sales growth too. They have climbed(price) 30% over the past year, 11% for the month and 4% over the past 7 days. Covanta Holdings was also 1 of the 15 industrial and 73 US companies named to the S&P(Standard and Poor) list of companies with the highest growth characteristics.
I don't think we have much to worry about in regards to today's losses. Other factors like positive earnings and guidance from a lot of companies and the optimism and support of the Fed and the consumer will overcome in the end. I've had some extra time to research this week(break at college) and I will have some good info this weekend.
What do you think the losses in the market today signal? Is it just a bump on the way back up? Or, are we in a pit of quicksand? Let me know.
The dollar seemed to weather today's dip in the market. We saw a bit of a scare early in the day versus some major crosses(Euro and Yen), but by noon we were right back up there. A currency pair that has really caught my attention is the AUD/JPY. I shorted 4 units(400,000) on Tuesday and am up well over 200 pips or about $10,000USD(in my practice account). I believe this is due to slowdown in economic growth down under and the recent dip in the price of gold. This is supported by losses for the AUD leaking through to other crosses. The AUD is connected to gold though and if gold jumps back up, watch out.
Everybody have a good Friday(lol). I'm gettin right back to researching when I'm done here. You can never do too much homework. See you all tomorrow with some more data to download, cause we're all in this together. Thanks for reading.

Street Justice: Nobody said it would be easy.

2008-07-30T19:16:00.000-07:00

All I can say about today is, we didn't get into this mess in one day and we won't get out of it in one day either. Hi everyone. I hope you're not losing faith. There are bound to be some bumps on the way back up. I've got 3 companies today that oughta lift your spirits, if you're down in the dumps today.
This first company is quickly gaining popularity as we pass through these tighter economic times. DINE/Rewards Network provides marketing services, loyalty programs and access to capital for the restaurant industry. They offer a marketing credits program and a marketing service program. Through these programs they purchase food and beverage credits from participating restaurants and then sell them for the restaurants. They also provide rewards for members who dine at participating restaurants. DINE has 9,542 participating restaurants with 6,372 of them in credit programs and 3,054 in marketing services programs throughout the US and Canada. The relative value, timing and safety for DINE were decent and they have a P/E ratio of 17.42. Sales are up 11% over last quarter and net income has climbed 146% over the past year. DINE is up(price) 20% over the past 52 weeks, 13% for the month and 18% over the past 7 days. Next is UNP/Union Pacific. These guys are just a good ol' fashion rail company. They provide railroad transportation of freight products for the agriculture, automotive, chemical and energy industries. UNP owns 32,205 route miles and operates on 18,695 mainline and branch line route miles throughout 23 states in the western US. I saw very high relative value , timing and safety numbers for UNP and they have an 18% forecasted earnings growth rate. UNP is up(price) 36% over the past 52 weeks, 10% for the month and 9% for the week. Net income for UNP was up 15.5% over last year. They pay a dividend of $.88 per share with a 19% dividend growth rate. Some investors may shy away from my final pick today, but I think they are a-okay. CNC/Centene Corp provides health insurance to low-income families as well as cash assistance and full medicaid benefits to the aged, blind or disabled. They operate health plans in Indiana, New Jersey, Ohio, Texas, Wisconsin and South Carolina. The relative numbers for CNC were all great. They also have an annual sales growth of 34%. Not to mention a net income increase of 268% over the past year. It's no wonder they are up(price) 6% over the past 52 weeks, 36% over the last month and 15% for the week.
I really like days like today. When I see oil and the market both close up, it gives me hope for the bullish investor in these uncertain times. Some analysts think this recent "surge" in the market is just a flash in the pan, but I believe we are starting the journey back up.
O.k. forget the analysts and forget me. What do you think? Is the recent positive momentum in the dollar and the market a sign of better times ahead? Or, is this just an "eye of the storm" situation? Let me know.
Well, the dollar stalled out a bit today. Nothing too bad. I figure, it's just taking a break before continuing it's long trek back to it's rightful place atop the world's currency market. we are still undervalued against some major crosses(like the Euro and Yen). I'm still short the EUR/USD and long the USD/JPY for the long-term.
I don't know about you, but I'm feeling a lot more confident about my long-term investments than I did a few weeks ago. I really think we'll work all this stuff out. I'll be back tomorrow with some more askew market perspective for you, cause we're all in this together. Thanks for reading.

Street Justice: A Crucial Time.

2008-07-29T12:15:00.000-07:00

Hey everybody, sorry I'm a bit late with today's post. I had a busy couple of days. I still managed to find 3 killer companies today to help plug the hole in your portfolios.
This first company may seem a bit morbid, but make no mistake they are a solid stock. STEI/Stewart Enterprises provides funeral and cemetery services including cremation, transportation removal and preparation of remains, caskets and flowers. They also provide family counseling and cemetery property sales(grave sites and tombs). STEI owns and operates 229 funeral homes and 139 cemeteries throughout 24 states in the US. The relative value and safety for STEI are pretty low(under 1.00 of 2.00), but the relative timing is excellent. Sales for Stewart were up 5% for the quarter and the net income was up 57% over the same time period. STEI has climbed(price) 30% over the past 52 weeks, 22% over the month and 10.5% over 1 week. With a $.10 per share dividend, like a cherry on top. STEI starts to look more like a Hot Fudge Sundae and less like a death monger. This next company is similar to STEI in the sense that they too prepare objects to bury in the ground. NWPX/Northwest Pipe manufactures large-diameter, high pressure steel pipeline systems for use in water infrastructure applications primarily related to drinking water. They also manufacture propane tanks and other fabricated products. NWPX has customers throughout the US, Canada and Mexico. The relative value, timing and safety are all excellent with sales up 18% over last quarter. Net income for the quarter was up 66%. NWPX has climbed(price) 77% over the past 52 weeks, 9% over 1 month and 23% for the past 7 days. This next company is my favorite of the 3 today. AXYS/Axsys Tech Inc. manufactures and sells highly precise assemblies and components which are embedded in optical systems for both government and commercial applications. These products include precision metal optical products, infrared optical products, motion control devices, precision machined lightweight products and ball bearings used in various commercial markets. AXYS has customers around the globe. Relative numbers are all great for AXYS and sales are up 7% over last quarter. Net income for the year was up 63% and 19.5% for the quarter. AXYS is up(price) 166% over the past 52 weeks, 40% for the month and 10% over the past 7 days. Annual sales were up 50% for AXYS as well.
Well, things are looking up. I think even some bears might say we are getting close to a bottom. I mean 2 weeks ago the consensus was that oil would be at $200 a barrel by now. Sure, we still have a long way to go and some uncertainties ahead, but things are looking better.
What's your view on all this? Are we nearly outta the woods? Or, are we just taking a break on the way to $200 a barrel oil and $1000 an ounce gold? Let me know.
It would seem the dollar is supporting the conclusion that we're near or at a bottom. It's actually at a 5 week high(the dollar). I pulled a 150 pip gain out of an overnight EUR/USD short trade. Not mention my biggest gain yet on my long-term EUR/USD short. Bottom line, the dollar is kickin butt across the board.
My schedule is gonna be very full soon. I start Fall Semester at school in less than a week. That being said, I will still do my best to stay on top of the markets and your portfolios, cause we're all in this together. Thanks for reading.

Street Justice: On The Right Track

2008-07-26T19:53:00.000-07:00

Welcome back. Doin well I hope. Everything here in my world is good. I'm in sort of a reflective mood today. I've been looking over companies that I've recommended since I started this blog. I did some extra homework(research) on 10 of em. Today I'll share the results and explain what I've found.
Now, I was very objective when I chose the ten companies to review. This is not gonna be a list of 10 stocks that have gone through the roof, to advertise my prediction prowess. As a matter of fact I believe the majority of them are in the red since I found or recommended them. That's why they caught my attention. Rest assured that I found no fundamental problems directly related to any of them. Okay, enough jabber. Here's what I found out. AUY/Yamana Gold is first on my list. They are down 20%($3) since I spotted and recommended them. After exhausting all my resources the only reason I could come up with for the loss was the plain and simple fact that Gold itself has dropped in price recently. Even though they are down, AUY is doing exactly what it suppose to do, moving relative to the price of gold. The next one that caught my eye was NYB/New York Comm. Bank. Like most banks this quarter, they posted a loss($15.4 billion to be precise). NYB also missed earnings expectations by $.02. Add a few hefty charges related to debt refinancing, a lawsuit settlement(from 1983) and a provision to cover bad loans(their first in 13 years) and I'm surprised they didn't drop further than $1.30(since I highlighted them). Still, with all this gloom and doom, NYB is most likely gonna be a survivor of the great 2008 bank blow-out. They are well positioned to handle their financial obstacles from what I can tell. If you wanna own a bank, NYB is still a good choice. TAP/Molsen-Coors was one on the list that's up since I got in. TAP is up 5%($3) since I added them to my buy list. They have combined their US operations with number 2 brewer Miller Brewing Co. I think they also got some help from the buyout of number 1 brewer Anheuser-Busch by foreign money. whatever the reason I'll take the 3 bucks and see a bright future for TAP. ECOL/American Ecology is another one that's seen gains since I started following them. There are quite a few reasons for their 15%($4) climb. ECOL raised their dividend payout, showing investors they have confidence. Another thing helping ECOL is all the positive press the been receiving lately. American Ecology is establishing itself as a powerful mid-cap growth stock. From up to down. I'm talkin down like 17%($6). It's KMT/Kennametal Industries and here's the situation. They beat earnings expectations, but recorded a decrease in profits over last quarter and lowered guidance. I think this is a good buy opportunity with KMT down. They are battling higher production(energy)costs, but from what I've read they are adapting and will overcome. My next focus was TRLG/True Religion. They are up about 8%($2) since I first posted them. TRLG was added to the S&P Small-Cap 600 index and have maintained good sales. I'm confident they will be the awesome earner I've pegged them for. We'll get some more insight when they announce earnings on Aug 6th. On my extra credit homework list, I also added the 2 speculation buys I went over a couple weeks ago. The first was VLNC/Valence Technologies. They are up close to 30%($1) since I featured them. VLNC was added to the Russell 3000 Index, but did see their CFO resign after being on-board only 5 months. They have a conference call scheduled for Aug 7th that should give us an idea of how the future looks. I think Valence and their batteries will do just fine powering us into the future. I received an investors kit from them and they have a lot more products than I thought. The 2nd half of my speculation segments was CPST/Capstone Turbine. They haven't fared as well as VLNC though. CPST is down 12.5%($.42) since I posted the segment they were featured in. This is most likely due to the fact that they are still operating at a loss(not a profit). They have addressed this topic saying they are "close" to Turning a profit, which I interpreted as a year or so. CPST still has some work to do, but I'm still proud to recommend them as a speculation buy. This next company I follow very closely, because I own 2000 shares of them. AWEC/Ameriwest energy is down since I mentioned them in my blog, about 30%($.20). I was amused to see that they were back to the same average buy price I own them at, which is $.49. The funny part is I got in on them like 2 months ago. I know this doen't sound good, but AWEC has been announcing great news all month. They have already signed their first agreement to begin selling oil. Similar to AUY and gold, the only factor I could see that was affecting AWEC negatively was the recent drop in oil prices. I still believe AWEC will reach some analysts expectations to exceed $2.50 and if I were you I would consider getting in while they are down. Being the optimist that I am, I want to end this segment on a positive note, so I saved the best for last. MNLU/Mainland Resources is up about 50%($2.70) since it found me. They have big things going on too, like having just entered into an agreement with HK/Petrohawk Energy to develop the Hainesville Shale nat gas property. MNLU was also recently upgraded to a "speculation buy" by Heron equity Research. These guys are well poised for the future and seemingly impervious to falling oil prices. Doing homework on the stocks you own or want to own is very important. It is imperative to know why a stock price is going up or down, so you can know what to do with it. Just like with anything in life, the more you put in(time researching) the more you get out(money).
I'll be honest, I didn't get a chance to see what went on in the market Friday till it was closed, because I had to work all day. It would seem we had a pretty volatile day that ended flat. I guess I'll take that for a close to the week(could be worse). I'm excited to see if next week will give us a glimpse of brighter times ahead.
I try to do about 4 hours of homework(research) a day, when it comes to my investments. I know that's a lot, but I write a blog on the subject. How much homework do you do? How much do you think is enough? Let me know.
Okay everybody, have a good weekend. I'm still standing behind all the companies I've gone over with you so far. They are all solid investments in my opinion. I'll be back before Monday with 3 new solid companies for you, cause we're all in this together. Thanks for reading.

Street Justice: Walkin' The Line.

2008-07-24T22:57:00.000-07:00

Hello everybody! How's everything today? I'm good. The market has seen better days, but I guess there's give and take in all relationships(even investments). So today we gave. I didn't really give. The market may have been down a bit, but I saw mostly green today. I've got 3 stocks to go over today that should add some green to your portfolio.
First in line, finish line that is. FINL/Finish Line operates mall-based specialty stores in the US. They sell name brand products marketed toward athletes. These products include clothing, shoes, hats, backpacks and other active lifestyle accessories through their stores The Finish Line and Man Alive. The relative value and safety aren't so hot(less than 1.00 of 2.00) for FINL, but the relative timing is excellent(1.87 of 2.00). It's funny a lot of the numbers I'm got for FINL aren't so hot, like last years annual sales growth of -4% or its forecasted earnings growth rate eat -6%. I wouldn't steer you wrong though. FINL is up(price) 51% over the past 52 weeks, 347% over the past 24 weeks and 23% last week. They also have a ROE(return on equity) of 4.65%, which isn't horrible. Next is KPPC/Kapstone Paper, not to be confused with CPST/Capstone Turbine which I wrote about a few posts ago. KPPC/Kapstone Paper produces and sells unbleached kraft paper and lightweight liner board in the US. They offer a vast variety of paper grades for conversion into paper products including bags for pet food, cement and chemicals. They also make grocery bags and specialty papers like wrapping paper and roll-wrap. KPPC looks pretty darn good in relative value and timing, but the relative safety is down at 0.60 of 2.00. The forecasted earnings growth rate for KPPC is 28% and they had an annual sales growth of 4% last year. Kapstone is up 3% over the past 52 weeks, 13% over the last month and 11% over the past week. I'll top it off with a 19% ROE and we'll move on. HA/Hawaiian Holdings owns and manages Hawaiian Airlines. No, no, don't leave, I'm not crazy! It's o.k. This airline isn't gonna hurt you. Just read before you judge. HA flies daily routes between Hawaii and Los Angeles, Sacramento, San Diego, San Jose, San Francisco, Las Vegas, Phoenix, Portland and Seattle as well as daily routes between the Hawaiian Islands. They also provide charter services from Honolulu to Anchorage, Alaska. Now before I even get to the numbers, I want you to understand Hawaii is a group of islands from which you must fly or swim(take a boat) to get to the US Mainland. I know my readers aren't idiots. I'm just reminding you this airline is in a special market. O.k. numbers. The relative value, safety and timing are all excellent and they have a 14% annual sales growth. HA has a forecasted earnings growth rate of 35%(not bad with the price of oil). They have seen there share prices rise 200% over the past 52 weeks, 40% over the past month and 31% over the last 7 days.
Like I was saying earlier, I saw more green than red today. Still, the red I saw concerned me. One stock that has been down this week for me is AUY/Yamana Gold. I'm not so worried about the stock than I am the price of gold. It has dropped pretty sharpley lately and I fear it may rebound just as rapidly. I don't think I need to tell you why high gold prices are bad for stocks and the dollar. If I do, it's called INFLATION. The price of gold pretty much moves relative to inflation. So lets hope I'm wrong about it rebounding(sorry SENOR ORO).
If you are invested in gold then you are most likely happy about it's gains over the past months(and years). If your like me though, gold is small portion of your portfolio and you would rather see it take a hit rather than the market. So, which are you? Are you a big ol' Grizzly Bear with a cave full of gold(and bonds). Or, does the thought of gold reaching $1000 make you cringe? Let me know.
I've been do some experimenting in my practice Forex account and have made a lot of fake money shorting the Aussie Dollar versus a few crosses. I can only assume it's because of the price of gold, but I pulled like 150 pips off a AUD/JPY short and about half that from both a AUD/USD short and a GBP/AUD long trade. I'm still holding strong in my real Forex account. I'm up a little on my EUR/USD short and up pretty good on my USD/JPY long. These are long-term investments though, I just watch them for fun.
Alright, so our great week got a small black eye, no big deal. I think we'll close strong and be set up nicely for next week. The 3 companies I went over today should set your portfolio up nicely. I hope so, cause we're all in this together. Thanks for reading.

Street Justice: Keep on truckin'!

2008-07-23T12:26:00.000-07:00

Greetings, and welcome back to another installment of pin the tail on the Bear. So, yeah another good day with the exceptions of a few companies. The DOW was up like 130 points yesterday, oil behaved and the dollar continues it's upward momentum. I'd be stoked to see a couple weeks like this. Speaking of being stoked, I've got 3 companies today that oughta keep your portfolio happy.
First outta the chute today is VMI/Valmont Industries. They produce fabricated metal products. These products include engineered metal structures and components for the lighting, traffic and wireless communication industries. They also manufacture metal and concrete structures for the North American Utility Industry and supply parts to the agriculture and irrigation industries. VMI has also just begun supplying the Wind Energy Development Industry with accessories. VMI has extremely high relative value, timing and safety(almost the highest I've seen). They have climbed(price) 27% over the past 52 weeks and are up 18% for the week. Valmont has an historic EPS growth rate of 38% and a projected earnings growth of 26%. Annual sales for VMI are up 20%. Owning VMI will yield you a $.52 per share dividend with a 14% dividend growth rate. O.k. where was I? I need to get my bearings, bearings like directions, directions are found with a compass. CMP/Compass Minerals to be exact. They mine and produce rock and highway deicing salt. CMP processes and markets the salt for a number of applications including paper bleaching, water treatment, food flavoring, highway deicing and as a nutrient for animal feed. CMP also provides a specialty fertilizer used to grow chloride sensitive crops like tobacco and turfgrass, operating in the US, Canada and the UK. Compass has very good relative value, timing and safety. CMP is up an impressive 123% over the past 52 weeks and continues to climb with a 6% gain over the week. They have also seen EPS rise 13% for the quarter and are projected to have earnings increase 34%. CMP has an annual sales growth of 38%. They pay a dividend of $1.34 per share with a growth of 9%. My final company for today is GTI/Graftech International. They manufacture and distribute graphite carbon electrodes and cathodes which are used in electric arc furnace steel production and aluminum smelting. GTI supplies the transportation, semi-conductor and petrochemical industries among others throughout the US, Canada, Mexico, Brazil and other countries around the world. GTI has excellent relative value and timing, but the relative safety is low(0.72 of 2.00). Graftech has climbed 47% over the past 52 weeks and has a 9.5% gain over the week. EPS for GTI were up 40% for the quarter and are projected to grow 36%. GTI has an annual sales growth of 17%.
I must say I'm enjoying what I'm seeing in the market so far this week. It looks as though America is shedding it's skin once again. It will be a lengthy process, but one that's begun nonetheless. I am surprised(pleasantly) that some of the gloomy earnings reports we got(ACX, GOOG) didn't affect the market as much as I thought it would. Don't get me wrong the companies that announced the earnings took some hits, but they did not cause sector wide losses that can come with bad news. Overall from where I'm sitting things are looking up.
You all must be sick and tired of hearing about how happy I am and how great I think the market is doing lately. Whats your take on things? Are you a bearish investor whose been raking in the dough on gold and oil over the past year? Or, are you like me and glad to be seeing some light at the end of the bear cave? Let me know.
"I'll buy that for a dollar!" That phrase may have some meaning again soon. I know I'm a little preemptive, but isn't hat the point? I think the dollar is poised for some serious comeback against a few of it's crosses. The indestructible Euro is facing some serious challenges ahead and our friends down under may be in for some slowdown or currency problems. I hate to benefit from other peoples misfortunes, but in this case we're just playing catch up.
O.k. then, I'm off to work. It looks like the market is holding on for one more day. The 3 companies I went over today oughta keep your portfolio hanging on. I hope so, cause we're all in this together. Thanks for reading.

Street Justice: Are we there yet?

2008-07-21T12:43:00.000-07:00

Happy Monday! At least I hope it is for you. I always like Mondays(cause the market reopens). I also like seeing the market hold it's ground like it is. We could very well be at the beginning of a long bottom. Keeping that thought in mind, I've got 4 companies that oughta help keep the bottom from falling out of your portfolio.
Each of these stocks has maintained steady growth in price, earnings and sales(and they're not in the oil business). First up is NDSN/Nordson Corp. They manufacture equipment used in precision dispensing, testing and inspecting, surface preparation and curing. Their product line ranges from manual units for low volume operations to microprocessor based automated systems for high-speed high-production lines. NDSN supplies equipment to the appliance, automotive, book binding, container, converting, electronics, food and beverage, furniture, life sciences, medical, metal finishing and semi-conductor industries in the US and 50 other countries worldwide. Nordson has pretty good relative timing, safety and value. They are up(price) 50% over the past 52 weeks and 8% last week. Sales for NDSN were up 20% for the quarter and net income was up 55% for the quarter. NDSN pays a dividend of $.73 per share and has an 8% dividend growth. STJ/St. Jude Medical is up next. They develop, manufacture, and distribute medical devices for the cardiovascular field. STJ's products are used in all phases of cardiac surgery including implants. STJ has customers in the US, Europe, Japan and the Asia Pacific. STJ has some pretty attractive numbers also. Relative value, timing and safety are all high(above 1.20 of 2.00). STJ has seen a sales increase of 12% for the quarter. Their net income for the quarter was up 55%. St. Jude is up(price) 4.5% over the past 52 weeks, 16% for the month and 12% last week. They also have a forecasted earnings growth rate of 18%. Up 3rd is HRB/H+R Block. They are a financial services company with subsidiaries providing tax, investment, mortgage, accounting and business consulting services. Their main customer base is in the US, Canada and Australia. I'm sure most of you have heard of them, so I don't need to give anymore of a company description. Here are the numbers though. The relative value and safety are fair, but the relative timing is excellent(1.54 of 2.00). H+R Block's sales were up 169% for the quarter and their net income was up 1,247% for the quarter(29% for the year). They are up(price) 10% over the past 52 weeks and 7% over the past 7 days. HRB pays a $.57 per share dividend with a 0% growth rate. Last up I have APH/Amphenol Corp. They design, manufacture and market electrical, electronic and fiber optic connectors, inter-connector systems and coaxial flat ribbon cables. They supply the information technology and communication industries worldwide. APH has excellent relative value, timing and safety. Sales are up 10% for APH over the quarter and 16% for the year. APH was up(price) 37% for 52 weeks and 13% over the past 7 days. They pay a dividend of $.06 per share with a dividend growth of 0%.
I'm feeling pretty good about today. We didn't see extreme action in either direction. A couple of bumps up or down here and there, but nothing major. It looks like we may be holing on and maybe the bears are looking for a bottom.
I've been looking for companies that continue to grow a profit in slower growth times. I like to share whats working for me. Whats working for you? What investments have paid off for you lately? Which ones do you regret? Let me know.
So far I haven't seen the dollar take off like I wanted. We haven't fallen off a cliff either though. The EUR/USD has been in a 150 pip channel since last night. Other than the AUD/USD moving up, we haven't seen much action. I'll be happy with a slow and steady dollar rally.
I'll be keeping a very close eye on the markets over the next several days. Any happenings, good or bad could start a chain reaction. I'll be back tomorrow with some more companies to contemplate, cause we're all in this together. Thanks for reading.

Street Justice: It is what it is.

2008-07-19T21:10:00.000-07:00

Alright, we made through the week and things aren't looking too bad. If I'm not mistaken, we are to hear earnings from some regional banks next week. I guess we're looking for some not so good numbers. The trade would then be on how bad they're gonna be. If their numbers aren't so dismal, it might be enough to keep us going. I've got 3 companies lined up today that'll keep your portfolio going.
These are some nice companies I dug for today. First is FLIR/Flir Systems. FLIR designs, manufactures and markets thermal imaging systems. Their products are used by commercial, industrial and government markets worldwide. The main thing that attracted me to Flir Systems was the fact that they've acquired 3 smaller companies in their industry. This shows they're growing nicely. FLIR's numbers weren't bad either. They had they highest combination of relative value, timing and safety I've ever seen(RV1.40/RS1.42/RT1.89 of 2.00). They have climbed 5% for the week, 16% for one month and 81% over the past 52 weeks. FLIR has an annual sales growth of 38% and a 3-5 year projected EPS growth rate of 22%. My next offering today is CRM/Salesforce.com. They provide software on-demand. In other words, they provide relationship management services to businesses of all sizes worldwide. CRM has about 1.1 million paying subscribers worldwide. Their on-demand platform allows it's customers to customize and integrate salesforce applications or build entirely new on-demand applications. This can be done without having to invest in new software. CRM has very high relative value, timing and safety. I was pleasantly surprised by their 1,764% historic EPS growth. Salesforce.com is up 61% over the past 52 weeks, 12% YTD and 9% for the week. A healthy 50% annual sales growth was another highlight. Last and maybe least(who knows), I give you URBN/Urban Outfitters. They operate retail stores with a "specialty lifestyle" theme. URBN manages 4 name brands which are Urban Outfitters, Anthropologie, Free People and Terrain. They also offer their products(mainly clothes) through ecommerce and catalogs. URBN like the 2 other companies today has excellent relative value, timing and safety. They are up steady too. With 45% gains for the past 52 weeks, and a 9% jump this week. URBN is also up 17% YTD. A 25% annual sales growth for a clothing retailer ain't too shabby either. They have also seen a 37% gain in EPS for the year too.
We heard from GOOG/Google, MER/Merril Lynch and IBM/I.B.M. among others Friday. The news wasn't great but it wasn't horrible either. It was bad enough for GOOG to drop like $80, but it's an expensive stock and tends to react big at earnings time. I saw mostly green in my portfolio. I did spend some money chasing AWEC/Ameriwest Energy down from $.69 to $.59, but I ended up with an average buy of $.62 so I'm happy. AWEC is doing big things and will be fine.
Well, King Dollar gained back some lost ground this week. Just in time too. I actually heard a guest analyst on CNBC say the Euro could replace the Dollar as the base global currency if certain things didn't change soon. That's crazy talk! We ain't goin nowhere! We're growing and changing. The dollar is well poised to continue it's rally against the euro next week. They're are far more many factors that can hurt the euro right now than the dollar. I got out of my USD/JPY long position when we hit 107. I wanna see how Sunday night goes before I get back in. The Aussie dollar was up over the dollar this week. I'm guessing it wasn't due to gold.
Today I'd like to know how I'm doing. Has this blog helped anyone? Has it at the least been entertaining? Am I a sorry excuse for a writer? Let me know.
I haven't heard a lot of talk about it, but we are scheduled to hear from some regional banks next week. If we don't get horrible results we may be able to ride this rally through next week. I'm confident the companies I went over today won't yield horrible results for your portfolio. I hope not, cause we're all in this together. Thanks for reading.

Street Justice: Gold: Black or Yellow?

2008-07-17T14:18:00.000-07:00

Woohoo! We shall overcome! Bye, bye Bear Territory. I hope everyone else is having as fun a day as I am. If you're bullish the US, the stock market and the dollar you are(having fun). What more could we ask for? Oil is down, earnings so far aren't horrible and the dollar kicked some butt(over 150 pips versus the yen). All this good news means either the bears are covering their shorts or getting caught with them down. I dedicate today's 4 companies to the bears out there.
My theme today covers the bears favorite subject(s). The theme is Gold, both black(oil)and yellow(actual gold). Lets start with real Gold or Gold miners in this case. This first company is a true Gold play, so true in fact that their ticker symbol is GOLD. GOLD/ Rangold Resources engages in Gold mining and exploration. Their main focus is the discovery and development of exploration projects in Africa. As of current they have 3 main discoveries, a 7.5 million ounce deposit(of gold) in Mali, a 4 million ounce deposit in the Cote d'Ivorie and and an additional 7 million ounces in western Mali. Rangold is one mine(acquisition or discovery) away from the big leagues(larger market cap group), but if they don't find that mine by 2012 or 2013 they anticipate production(yield) to flatten. GOLD has o.k. relative timing, value and safety with a forecasted earnings growth rate of 18%. GOLD is up(price) 41% YTD, 36% over one month and 15% for one week. Besides being a great growth stock, GOLD pays a $.12 per share dividend with an 11% dividend growth rate. My 2nd pure Gold play is HMY/Harmony Gold. They too mine and develop gold properties. HMY operates 22 mines in 3 countries which are South Africa, Australia and Papua New Guinea. They produced a combined 2.3 million ounces of Gold for fiscal 2007. Their ore (gold) reserves amount to about 53 million ounces. HMY doesn't have very good relative numbers(value, timing and safety) and their projected earnings growth rate is -7%. So why did I recommend them? Well, they are up(price) 18% YTD, 7% for the month and 7% for the week. Not to mention a 16% annual sales growth. HMY just like all the companies I'm going over today is a defensive stock for a bear market. Alrighty, now for Black Gold(Texas tea, oil). First up, I have CLR/Continental Resources. They are an independent oil and nat gas company. They have properties located primarily in the Rocky Mountains and Gulf Coast regions. Crude Oil comprises about 75% of it's proved reserves. CLR like most oil and nat gas companies right now has excellent relative value, timing and safety. They have a forecasted earning growth rate of 37% and an annual sales growth of 47%. CLR is up (price 185% YTD(wow!), 2% for the month and 4% for the week. EPS for CLR were up 185% for the quarter. Finally, I couldn't wait to get to this last company. Besides being a great energy pick, they are one pf my top picks for the last month maybe 2. It's HK/Petrohawk Energy. They are also an independent oil and nat gas company. HK acquires and develops onshore properties in the US. They have properties in the Fayetteville Shale , Haynesville Shale and Permian Basin regions. HK has better relative value, timing and safety than the others I mentioned today and a forecasted earnings growth rate of 23%. HK is up(price a whopping 158% YTD, 11% for the month and 4% this week. Their annual sales growth was 28%. HK is a company I've been invested in (both real life and in contests) since early March of this year and the price has more than doubled over that time. Petrohawk like many oil and gas companies are taking a hit this week. For a company like HK though, I think this is a good time to get in or pick up more if you already own some. They are big players in the nat gas and oil industry and will do fine even if and when oil does stabilize.
what can I say? I'm up big today and this week. I do own some oil, nat gas and gold stocks(got to be diversified), but they are just a portion of my portfolio and the rest of the market was up nicely. Even financial companies like JP Morgan surprised us with not so bad earnings. I don't know if we are at a true bottom or if the short sellers are running for the hills, but either way I'll take it for now.
O.k. y'all. I wanna know what you think. Is this the bottom we're looking for? Is this positive move just short covering? Are we a long way from being out of the woods? Let me know.
I really wish I had more money to put into Forex trading today. I made some good money. Being long the USD/JPY was my biggest gain overnight(over 130 pips). The other USD crosses got hammered too. I am even up in my long-term EUR/USD short. This has been a rocky but good week so far for the dollar.
One more day to go(for the week). I sure hope we can hold it together. I'm not blowing my own horn(well maybe a little), but quite a few of the companies I've recommended since I stared this blog are up pretty decent. ECOL/American Ecology is up 20% since I mentioned it. TAP/Molsen-Coors has seen 10% gains. Both of the speculation buys I went over VLNC/Valence and CPST?Capstone Turbine are both up at least 10%. My best call so far has been MNLU/Mainland Resources which is up 50% since I highlighted it. I am really not trying to gloat. I have seen some small losses too. I am just trying to let you all know that I'm here to help you. I can't even afford to buy a lot of these stocks in real life. I research them and share my results to try and help anyone that reads my blog, cause we're all in this together. Thanks for reading.

Street Justice: Welcome to The Jungle!

2008-07-16T20:19:00.000-07:00

Well, we've made it through the half way point of what could turn out to be one of the most important weeks in US financial history. In true American form we have banded together(at the last minute) and are poised to beat the odds. I have got a killer company that I am very excited about today.
I was going to do the usual 3 companies with good numbers and tons of potential, but while I was researching I found 1 that I felt should have this entire section to itself today. The company is CHTL/China Tel Group. CHTL is in the Telecommunications industry. They install, manage and service broadband wireless networks in China. I must take this opportunity to say that CHTL is a speculative buy. They were in the mineral exploration business until March of this year. Only after not finding any minerals did they change their principle business operations. That being said, I still like China Tel a lot and I'll tell you why. CHTL may be new at this game, but they are very busy. They just signed into a stock purchase agreement with ASSAC(Asia Special Situation Acquisition Corp) a firm in the Caymans. This is basically an investment of $250 million by ASSAC in China Tel. CHTL also just completed installation of the first phase of a wireless Internet network in Beijing. This network which was approved by the Chinese Government is a Wimax/WiFi network providing wireless broadband services. O.k. I'm sure you want some numbers and not just a bunch of hype from me, so here you go. CHTL is up (price) 100% YTD, 20% since the beginning of May(after they switched businesses) and they're up 7% over yesterday. I was hard pressed to find any earnings data, but I believe their EPS are somewhere around $.50. As for their financials, I already mentioned they just gained access to $250 million. I imagine that covers any expenses they might incur over the next 6 months to a year. CHTl is currently priced at $2.41 and seems poised to "breakout" soon. When a stock is this cheap and has this much potential I would feel more guilty not recommending it and having others miss out than I would if I did recommend it and it goes down. There is just too much potential. This might be a good pick for those of us that don't have as much to invest.
Being the optimist, bear slaying maverick that I am. I have to be careful not to let my feelings or emotions control my investing decisions. With all the gloomy news leading up to this week though, it's hard not to get excited over this weeks not so gloomy news. The truth is we still have a long way to go before we're out of the woods. That being said, things are looking up(unless you bank at IndyMac). Earnings announcements for the first 3 days of the week were pretty positive overall. To sum it up, I think it may be time to start looking cautiously at some of the companies that have been beat up so bad over the last year.
So what's really goin' on? Is all this talk and hype a band-aid on a severed limb? Or, is America just going through some growing pains(we're only a couple hundred years old)? Let me know.
I made no changes to my Forex positions. I did some early morning trading on the EUR/USD yesterday and today, but long-term I'm still bettin on the dollar over the eruo and the yen. As with the stock market, I may be in for some more pain before the gain, but I'm forever(until it betrays me) bullish on the dollar.
I really hope we can keep this positive momentum through Friday(and beyond). I'm not sure if oil will cooperate, but we may not need it to. Take a look at CHTL(the company I recommended today). I think it'll be worth your while. I hope so, cause we're all in this together. Thanks for reading.

Street Justice: The Three Wise Men

2008-07-15T21:00:00.000-07:00

Hey all! Big day today. We heard from Treasury sec. Hank Paulson, Fed Chairman "uncle Ben" Bernanke, SEC head honcho Chris Cox and President Bush. Not to mention a whole slew of companies including INTC/Intel announced earnings. The things we heard from "the 3 wise men"(Paulson, Bernanke and Cox) had a pretty big impact on both the stock market and the dollar. I was surprised by how much of a positive impact they actually had today with what could be considered bleak news. What the 3 wise men and GW said today was so important I am devoting today's blog to it. I will be back tomorrow with some new companies.
Ben Bernanke or "Uncle Ben" as I affectionately refer to him(mostly cause his name is Ben and he looks like uncle Ben from the rice box), would have to be near the top of my list of people I want to meet. He is a very smart, very well-spoken individual. The media seems to think he didn't have many positive to say about the economy and the future. I guess it's all a matter of perspective because I was quite reassured by his testimony(before congress). One thing that he mentioned that I wasn't aware of was that 2nd quarter growth was better than expected. He also said the US can expect a "healthy" but not an "exuberant" recovery. Uncle Ben also testified on the housing sector. He said the housing sector was the center of their(the feds) financial concerns and that it should stabilize late 2008 or 2009. I was really stoked that he touched on speculation too. He said that speculation does not have a significant effect on prices and that it(speculation) can be helpful to the economy. According to "uncle Ben" the stimulus package(rebate checks) did and is working, but it is too early to tell if another one(stimulus package) is needed.
Hank Paulson, the US Treasury Secretary had a bunch to say to congress as well. Paulson believes that Fannie and Freddie are the keys to pacing our recovery and maintaining stability. He outlined a 3 point plan for congress. This plan was designed to support or protect our financial markets, all of them not just Fannie and Freddie. This plan calls for an 18 month temporary increase in authority for the fed to give credit to these GSE's(Government Supplied Enterprises) if the fed deems necessary to maintain US economic stability. Paulson also requested temporary authority for the fed to purchase equity in GSE's and access their information, again if the fed finds it necessary. The Treasury Sec. recommended this plan because "the GSE's have the potential to cause systemic risk and must be regulated." Hank also suggested to congress that they appoint a "regulator" to oversee the economy as whole. He said this regulator should be "world class" and "strong". Congress tried to push Paulson to give them a dollar amount for the limit of help that should be available to the GSE's. Paulson told Congress that it would only hurt the situation if there was not a "blank check" available for this plan. Both Congress and Sec. Paulson agreed not having to use the plan would be the best case scenario.
SEC Chairman Chris Cox was also on the panel testifying to Congress with Paulson and Bernanke. Cox was all business. He stated that the SEC has 4 dozen pending investigations in the sub-prime lending area. The SEC is focused on sub-prime lenders and others involved in securities. The SEC's contribution to the Fannie, Freddie and GSE problem was a promise or threat to enforce penalties for "naked" short selling(not actually borrowing the stock you're short selling). This is an attempt to get short sellers to put their money where their mouth is.
I can't believe I am saying(writing) this, but I have something in common with President Bush. I won't get into politics so lets just say I'm not GW's biggest fan. Anyway, he had a news-conference today. His response to a question about when he thought the economy would recover was the smartest thing I've ever heard him say. He said "I don't know, I'm not an economist, I'm an optimist." As you all should know by now, I too am an optimist. I'm pretty sure that's the only thing GW and I have in common. Bush touched on a few other topics like his broken record off-shore drilling routine and the need to support Fannie and Freddie(common theme today).
The market seemed to react to the comments today almost immediately. I saw green in most of my portfolio which also happens to be full of the companies I recommend. When the market opened I thought it was gonna be a really bad day, but it would seem the slightest bit of hopeful news was enough to start a rally.
Forex trading was even crazier than the market today. The dollar started out struggling(as usual), but a combination of huge oil sell-offs by banks raising capital and the words of the "3 wise men" was enough to bring it back in the later day. It was back to true form again though down like 80 pips from it's highs against the EURO. I was watching the "3 wise men" testify to congress on TV while I traded their comments and the oil news in my Forex account. I did quite well.
If we could have this much going on in the financial world everyday, I would love it. It sucks that the economy has to get to this point before the powers that be take action. Being the optimist that I am though, I'm just glad they're taking action and I think all will work out. I'll be back tomorrow as usual with a few stocks to shock your portfolio back to life, cause we're all in this together. Thanks for reading.