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Investing Strategies
Where To Invest March 2016
March 14, 2016
Market Strategies Newsletter – Sample Issue
Balanced Investing Strategies To Make Money In Up Or Down Markets
A Publication of Princeton Research, Inc. (www.PrincetonResearch.com)
Contributing Staff: Michael King, Charles Moskowitz
Where To Invest In 2016 Newsletter Covering:
Where to Invest March 2016
Best Stocks To Buy March 2016
Stock Market Investing Strategies
Stock Options Trade Alerts
Options Trading Strategies
How To Trade Options
Proven Profits Trading Success
Results From Some of Our Recent Trade Alerts
47% Profits on SPY Puts In 3 Days
64% Profits on BAC Calls in 2 Days
60% Profits on QQQ Puts in 2 Days
150% Profits on SIG Puts in 3 Days
48% Profits on SPY Calls in 2 Days
92% Profits on VA Calls in 6 Days
100% Profits on NE Calls in 2 Days
100% Profits on TWTR Calls in 2 Days
223% Profits on XLF Calls in 10 Days
133% Profits on FEYE Calls in 3 Days
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Profits Like These.
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$10,000 Trading Portfolio
Charles Moskowitz Discussion
Week 10 was yet another small gain of $216 and brings our YTD gain to $2633. Also again, we have no carryover positions so no funds in use.
My analysis of the position of the major indexes remains the same but my level of conviction has increased. After the fourth week of gains the markets are more overbought, the stochastics and on balance volume are stretched even further. While many see the process as the return to a healthier market with good rotation I see it as a shift to the more defensive industries and the traditional “non-traditional uncorrelated” asset groups. This clearly includes all of the commodities (stuff) as described here in the last several months. The two most obvious are the gold and oil markets. Gold is easy to explain since it is a haven for despair and the concerns of political unrest. The oil is less so since it has been driven by those same concerns plus the issue that the high prices can choke off economic growth and as we’ve seen can also cause dramatic overproduction and supply excesses.
One of the main differences is that the gold has been a “store of value” for an extended period of history while the oil is an industrial commodity that is consumed and must be replaced or an alternative found to serve the same purpose. The movement to find and utilize alternatives continues with the main issues being price and storage ability the biggest hurdles.
Another issue for the commodities markets is the fact that they can be played with dramatically small margin requirements. A contract for 100 ounces of gold worth roughly $125,000 can be traded for only $4000. That’s 3% margin as opposed to the 50% requirement for stocks and 100% for options. This means that once trending, these markets become money-driven instead of fundamentally driven. As we gain participants the price is driven in the direction of the trend. Gold here looks higher over the mid to longer term and we will look for a place to initiate a new position.
As far as new trades for this week, I favor the SPY 3/24 200 puts @ $1.50 ob. This is a quick trade and I will issue a stop or sell via text……..CAM
Market Strategies $10,000 Trading Account Trade Table
47% Profits on SPY Puts In 3 Days
DATE |
TRADES |
PRICE |
COST |
PROCEEDS |
RESULTS |
03/10 |
Sold 4 SPY March 11th 199 Puts |
1.69 |
676 |
216 Gain |
|
03/07 |
Bought 4 SPY March 11th 199 Puts |
1.15 |
460 |
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MARKET Laboratory – Weekly Changes
Prices are copied from Barron’s Weekly and Yahoo Finance and may be incorrect.
| Dow
17,213.31 +206.54 +1.21% |
Nasdaq
4748.97 +31.45 |
S&P 500
2022.19 +22.20 +1.18% |
Transportation
7693.09 +41.24 +0.54% |
Russell 2000
1067.56 +5.62 +0.52% |
Nasdaq100
4361.83 +32.83 +0.76% |
| Gold (spot)
1258.70 -11.20 -0.9% |
Silver
1560.5 -8.9 -0.6% |
Crude
38.50 +2.58 +7.2% |
Heating Oil
121.80 +5.67 +4.9% |
Unleaded Gas
1.4443 +0.1122 +8.4% |
Natural Gas
1.822 +0.156 +9.4% |
| VIX
16.50 -0.36 -2.1% |
Put/Call Ratios
S&P 100 119/100’s -17/100’s |
Put/Call Ratios
CBOE Equity 70/100’s +9/100’s
|
Bonds
161-07 -1-01 2.75%+0.11% |
10 Yr. Note
128-11 -24 1.98%+0.04%
|
Copper
224.10 -3.35 -1.5% |
| CRB Inflation
Index 173.53 +4.98 +3.0% |
Barron’s* Confidence
69.6 +0.8 |
S&P100
896.55 +8.69 +0.98% |
5 Yr. Note
119-202-155 1.48% +0.05%
|
Dollar
96.20 -1.02 -1.1% |
DJ Utilities
647.14 +14.09 +2.23% |
| AAII
Confidence Index
Long Term Average |
Bullish
37.4% +5.4%
38.74% |
Bearish
24.4% -4.9%
30.30% |
Neutral
38.2% -0.5%
30.96% |
M1 Money Supply
+5.18% Feb 29th
|
M-2 Money
Supply +5.62% Feb 29th
.. |
* Component Change in the Confidence Index
M1…all money in hands of the public, Time Deposits Traveler’s Checks, Demand Deposits
M2.. adds Savings and Money Market Accounts both compared with the previous year.
Market Strategies Technical Information
Support/Resistance Levels: SUPPORT RESISTANCE
S&P 500 1958 2047
Dow 16,860 17,353
QQQ 101.10 106.90
Transports 74.48 7787
NASDAQ 4580 4780
Stocks broke through, the S&P 2010 resistance led by value type stocks as opposed to growth stocks. As a result the Nasdaq and QQQ lagged both the Dow and S&P 500 and failed to get to our suggested upside resistance levels. Transports and Russell were also relatively sluggish. .
Markets appear overbought excepting those stocks with huge short positions. A bullish March cycle ends this week.
$100,000 Trading Portfolio Stock Positions and Trades
Each stock is allocated a theoretical $ 5,000 share of the portfolio unless otherwise indicated.
|
Stock
|
Purchase Price | Purchase Date | Stop/Loss | Price/Date Sold | Profit/
(Loss) |
||
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|
56.44 | 03/10 | 57.64 3/07 | $ 240 | |||
| 8.25 | 02/24 | Sold 5 -$9 Calls | $225 credit | ||||
| 29.50 | 02/23 | Sold 3 32.50 Calls | $ 900 credit | ||||
| 6.02 | 02/22 | ||||||
| 6.49 | 12/28 | ||||||
| 51.21 | 12/10 | ||||||
| 36.50 | 12/08 | ||||||
| 53.53 | 12/07 | ||||||
| 50.81 | 11/23 | ||||||
| 28.51 | 10/28 | ||||||
| 7.58 | 09/28 | ||||||
| 43.55 | 08/14 | ||||||
| 1.40 | 02/17 | ||||||
| 0.7411 | 12/26 | ||||||
| 4.84
3.75 |
12/18
|
||||||
| 8.40 | 12/16 | ||||||
| 14.21 | 10/16 | ||||||
| 2.95 | 05/19 | ||||||
| 4.08 | 8/12 | ||||||
| 6.56 | 7/11 | ||||||
| 0.22 | 10/22/12 | ||||||
SCO means Stop Close Only
Additional New Options Trades will be texted
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For those of you who do not buy puts to protect your portfolio, there are many ETF’s that are the inverse of the DOW. The symbols are DOG, DXD, SDS,TZA and RWM, which go up when the DOW, S&P 500 and Russell 2000 go down and down when they go up. The DZZ goes up double when gold goes down.
Market Strategies $100,000 Trading Account
There was one closed out option position:
S&P March 11th 199 Puts were sold at $ 1.69 for a profit of $ 432.
There was one closed stock position:
DECK was sold short on Monday, March 7th at $ 57.64 at $ 57.94 and covered on March 10th
at $ 56.44 for gain of $ 240.
The result for the entire week was a net gain of $ 672.
For the entire year on closed out trades, our profits increased to $ 7,503.
The options expire on the third Friday of each Month unless otherwise posted.
The Stock table has the following 23 positions: AA(2), APC(2), BAC.B.WS, BSBR( 2 ), CUBA, EYES, LVLT, MOS, NBGGY (3), REPR, SAN, STNG,SUN,TEXQY, TWTR, VA: Short 5 AA Calls and 3 SUN Calls
The options call for a $ 2,500 investment unless otherwise stated; each stock position requires $5,000 unless otherwise mentioned specifically.
The three SUN March $ 27.50 Puts require $ 285.
We are basing money management on a hypothetical $ 100,000, and are using a
total of $84,684 for the 21 open long stock positions plus a credit of $1125 for the AA and SUN written Calls, which reduces the requirement to $ 83,844. This leaves $ 16,156 in cash.
The only option positions are those related to SUN and AA stock positions.
These figures are approximate and there might be errors.
We have not counted the dividends received from many previous trades such as Apple, Colgate Palmolive, JP Morgan, North American Tankers, Santander, their Brazil affiliate BSBR and Blue Capital Reinsurance which was sold for a profit and many others. STNG went ex-dividend last Tuesday.
Executions that have occurred at or near the open or close of trading sometimes vary from our actual numbers. For example, when something opens down and it is through our price, we take the next trade whether it is an uptick or continues lower. This sometimes results in a 50% trade that is slightly above or below the exact number.
Previous Week’s Recommendations and
Rules for the Market Strategies
$100,000 Portfolio Trading Account
- All options count for about $ 2,500.00 for model portfolio calculations unless
otherwise stated
- When the option has doubled sell half the position
- Stop Loss protection is either half or offered with each trade
- The cost of the option is the asking price (or the price between the bid and ask,
whichever is more realistic)
- The options will be followed until closed out.
- Option Symbols are stock symbol with expiration month and strike price
| Option | COST | Date | Sold | Date | Profit/(Loss) |
| SPYMar 11th 199
8 lots |
Puts
1.15 |
03/17/16 | 1.69 | 03/10/2016 | $ 432 |
| AA March 9
5 lots written |
Calls | 0.45 | 02/26/2016 | $ 225 credit
Covered write |
|
| SUN Mar 27.50
3 lots |
Puts
0.95 |
02/23/16 | |||
| SUN June 32.50
3 lots written |
Calls
|
3.00 | 02/23/2016 | $ 900 credit
Covered write |
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This Weeks’ Economic Numbers
Earnings Releases and Media Data
Before the Open on top of the Row;
After the close below the Economics Information
| MONDAY | 3D Systems DDD ( 0.06 vs 0.21 ) Travel Centers of America TA ( 0.05 vs 0.91 )
China’s statistics on Industrial production and retail sales are released. Opec Publishes its monthly oil-market report. Talks on Syria are due to resume in Geneva Amaya AYA ( 0.43 ) Ducommun DCO ( 0.41 vs 0.46 ) Rosetta Stone RST ( -0.66 vs -1.01 ) Oncothyreon ONTY ( -0.111 vs -0.30 ) Tele Tech TTEC ( 0.51 vs 0.46 ) |
| TUESDAY | Bon-Ton Stores BONT (n 2.79 vs 3.02 ) Constellium CSTM ( 0.08 vs -0.17 ) FactSet FDS ( 1.66 vs 1.46 ) JA Solar JASO ( 0.68 vs 0.28 ) Valeant Pharma VRX ( 2.62 vs 2.58 )
08:30 hrs Retail Sales Feb ( -0.1% vs + 0.2% ) Retail Sales Less Autos ( -0.2% vs + 0.1% ) 08:30 hrs Empire Manufacturing March ) -9.5 vs -16.6 ) 10:00 hrs Business Inventories Jan ( 0.0% vs +0.1% ) 10:00 hrs NAHB Housing Market Index March ( 59 vs 58 ) 16:00 hrs Net Long Term TIC Flows Jan ( NA vs -$29.0 Bln ) Abraxas Petroleum AXAS ( -0.03 vs 0.06 ) Fogo de Chao FOGO ( 0.28 ) magicJack VocalTec CALL ( 0.30 vs 0.15 ) Oracle ORCL ( 0.62 vs 0.68 ) Vectus VEC 0.54 |
| WEDNESDAY | Actuant ATU ( 0.21 vs 0.28 ) Cheetah Mobile CMCM ( 0.83 vs 0.59 )
07:00 hrs MBA Mortgage Index 03/12 ( NA vs +0.2% ) 08:30 hrs CPI Feb ( -0.2% vs 0.0 ) CORE CPI ( +0.1% vs +0.3% ) 08:30 hrs Housing Starts Feb ( 1137K vs 1099K ) Building Permits ( 1204K vs 1202K ) 09:15 hrs Industrial Production Feb ( -0.3% vs 0.9% ) Capacity Utilization Feb ( 76.9% vs 77.1% ) 10:30 hrs Crude Inventories 03/12 ( NA vs +3.88 Mln Bbls ) 14:00 hrs FOMC Rate Decision for March ( 0.375% ) The Fed ends its two-day meeting and is not expected to tighten interest rates. The statements given at a conference by Chairman Yellen will give clues to their thinking. FedEx FDX ( 2.35 vs 2.01 ) Herman Miller MLHR ( 0.39 vs 0.37 ) Jabil Circuit JBL ( 0.59 vs 0.50 ) Silver Wheaton SLW ( 0.13 vs 0.14 ) CLARCOR CLC ( 0.40 vs 0.53 ) |
| THURSDAY | Intl Gaming Technology PLC ( 0.45 vs 0.19 ) Land’s End LE ( 0.73 vs 1.12 ) .
08:30 hrs Initial Claims 03/12 ( 266K vs 259K ) 08:30 hrs Continuing Claims 03/05 ( NA vs 2225K ) 08:30 hrs Philadelphia Fed March ( -1.4 vs -2/8 ) 08:30 hrs Current Account Balance ( -$116.0Bln vs -$ 124.1Bln ) 10:00 hrs Leading Economic Indicators ( Feb + 0.2% vs -0.2% ) 10:30 hrs Natural Gas Inventories 03/05 ( NA vs -57bcf ) Bank of Japan Governor Haruhiko Kuroda speaks at a bank forum.
Adobe Systems ADBE ( 0.61 vs 0.44 ) Paranaense de Energia ELP ( 0.26 ) New York & Co NWY ( 0.03 vs -0.01 ) Shoe Carnival SCVL ( 0.14 vs 0.15 ) The Fresh Market TFM .48 vs .55 |
| FRIDAY | Gordmans Stores GMAN ( 0.06 vs 0.12 ) Tiffany & Co TIF ( 1.40 vs 1.51 )
10:00 hrs Michigan Sentiment 03/12 ( 92.2 vs 91.7 ) St louis Fed President James Bullard discusses monetary policy at the International Research Forum on Monetary Policy. New York Fed president William Dudley gives opening remarks at the bank. The Baker Hughes Rig count for oil and gas is released. Last week the oil rig count fell to 392 and total rig counts for both oil and gas fell to 480, nearly the lowest level seen since tracking began in 1948. |
Market Strategies Fundamentals
The Dow and S&P made their best close of the year and highest high since early January 4th for the Dow and Jan 5th for the S&P, both moving near the close. The Dow moved up 206.54 points or 1.21%, while the S&P 500 added 22.20 points for the week or plus 1.18%. The Nasdaq lagged growing by a meager 31 points to 4749 up 0.67%. Transports were also mild up 41 points or 0.54%. The Russell was barely changed just plus 5.62 or 0.52%. The markets made most of their gains near Friday’s close.
There was no major domestic economic news to cause such a jolt. The European Central Bank gave incestors plenty to digest last Thursday when it outdid market expectations for further monetary stimulus. The Fed meets next Wednesday and investors will watch closely for clues as to what attitude they have. Their accompanying statement will be watched closely for clues regarding the future of policy normalization. The Fed’s attitude was likely made more dovish by virtue of the U.S. dollar Index, which ended near a multi week low at 96.18. The strong dollar has been weighing on U.S. exporteres for at least a year keeping Fed policy lower fro longer. Most of the Fed’s officers would be better suited to teaching school than making economic policy.
Treasuries made a substantial move from Tuesday’s close of 26.36 to Friday at 27.48 all the way to its 50 day moving average. It was the highest close on the basisof yield since February 2nd. Every Treasury yield moved higher regardless of maturity. The TLT, 20+ Treasury ETF fell below its 13 day price moving average at about 130 to plummet all the way to its 50 day M.A. at 127.36. It was a nice move especially if you bought TLT Puts. The yield curve lattened as the long bond struggled to find a bid while shorter term yields were firm. This is a prognostication that the economy will improve.
The dollar Index traded poorly just like the bonds closing at 96.20, At the beginning of the month it was trading above 98. The Fed will get some inflation from all of this.
No one will want to buy a ten year treasury yielding 1.9% before taxes and inflation, in an environment where inflation could be trending up and the economy still in expansion. It would take 38 years for money to double at 1.9% before taxes and inflation.
Interest rates are going to stay accommodative for the foreseeable future, which should help investors continue to see the value in owning stocks. Total consumer credit reported by the Federal Reserve showed revolving credit falling $12.6 billion and non-revolving rising $139.05 billion, both at a seasonally adjusted annual rate.
What is clear from the report is that US consumers’ spending is not going on to credit cards, and mortgage debt is, if anything is decelerating. When you add in low interest rates, the picture gets even rosier in terms of the strength of the household’s balance sheet. Real disposable income continues to rise. The European stimulus can only be a benefit to U.S. equities.
The most heavily shorted stocks continue to trounce the market. As shown at the bottom of the table, on an equally-weighted basis the most heavily shorted are up an average of 15.67% (median: 5.59%) compared to a gain of 3.01% for the S&P 1500.Of the 46 names listed, just 12 are down so far in March and only three of those are down more than 5%. Conversely, 34 of the stocks listed are up for the month. The extra 22 billion in USD terms is going to find its way to US based risk assets via carry trades from European stimulus measures. 2060 is the next upside target for the S&P 500 Index; we will have pullbacks and retracements along the way, but we should be considerably higher over the next 6 weeks in risk on assets like equities
You should anticipate ultimately putting in a new high some time over the next 6 months conservatively in the S&P 500, i.e., think in terms of the 2150 area, with a more aggressive upside target of the nice round number of possibly 2200 in an Election Year.
Market Strategies Economic Data
Initial claims for the week ending March 5 were 259,000 (Briefing.com consensus 275,000), a decrease of 18,000 from the prior week. Continuing claims for the week ending February 27 were 2.225 million (Briefing.com consensus 2.251 million), a decrease of 32,000 from the prior week, the lowest levels in 16 years..
There were no special factors behind the drop in claims, which are at the lower end of the 250,000 to 300,000 range that has persisted since July 2014. The four-week moving average for initial claims fell to 267,500 from 270,000.
The four-week moving average for continuing claims fell to at 2.252 million versus 2.257 million previously.
| Category | Mar 5 | Feb 27 | Feb 20 | Feb 13 | Feb 6 |
| Initial Claims | 259K | 277K | 272K | 262K | 269K |
| 4-Wk Moving Avg | 268K | 270K | 272K | 273K | 281K |
| Continued Benefits | 2225K | 2257K | 2254K | 2272K | |
| 4-Wk Moving Avg | 2252K | 2257K | 2257K | 2263K |
Import prices fell 0.3% in February following a 1.0% drop in January. That left import prices down 6.1% year-over-year. Excluding fuel, import prices edged down 0.1% month-over-month and are down 2.7% year-over-year. The prices declines are not just energy driven. In fact, non-fuel import prices haven’t recorded a monthly increase since July 2014.
Export prices, meanwhile, declined 0.4% month-to-month in February with declining non-agriculture prices more than offsetting rising agricultural prices. Export prices are down 6% year-over-year.
| Category | FEB | JAN | DEC | NOV | OCT |
| Imports | -0.3% | -1.0% | -1.2% | -0.6% | -0.3% |
| Imports, ex-petrol | -0.1% | 0.0% | -0.3% | -0.3% | -0.3% |
| Imports, Petrol | -3.9% | -13.3% | -10.0% | -4.0% | -0.4% |
| Exports | -0.4% | -0.8% | -1.1% | -0.7% | -0.2% |
| Exports, ex-agricultural | -0.4% | -0.9% | -1.1% | -0.7% | -0.3% |
Market Strategies Cycles
Earlier today the European Central Bank (ECB) took further action to foster inflation and spur growth in the Euro zone. The ECB cut its main interest rate to 0% and lowered the bank deposit rate to negative 0.4%. It also expanded its quantitative easing (QE) program by a sizable 33%, from €60 billion to €80 billion per month. As part of the expansion of the program, investment-grade corporate debt will now be eligible for purchase. The ECB expects its QE program will run until at least the end of March 2017.
The ECB’s actions and course are in line with numerous other central banks around the globe, except one major one. Our central bank, the Fed, is on hold not able to go in the opposite direction as they think they should by historical standards. As a result of their not tightening, inflation expectations should abound.
From the Stock Trader’s Analyst research, when rates were raised the DJIA was generally positive ahead of the first hike and then weak afterwards. The above table is updated through yesterday’s close and it shows DJIA’s initial response to the first increase (“1 Month After column) was worse this time than during any of the previous five tightening cycles. The 3 Months Later mark arrives March 16 and assuming the market does not make a major move in either direction between now and then, DJIA’s performance would be on par with past cycles at that point. Looking ahead to 6-Months and 1-Year After,more weakness is suggested. The exact timing of market trends will depend upon the pace that the Fed ultimately takes when increasing rates.
Earlier this month in the ETF Trades Alert, the STA presented a new trade idea which was aimed at taking advantage of seasonal strength in Computer Tech, which usually begins in April and runs through July. iShares US Technology (IYW) has not traded under its buy limit yet. As a result of recent strength, IYW’s buy limit is being raised up to $100.00.
This month’s Seasonal Sector Trades, connected to natural gas, have both been added to the ETF Portfolio. First Trust ISE-Revere Natural Gas (FCG) was added on March 8 at $4.30. FCG first closed above $4.22 on March 4, but did not trade under its buy limit until two trading days later. United States Natural Gas (UNG) was also added on the eighth. This was the day after its MACD indicator turned positive. UNG was added to the portfolio at $6.05, its opening price on March 8.
FCG should still be considered at current prices with a buy limit of $4.30. UNG could also still be considered on dips below $6.25. New and/or updated stop losses for FCG and UNG appear in the table below.
Precious metals, gold and silver, have not succumbed to typical seasonal weakness yet this year. Gold and silver are likely responding to deflation fears and negative interest rates. DB Gold Double Short (DZZ) was stopped out on March 3, when it closed below $6.04. ProShares UltraShort Silver (ZSL) has not been stopped out and is on Hold
The trade scenario using the July natural gas contract has a holding period of approximately 41 trading days beginning on or about the 16th trading day of February and lasts until about April 23.
First Trust ISE-Revere Natural Gas (FCG: $ 4.39) and United States Natural Gas (UNG: $ 6.43 ) are two popular ETFs that correlate with natural gas. UNG holds natural gas futures and swaps and FCG holds stocks of oil and gas producing companies that are exposed to both crude oil and natural gas prices. Similar to the performance of crude oil, shares of FCG have been declining since June of 2014. Recent crude strength has begun to aid the FCG. It’s January low held in February and its Stochastic, relative strength and MACD indicators have turned positive confirming the shift in momentum. A break out above $4.22 by FCG would be further evidence that the current bounce is sustainable. FCG could be considered a buy on any close above $4.22 with a buy limit of $4.30. If purchased a stop loss of $3.75 is suggested.
In the short-term, natural gas had a decent rally last week, still remaining well below historical averages for this time of year. If the trend of global warming and above average temperatures persists into spring and beyond, electrical demand could rise earlier and sharper than usual. This would likely cause a spike in natural gas prices. Over the longer-term, the U.S. has begun to export natural gas and analysts expect exports could reach 10%-15% of current output by the end of this decade.
Undervalued Small Cap Stocks
Lower Priced stocks that look to be a buy:
Repro-Med Systems, Inc ( OTCQX: REPR 0.38 )*
Repro Med Systems, Inc. dba RMS Medical Products (OTCQX: REPR) has been one of the best performing stocks in 2016. They announced that its net revenues for the third quarter ended November 30 for fiscal 2016 increased 18% over the previous year’s Q3, led by the Company’s sales of proprietary infusion products. The Company’s current fiscal year ends February 29, 2016.
Revenues for the third quarter of fiscal 2016 were $3,145,000 compared with $2,655,000 for the third quarter of fiscal 2015. Revenues for the first nine months of the fiscal 2016 were $8,942,000 compared with $7,797,000 for the same period last year, an increase of 15%.
RMS continues to benefit from recent lean manufacturing initiatives, which have resulted in increased capacity and decreased direct assembly labor costs compared to last year. Gross margin improved in fiscal Q3 to 67% from 60% in the same quarter last year, and from 63% in fiscal Q2.
Driven by the strong sales in the quarter, net income for the third quarter was $168,000, an improvement of 81% compared with the same period last year. In addition, net income was negatively impacted due to costs associated with several trade shows in the quarter, the hiring of new sales representatives, and continued legal and consulting fees, all of which reflect an investment for growth in future periods. Excluding certain of these non-recurring items, net income margin would have been in excess of 10% for the quarter.
“We continue to see growth in all sectors of the homecare infusion market both domestically and internationally,” commented Andy Sealfon, President and CEO of the company. “I am also very excited about our newest board member, Cyril N. Narishkin and have appointed him as Interim Chief Operating Office to support our expanded management team and accelerate our growth opportunities. Cyril brings a wealth of experience consulting with companies of all sizes, and will also be instrumental in assisting the Company on its lean initiatives and growth plans,” Mr. Sealfon added.
The Company manufactures medical products used for infusions and suctioning. The Infusion product portfolio currently includes the FREEDOM60(R) and our latest FreedomEdge(TM) Syringe Infusion Pumps, RMS Precision Flow Rate Tubing(TM) and RMS HIgH-Flo(TM) Subcutaneous Safety Needle Sets. These devices are used for infusions administered in professional healthcare settings as well as at home. The company’s RES-Q-VAC line of medical suctioning products is used by emergency medical service providers in addition to a variety of other healthcare providers.
The Company’s website may be visited at www.rmsmedicalproducts.com.
Repro-Med Systems, Inc has had an increase in sales each of the last four years. They finished the year of 2014 with $ 11.2 million in sales reflecting top line growth of 29% from 2013.In each of the previous two years they had a 12% increase in sales. The company has had at least $ 700 thousand of net income in each of the past four years and has no debt. The patented needle sets alone can give the company a huge growth potential. In my opinion, with new products coming on stream, the stock should trade between $ 3 and $ 8 in the next two years.
Immune Therapeutics ( OTCQB: IMUN $ 0.17 )*
Use of Naltrexone as an immune modulator was recognized by Dr. Ian Zagon at the University of Pennsylvania.2,3 The late Dr. Bernard Bihari, a Neurophysician from New York, USA (who passed away on May 16th, 2010) began treating his patients in the late 1980s4,5. Since that time, many doctors throughout the United States prescribe LDN for a number of indications including Multiple Sclerosis (MS), Parkinson’s disease, Crohn’s disease, HIV/AIDS, cancer and other autoimmune and inflammatory diseases.
A number of research and clinical trials have been completed and undergone in regards to LDN immunotherapies, with phase I and phase II clinical trials successfully run at a number of universities in the United States and Europe, including Pennsylvania State University Medical School at Hershey; University of Chicago; State University of New York; SUNY Upstate Medical University; London Health Sciences Centre – University Hospital, USA; Alpert Medical School of Brown University; Department of Neurology, San Raffaele Scientific Institute; Division of Rheumatology, St. Louis College of Pharmacy; Department of Internal Medicine, University of Utah; Jondi-Shapoor University of Medical Sciences; Department of Psychiatry & Behavioral Sciences, Duke University Medical Center; and Multiple Sclerosis Center at UCSF6. These efforts were pioneered by leading immunologists Dr. Nicholas Plotnikoff, Dr. Ronald Herberman, Dr. Bernard Bihari, Dr. Angus Dalgleish, Dr. Ian S. Zagon, Dr. Jill Smith, Dr. McLaughlin, Dr. Jacqueline McCandless, and Moshe Rogosnitzky, among others.
Clinical trials have gone well and should be released soon.
Oakridge Global Energy Solutions, Inc. ( OTCQB: OGES 0.64 ) *
Oakridge global energy is a developer, designer and manufacturer of proprietary energy storage solutions. The Company is based out of Florida’s “space coast” near Kennedy Space Center. They make premium quality, proprietary batteries, battery systems and lithium ion cells that are built for maximum performance over the traditional lead/acid batteries. OGES, proudly manufacturing in America since 1986, produces batteries for military, consumer, government, and industrial applications. Target market priorities include golf cars and other recreational vehicles, electronics, and devices requiring rechargeable batteries.
Oakridge Energy produces highly reliable, sustainable and dependable batteries for mobile power sources. Based on size and weight, OGES products deliver a higher capacity than comparable competitor batteries. OGES batteries are higher in quality, longer lasting and safer to use. These batteries have undergone and passed rigorous military testing in underwater and aerial vehicles proving to be high/low pressure tolerant. Most significant, OGES batteries are superior performing yet competitive in the market.
Martac Maritime Tactical Systems, Inc., MARTAC recently conducted very successful field trials on the Inter-coastal waterway in Palm Bay, Florida. MARTAC is a Melbourne, Florida based company that designs and produces the Man-Portable Tactical Autonomous Systems (MANTAS) that can reach extreme high speeds and operate anywhere in the world. These vehicles are designed to be used in numerous applications including naval fleet protection, mine warfare, port and harbor security patrol, antipiracy, search and rescue, and many others. shows our high quality and high performance gets us into the military space at a time when made in USA is of critical strategic importance.
Freedom Trucks shows that Oakridge can outperform Tesla and the “Tesla of trucks” – trucks are much more difficult and laborious to power than cars – because of the Oakridge high power high energy
dense batteries, we need only 180 OGES batteries to power the interstate truck that pulls an
80,000 lb trailer, whereas it would take 208,000 Tesla/Panasonic batteries, which is simply not feasible.
Lithium ion batteries, deliver twice the energy of nickel cadmium batteries and are the fastest growing battery segment. Their growth and demand dynamically forward trending. They are lightweight and easy to maintain. They deliver superior electro-chemical output and provide highest energy density for weight, non-metallic and are rechargeable. In 2015, the OGES ProSeries golf car was launched at the annual PGA show, the largest golf show in the world. OGES plans to have a new factory producing its patented thin film solid state lithium ion batteries by 2017. OGES is commencing delivery of small format prismatics to help several smart card customers reach the next generation. Their growth will be serviced by the new factory. These batteries are also in a rapidly growing demand for a variety of p loss 11.36.applications.
Oakridge has recently continued expansion of its ISO certified manufacturing facility and warehouse in Palm Bay, with the support of Florida Governor Rick Scott. The new facility represents a $270 million investment, increasing the size of the manufacturing plant to 70,000 sq-ft to accommodate the growing demand for OGES batteries. Production is expected to increase from 250,000 to 25 million cells per year by 2018. The company’s growth will provide 1000 Americans with new jobs; this is part of the company’s commitment to support domestic employment.
Overseas, Oakridge Global Energy Solutions Limited (Hong Kong) is a subsidiary company that operates for sales and service in Asia.
Tree Top Industries, Inc ( OTC Pink: TTII 1.72 )*
The Go Fun Group Holdings, Ltd, which operates in the retail restaurant and online food service sectors and is based in Hong Kong. Go Fun also is engaged in the Green Food sourcing and logistics business, working with sustainable local companies to further the science of healthy food preparation. Go Fun’s retail entities include traditional Chinese, Italian, and Japanese Steakhouse restaurants. TTII entered into a non -binding letter of intent to move forward in partnership configurations. More info to come.
Fundamental Analysis Stocks To Buy with Stops
Using fundamentals the following are stocks to buy and they have done well. Now it is your decision whether to take profits in these uncertain times.
We still like Sunoco for its fundamental value.
We added Harley Davidson to our buy list.
Enzo was bought last week for a lower price to buy. We had originally bought at $ 2.78, now at 4.15. It is by no means a lock.
Church and Dwight is looking solid and should be bought any two days down.
Alcoa has made nice profits and is worth $ 10. Buy dips.
The HDGE goes up when the market goes down. The HDGE fell to its 200 day moving average at about 1099, before rebounding to 11.06.has been a major success for those who believe in hedging. It was bought last week at our limit price of 11.62.and stopped out for a loss at 11.36, the 13 day M.A. The loss was very small considering huge gains on the long AT&T, Alcoa and Bank of America. We would be willing to take profits on further rallies.
| Symbol | Name | Business Description | PE | P/S | MV mln | Price | Buy Limit | Stop Loss
Or sold |
| FFIC | Flushing Financial | Bank Holding company Savings and loans | 13 | 3,5 | 592Mln | 21.65 | 19.50 | 18x |
| SUN | Sunoco | Oil and Gas Refining and marketing | 10 | 0.2 | 2.1B | 33.26 | 26 | 23.50x |
| AA | Alcoa | Aluminum Processing and Technology | N/A | 0.4 | 9.5B | 9.52 | 7.05 | 6.97X |
| SBH | Sally Beauty Holdings | Specialty Retailer and distributor beauty supplies | 16 | 1 | 4B | 31.74 | 27.30 | 26x |
| HOG | Harley Davidson | Motorcycles and related products | 11 | 1.32 | 8B | 48.93 | 39.84 | 36x |
| CHD | Church & Dwight | Consumer Products Sodium bicarbonate Arm and Hammer | 25 | 3 | 10.6B | 90.98 | 79.80
01/26/16 |
Take Profits |
| T | AT&T | Communications | 36 | 1.54 | 211.7B | 38.36 | 34.10 | 32x |
| MSFT | Microsoft | Technology Software, Services, Devices | 17 | 4.7 | 431B | 53.07 | 50.90
|
49.50x |
| VA | Virgin Air | Regional Airlines | 7.2 | 0.9 | 1.5B | 30.06 | 30.30
Suggested buy |
28.50x
|
| ENZ | Enzo Biochem | Life Sciences | NA | 1.35 | 134M | 4.23 | 4.15
Suggested buy |
3.98x |
| BAC | Bank of America | Commercial Bank | 10 | 2.02 | 165.3B | 13.54 | 11.86 | 10.90x |
| HDGE | Advisor Shares | Ranger Bear ETF | 11.06 | Buy 11.62 | 11.36x
Stopped out |
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Rule 17B Attestations and Disclaimers
Princeton Research, Inc. has approximately 2,581,578 shares of AIVN both free and restricted and represents them for Investor relations. Princeton also has about 40,000 shares of TXGE. Princeton is paid $ 1,500 per month from RMS Medical Products. Princeton has bought 81,100 shares of RMS Medical Products. Princeton was paid $ 2,500 to write a report on Xinergy. Princeton has signed a contract with CBLI to be paid $ 2500 for July and August for investor relations. Princeton has been engaged by Target Energy. No contract is currently in place. Princeton was paid about 500,000 restricted shares of Leo Motors.
When there is no movement in penny stocks, even though there is none or very small losses, we will liquidate ( sold AIVN on stop ) even though we like the company, if money is needed for better opportunities.
We now believe REPR represents upside opportunity. The Target ADR trades at about $ 4.50 in U.S. vs 0.05 in Australia. Princeton owns 400,000 Australia shares and about 900 U.S. ADR’s.
Pursuant to the provisions of Rule 206 (4) of the Investment Advisers Act of 1940, readers should recognize that not all recommendations made in the future will be profitable or will equal the performance of any recommendations referred to in this e-mail issue. Princeton may buy or sell its free-trading shares in companies it represents at any time.
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