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April 6, 2015
Market Strategies Newsletter
Sample Issue
Covering High Return 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
Stock Options Trading Newsletter Covering:
Where to Invest April 2015
Best Stocks To Buy April 2015
Stock Market Investing Strategies
Stock Options Trade Alerts
Options Trading Strategies
How To Trade Options
2015 Year To Date Profits = $ 5,142
Over 51% Returns
2014 Profits = $ 20,443
Over 204% Returns
$20,443 Profits for $10,000 Trading Account
By Following all trades in 2014 a
$10,000 account would be worth $30,443
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High Return Investments Trade Alerts
Go To: PrincetonResearch.com/alerts.htm
NOTE: This is a Sample Issue Only!
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THE COMPLETE VIP MEMBERS ONLY
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Market Strategies
$10,000 Trading Account Traders Comments
We have three open long positions:
6 ARRY June 8 Calls
6 GLD April 116 Calls and
15 PFE April 25 Calls
Funds in Use $ 1856
Loss last week $ 219
Year To Date Profits $ 5,142
Over 51% Returns
There will be no new trades listed in tonights’ letter. The issue is how we “catch up” to the sell off after the labor numbers from Friday. For months (actually over a year) I have been complaining that the earnings being reported are of such low quality that they should be discounted. I have stated repeatedly that “you can -not cut payrolls to regain prosperity, and that without REAL top line growth the value of financially engineered gains are at best transitory.
While there are a multitude of excuses we will hear in the next couple of days about how the weather was a problem and Easter came early, the bottom line is that regardless of how the price of gas puts more money in the pockets of the working class, it’s not getting spent…
Last year it was the warmer winter that depressed Q4 13 and Q1 14s spending on winter apparel, and this year its the cold weather and snow that was the culprit. You can’t have it both ways.
Also, as stated here just last week, geopolitical issues turn the psychology faster than any companies reports….And after we absorbed the Saudi / Yemen news, we got it compounded by the “framework” for the Iran nuclear agreement that no one in there right mind would think there is progress. It just amazes me that anyone (as much as they want to) would trust the Iranians to come clean and actually follow through on any promises made. “Once bitten, twice shy” seems to not be in our government’s memory.
I don’t belittle the effort, but really….trust the most aggressive local government who still (even this week) confirms its commitment to the elimination of Israel ???
I cannot make new commitments to this market until I see how we react tomorrow. After that I will utilize the texting service to issue new trades.
…CAM
Market Strategies $10,000 Trading Account Trade Table
| DATE | TRADES | PRICE | COST | PROCEEDS | RESULTS |
| 04/02 | This information is for Members
Get The Best
|
1.00 | 600 | ||
| 03/30 | 0.42 | 294 | 147 Gain | ||
| 03/30 | 0.61 | 366 | 306 Loss | ||
| 03/30 | 0.49 | 588 | |||
| 03/27 | 1.12 | 672 | |||
| 03/26 | 0.21 | 315 | |||
| 03/25 | 0.90 | 540 |
Remember, these trades are based on your participation in the
Subscriber Members Only
TEXTING SERVICE TO RECEIVE ALL UPDATES.
Previous closed out trades not listed here may be seen in previous market letters in the VIP Subscribers Members Area.
NOTE: In texting we have a limited amount of words. In the interest of brevity:
The Quantity and Strike Price for each trade is specific. 1=January, 2=February
Trading is hypothetical. We may trade weekly options and they are noted: SPY 1/25 147 for
SPY Jan 25th 147 Calls or Puts.
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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
17,763.24 + 50.58 +0.29% |
Nasdaq
4886.94 -4.28 |
S&P 500
2066.96 +5.94 +0.29% |
Transportation
8605.31 -95.03 -1.09% |
Russell 2000
1255.66 +1.23% |
Nasdaq100
4316.01 -16.85 -0.39% |
| Gold (spot)
1200.90 +1.10 +0.1% |
Silver
1670.1 -36.8 -2.2% |
Crude
49.14 +0.27 +0.6% |
Heating Oil
169.22 -3.67 -2.1% |
Unleaded Gas
1.7531 -0.0320 -1.8% |
Natural Gas
2.713 +0.074 +2.8% |
| VIX
14.67 -0.40 -2.7% |
Put/Call Ratios
S&P 100 70/100’s -25/100’s |
Put/Call Ratios
CBOE Equity 69/100’s +3/100’s
|
Bonds
164-18 +05 2.52% flat |
10 Yr. Note
129-054 + 154 1.92%-0.01%
|
Copper
273.40 -3.35 -1.2% |
| CRB Inflation
Index 216.09 +0.93 +0.4% |
Barron’s* Confidence
75.0% -1.6% |
S&P100
901.10 +0.91 +0.10% |
5 Yr. Note
120-12 +11 1.34% -0.08%
|
Dollar
96.77 -0.62 -0.6% |
DJ Utilities
589.87 +9.36 +1.61% |
| AAII
Confidence Index |
Bullish
35.4% -3.0% |
Bearish
32.0% +7.5% |
Neutral
32.6% -4.5% |
M1 Money Supply
+9.84% March 23rd |
M-2 Money
Supply +5.81% March 23rd |
* 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 Levels S&P 500 2021
Resistance S&P 500 2076 – 2138
Support Levels DOW 17,280
Resistance DOW 18,085
Support Levels QQQ 104.40
Resistance QQQ 107.30
Support Levels NASDAQ 4810
Resistance NASDAQ 4940
$100,000 Trading Portfolio Stock Positions and Trades
Each stock is allocated a theoretical $ 5,000 share of the portfolio unless otherwise indicated.
|
|
Purchase Price | Purchase Date | Stop/Loss | Price/Date Sold | Profit/
(Loss) |
||
| This information is for Members
Get The Best
|
0.99 | 03/30 | |||||
| 78.82 | 03/26 | 83.48 04/01 | $ 280 | ||||
| 16.34 | 03/04 | ||||||
| 102.73 | 03/03 | ||||||
| 8.02 | 02/24 | ||||||
| 8.56 | 02/13 | ||||||
| 10.16 | 02/13 | ||||||
| 0.7411 | 12/26 | ||||||
| 4.84 | 12/18 | ||||||
| 16.84 | 12/18 | ||||||
| 8.40 | 12/16 | ||||||
| 3.10 | 11/28 | ||||||
| 9.92 | 11/17 | ||||||
| 14.21 | 10/16 | ||||||
| 34.99 | 09/09 | ||||||
| 2.95 | 05/19 | ||||||
| 0.407 | 03/14 | ||||||
| 15.37 | 01/16 | ||||||
| 4.08 | 8/12 | ||||||
| 6.56 | 7/11 | ||||||
| 0.22 | 10/22/12 | .12 sco | |||||
Remember, these trades are based on your participation in the
Subscriber Members Only
TEXTING SERVICE TO RECEIVE ALL UPDATES.
Previous closed out trades not listed here may be seen in previous market letters in the
VIP Subscribers Members Area.
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.
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High Return Investments Trade Alerts
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Market Strategies $100,000 Trading Account
There were two closed long option positions, losing a total of $ 297.
There was one closed out stock position, the SCO showing a profit of $ 280 netting a loss of
$ 17 for the week.
We added one new long position:
2500 shares of STEM at $ 0.99
For the full year to date, we have gains of $ 17,718.
Open position losses decreased to $ 10,627.
There are four long Open Option positions:
ARRY June 8 Calls
FEYE April 39.50 Calls
Pfizer April 35 Calls and the
Sysco April 38 Calls
The Stock table has the following 22 positions:
AA, ARRY, BAC.B.WS, BCRH, BSBR, FCX, FORM; GILD; IMAX; INO, NAT,
NBG (3), OSIR, REPR, RPTP, SAN,STEM, TEXQY, XCO, XRGYF
The options call for a $ 2,500 investment unless otherwise stated; each stock position requires $5,000 unless otherwise specifically stated.
We are basing money management on a hypothetical
$ 100,000 and are using a total of
$ 80,086 for the 22 open stock positions. There are four long option positions requiring
$ 3,771 totaling
$ 83,857 leaving
$ 16,143 in cash
These figures are approximate and there might be errors.
We have not counted the dividends received from Apple, JP Morgan, BSBR ( Brazil ), Santander, Blue Capital Reinsurance and others. Blue Capital issued a special extra dividend of $ 0.66 per share which enabled us to reduce our cost by that amount. In addition it pays about 7% per year in regular dividends.
We do not count commission costs and all trading once again is hypothetical.
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) |
| This information is for Members |
Get The Best
Calls
1.0004/02/15 Calls
0.4903/30/15 Calls
0.2103/26/150.42
( Sold Half on 100% Up Rule03/30/15$ 315 Calls
1.1203/27/150.6103/30/15( $ 612 ) Calls
0.9003/25/15
Remember, these trades are based on your participation in the
Subscriber Members Only
TEXTING SERVICE TO RECEIVE ALL UPDATES.
Previous closed out trades not listed here may be seen in previous market letters in the
VIP Subscribers Members Area.
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
Earnings Reports Before the Open on Top of the Row;
After the Close are Below the Economics Numbers.
| Monday | Ocwen Financial ( OCN -1.88 vs 0.74 ) |
10:00 hrs ISM Services March ( 56.9 vs 56.9 )
A Schulman ( SHLM ( 0.39 vs 0.39 ) Perfect World ( PWRD 0.37 vs 0.54 ) TuesdayGreenbrier ( GBX 1.20 vs 0.51 ) Schnitzer Steel ( SCHN -0.10 vs 0.13 )
10:00 hrs JOLTS-Job Openings Feb ( NA vs 4.998Mln )
15:00 hrs Consumer Credit Feb ( $11.5Bln vs $11.6Bln )
Ducommun ( DCO 0.29 vs -0.42 ) Synnex SNX ( 1.52 vs 1.25 )WednesdayFamily Dollar ( FDO 0.73 vs 0.80 ) Rite Aid ( RAD 0.08 vs 0.10 )
07:00 hrs MBA Mortgage Index 04/04 ( NA vs +4.6% )
10:30 hrs Crude Inventories 04/04 ( NA vs +4.766 Mln Bbls )
14:00 hrs FOMC Minutes
Alcoa ( AA 0.25 vs 0.09 ) Apogee ( 0.43 vs 0.27 ) Bed Bath ( BBBY 1.80 vs1.60 ) Pier 1 Imports ( PIR 0.36 vs 0.60 ) WD40 ( WDFC 0.72 vs 0.67 )ThursdayConstellation Brands ( STZ 0.94 vs 0.81 ) Walgreens Boots Alliance 0.94 vs 0.91
08:30 hrs Initial Claims 04/04 ( 287 vs 268K )
Continuing Claims 03/28 ( 2407 vs 2416K )
10:00 hrs Wholesale Inventories Feb ( 0.3% vs 0.3% )
10:30 hrs Natural Gas Inventories 04/04 ( NA vs -18bcf )
Hanger ( HGR 0.44 vs 0.62 ) Ruby Tuesday ( RT -0.03 vs -0.07 )FridayAZZ ( AZZ 0.59 vs 0.40 )
08:30 hrs Export Prices Ex-Agriculture Mar ( NA vs +0.2% )
Import Prices Ex-Oil Mar ( NA vs -0.3% )
14:00 hrs Treasury Budget Mar ( NA vs -$36.9Bln )
Market Strategies Fundamentals
The Employment Report was bearish with the creation of just 126,000 new jobs reported and reducing previously reported jobs by about 69,000, while the markets were closed. The futures markets which were open about 45 minutes had the Dow off 165 points and the S&P 500 down 20 points. In the short time allotted traders showed their disappointment as February Jobs were cut to 264,000 from 295,000 and January to 201,000 from 239,000.
The Dow gained 50.58 points, not much compared to its loss the previous week of 415 points more than wiping out all the gains in March. The S&P 500 gained 6 points , while the DJ Transportation Index fell sharply again down 95 points or a full percent. Nasdaq continued its losing ways down 4.28.
The lone encouraging index is the Russell 2000, which gained 15 points or 1.23% after falling the least the previous week ( 2.05% ) and got nowhere close down to support at its 50 day moving average. The DJ Transportation Index is by far the worst most disappointing performer. It has dropped from the 9,250 level to just 8,605 during the last three months indicating non-confirmation for the entire bull market. It is just above critical support at the 8,575 level which remains to be seen if it can hold.
Meanwhile the bulls are running rampant in China as their stock index made again a new all-time high. YINN ( YINN: 45.35 ) +7.47 points or 19.7% last week. The YANG ( YANG: 8.02 ) down 2 whole points or 20% is the 3x bear ETF. The CNXT ( 45.31 ) + 2.96 points or 7%, specializing in computer software is another bull ETF. American multinational companies will continue to benefit from Chinese success as they participate in foreign profits, the most in a decade that has drawn scrutiny from regulators.
Many companies in the S&P 500 Index including such names as EBay ( $ 57.63 ), Verisign ( VRSN: $ 66.29 )and Stryker ( SYK: $ 92.56 ) set aside those profits to buy stock, pay for capital improvements, such as factories and equipment and even to fund daily operations. Incidentally stock buy backs usually take place after earnings reports, nor prior. U.S. companies are still sitting on a record $2.1 trillion in foreign earnings, including about $690 billion in cash. I dollar terms there has been about 7% repatriation in 2014 the most since Congress declared a tax holiday for them in 2005 when they brought home $ 359 billion. The strong dollar is another impediment for repatriation of capital. The success of US firms in Asia has been and continues to be a huge profit center.
Market Strategies Economic Data
Nonfarm payrolls added only 126,000 new jobs in March, down from a downwardly revised 264,000 (from 295,000) in February. The Briefing.com Consensus expected nonfarm payrolls to increase by 250,000. Private payrolls increased by 129,000 jobs, down from a downwardly revised 264,000 (from 288,000) in February. The consensus expected private payrolls to add 245,000 jobs.
That was the first time jobs growth did not exceed 200,000 since February 2014, and it was the smallest increase since 109,000 jobs were added in December 2013.
The disappointment was not an unmitigated disaster. Average hourly earnings increased by a solid 0.3% after increasing by only 0.1% in February, but those gains were offset a significant cut in the number of hours workers. The average workweek fell to 34.5 hours in March from 34.6 in February.
Altogether, aggregate earnings increased by only 0.1% in March, down from a 0.3% increase in February. A 0.1% increase in income isn’t enough to support a meaningful acceleration in consumption growth.
February was weak across the board in areas of the country that were not hard hit by inclement weather, like California, experienced some of the same slowdowns that were seen in the Midwest and Northeast. Weather conditions in March were milder than February. Softer job growth should have appeared a month earlier in February.
Researchers from the Chicago Federal Reserve modeled extreme inclement weather impacts on economic growth and found that there were very little effects. Last year, when inclement weather was blamed for the first quarter contraction, the researchers found that the weather impact was extremely minor.Economic growth is just not as robust as many expected overlooking the effect of a strong currency.
Category MAR FEB JAN DEC NOV
Establishment Survey
Nonfarm Payrolls 126K 264K 201K 329K 423K
Goods-Producing -13K 20K 51K 64K 76K
Construction -1K 29K 41K 44K 30K
Manufacturing -1K 2K 17K 19K 45K
Service-Providing 142K 244K 151K 255K 338K
Retail Trade 26K 32K 35K 0K 61K
Financial 8K 7K 19K 7K 28K
Business 40K 42K 20K 72K 96K
Temporary help 11K -8K -8K 21K 31K
Education/Health 30K 34K 50K 54K 51K
Leisure/Hospitality 13K 70K 24K 56K 42K
Government -3K 0K -1K 10K 9K
Average Workweek 34.6 34.6 34.6 34.6 34.6
Production Workweek 33.7 33.8 33.7 33.8 33.8
Factory Overtime 4.3 4.3 4.4 4.6 4.6
Aggregate Hours Index -0.2% 0.2% 0.2% 0.3% 0.4%
Avg Hourly Earnings 0.3% 0.1% 0.5% -0.2%
Market Strategies Cycles
April began with many negative indicators. The biggest nightmare for the bulls has been the negative divergence of the DJ Transportation Index which has been plummeting even when the Dow and S&P were at their highs. With the exception of three trading days in March, it has been negative since March 4 for S&P 500. DJIA has been negative since March 5 with just two brief days positive. The MACD signals that occurred on the fourth and fifth of March, just a few days after DJIA and S&P 500 closed at all-time highs, highlight the importance of MACD crossovers. Since then, DJIA and S&P 500 have been trading in an increasingly narrow range on either side of their respective 50-day moving averages while Stochastic, MACD and relative strength indicators have drifted lower toward oversold levels. Selling with indicators near oversold levels is not the best exit.
Furthermore, although the market has been weak recently it has been so during a typically seasonally weak time period. April’s prowess for gains, in all years, and especially pre-election years like 2015 is yet another reason to look for buying opportunities. DJIA has been up nine years in a row in April with an average gain of 3.1%. April is also DJIA’s best month of the year and S&P 500’s third best since 1950. Even in years when March was negative, the odds of a solid advance in April remain respectably high. Going back to 1950, both DJIA and S&P 500 have declined 22 times in March. Following that decline, DJIA and S&P 500 advanced 14 times in April with average gains exceeding 1%.
The first trading day of April and the second quarter, has enjoyed exceptional strength over the past 20 years, advancing 16 times with an average gain of 0.56% in all 20 years for S&P 500. Declines occurred in 2001, 2002, 2005 and 2013. In 2013, April 1 was also the day after Easter which has been the S&P 500’s worst post-holiday trading session. From 1984 to 2003, S&P 500 declined 16 times. In the ten years since, S&P has been up seven times, but down three of the last four years.
April marks the end of the“Best Six Months” for DJIA and the S&P 500.April 1999 was the first month to gain 1000 DJIA points. However, from 2000 to 2005, the “Tax” month was hit, declining in four of six years. Since 2006, April has been up nine years in a row with an average gain of 3.1% to reclaim its position as the best DJIA month since 1950. April is third best for S&P and fourth best for NASDAQ (since 1971).
Typical pre-election year strength does bolster April’s performance since 1950. April is DJIA’s best month in pre-election years (+4.2%), second best for S&P 500 (+3.6%) and third best for NASDAQ (+3.7%). Small caps, measured by the Russell 2000 also perform well with gains (+3.4%) in seven of nine pre-election year April’s since 1979.
Psychological: Bullish. And it just doesn’t matter. The S&P 500 has not had an official 10% correction since October 2011 and any dip since has been a good buying opportunity. Last week the S&P 500 closed below both its 13 and 50 day moving averages which it has done twice before in March. The Russell 2000 was not to be denied, bucking the trend and closing above both critical indicators. We should buy the IWM on and perceived weakness because of the bearish employment report. This is not a bear market, but for now the negative fundamentals, slowing economy, will only mean the market’s advance is going to slow down a little.
Fundamental: Mixed. The labor market gains slowed dramatically due to slower manufacturing orders. This is a normal process when the dollar strengthens to such enormous levels like a price of 100, up more than 10% since December. Therefore, it is looking like 2015 Q1 GDP will be soft. Any weakness will likely be overcome as no nation suffers for long just because its currency is in high demand. Other economic data, like housing will improve now with the arrival of spring.
Technical: Range bound. The market continues its struggles as it did in March. Both the DJIA and S&P 500 appear to have only extended the upper end of their trading ranges that started in December. NASDAQ and Russell 2000 look stronger. The problem is with the Tranny, the DJ Transportation Index which must find a bottom it we are to go forward. Both the Nasdaq and Russell have remained above their 50-day moving averages and their February breakout levels throughout March. Watch NASDAQ’s and/or Russell 2000’s next move for an indication of where the market is most likely headed next, higher or lower. The IWM, the Russell ETF is a buy.
Stocks and ETF’s bought over the past few weeks:
We no longer have positions in the VXX, SPXU or UDOW Both the VIX and SPXU protect against declines while the UDOW and various stocks reflect the long side. VIX is a measure of market expectations of near term volatility conveyed by S&P 500 Index Option prices. We have shown this table for the purpose of being both profitable and somewhat protected for much of the time while maintaining profitable long positions. We have no positions now as volatility as the market is consolidating. Please check on the previous weekly market letters if there are questions. We were stopped out of the Alcoa at 12.75. That was our mistake as we want to be long Alcoa. We also bought the Diana Shipping at 6.60. The Scorpio Tankers were not ever filled as the market never got to our price. Try to buy a scale down on this move. The tanker shippers like NAT and GLNG are doing much better than dry shippers like Diana Shipping. We were stopped out of the Mosaic with a profit. Buy GLNG in liquefied N.G. at $ 32 about the 50 day moving average. We were stopped out of the XLV at 72 which we raised last week In addition we are long the DSX and Scorpio Shippers. We would try to buy CHK and XOM about 5-10% lower this week.( All trading is hypothetical and intended as guidance)
Symbol Name Business Description PE P/S MV mln Price Buy Limit Stop Loss
Or sold
AA Alcoa Aluminum 11 0.66 16.06B 13.14 13.03 12.60
XOM Exxon Mobil Oil and Gas 11 0.96 351B 84.30 83.15 80
CHK Chesapeake Oil and Gas 7.50 0.45 9.31B 14.59 13.40 12.15
GLNG Golar Liquefied N.G. Hedging NA 30.39 3.14B 33.38 32.44 30.50
SAN Santander Banking world-wide 14 2.34 91.6B 7.64 7.28 6.80
XLV Health Care Spider ETF 73.04 70 72 stopped out
DSX Diana Shipping Dry Cargo Shipping N/A 3.7 611 6.05 6.60 5.90
STNG Scorpio Tankers Oil Transportation 26 5.6 1.47B 9.45 7.46 unable 7.48
Undervalued Small Cap Stocks
Spanish bank Banco Santander (SAN)
is outperforming right now. In the last six months, this $98 billion banking play has shed 30% of its market value, dragged lower by ongoing issues in the Eurozone financial system. But things could be about to change for long-suffering shareholders. SAN is starting to show signs of a bottom here. They will have better earnings having cut dividends.
Santander is currently forming a double bottom pattern, a bullish reversal pattern that looks just like it sounds. The double bottom is formed by a pair of swing lows that find support at approximately the same price level. The buy signal comes on a breakout through the peak that separates though two troughs. For SAN, that’s the $7.40 breakout level.
RMS Medical Systems, Inc ( REPR 0.40 )*
Has doubled this year already and can double again .
RMS designs, markets, manufactures portable easy to operate infusion devices, including needles and tubing. It is easy to handle by patients. The Freedom 60 is being marketed in Europe as well as gaining a footing among home-care professionals in America. The RescueVac is used in ambulances and planes for emergency suction.
Enzo Biochem ( ENZ: NYSE: $ 2.88 )
This company does almost $ 100 million a year in sales.
We bought Enzo and got stopped out two weeks ago I would be stubborn and try to buy it again especially if it got to the $ 2.60-2.70 level risking 30 cents.
I am basing my belief that the fundamentals will overcome the technical pattern. $ 3.02 is approximately the 13-day moving average. If it can’t close above this number, we can’t be long the stock.
Fiscal 2015 (July) got off to a solid start with Q1 (Oct) results continuing to affirm our belief that Enzo’s core businesses are improving. Once again, revenue, gross profit and adjusted EBITDA were all better than projected, with revenue growth in both the clinical lab and life sciences businesses.
Gross margin in both businesses continued to improve, as the ongoing shift toward higher value molecular testing and efforts to improve operational efficiency continue to bolster margins. The company’s balance sheet remains on good footing while catalysts in the form of new products and litigation remain in play. Accordingly, we reiterate our Buy rating and $7 price target.
What keeps us excited about ENZ is (1) a clinical lab which is highly attractive to numerous strategic buyers; (2) a proprietary molecular diagnostic technology that could cut the cost of molecular testing by about 50%; and (3) IP litigation that could yield hundreds of millions of dollars over time
For Free Where To Invest Your Money Now
High Return Investments Trade Alerts
Go To: PrincetonResearch.com/alerts.htm
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.
CONTACT
Please Direct All Inquiries To:
Mike King
(702) 650-3000
mike@princetonresearch.com
Charles Moskowitz
(781) 826-8882
CAM@MoneyInfo-LLC.com
Princeton Research
3887 Pacific Street,
Las Vegas, Nevada 89121