March 30, 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
Gain last week $ 524
2015 Year To Date Profits = $ 5,361
Over 53% 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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Stock Options Trade Alerts
Options Trading Strategies
How To Trade Options
Market Strategies
$10,000 Trading Account Traders Comments
We have 3 open long positions:
6 ARRY June 8 Calls
6 GLD April 116 Calls and
15 PFE April 25 Calls
Funds in Use $ 1527
Sometimes you do all the work and cite all the appropriate source materials and the market makes you look like an idiot. So goes last weeks’ proposition that the lagging Transports were a buy and I should go with the primary uptrend.
If you recall I liked the upside in UPS instead of the short in FDX. It gave us a 50% down rule liquidation of the UPS calls while the FDX puts went from $2.40 to $6.70….Not my greatest moment….
This provides 2 major points:
- Geopolitical issues are the fastest way to turn market sentiment (Saudis bomb Yemen)
- Balance pays off….$852 gain in the Gold saved the week from disaster….
I also rebought the SCO (reverse oil ETF) around the same price as in week 9, with the same basic risk profile; near support technically and oversold as well as a with a bearish supply/demand profile fundamentally. A break of $46.97 should yield a test of $45, and a break from there can send us to new lows. Unfortunately for the Options Only account there is absolutely no liquidity in the SCO options. The at the money calls (4/84s) have an open interest of only 109 contracts and are $5.80 bid-$8.90 offered….So we’ll have to sit this one- out in the options account.
For the last several weeks I have been cautious. This market has had more than a few pullbacks
that started out quickly and violently and last week I asked the question, Is this THE time we have
an intermediate top? I think that the answer may be YES. We had a surprise in the durable goods
this week and with the earnings season just around the corner we are quite susceptible to a real
downturn.
This coming Fridays Labor numbers come on a day when the market is closed. That alone
is troublesome since we will have to play catch up with the rest of the worlds’ interpretation of its
meaning. Also grabbing the attention of many of the talking heads on CNBC is the possible down
quarterly closing of the S&P500. The last two occurrences when coupled with the generally over-
bought markets (again on the quarterly basis) have resulted in drops of 45% and 50%.
…CAM
Market Strategies $10,000 Trading Account Trade Table
New Trades
- Buy 12 SYY ( Sysco Corp ) @ 0.50
| DATE | TRADES | PRICE | COST | PROCEEDS | RESULTS |
| 03/27 | This information is for Members
Get The Best
|
1.12 | 672 | ||
| 03/26 | 0.21 | 315 | |||
| 03/25 | 1.03 | 412 | 132 Gain | ||
| 03/25 | 0.99 | 396 | 116 Gain | ||
| 03/25 | 0.90 | 540 | |||
| 03/25 | 0.70 | 280 | 280 Loss | ||
| 03/25 | 0.74 | 296 | 296 Loss | ||
| 03/23 | 3.16 | 632 | 316 Gain | ||
| 03/23 | 0.70 | 560 | |||
| 03/23 | 1.40 | 560 | |||
| 03/23 | 1.48 | 592 | |||
| 03/16 | 1.58 | 632 |
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
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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Stock Market Investing Strategies
MARKET Laboratory – Weekly Changes
Prices are copied from Barron’s Weekly and Yahoo Finance and may be incorrect.
| Dow17,712.66
-414.99 -2.29% |
Nasdaq4891.22
-135.20 |
S&P 5002061.02
-47.08 -2.23% |
Transportation8700.34
-447.70 -4.89% |
Russell 20001240.41 -25.96 -2.05% |
Nasdaq100 4332.86
-125.68 -2.82% |
| Gold (spot)1199.80
+15.00 +1.3% |
Silver 1706.9
+18.6 +1.1% |
Crude48.87
+3.15 +6.9% |
Heating Oil172.16
+0.56 +0.3% |
Unleaded Gas1.7968
+0.0020 +0.1% |
Natural Gas2.639
-0.164 -5.9% |
| VIX15.07
+2.05 +15.8% |
Put/Call RatiosS&P 100
95/100’s -25/100’s |
Put/Call RatiosCBOE Equity
66/100’s +1/100’s
|
Bonds164-13 +08
2.50% flat |
10 Yr. Note128-22 flat 1.95%-0.01%
|
Copper276.75
+0.65 +0.2% |
| CRB InflationIndex
215.16 +1.05 +0.5% |
Barron’s* Confidence76.7%
1.6% |
S&P100900.19
-22.30 -2.42% |
5 Yr. Note120-01 +04
1.42% -0.16%
|
Dollar97.29
-0.51 +0.5% |
DJ Utilities580.51
-14.82 -2.49% |
| AAIIConfidence
Index |
Bullish38.4%
+11.2% |
Bearish24.4%
-7.1% |
Neutral37.2%
-4.1% |
M1 Money Supply+8.58%
March 16th |
M-2 MoneySupply
+6.14% March 16th |
* 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.
Where to Invest April 2015
Best Stocks To Buy April 2015
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
New Trades
1) Buy 2500 STEM @ 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) | ||
| This information is for Members
Get The Best
|
78.82 | 03/26 | |||||
| 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
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 24 SYY ( Sysco Corp ) Calls @ $ 0.50
There were six closed long option positions, making a total of $ 1,048.
There were no closed out stock positions.
We added two new long positions:
100 shares of IMAX and
60 of the SCO.
For the full year to date, we have gains of $ 17,735.
Open position losses increased to $ 10,858.
There are three long Open Option positions:
ARRY June 8 Calls
April GLD 116 Calls and the
Pfizer April 25 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,SCO, 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
$ 82,342 for the 22 open stock positions. There are three long option positions requiring
$ 3,054 totaling
$ 85,396 leaving
$ 14,607 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
|
Calls0.21 | 03/26/15 | |||
| Calls1.12 | 03/27/15 | ||||
| Calls0.90 | 03/25/15 | ||||
| Calls0.70 | 03/25/15 | 0.99 Sold the first 8 lots1.03 Sold Balance later | 03/25/15
03/25/15 |
$ 232
$ 264 |
|
| Calls1.40 | 03/23/15 | 0.70( 50% Loss Rule ) | 03./25/15 | ( $ 560 ) | |
| Calls1.48 | 03/23/15 | 0.74( 50% Loss Rule ) | 03/25/15 | ( $ 592 ) | |
| Calls1.58 | 03/16/15 | 3.16( 100% Profit
Rule sold half)
4.20 Sold Balance |
03/23/15
03/26/15 |
$ 632
$ 1072 |
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
and Media Data
Earnings Reports Before the Open on Top of the Row;
After the Close are Below the Economics Numbers.
| Monday | Cal-Maine Foods ( CALM 1.13 vs 1.77 ) AAR Corp ( 0.37 vs 0.45 )08:30 hrs Personal Income Feb ( 0.3% vs 0.3% )
Personal Spending ( 0.2% vs -0.2% ) PCE Prices-CORE ( 0.1% vs 0.1% ) 10:00 hrs Pending Home Sales Feb ( 0.4% vs 1.7% ) EveryWare ( EVRY -0.05 ) Perfect World( PWRD 0.37 vs 0.54 ) |
| Tuesday | Conns ( CONN 0.63 vs 0.74 ) Science Applications ( 0.71 vs 0.66 ) 09:00 hrs Case-Shiller 20 city Index Jan ( 4.5% vs 4.5% )
09:45 hrs Chicago PMI Mar ( 52.0 vs 45.8 ) 10:00 hrs Consumer Confidence Mar ( 96.2 vs 96.4 ) Ducommun ( DCO 0.29 vs -0.42 ) Synnex SNX ( 1.52 vs 1.25 ) |
| Wednesday | Acuity Brands ( AYI 1.06 vs 0.75 ) Monsanto ( MON 2.94 vs 3.15 )07:00 hrs MBA Mortgage Index 03/28 ( NA vs +9.5% )
08:15 hrs ADP Employment Report Feb ( 228K vs 212K ) 10:00 hrs ISM Index Mar ( 52.5 vs 52.9 ) 10:00 hrs Construction Spending Feb ( -0.2% vs -1.1% ) 10:30 hrs Crude Inventories 03/28 ( NA vs +8.170 Mln Bbls ) 17:00 hrs Auto Sales Mar ( NA vs 5.2Mln ) 17:00 hrs Truck Sales Mar ( NA vs 7.9 Mln ) Cubic ( CUB 0.57 ) Progress Software ( PRGS 0.24 vs 0.28 ) Sportsmans Warehouse ( SPWH 0.21 ) TCP International ( TCPI 0.19 ) |
| Thursday | AZZ ( AZZ 0.59 vs 0.40 ) Calavo Growers ( 0.46 vs 0.25 )CarMax( KMX 0.60 vs 0.44 ) Greenbrier ( GBX ( 1.20 vs 0.51 ) Sea Change ( SEAC -0.06 vs 0.02 )08:30 hrs Initial Claims 03/28 ( 285 vs 282K )
Continuing Claims 03/21 ( 2423 vs 2416K ) 08:30 hrs Trade Balance Feb ( -$42.0B vs -$41.8B ) 10:00 hrs Factory Orders Feb ( -0.5% vs -0.2% ) 10:30 hrs Natural Gas Inventories 03/28 ( NA vs 12bcf ) Hanger ( HGR 0.44 vs 0.62 ) Micron ( MU 0.75 vs 0.85 ) |
| Friday | 08:30 hrs Nonfarm Payrolls Mar ( 248K vs 295K )Nonfarm Private Payrolls Mar ( 240K vs 288K )
08:30 hrs Unemployment Rate Mar ( 5.5% vs Same ) Hourly Earnings Mar ( +0.2% vs +0.1% ) Ave Workweek ( 34.6 vs 34.6 )
|
Market Strategies Fundamentals
The Dow lost 415 points more than wiping out all the gains in March. The indexes double-topped just above the 18,200 level. Deleterious news on the economy was prevalent all week some of which is explained in the economics section.
The S&P Index double topped in the 2,114 area, while the Nasdaq Index challenged the 5000 level. The Tech index got to 5032.48, failing to match the all – time high of 5,132.52 March 2000. The 3rd revision to 2014 Q4 GDP missed estimates at 2.2%, versus a Briefing.com consensus of 2.4%, and a second estimate of 2.2%. Q3 GDP in 2014 was 5.0%.
The 3rd revision to the 2014 Q4 GDP deflator as 0.1%, in line with consensus estimates and the prior revision indicating continued deflation. Real final sales, consumer spending, saw a slight upward revision to 2.3% from 2.1%, but nothing changed the fact that growth slowed significantly in Q4. Markets shrugged off the announcement Friday following the collapse on Wednesday, which took the indexes below their 13 and 50 day moving averages, where there were significant sell orders.
The lone encouraging index is the Russell 2000, which fell the least ( 2.05% ) and got nowhere close to 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 8,700 during the last three months indicating non-confirmation for the entire bull market.
Meanwhile the bulls are running rampant in China as their stock index is up nearly 14% this year. The YINN ( YINN: 37.88 ) is the 3x bull ETF while the YANG ( YANG: 10.11 ) is the 3x bear. The CNXT
( 33.33 ) specializing in computer software is another bull ETF. American multinational companies made an estimated $ 300 billion 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.
American companies like Alcoa ( AA $ 12.70 ) who do not have financial operations in Asia were hit by the strong greenback and have much more bearish chart patterns. The U.S. Corp income tax rate is 35%.
Market Strategies Economic Data
Durable goods orders declined 1.4% in February after increasing a downwardly revised 2.0% (from 2.8%) in January. The Briefing.com Consensus expected durable goods orders to increase 0.4%.
Excluding transportation, durable goods orders declined 0.4% in February after declining a downwardly revised 0.7% (from 0.0%) in January. The consensus expected these orders to increase 0.3%.
The Michigan Consumer Sentiment Index for March exceeded the Briefing.com consensus estimate of 92.0, coming in at 93.0. The read in February was 91.2Gree
Greece submitted a new proposal to the Brussels Group, which will examine it over the weekend. The plan calls for 3 billion euro in additional government revenue and a primary budget surplus of 1.5% Cyprus’ credit outlook was raised to positive from stable at S&P, and they reaffirmed its B+ credit rating.
WTI Crude fell $3.04 (-5.91%) to $48.39/bbl. The geopolitical risk premium from unrest in Yemen came out of the market Friday : WTI Crude fell $3.04 (-5.91%) to $48.39/bbl. Both Crude and Gold had been significantly higher.
Copper fell 5 cents (-1.69%) to $2.76/lb.
Gold fell $5.30 (-0.44 to $1199.50/troy oz. %) but had been up to 1220
Currencies:
EUR/USD: +24 pips (+0.22%) to $1.0905
USD/JPY: -11 pips (-0.9%) 119.08
Aircraft orders, which played a major role in the overall orders increase for January, reversed direction in February. Total aircraft orders – defense and nondefense – declined 14.0% in February after increasing 68.1% in January. The latest regional manufacturing surveys were extremely downbeat and the national ISM New Orders Index fell to a 23-month low in February. The actual hard orders data confirmed the weakness represented in those surveys.
Nearly every major durable goods manufacturing sector saw a decline in orders in February. Only primary metals (+1.0%) and electrical equipment, appliances, and components (+4.1%) were in the black.
It’s hard to blame weather conditions for the decline in orders. Shipments of durable goods excluding aircraft – which is a measure of production and requires workers to be physically in the factories – were only down a modest 0.1% in February after declining 1.5% in January.
Business investment demand weakened considerably in February. Orders of nondefense capital goods excluding aircraft declined 1.4% after declining only 0.1% in January. That was the largest contraction in business capital goods since declining 1.9% in October 2014.
.
Big Picture
Orders of nondefense capital goods excluding aircraft, a proxy for business investment, have declined over WTI Crude fell $3.04 (-5.91%) to $48.39/bbl. Much of the the geopolitical risk premium from unrest in Yemen came out of the market Friday.
| Category | FEB | JAN | DEC | NOV | OCT |
| Total Durable Orders | -1.4% | 2.0% | -3.7% | -2.2% | 0.3% |
| Less Defense | -1.0% | 2.3% | -3.2% | -1.4% | -0.7% |
| Less Transport | -0.4% | -0.7% | -0.8% | -1.3% | -1.2% |
| Transportation | -3.5% | 8.8% | -10.0% | -4.0% | 3.5% |
| Capital Goods | -1.5% | 7.3% | -10.3% | -2.7% | 1.0% |
| Nondefense | -2.6% | 8.8% | -10.1% | -1.5% | 0.0% |
| Nondefense/nonaircraft (core cap gds) | -1.4% | -0.1% | -0.5% | -0.5% | -1.8% |
| Defense Cap Goods | 10.2% | -5.7% | -11.8% | -12.2% | 10.0% |
Market Strategies Cycles
| The first trading day of April and the second quarter, which occurs on Wednesday, 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 our “Best Six Months” for DJIA and the S&P 500. On April 1st, we will begin looking for our seasonal MACD sell signal and corresponding early signs of seasonal weakness. Our recent Official Seasonal MACD Sell Signal Alerts on April 9, 2010, April 13, 2011, April 3, 2012, April 1, 2013 and April 7, 2014 proved rather timely as the market ran into trouble shortly thereafter in 2010, 2011 and 2012. In 2013 and 2014, the market did log modest gains during the “Worst Six Months”, but increasing volatility made it a tense ride.
April 1999 was the first month to gain 1000 DJIA points. However, from 2000 to 2005, “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).
The first half of April used to outperform the second half, but since 1994 that has no longer been the case. The effect of April 15 Tax Deadline appears to be diminished. Traders and investors are clearly focused on first quarter earnings during April. This year earnings are a real headwind expected to be down 3.3% overall.
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.
Options expiration week frequently impacts the market positively in April and DJIA has the best track record since 1990, with an average gain of 1.4% for the week with just five declines in 25 years. The first trading day of expiration week has a slightly better record than expiration day and the week as a whole is generally marked by respectable gains across the board. The week after has a softer long term-record; however since 1994 gains have become the norm. Over the past 21 years, NASDAQ and Russell 2000 have finished April better than DJIA and S&P 500.
|
Stocks and ETF’s bought over the past few weeks:
Notice the Flexibility is gone now as there is no longer 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. 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 os low. Please check on the previous weekly market letters if there are questions. We were stopped out of the Alcoa at 12.75. 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 raise 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 LossOr sold |
| XOM | Exxon Mobil | Oil and Gas | 11 | 0.96 | 351B | 83.58 | 80.65 | 80 |
| CHK | Chesapeake | Oil and Gas | 7.50 | 0.45 | 9.31B | 14.03 | 12.40 | 12.15 |
| GLNG | Golar | Liquefied N.G. Hedging | NA | 30.39 | 3.14B | 33.62 | 32 | 30.50 |
| SAN | Santander | Banking world-wide | 14 | 2.34 | 91.6B | 7.47 | 7.28 | 6.80 |
| XLV | Health Care Spider | ETF | 73.04 | 70 | 72 stopped out | |||
| AA | Alcoa | Aluminum and Metals | 14.30 | 0.8 | 17.53B | 12.70 | 13 | 12.75 stopped out |
| DSX | Diana Shipping | Dry Cargo Shipping | N/A | 3.7 | 611 | 6.28 | 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
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NOTE: This is a Sample Issue Only!
TO GET OUR TRADE ALERTS BY TEXT MESSAGE AND
THE COMPLETE VIP MEMBERS ONLY
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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.
CONTACT
Please Direct All Inquiries To:
Mike King
(702) 650-3000
Charles Moskowitz
(781) 826-8882
Princeton Research
3887 Pacific Street,
Las Vegas, Nevada 89121
Fax: (702) 697-8944