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Where To Invest September 2015
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August 31, 2015
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 2015 Newsletter Covering:
Best Stocks To Buy September 2015
Stock Market Investing Strategies
Stock Options Trade Alerts
Options Trading Strategies
How To Trade Options
Net Gain Last Week $ 90
2015 YTD Profits $ 7505
Over 75% Returns
2014 Profits = $ 20,443
Over 204% Returns
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High Return Investments Trade Alerts
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Charles Moskowitz Discussion
We have 1 open long position:
AAPL September 106 Puts
Funds in use: $500
So What Now ???
Week 35 managed a small profit of $90 after starting with only one position on the long side in an historic slide of almost 1100 point in the Dow on Monday morning. This was accomplished with a purchase of very short dated AAPL puts. These were traded out over the next 2 days and the FB call position was closed out on a small rally and came close to wiping out the gains.
YTD gains are $7153 and our only position (AAPL 9/106 puts) is using only $500.
Whenever we see this kind of “vertical action” I tend to wait until we have more “horizontal” activity to define the new support and resistance levels. A look at the charts this weekend are somewhat disappointing in that the highs are still below the area of the gap down from Monday.
After the volatility we witnessed the last 5 days it looks to me as if we have a great deal of work to rebuild confidence and get the market back on track.
The charts look to me to be forming “bear flags,” which is not a good sign. These are a series of higher lows and higher highs that can not penetrate the area of the breakdown. As you can see in the daily chart of YRCW (an order for a put position follows) unless we can close above $17.50 or so I believe that we will again test the lows around $15.25 on any close below $15.28 can test the next support around $13.50. Since the oil is trying to make a bottom and YRCW is a trucking company this would be one to pull back with the market. Also, YRCW has a history of dramatic under performance. It was “reverse split” in late 2010 1:26 and again in late 2011 of a monster 1:300.
This last week of summer tends to have dramatically lower volume but with a downward bias.
For that reason, and the fact that I will be in New York on Monday and Tuesday, I am trying to keep positions light. As mentioned above we will try to buy the YRCW puts and I will, for the sake of balance, put in an order to buy a few S&P500 calls under the market.
CAM
Market Strategies $10,000 Trading Account Trade Table
New Trades Options Account
1) Buy 4 YRCW September 17.50 PUTS @ $ 1.55 ( Or Better )
2) Buy 2 SPY September 202 Calls @ $ 1.97
If you want to participate without the global exposure, try some calls on the Russell, since it has less of an international exposure…..but as discussed last week, options, with their limited risk is the only way to go….CAM
DATE |
TRADES |
PRICE |
COST |
PROCEEDS |
RESULTS |
08/27 | Bought 5 AAPL Sept 4th 106 Puts | 1.00 | 500 | ||
08/27 | Sold 2 AAPL August 28th 105 Puts | 0.61 | 122 | 120 Loss | |
08/27 | Sold 2 AAPL August 28th 105 Puts | 1.76 | 352 | 110 Gain | |
08/26 | Sold 4 AAPL August 28th 105 Puts
( 100% Profit Rule ) |
2.12 | 848 | 484 Gain | |
08/26 | Sold 8 FB August 28th 93 Calls
( 50% Loss Rule plus Gap ) |
0.41 | 328 | 384 Loss | |
08/25 | Bought 3 AAPL August 28th 105 Puts | 0.81 | 243 | ||
08/25 | Bought 5 AAPL August 28th 105 Puts | 1.21 | 605 | ||
08/20 | Bought 8 FB August 28th 93 Calls | 0.89 | 712 |
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
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MARKET Laboratory – Weekly Changes
Prices are copied from Barron’s Weekly and Yahoo Finance and may be incorrect.
Dow
16,643.01 +183.26 +1.11% |
Nasdaq
4828.32 +122.29 |
S&P 500
1988.87 +17.98 +0.91% |
Transportation
7908.68 +36.60 +0.46% |
Russell 2000
1162.91 +6.13 +0.53% |
Nasdaq100
4329.12 +131.85 +3.14% |
Gold (spot)
1133.10 -26.50 -2.3% |
Silver
1453.5 -76.6 -5.0% |
Crude
45.22 +4.77 +10.6% |
Heating Oil
159.11 +11.70 +7.9% |
Unleaded Gas
1.3971 +0.0127 +0.9% |
Natural Gas
2.715 +0.039 +1.5% |
VIX
26.05 -1.98 -7.1% |
Put/Call Ratios
S&P 100 93/100’s -59/100’s |
Put/Call Ratios
CBOE Equity 78/100’s -6/100’s
|
Bonds
156-23 -3-15 2.91% +0.15% |
10 Yr. Note
127-25-284 2.18%+.13%
|
Copper
234.65 +4.30 +1.9% |
CRB Inflation
Index 197.10 +5.76 +3.0% |
Barron’s* Confidence
77.5 +4.5% |
S&P100
875.58 +10.81 +1.25% |
5 Yr. Note
119-304 -148 1.52% +0.09%
|
Dollar
96.11 +1.31 +1.4% |
DJ Utilities
572.21 -25.44 -4.26% |
AAII
Confidence Index |
Bullish
32.5% +5.7% |
Bearish
38.3% +5.0% |
Neutral
29.2% -10.7% |
M1 Money Supply
+8.77% Aug 17th |
M-2 Money
Supply +5.92% Aug 17th
|
* 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.
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Market Strategies Technical Information
Support/Resistance Levels: SUPPORT RESISTANCE
S&P 500 1925 2,040
Dow 16,141 16,980
QQQ 101 108 00
Transports 7700 8170
NASDAQ 4670 4950
$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) |
|
MOS 100 | 43.55 | 08/14 | ||||
ETSY 500
200 lots |
14.98
|
08/05 | 17.80 08/12
17.21 08/18 |
$ 846
$ 464 |
||
SNSS 1200 | 2.95 | 06/26 | ||||
DSX 500 | 7.05 | 05/18 | ||||
CRM 100 | 72.90 | 04/29 | ||||
GILD 50 | 102.73 | 03/03 | ||||
ARRY 500 | 8.02 | 02/24 | ||||
NAT 300
Sold 200 |
10.16 | 02/13 | 14.40 06/25 | $ 848 | ||
NBG 600 | 1.40 | 02/17 | ||||
BAC. Wts 5,000 lots | 0.7411 | 12/26 | ||||
BSBR 500 | 4.84 | 12/18 | ||||
SAN 600 | 8.40 | 12/16 | ||||
AA 500 | 14.21 | 10/16 | ||||
FCX 150 | 34.99 | 09/09 | ||||
NBG 300 | 2.95 | 05/19 | ||||
RPTP 200
Sold 200 |
15.37 | 01/16 | 16.09 06/25 | $ 144 | ||
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 YRCW September 17.50 PUTS @ $ 1.55
2) Buy 4 SPY September 202 Calls @ $ 1.97
Large Account: Additional trades and stop losses will be Texted and E-Mailed
There were two closed long option positions;
The FB August 28th 93 Calls were stopped out on the 50% rule plus a gap for a loss of $ 768.
The Apple August 28th 105 Puts were profitable making $ 948.
The result in options trading was a profit of $ 180.
There were no closed out stock positions.
For the year to date we have gains of $ 22,198.
Open position losses decreased to $ 15,217.
The options expire on the third Friday of each Month unless otherwise posted.
The Stock table has the following 18 positions:
AA, ARRY, BAC.B.WS, BSBR, CRM, DSX, FCX, GILD, MOS,
NAT NBG (3), REPR, RPTP, SAN, SNSS, TEXQY
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
$ 62,860 for the 18 open stock positions. There is one long option position requiring
$ 1,000 totaling
$ 63,860 leaving
$ 36,140 in cash.
These figures are approximate and there might be errors.
We have not counted the dividends received from Apple, JP Morgan, North American Tankers, Santander, 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…
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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) |
AAPL Aug 28th
105 6 lots |
Puts
0.81 |
08/25/2015 | 1.76 Sold 4
0.61 Sold remaining 4 on 50% Loss Rule |
08/27/2015
08/27/2015 |
$ 300
( $ 80 ) |
AAPL Aug28th
105 10 lots |
Puts
1.21 |
08/25/2015 | 2.12
( 100% Profit Rule Sold 8) |
08/26/2015 | $ 728 |
FB Aug28th93
16 lots |
Calls
0.89 |
08/20/2015 | 0.41
( 50% Loss Rule Plus Gap) |
08/26/2015 | ( $ 768 ) |
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
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 | 09:45 Chicago Purchasing Manager’s Index ( PMI ) 54.7 vs Same )
Adept Tech ADEP ( -0.07 vs -0.03 ) Bazaar Voice ( BV -0.08 vs 0.09 ) Matrix Service MTRX ( 0.27 vs 0.28 ) |
TUESDAY | Dollar Tree DLTR ( 0.68 vs 0.61 ) Donaldson DCI ( 0.42 vs 0.50 ) QIWI ( 18.17 vs 16.90 ) Science Applications SAIC ( 0.66 vs 0.70 )
10:00 hrs ISM Index August ( 52.6 vs 52.7 ) 10:00 hrs Construction Spending July ( 0.6% vs 0.1% ) 14:00 hrs Auto Sales Aug ( NA vs 5.8 Mln in July ) Truck Sales ( ( NA vs 8.4 mln ) Ambarella AMBA ( 0.81 vs 0.37 ) Bob Evans ( BOBE 0.30 vs 0.10 ) |
WEDNESDAY | Navistar NAV ( 0.31 vs -0.04 ) Isle of Capri ISLE ( 0.17 vs 0.02 )
07:00 hrs MBA Mortgage Index 08/29 ( NA vs + 0.2% ) 08:15 hrs ADP Employment Change Aug ( 201K vs 185K ) 08:30 hrs Productivity-Revised for 2nd Qtr ( 2.7% vs 1.3 % Unit Labor Costs ( -0.8% vs + 0.5% ) 08:30 hrs Crude Inventories 08/29 ( NA vs -5.452 Mln Bbls ) 14:00 hrs Fed’s Beige Book Sept ( NA ) Catalent CTLT ( 0.58 ) Five Below FIVE ( 0.13 vs 0.15 ) NCI Building Systems NCS ( 0.13 vs 0.10 ) Oxford Industries OXM ( 1.23 vs 0.94 ) Verint VRNT ( 0.68 vs 0.72 ) |
THURSDAY | Campbell Soup CPB ( 0.43 vs 0.49 ) Genesco GCO ( 0.25 vs 0.34 ) Joy Global
JOY ( 0.62 vs 0.80 ) Lands End LE ( 0.07 vs 0.37 ) Medtronic MDT ( 1.01 vs 0.93 ) 08:30 hrs Initial Claims 08/29 ( 273K vs 271K ) 08:30 hrs Continuing Claims 08/22 ( 2261K vs 2269K ) 08:30 hrs Trade Balance July ( -43.1Bln vs -43.8 Bln ) 10:00 hrs ISM Services August ( 58.4 vs 60.3 ) 10:30 hrs Natural Gas Inventories 08/29 ( NA vs 69 bcf ) Cooper COO ( 1.95 vs 2.00 ) Marvell MRVL ( 0.11 vs 0.34 ) VeriFone PAY.46 vs .40 |
FRIDAY | Vishay Precision VPG ( 0.10 vs 0.25 )
08:30 hrs Nonfarm Payrolls August ( 217 vs 215 ) Nonfarm Private Payrolls ( 212 vs 210 ) Unemployment Rate August ( 5.2% vs 5.3% ) Hourly Earnings Aug ( +0.2% vs + 0.2% ) Average Workweek Aug ( 34.6 vs Same )
|
Market Strategies Fundamentals
The Dow rose 183 points last week, up 1.11% leading all indexes to 16, 643 in a positive rebound. Volatility soared as the Dow fell from 17, 345.32 on Thursday morning to a low of 15, 370.33 last Monday the 24t, h a decline of 11.4% in the two days. The S&P also ended the week on a positive note gaining 17.98 points to 1988.87 or 0.91%, while the Nasdaq rose 122.29 points to 4,828 improving 2.6%. The Russell was up 6 points to 1163 while the DJ Transportation Index was up the least, just 36.60 to 7908.68, up 0.46%.
We won’t ever know (unless some books are written on it later) exactly how officials at the Federal Reserve reacted during the stock market selloffs over the past week, but, the banking system received almost $152 billion in reserve balances, a proxy for excess reserves, during the banking week ending August 26. This is taken from the Federal Reserve’s balance sheet on the statistical release H.4.1.
Energy stocks rebounded with a vengeance. The oil market has showed some signs of recovery as the price of WTI climbed back up to around $45 and Brent oil to $50. The concerns over China’s growth, the supply glut and Iranian deal were gone out the window following the positive news from the U.S. regarding the higher than expected growth. The best cure for low prices is Low prices.
The economic reports last week were very strong. Next week the August Employment Report will be released on Friday. The Fed will release their Beige Book on Wednesday and will balance a strong and growing domestic economy along with weakening global growth concerns including China. There seemingly was a little upward pressure experienced in the money market as the effective Federal Funds rate was reported to be 15 basis points for Monday and Tuesday of this week, August 24 and 25, and for the full week previous to this. The Fed Funds rate had been at 13 basis points prior to the Chinese devaluation August 11th. The dollar ( DXY: 96.15 ) + 1.31 or +1.4% rallied last week above its 13 day moving average but stopping at the 50 day m.a. Fortunately, dollar rallies have been modest .
The Fed would like to begin raising rates at their September 15th-16th policy meeting providing the damage to exports can be withstood. The possibility of rate hikes has increased volatility to a point of hysteria. The Fed will focus on whether and how much a rate hike and dollar strength will negatively affect exports including beleaguered auto sales to China and subsequently employment.
Shares of Banco Santander (NYSE:SAN: $ 6.20 ) are at yearly lows, despite reporting good second-quarter results and providing an upbeat outlook. Turmoil in the markets is adversely hurting the bank’s stock price. Investors are dissociating the company’s strong fundamentals from the share price. This is creating a good entry point, and for those already holding, another chance to average down. Santander earned EUR $1.71 billion, or $1.95 billion in profits, a 17.6 percent improvement over last year on a constant EUR basis. Forward expected dividend is $ 0.22 or 3.5%. Efficiency rose to 46.9 percent:. That means it costs the bank 47 cents to bring in a dollar of revenue.
Market Strategies Economic Data
The Conference Board’s Consumer Confidence Index increased to 101.5 in August from an upwardly revised 91.0 (from 90.9) in July. The Briefing.com Consensus expected the Consumer Confidence Index to increase to 93.1. The jump in confidence in August wiped away all of the discomfort from July and returned levels above where they were in June (99.8). In fact, this was the strongest confidence reading since January 2015.
The gain in confidence resulted from improvements in labor market conditions as shown by historically low initial claims filings. Lower gasoline prices also helped sentiment.
Uneven stock trends, which dampened the August reading from the University of Michigan Consumer Sentiment Index, did not seem to make much of an impact on these sentiment levels.
The Present Situation Index increased to 115.1 in August from 104.0 in July. The Expectations Index rose to 92.5 from 82.3.
Category | AUG | JUL | JUN | MAY | APR |
Conference Board | 101.5 | 91.0 | 99.8 | 94.6 | 94.3 |
Expectations | 92.5 | 82.3 | 92.8 | 86.2 | 87.1 |
Present Situation | 115.1 | 104.0 | 110.3 | 107.1 | 105.1 |
Employment (‘plentiful’ less ‘hard to get’) | 0.0 | -7.5 | -4.8 | -6.6 | -6.9 |
1 yr inflation expectations | 4.9% | 5.1% | 5.1% | 5.0% | 4.9% |
The second estimate for Q2 GDP was revised upward much more than expected. Q2 GDP was revised up to an annual growth rate of 3.7% from the advance estimate of 2.3%. There were substantial increases in personal consumption expenditures, nonresidential fixed investment, private inventories, and government spending.
Category | Q2 | Q1 | Q4 | Q3 | Q2 |
GDP | 3.7% | 0.6% | 2.1% | 4.3% | 4.6% |
Inventories (change) | $121.1B | $112.8B | $78.2B | $79.9B | $77.1B |
Final Sales | 3.5% | -0.2% | 2.1% | 4.3% | 3.5% |
PCE | 3.1% | 1.7% | 4.3% | 3.5% | 3.8% |
Nonresidential Inv. | 3.2% | 1.6% | 0.7% | 9.0% | 4.4% |
Structures | 3.2% | -7.6% | 4.2% | -1.8% | -0.2% |
Equipment | -0.4% | 2.3% | -4.9% | 16.5% | 6.5% |
Intellectual Property | 8.6% | 7.4% | 6.9% | 6.5% | 4.9% |
Residential Inv. | 7.8% | 10.1% | 9.9% | 3.4% | 10.4% |
Net Exports | -$532.7B | -$541.2B | -$463.6B | -$429.1B | -$443.3B |
Export | 5.2% | -6.0% | 5.4% | 1.8% | 9.8% |
Imports | 2.8% | 7.1% | 10.3% | -0.8% | 9.6% |
Government | 2.6% | -0.1% | -1.4% | 1.8% | 1.2% |
GDP Price Index | 2.1% | 0.1% | 0.1% | 1.6% | 2.2% |
The robust growth of GDP will help stir the Fed into normalization of the rate process
The University of Michigan Consumer Sentiment Index was revised down to 91.9 from 93.1 which was impacted by negative stock market activity, which does not normally have an effect on consumption. 91.9 remains a relatively high number. The Conference Board’s Consumer Sentiment Index does not take into effect stock market behavior.
Michigan Consumer Sentiment has little influence on consumption. As long as payroll levels continue to expand, the resulting income growth should keep consumption gains steady regardless of the monthly ebbs and flows in sentiment.
Category | AUG | JUL | JUN | MAY | APR |
Sentiment | 91.9 | 93.1 | 96.1 | 90.7 | 95.9 |
Outlook | 83.4 | 84.1 | 87.8 | 84.2 | 88.0 |
Present conditions | 105.1 | 107.2 | 108.9 | 100.8 | 107.0 |
Market Strategies Cycles
The S&P 500 for August is down 114.97 points, with one day to go, from July but remains well short of the decline in August 2011 which was down 145.57 points. Volatility, measured by CBOE VIX index surged from a low of 15.71 on August 18th to 28.44 Monday August 24th all the way to the 200 day price moving average of the VIX volatility index. But that was as far as the negativity could prevail. The 200 day M.A. on the VIX has stopped further movement.
Geopolitical events influenced the current markets, which showed tremendous resilience rebounding from a low of 1867 to close at 1988.87, 122 points off the low and a higher close for the week. With one day remaining for August and then four days of September trading before Labor Day. Expect holiday trading conditions for the coming week.
In recent years, Labor Day ( Monday September 7th ) has become the unofficial end of summer and the three-day weekend has become prime vacation time for many. Business activity ahead of the holiday was more energetic in the old days. Since 1950, September is the worst performing month of the year for DJIA, S&P 500, NASDAQ (since 1971) and Russell 1000 (since 1979). Beneficial pre-election-year forces do little to change this. Depending on index, September is still the worst or second worst month of pre-election years, negative across the board. So try to be patient and keep your powder dry for what looks likely to be a decent seasonal buying opportunity later this summer or early autumn. Wait for the fatter pitch and enjoy the last days of summer.
Most stock sectors come into season in October so we’ll be preparing sector ETF and regular stock buy limits and a fresh basket of stocks on both fundamental and technical analysis. r. Recent seasonal sector trade ideas in iShares NASDAQ Biotech (IBB), iShares US Tech (IYW) and SPDR Retail (XRT) might be getting close to a buy opportunity. In our market letter of August 10th we said to buy the SPDR Retail (XRT) be purchased on pullbacks using using a buy limit of $92.10. Set a stop loss at $82.89 and take profits at $111.85. If you were filled we would take profits now at the market . Resistance looms at $93.00 which is the 13 day price moving average. Then we would rebuy on a dip to $90.10 with the stop at $ 82.89. Top five holdings: Netflix, Amazon.com, Nutrisystem, Expedia and Priceline. XRT is widely diversified and these five companies represent just 6.14% of XRT’s total holdings.
As of August 5 retail apparel companies were nearly 24% of the fund and specialty stores were second largest, comprising slightly more than 16% of total fund assets. XRT has nearly $1 billion in assets, trades nearly 2 million shares a day and has a gross expense ratio of just 0.35% making it a perfect choice to trade this seasonality.
From 1950 through 1977 the three days before Labor Day pushed the DJIA higher in twenty-five of twenty-eight years. Bullishness has since shifted to favor the two days after the holiday as opposed to the days before. DJIA has gained in 14 of the last 21 Tuesdays and 16 of the last 21 Wednesdays following Labor Day. September’s first 11 trading days have a rather bullish bias with 7 of these days garnering a bull icon ( The September Calendar will be out next week ) for being up 60% or more of the time on the S&P 500 the last 21 years. Five bullish days in a row come right after Labor Day. However, after that September often gets ugly. So look for a little respite in early September, but be prepared for another move lower in the second half of the month and into October.
In looking at the XRT on a weekly basis, it is evident that if we wait until after the back to school
activities to participate we miss a good park of the year end move to the upside. If, in fact, the consumer is confident in their personal balance sheet the Xmas season tends to be better than the prior year. Currently there is a buildup of inventories that may be discounted later in the season we go, but after the pullback of the last week we can try a buy of options for December or January.
Right now I would favor being long the 12/94 calls on a pullback to anywhere near $3.00. These are thin so a limit is a must. If bought there I would probably wait until we see a little upside and sell the 12/97 calls for around that same $3.00 area and have a spread of $4.00 with no money up…This is the equivalent of a covered write on the index.
Undervalued Small Cap Stocks
Immune Therapeutics, Inc. ( IMUN 0.23 )* Buy now. IMUN Naltrexone is an opioid antagonist used primarily in the management of alcohol and opioid dependence; the FDA approved Naltrexone in 1984 at 50mg. However, in much lower doses there is “Accumulating evidence suggests LDN can promote health supporting immune-modulation, which reduces various oncogenic inflammatory autoimmune processes.
The value 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.
HOW LDN WORKS
The mechanism of action of naltrexone, in autoimmune diseases and cancer, is still being researched, but there are theories as to the mechanism of action that both explain why LDN works on both autoimmune diseases and cancers, as well as inflammatory disease.
According to Mark J. Donahue’s paper on LDN that uses interviews from Dr. David, Gluck, Dr. Jacquelyn McCandless, Dr. Jarred Younger, and Dr. Ian Zagon:
“LDN is an opioid antagonist that not only blocks the reception of opiates, but also the body’s own endogenous opioids – endorphins. However, because LDN is administered in such a ‘low dose’ it is believed that LDN only briefly (for 3-4 hours) obstructs the effects of endorphins. Sensing an endorphin deficit, the hypothalamus signals for increased production of endorphins in what is called ‘the rebound effect.’ The rebound effect results in three things happening:
The study of immune cell glial interactions is in its infancy. Glial cells are the immune cells in your central nervous system (brain, spinal cord). They are very involved in dysregulation of pain systems, neuroinflammation, and some neurological diseases such as Multiple Sclerosis, Alzheimer’s, Parkinson ’s disease, Autism, ALS, infections of the brain.
LDN has treated Crohn’s Disease, HIV/Aids, Multiple Sclerosis, Autism, Fibromyalgia, Prostate Cancer, Hepatoblastoma, Gastrointestinal Disorders, Melanoma, Gulf War Syndrome , based on clinical studies and patient data.
Enzo Biochem ( ENZ 2.87 ) 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 improvment. Top line revenues should also show an improvement. Depending on R&D expenses and litigation expenses the net loss should also show improvemnt. 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.
RMS Medical Systems, Inc ( REPR 0..33 )* . RMS Medical Products is a U.S. manufacturer of medical devices which maintains offices and manufacturing facilities in Chester, NY. They employ 60 people. For more than three decades, the company has been a leading innovator in the medical device industry in the development and production of proprietary devices and supplies. 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, but can be used with any manufacturer’s infusion pump as well.
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.
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 million of net income in each of the past four years and has no debt.
The Freedom 60 has had success in Europe reflected in a huge sales increase of 47.8% first quarter 2015 up from same quarter 2014.
Stocks and ETF’s bought over the past few weeks
Fundamental Analysis Stocks To Buy with Stops
In the August 10th market letter we recommended to buy the XRT at 92.10 which would have been filled on September 24th. The sell stop at 82.89 was not reached so the position is still long. We would liquidate at the market and rebuy again a little lowe at 90.10 with a stop loss at 82.89.
The HDGE has finally accelerated above 11.04 which is a bear signal and an opportunity to make money while the markets are plummeting. We bought the HDGE @ 11.04. HDGE is the BEAR hedge. We were unable to buy Golar. We bought Mosaic MOS and were stopped out at $ 41.90 for a loss of $ 110 plus commissions. We were able to buy Southwest Air (LUV ) at 33 and Harley Davidson ( HOG ) at 54. 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. DSX is looking better and you should buy now if not already long . We would buy Bank of America and continue to like the banking sector.
Symbol | Name | Business Description | PE | P/S | MV mln | Price | Buy Limit | Stop Loss
Or sold |
XRT | SPDR S&P Retail | Retail Spider | 1.0B | 93.72 | 90.10 | Sell at Mkt | ||
VA | Virgin Air | Regional Airlines | 7.2 | 1.0 | 1.5B | 32.76 | 32.20 | 29.50 |
MOS | Mosaic | Fertilizer | 14.6 | 1.70 | 15.68B | 41.04 | 43.00 | 41.90x |
OSIR | Osirus Therapeutics | Biotechnology | 690 | 9.06 | 664M | 18.73 | 18.90 | 18.50 x
Stopped out |
LUV | Southwest Air | Regional Airlines | 16 | 1.15 | 22.6B | 37.10 | 33 | 32.31sco |
HOG | Harley Davidson | Consumer Goods | 14 | 1.87 | 11.6B | 56.64 | 54 | 52.39sco |
ENZ | Enzo Biochem | Life Sciences | NA | 1.35 | 134M | 2.87 | 2.78 | 2.44x |
BAC | Bank of America | Commercial Bank | 10 | 2.02 | 165.3B | 16.36 | 16.45 | 15.22x |
HDGE | Advisor Shares | Ranger Bear ETF | 11.33 | 11.04 X | 10.65X if filled | |||
GLNG | Golar | Liquefied N.G. Hedging | NA | 30.39 | 3.14B | 38.82 | 32.44 | 30.50 |
DSX | Diana Shipping | Dry Cargo Shipping | N/A | 3.7 | 611 | 6.73 | 6.60 | 5.90 |
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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.
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