Options Trading Newsletter
November 23, 2015
Sample Issue
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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 2015 Newsletter Covering:
Where to Invest December 2015
Best Stocks To Buy December 2015
Stock Market Investing Strategies
Stock Options Trade Alerts
Options Trading Strategies
How To Trade Options
2015 YTD Profits $ 8072
Over 80% Returns
2014 Profits = $ 20,443
Over 204% Returns
NOTE: This is a Sample Issue Only!
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$10,000 Trading Portfolio
Charles Moskowitz Discussion
We have 1 Long Position:
HOG Dec $ 50 Calls
Funds in use = $320
Week 47 was a bit confusing to me. I would have expected some weakness in the market following the debacle in Paris, but after some minor selling at the open we went on a tear that lasted all week. The Dow was up almost 600 or 3.35%, S&P500 up 66 or 3.27 and the Transports outperforming slightly up by 3.64%.
We had a slight loss of $72 bringing the YTD gains to $8072. We have only $320 of funds in use.
The only open position is 4 HOG December $50 calls. We gave up the first half of that position on a 100% Rule execution. We sold the TLT (long bond ETF) for a nice profit and while it is my intention to get back on the short bond (TBT) position, I want to see some further confirmation that the Fed actually has the data to support the move. I’m also a little concerned about the flattening of the yield curve.
There is really nothing political to discuss since the current crop of fools is going through a normal process of attrition. The Sunday morning shows had little to add to the conversation for either party, and there was little new information from Paris, Mali, or any new hotspots.
This market clearly has a mind of its own and continues to “climb the wall of worry.” However, the pricing is clearly at perfection as can be seen whenever there is even the slightest miss on top or bottom lines or forward guidance.
I think that there is a pretty good rotation among groups. This is highlighted by the moves away from some of the most favored like cyber security or bio-pharma. Some of the health group has been hurt by the ACA and at least one, UNH has said it will withdraw from the process. But the point of the discussion is that while there may be very strong positive reasons for any group, the pricing of some are not acceptable at higher levels.
We traded CYBR and FEYE from breakouts in the mid $50’s and $30’s respectfully to the mid $70’s and $50’s in short order. Since then the group has suffered a break and move reducing prices by half. There are clearly reasons to be involved in this group, regardless of what Obama has “agreed” with the Chinese or the Russians. This is not a group that can be bought and held regardless of price….I find it attractive here but in what I consider a good sign for the overall market, it’s not a “buy at any price.” Like the above mentioned bio-pharma and health groups there are limits to what the market finds realistic expectations. CA
Market Strategies $10,000 Trading Account Trade Table
New Trades Options account:
( 1) Buy 4 MAR December 75 Calls @ $ 0.95
( 2) Buy 6 CCOI January 35 Calls @ $ 0.85
( 3) Buy 15 TSYS December 5 Calls @ $ 0.10
DATE |
TRADES |
PRICE |
COST |
PROCEEDS |
RESULTS |
11/20 |
Sold 4 HOG Dec 50 Calls ( 100% Profit Rule ) |
1.60 |
640 |
320 Gain |
|
11/20 |
Sold 4 TLT Dec 119 Calls |
2.47 |
988 |
300 Gain |
|
11/19 |
Sold 6 PFE Dec 34 Calls ( 50% Loss Rule ) |
0.46 |
276 |
276 Loss |
|
11/16 |
Sold 4 UAL December 62.50 calls ( 50% Rule ) |
1.89 |
340 |
416 Loss |
|
11/17 |
Bought 8 HOG December 50 Calls |
0.80 |
640 |
||
11/10 |
Bought 6 PFE December 34 Calls |
0.92 |
552 |
||
11/09 |
Bought 4 UAL December 62.50 Calls |
1.89 |
756 |
||
11/09 |
Bought 4 TLT December 119 Calls |
1.72 |
688 |
Remember, these trades are based on your participation in the
TEXTING SERVICE TO RECEIVE ALL UPDATES.
Previous closed out trades not listed here may be seen in previous market letters in the
For Free Where To Invest Your Money Now
High Return Investments Trade Alerts
Go To: PrincetonResearch.com/alerts.htm
MARKET Laboratory – Weekly Changes
Prices are copied from Barron’s Weekly and Yahoo Finance and may be incorrect.
| Dow
17,823.81 +578.57 +3.35% |
Nasdaq
5104.92 +177.04 |
S&P 500
2089.17 +66.13 +3.27% |
Transportation
8301.80 +291.53 +3.64% |
Russell 2000
1175.15 +28.60 +2.49% |
Nasdaq100
4686.36 +184.22 +4.09% |
| Gold (spot)
1076.40 -4.40 -0.4% |
Silver
1409.6 -10.8 -0.8% |
Crude
40.39 -0.35 -0.9% |
Heating Oil
137.13 -1.00 -0.7% |
Unleaded Gas
1.2671 +0.0359 +2.9% |
Natural Gas
2.145 -0.216 -9.2% |
| VIX
15.47 -4.61 -23.0% |
Put/Call Ratios
S&P 100 174/100’s +42/100’s |
Put/Call Ratios
CBOE Equity 75/100’s -16/100’s
|
Bonds
154-14 +1-02 3.02% -0.04% |
10 Yr. Note
126-214+044 2.26%-0.02%
|
Copper
205.50 -11.30 -5.2% |
| CRB Inflation
Index 183.73 -1.04 -0.6% |
Barron’s* Confidence
74.7 -2.1 |
S&P100
932.99 +29.95 +3.32% |
5 Yr. Note
119-014 -006 1.68% +0.02%
|
Dollar
99.61 +0.81 +0.8% |
DJ Utilities
571.09 +10.51 +1.87% |
| AAII
Confidence Index
Long Term Average |
Bullish
30.8 % -3.5%
38.74% |
Bearish
30.5% +7.5%
30.30% |
Neutral
38.7% -4.0%
30.96% |
M1 Money Supply
+7.68% Nov 9th
|
M-2 Money
Supply +6.30 % Nov 9th |
* 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 2049 2115
Dow 17,465 18,088
QQQ 109.10 115.90
Transports 80.79 8457
NASDAQ 4929 5178
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$100,000 Trading Portfolio Stock Positions and Trades
1) Buy 100 Corning GLW @ $ 18.7
2 ) Buy 100 LVLT at Market
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) |
||
| SPXU 100 | 30.08 | 11/02 | |||||
| TWTR 200 | 28.51 | 10/28 | |||||
| SPXU 200 | 34.10 | 10/15 | |||||
| CUBA 500 | 7.58 | 09/28 | |||||
| MOS 100 | 43.55 | 08/14 | |||||
| CRM 100 | 72.90 | 04/29 | 66.25 | ||||
| NBG 600 | 1.40 | 02/17 | |||||
| BAC. Wts 5,000 lots | 0.7411 | 12/26 | |||||
| BSBR 500
500 |
4.84
3.75 |
12/18
|
|||||
| SAN 600 | 8.40 | 12/16 | |||||
| AA 500 | 14.21 | 10/16 | |||||
| FCX 150 | 34.99 | 09/09 | 7.75 | ||||
| NBG 300 | 2.95 | 05/19 | |||||
| NBG 300 | 4.08 | 8/12 | |||||
| TEXQY* 200 | 6.56 | 7/11 | |||||
| REPR* 5000 | 0.22 | 10/22/12 | |||||
Remember, these trades are based on your participation in the
TEXTING SERVICE TO RECEIVE ALL UPDATES.
Previous closed out trades not listed here may be seen in previous market letters in the
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
New Options Trades :
( 1 ) Buy 8 MAR December 75 Calls @ $ 0.95
( 2 ) Buy 12 CCOI January 35 Calls @ $ 0.85
( 3 ) Buy 30 TSYS December 5 Calls @ $ 0.10
There were four closed option positions:
12 PFE Calls were stopped out on the 50% Loss Rule losing $ 832.
8 UAL Calls were also stopped out on the 50% Loss Rule.
Both the TLT and HOG trades were winners:
8 TLT Calls were sold at $ 2.47 gaining $ 600.
Harley Davidson Calls, the HOG doubled so the 100% Profit Rule took place making a gain of $ 640 with the same amount left looking for more gains.
There were no closed out stock positions.
For the year to date we have gains of $ 21,763.
In addition there is a credit of $ 245 for the sold CRM Call.
Open position losses in the stock account decreased by $ 558 to $ 15,551.
The options expire on the third Friday of each Month unless otherwise posted.
The Stock table has the following 17 positions:
AA, BAC.B.WS, BSBR( 2 ), CRM, CUBA, FCX, MOS, NBG (3),
REPR, SAN, SPXU (2), TEXQY, TWTR
The options call for a $ 2,500 investment unless otherwise stated; each stock position requires $5,000 unless otherwise mentioned specifically.
We are basing money management on a hypothetical
$ 100,000 and are using a total of
$ 61,721 for the 17 open stock positions. There is one long option position requiring
$ 640 which added to the stock longs total an outlay of
$ 62,361 leaving
$ 37,639 in cash.
The long option position in the table below are the profitable HOG Calls.
There is also the open sale of one CRM December $ 82.50 Call against the 100 shares long.
These figures are approximate and there might be errors. We have not counted the dividends received from Apple, JP Morgan, North American Tankers, Santander, their Brazil affiliate BSBR and Blue Capital Reinsurance which was sold for a profit and many others.
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) |
| CRM Dec 82.50
1 Lot |
Call
2.45 |
11/20/15 | Wrote against Long | $ 245 Credit | |
| HOG Dec 50
16 lots |
Calls
0.80 |
11/17/15 | 1.60
( 100% Profit Rule ) |
11/20/2015 | $ 640 |
| PFE Dec 34
12 lots |
Calls
0.92 |
11/10/15 | 0.46
( 50% Loss Rule ) |
11/19/2015 | ( $ 552 ) |
| TLT Dec 119
8 lots |
Calls
1.72 |
11/09/15 | 2.47 | 11/20/2015 | $ 600 |
| UAL Dec 62.50
8 lots |
Calls
1.89 |
11/02/15 | 0.85
( 50% Loss Rule ) |
11/16/2015 | ( $ 832 ) |
Remember, these trades are based on your participation in the
TEXTING SERVICE TO RECEIVE ALL UPDATES.
Previous closed out trades not listed here may be seen in previous market letters in the
For Free Where To Invest Your Money Now
High Return Investments Trade Alerts
Go To: PrincetonResearch.com/alerts.htm
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 | Gamestop GME ( 0.59 vs 0.57 ) Jacobs JEC ( 0.76 vs 0.88 ) Mallinckrodt plc MNK
( 1.76 vs 1.68 ) Navios Maritime NM ( -0.23 vs -0.20 ) Tyson Foods TSN ( 0.88 vs 0.87 ) Trina Solar TSL ( 0.28 vs 0.34 ) 10:00 hrs Existing Home Sales October 5.50M vs 5.55M )
Dycom DY ( 1.01 vs 0.59 ) Brocade BRCD ( 0.24 vs 0.24 ) Copart CPRT ( 0.43 vs 0.40 ) Post ( 0.26 vs 0.13 ) Tuniu TOUR ( -3.49 vs -0.69 ) YY YY ( 0.82 vs 0.87 ) |
| TUESDAY | Analog Devices ADI ( 0.83 vs 0.69 ) Beacon roofing Supply BECN ( 0.69 vs 0.48 )
Campbell Soup CPB ( 0.76 vs 0.74 ) Citi Trends CTRN ( 0.05 vs -0.08 ) Cracker Barrel CBRL ( 1.59 vs 1.42 ) Dollar Tree DLTR ( 0.52 vs 0.69) Eaton Vance EV ( 0.59 vs 0.68 ) Fred’s FRED ( 0.10 vs -0.16 ) Hormel Foods HRL ( 0.68 vs 0.63 ) Movado Group MOV 0.93 vs 0.87 ) Tiffany TIF ( 0.75 vs 0.76 ) Tech Data TECD ( 1.29 vs 1.18 ) Valspar VAL 1.30 vs 1.38 Yingli Green Energy YGE ( -0.40 vs -0.10 ) 08:30 hrs GDP- Second Estimate Q3 ( 2.0% vs 1.5% ) GDP Deflator – Second Estimate Q3 ( 1.2% vs 1.3% ) 09:00 hrs Case-Shiller 20 city Index Sept ( 5.2% vs 5.1% ) 10:00 hrs Consumer Confidence Nov 11/14 ( 99.6 vs 97.6 ) Hewlett Packard Enterprise HPE ( 0.51 ) HP HPQ ( 0.97 vs 1.06 ) Caleres CAL ( 0.78 ) Guess GES ( 0.11 vs 0.24 ) Qihoo QUNR ( -0.76 vs -0.78 ) |
| WEDNESDAY | Deere DE ( 0.74 vs 1.83 ) Donaldson DCI ( 0.34 vs 0.40 ) Dangdang DANG -0.01 vs 0.05 Jiayuan DATE ( 0.10 vs 0.03 )
07:00 hrs MBA Mortgage Index 11/21 ( NA vs +6.2% ) 08:30 hrs Initial Claims 11/21 ( 272K vs 271K ) Continuing Claims 11/14 ( 2164 vs 2175 ) 08:30 hrs Personal Income Oct ( 0.4% vs -0.1% ) Personal Spending Oct ( 0.3% vs 0.1% ) CORE PCE Oct ( 0.2% vs 0.1% ) 08:30 hrs Durable Goods Orders Oct ( 1.5% vs -1.2% ) Durable Goods-ex transportation ( 0.5% vs -0.6% rev from -0.4%) 09:00 hrs FHFA Housing Price Index Sept ( NA vs 0.3% ) 10:00 hrs Michigan Sentiment Nov ( 93.1 vs 93.1 ) 10:00 hrs New Home Sales Oct ( 504K vs 468K ) 10:30 hrs Crude Inventories 11/21 ( NA vs + 0.252Mln Bbls ) 12:00 hrs Natural Gas Inventories 11/21 ( NA vs 15 bcf )
Arrowhead Research ARWR ( -0.39 ) Civitas Sol. CIVI ( 0.18 ) OAD QADA ( 0.21 ) |
| THURSDAY | Thanksgiving Holiday in U.S. Markets Closed |
| FRIDAY |
Markets will close early at 1PM EDT |
Market Strategies Fundamentals
It was a great week for stocks. All the major indexes except for the Russell gained more than 3% for the week.The Transportation Index was the leader gaining 3.64% up 291.53 points to 8301.80. The Nasdaq was closely behind plus 177 points to 5105, up 3.59%; the Dow gained 3.35% up 579 points or 3.35%. The S&P 500 rallied to 2089.17, up 66.13 or 3.27%. However it had gotten up to 2097 and continues to be stalled at the 2100 level where there are a multitude of tops. The Dow Jones Industrials had been up 181 points on the day Friday before halving its daily gains to close at 17,824.95. The challenge for the Dow is a close above 18,000 level resistance.
All 10 Dow Industrial Groups closed in positive territory including Oil and Gas.Technology led all Groups with a solid 4.28% performance followed by Industrials, up 3.57%. Consumer Services gained 3.49%; Consumer Goods were up 3.24%; Financials added 3.08%; Telecommunications rose by 2.90%; Health Care gained 2.46%; The beleaguered Basic Materials Group even gained 2.21% and Utilities added 2.12%. The Oil and Gas group rose 1.28%.
After many weeks of flip-flopping over the uncertainty of the rate hike scenario, most of the Fed speakers were generally clear that a rate hike was in the cards at the December meeting of the Federal Open Market Committee.
The Fed kicked off a new rate-hike cycle on May 2, 1983. The first thing that jumps off the chart below is the stock market was indecisive, going up and down, but making no progress between May 1983 and December 1984 (sound familiar?). In 2015, the stock market has gone up and down, but has made no progress between December 2014 and the present day. The S&P 500 closed at 2090 on December 29, 2014. On November 18, 2015, the S&P 500 closed at 2089, which speaks to the market’s ongoing indecisive behavior.
It is not uncommon to experience a difficult and frustrating market when the Fed shifts policy, which is the bad news. The good news is hard markets are typically followed by easier markets. Said another way, trendless and indecisive markets are usually followed by markets with much more discernible trends and greater investor conviction.
The pattern held true to form in 1983-1987 (see chart below). Notice how the slope of the 200-day clearly shifts from flat in late 1984 to up/bullish in early 1985. The same can be said for the 50-day moving average; it goes sideways inside the orange box, but then shifts to a series of higher highs and higher lows between early 1985 and mid-1987.
Bank stocks should be a major beneficiary of Fed policies, especially regional banks. The S&P spider that represents regional banks is the KRE ( $ KRE 45.09 ) which seems to be on a tear closing near its all-time high on November 6th which was $ 46.33. The KRE is up 5.3% in November. It rose 4.1% in October. For the year to date it is up 10.8%. The regional banks could gain substantially from forward Fed policies. Over the past five years it is up a meager 16%.
The top ten holdings of KRE are Bank of the Ozarks ( OZRK: $ 53.59 ) and the Western Alliance Bancorp ( $ 38.32 ); BBCN Bancorp ( BBCN $ 18.16 ); First Niagara Financial Group ( FNFG $ 10.69 )Home BancShares Inc ( HOMB: $ 45.24 ) Valley National Bancorp ( VLY: $ 11.07 ) Fulton Financial Corp ( FULT: $ 14.35 ) Simmons First National Corp Class A ( SFNC: $ 56.13 ) Cullen Frost Bankers inc ( CFR $ 70.03 ) and First Citizens Bancshares inc ( FCNCA $ 263.73 ). Buying the KRE gives diversification and participation in the likelihood of higher rates next year.
Other banks we like include Bank of America ( BAC: $ 17.65 ) which appears easily worth $ 20 or more.
Market Strategies Economic Data
The October Industrial Production report produced some headline disappointment as total industrial production declined 0.2% on top of an unrevised 0.2% decline in September. The Briefing.com consensus estimate called for a 0.1% increase in industrial production.
Total industrial production is up 0.3% year-over-year. Manufacturing output increased 0.4%, which was the biggest gain since a 1.0% jump in July and the first increase in the last three months. The uptick in manufacturing output was driven by an increase in output of both durable goods (+0.5%) and nondurable goods (+0.3%). Motor vehicle assemblies increased to a seasonally adjusted annual rate of 12.39 million units versus 12.33 million in September. Mining output was dragged down by declines in the indexes for crude oil extraction and for oil and gas well drilling and servicing, which was not a surprise.
Notwithstanding the fact that October was the warmest October since 1963, the index for utilities output declined 2.5% on the heels of a 1.2% increase in September that was fed by higher demand for air conditioning in what was a warmer-than-usual September.
Capacity utilization slipped to 77.5% from an upwardly revised 77.7% (from 77.5%) in September.
Total industrial production is up just 0.3% year-over-year as a strong dollar has crimped manufacturing activity while sliding oil prices have curtailed mining output.
| Category | OCT | SEP | AUG | JUL | JUN |
| Industrial Production | |||||
| Total Index | -0.2% | -0.2% | 0.1% | 0.8% | 0.0% |
| Manufacturing | 0.4% | -0.1% | -0.2% | 1.0% | -0.1% |
| Utilities | -2.5% | 1.2% | 1.6% | -1.4% | 0.9% |
| Mining | -1.5% | -2.4% | 0.3% | 1.1% | 0.0% |
| Capacity Utilization | |||||
| Total Industry | 77.5% | 77.7% | 78.0% | 78.0% | 77.5% |
| Manufacturing | 76.4% | 76.2% | 76.3% | 76.5% | 75.8 |
St Louis Fed President James Bullard, who will vote on the FOMC in 2016, said that the U.S. labor market has largely normalized and that 130K new jobs per month are enough to keep up with population growth. He also said that oil prices will stabilize enough to cause inflation to reach the Fed’s 2% target.
NY Fed President William Dudley, a permanent FOMC voter, said last week that the U.S. economy is strong although investment spending is lower than expected. He said the rate liftoff decision is data dependent and that he expects a rate hike soon.
WTI crude declines another 0.22% last week to $ 41.63 a barrel and the Baker Hughes rig count showed a decline of another 10 last week to a new low for the year at 564 as of the week ended 11/13.
Natural gas rigs remained the same at 757.
The October Housing Starts report was a disappointment. Starts declined 11% to a seasonally adjusted annual rate of 1.060 million units from a downwardly revised 1.191 million in September (from 1.206 million). That was much weaker than the Briefing.com consensus estimate, which stood at 1.173 million.
Building permits increased 4.1% to a seasonally adjusted annual rate of 1.150 million from an upwardly revised 1.105 million in September (from 1.103 million). That was above the Briefing.com consensus estimate of 1.137 million.
The downturn in October housing starts was driven by a 25.1% decline in multifamily starts, which followed on the heels of an 18.1% increase in September. A natural pullback was expected after the big September increase, yet the drop was more pronounced than many had thought. There wasn’t a pickup in single-family starts either as they dropped 2.4% to 722,000, led by a 6.9% decline in the South. All other regions showed an increase in single-family starts in October with the Northeast up 7.0%, the Midwest up 2.1%, and the West up 1.8%. The number of homes under construction increased 0.9% to 938,000 from an upwardly revised 930,000 (from 928,000) in September. The increase should help bolster Q4 GDP growth.
October housing starts were at their lowest level since March 2015 and well below the prior three-month average of 1.153 million. With the October disappointment, the three-month average slipped to 1.122 million, which is still nearly 10% higher than the three-month average seen in October 2014.
| Category | OCT | SEP | AUG | JUL | JUN |
| Starts | 1060K | 1191K | 1116K | 1152K | 1211K |
| 1 Unit | 722K | 740K | 734K | 759K | 687K |
| Multi Units | 338K | 451K | 382K | 393K | 524K |
| Permits | 1150K | 1105K | 1161K | 1130K | 1337K |
Market Strategies Cycles
Historically, this week, the week before Thanksgiving has been a bullish week. DJIA has recorded a full-week gain during November options expiration week in 16 of the last 21 years. This strength typically extends into the days around Thanksgiving then from Thanksgiving to yearend as holiday cheer, yearend bonuses, dividends, buybacks, etc., usually fuel the markets move higher. As of yesterday’s close, the S&P 500 was 2089.17 year-to-date, up 30.27 from last year’s close at 2058.90. This is not bad considering all the negative earnings, all the negative technical signals such as negative advance/declines and new lows exceeding new highs.
The following scenario is the most interesting and the most likely outcome for S&P 500 this year. In this table flat year-to-date, defined as S&P 500 down less than 5% or up less than 5%, appear. In these 10 previous years, only in 2005 did S&P 500 fail to rally from Thanksgiving to yearend while the average in all 10 years was 3.12%. Although there is no guarantee that 2015 will finish the year in a similar manner, it is encouraging to see that traders and investors did succumb to past holiday cheer to push S&P 500 higher even after 11 months of flat returns. In addition, this year is unique in that there are the usual pre-election year uncertainties. Markets do poorly in such times of uncertainties such as we have now with the election year ahead, horrible geopolitical concerns and an unpredictable Fed. Therefore, volatility is at record proportions for this time of the year and traders must be cautious.
Consumer Discretionary is arguable the best sector to own during the “Best Six Months” with a 10.69% average return and an 88% success rate. Transportation and Natural gas stocks also average better than 10%, but their success rates are slightly softer at 76% and 67% respectively. Natural gas stocks best months appear to be February, March and April, especially if it has been a long, unseasonably cold winter which so far is just the opposite. Other “Best Six” top performers are Materials, Industrials, Information Technology, Financials and NYSE ARCA Oil & Gas. All have bested the S&P 500 over the past 25 “Best Months” periods. Materials and Industries further one-up the broad S&P 500 with success rates of 88% compared to 84%. Just three losses in 25 periods is a remarkably solid record.
For Free Where To Invest Your Money Now
High Return Investments Trade Alerts
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Undervalued Small Cap Stocks
Lower Priced stocks that look to be a buy:
Repro-Med Systems, Inc ( OTCQX: REPR 0.35 )*
is now a member of the OTCQX, a leading U.S. Stock Exchange. Repro-Med Systems is a unique U.S. manufacturer of proprietary and patented medical devices world-wide which maintains offices and manufacturing facilities in Chester, NY. Principal products include the Freedom 60 Syringe Infusion System, RMS High-Flo Subcutaneous Safety Needle Sets and the RES-Q-VAC Medical Suctioning Pump. In addition to being regulated by the FDA which has the authority to approve medical devices for marketing in the U.S., RMS complies with ISO International standards for quality development and manufacturing. RMS Medical Products is a d/b/a of Repro-Med Systems, Inc which was founded in 1980.
The Freedom60 has a proprietary technology that makes it desirable for the delivery of medications in a variety of therapies. It is very popular for the delivery of subcutaneous immunoglobulin for the treatment of primary immune deficiency disease. The infusion pump uses “dynamic equilibrium” which safely adjusts the flow of medication in accordance with what the patient’s body can accept. This minimizes complications often encountered with other infusion systems which can lead to site reactions and discomfort for the patient. The portability and simple operation of the FREEDOM60 Improves quality of life for patients who otherwise might have to use a complicated electronic pump mounted to a cumbersome infusion pole. Patients then don’t have to be confined.
RMS High-Flo Subcutaneous Safety Needle Sets are being welcomed by healthcare providers and patients alike for their consistently high quality. The infusion sets are an ideal companion for the company’s FREEDOM 60 pump. The needle sets are patented and approved by the FDA. There has not been a new technology in needles other than Repro Med’s vastly better needle sets in quite some time.
RES-Q-VAC is a hand-held suction pump used to clear a patient’s airway or for other purposes when reliable hospital quality suctioning is needed. It uses patented technology to protect users from airborne pathogens and spillage of suctioned material. It is used by emergency service personnel and other first responders, as well as in hospitals and other institutions. There also is a version for use by dentists. RES-Q-VAC is invaluable in the event of disasters where power is lost because it doesn’t require electricity.
The Freedom 60 Syringe Infusion System is a method for administering medication through a small needle to the subcutaneous tissue, which is the fatty tissue just under the skin. Subcutaneous infusion allows medication into the vascular system more slowly. Combined with more frequent delivery this provides more consistent and stable blood levels. The elimination of large swings in these levels decreases side effects improving overall quality of life. RMS provides High-Flo needles to optimize liquid flow. Their smaller 26 gauge high flow needle flows at the same rate as the considerably larger 24 gauge needles, which are considerably less painful when entering the skin.
The Freedom 60 has had great success in Europe reflected in a huge sales increase of 47.8% first quarter 2015 up from same quarter 2014.
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.
Enzo Biochem ( ENZ 4.51 ) Bought at our price of $ 2.78.
This turbulent market has had an effect on the price of Enzo Biochem. The markets, in my opinion, have been in a rotating correction and in some instances, a bear market for some months. It appears that the cause of this is China but I am sure that there are other factors. If you remember the ‘flash crash” of 2010 the market correction was over quickly and those that held through that market decline profited handsomely over the years after the crash. I think that the market is giving us another chance to buy Enzo Biochem at a bargain price. The Company’s fiscal year was over July 31. I would imagine the Quarter and Year results will be made available by mid-October. With the cash settlement in two litigations the cash position should show a major improvement. Top line revenues should also show an improvement. Depending on R&D expenses and litigation expenses the net loss should also show improvement. At today’s price of $2.90 the Company is valued at approximately $130 million and with revenues approaching $100 million or 1.3 times revenues. The last Craig Hallum report had a fair value of Enzo’s business of $6 per share. When AmpiProbe is approved and into the market that number is projected at $14 per share. There is always risk in the market so the investment is not without risk but if held over time should deliver handsome profits off of today’s price. Items to look forward to by the end of the year would be litigation news and an AmpiProbe decision all of which should have a positive impact on the stock price.
ProtoKinetix, Incorporated ( PKTX: 0.09 8)
ProtoKinetix (www.protokinetix.com) is trading at $ 0.0521 low and 0.0969 high on Friday has a huge upside potential. They are in collaboration with the James Shapiro laboratory at the University of Alberta.
The sole intention of the collaboration is to develop a commercial product pipeline of therapeutic applications for the AAGP family of molecules.
Dr. Shapiro is presenting his work at a symposium in Australia tonight and we should see some reaction to his work…We will also try to have him give us an update to the story for our radio show in the next few weeks.
Professor James Shapiro is Professor of Surgery, Medicine and Surgical Oncology, and Director of the Clinical Islet Transplant Program and the Living Donor Liver Transplant Program at the University of Alberta in Edmonton, Canada. He has a busy hepatobiliary surgical practice in HPB oncology, and in liver and kidney-pancreas transplant surgery. His center carries out 80 liver transplants per year, and has done around 80 living donor liver transplants. The University of Alberta just celebrated their 1000th liver transplant.
Dr. Shapiro directs the largest clinical islet transplant program worldwide with almost 170 patients treated, and led the clinical team that developed the “Edmonton Protocol” – the first trial to achieve consistent 100% insulin independence in a series of islet-alone transplant recipients with Type 1 diabetes (published in the NEJM 2000). Before Dr. Shapiro’s trial, the success rate with islet transplantation was less than 8%. He led an international multicenter trial to replicate these findings in 9 international centers (published in NEJM 2006).
Over the last 32 months Dr. Shapiro and his team have been extensively testing the AAGP™ molecule in allogeneic transplants using human islet cells as the model. As regenerative medicine is rapidly becoming adopted in the treatment of degenerative diseases, the protection of the transplanted cells, tissues, and organs is of paramount importance. Transplanted cells and tissues are subjected to extreme stress factors that, unless protected, could cause failure to graft or premature death. The success of the tests conducted in Edmonton have demonstrated that AAGP™ has the potential to be widely adopted in many areas of regenerative medicine.
Immune Therapeutics ( OTCQB: IMUN $ 0.124 )
Appears ready to go: get Long. This biotechnology company is seeking to commercialize patented therapies in emerging nations that combat chronic, life-threatening diseases by rebalancing the immune system.
International Star, Inc. (OTC: “ILST”)
is pleased to announce that the company’s management team has successfully hosted an Investor Presentation/Reception at the historic Golden Nugget in Las Vegas, NV on November 15th. It was successful.
Fundamental Analysis Stocks To Buy with Stops
We want to buy Corning GLW. It is an excellent long position. We took sizable profits on the United Rentals URI. The Enzo Biochem ENZ has made sizeable gains. Continue to hold.
The Arcelor Mital, Deere , DSX and Sunoco were stopped out with relatively small losses. We always use stops. Keep losses small. We are long Southwest Air (LUV) at 30 and we bought Virgin Air (VA) at 32.20. Please check on the previous weekly market letters if there are questions.
We are long in Diana Shipping at 6.60. We are long Bank of America at 15.65. and would buy more on any further consolidation. Use 16.12 as a stop loss .
BAC looks to have made a double bottom at the 14.63 area.
The HDGE collapsed last week as the markets forged ahead. The HDGE is a buy when the market goes into periods of weakness.
Heavy Black italicized indicates Execution
| Symbol | Name | Business Description | PE | P/S | MV mln | Price | Buy Limit | Stop Loss
Or sold |
| GLW | Corning | Optical Technologies
Glassware, Ceramics |
12.5 | 2.4 | 22.5B | 18.98 | 18.78 | 16.45 if filled |
| URI | United Rentals | Equipment Rental | 8 | 1.13 | 15B | 79.00 | 64.34 | Sold at 79 |
| DE | Deere | Farm and Construction equipment | 13 | 0.84 | 26.3B | 77.51 | 77.50 | 76.77x Stopped Out |
| KR | Kroger | Food Mfg and Processing | 18 | 0.33 | 37B | 36.05 | 36.76 | 33.40x |
| INTC | Intel | Technology chips platforms processors | 13.6 | 2.8 | 152.83B | 32.11 | 30.48 | 29.50 |
| VA | Virgin Air | Regional Airlines | 7.2 | 1.0 | 1.5B | 37.0 | 32.20 | 33;50 |
| LUV | Southwest Air | Regional Airlines | 16 | 1.15 | 22.6B | 45.89 | 33 | 42.31sco |
| ENZ | Enzo Biochem | Life Sciences | NA | 1.35 | 134M | 4.51 | 2.78 | 3.28x |
| BAC | Bank of America | Commercial Bank | 10 | 2.02 | 165.3B | 17.65 | 15.65sco | 16.92x |
| HDGE | Advisor Shares | Ranger Bear ETF | 10.47 | 11.04 X | 11.00X |
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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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