April 27, 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
Read the April 27, 2015 — Where To Invest In May 2015
Options Trading Newsletter in .pdf format – Click Here
Where To Invest In 2015 Stock Options Trading Newsletter Covering:
Where to Invest May 2015
Best Stocks To Buy May 2015
Stock Market Investing Strategies
Stock Options Trade Alerts
Options Trading Strategies
How To Trade Options
Year To Date Profits $ 5,874
Over 58% Returns
2014 Profits = $ 20,443
Over 204% Returns
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Market Strategies
$10,000 Trading Account Traders Comments
We have 3 open long positions:
6 ARRY June 8 Calls
4 LOCO May 28 Calls and
6 TXN May 131 Calls
Funds in Use $ 1390
Week 16 brought a small loss of $259 bringing YTD performance down to a still respectable $5,874.
We are carrying only 3 positions and using $1,390 in funds.
There really isn’t anything for me to rant about this weekend. Nothing on the Sunday morning shows unless you think there are financially meaningful issues with the disaster in Nepal, or same sex marriage or Hillary’s money-raising issues.
The markets all closed at or near new all- time highs helped by better than expected earnings reports. Again, I am not impressed with companies that lower expectations and then beat those much lower numbers, but I am clearly in the minority. It’s really difficult to understand how Amazon’s loss of $ .12 vs. expectations of a loss of $.13 pushes the stock up a scant $55 or 14.3%. I know the cloud side of the business is growing dramatically, but up $55 on a loss ?
Clearly the markets want to go higher. It amazes me to see us at these levels and look at the A.A.I.I. sentiment numbers and see that Bullish @ 31.5% and Bearish @ 23.2% are so dramatically UNDER their long term averages and Neutral @ 45.2% is 50% over its average. These numbers are well away from the areas normally identified with a top. These are in contrast to the VIX and to the PUT- CALL ratios. A split decision…. And while many are calling the rally more and more narrow, I’m looking at solid rotation.
A couple of days of Financials, a couple of “new tech,” followed by retail tech. While I’m keeping the positions light to reduce risk, I wouldn’t walk away just yet.
As a good friend is looking at the S&P500 with the possibility of a “rising wedge” a bearish technical formation, he’s also hedging that with the fact that a new high at 2150-55 would fit into the pattern quite easily. It’s really tough to walk away at this point, but being more fearful than greedy means we are less likely to be caught without a chair when the music stops.
..CAM
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Market Strategies $10,000 Trading Account Trade Table
New Trades:
1) Buy 6 GLD May 112 Calls @ $ 1.77
2) Buy 6 FB May 82 Calls @ $ 1.06
DATE |
TRADE |
PRICE |
COST |
PROCEEDS |
RESULTS |
| 04/23 | Bought 6 TXN May 55 Calls | 0.85 | 510 | ||
| 04/22 | Sold 6 TLT May 131 Calls | 0.66 | 396 | 198 Loss | |
| 04/22 | Bought 6 TLT May 131 Calls | 0.99 | 594 | ||
| 04/22 | Sold 10 AA May 13 Calls | 0.61 | 610 | 80 Gain | |
| 04/21 | Sold 4 TLT May 132 Calls | 1.02 | 408 | 144 Loss | |
| 04/20 | Bought 4 TLT May 132 Calls | 1.38 | 552 | ||
| 04/15 | Bought 4 LOCO May 28 Calls | 0.85 | 340 | ||
| 04/09 | Bought 10 AA May 13 Calls | 0.53 | 530 | ||
| 03/23 | Bought 6 ARRY June 8 Calls | 0.90 | 540 |
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 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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MARKET Laboratory – Weekly Changes
Prices are copied from Barron’s Weekly and Yahoo Finance and may be incorrect.
| Dow
18,080.14 +253.84 +1.42% |
Nasdaq
5092.08 +160.27 |
S&P 500
2117.69 +36.51 +1.75% |
Transportation
8880.17 +232.67 +2.69% |
Russell 2000
1267.54 +1.25% |
Nasdaq100
4536.78 +184.98 +4.25% |
| Gold (spot)
1175.20 -27.70 -2.3% |
Silver
1563.6 -59.3 -3.7% |
Crude
57.15 +1.41 +2.5% |
Heating Oil
193.23 +4.59 +2.4% |
Unleaded Gas
2.0058 +0.0718 +3.7% |
Natural Gas
2.531 -0.103 -3.9% |
| VIX
12.29 -1.60 -11.5% |
Put/Call Ratios
S&P 100 153/100’s -25/100’s |
Put/Call Ratios
CBOE Equity 61/100’s -4/100’s
|
Bonds
162-18 -2-29 2.62% +0.10% |
10 Yr. Note
129-124 -136 1.93%+0.05%
|
Copper
274.80 -2.60 -0.9% |
| CRB Inflation
Index 224.05 +0.11 +0.5% |
Barron’s* Confidence
76.2% +0.6% |
S&P100
928.53 +18.66 +2.05% |
5 Yr. Note
120-204 +182 1.35% +-0.036%
|
Dollar
96.86 -0.59 -0.6% |
DJ Utilities
597.81 +14.53 +2.49% |
| AAII
Confidence Index |
Bullish
31.5% -0.6% |
Bearish
23.2% +0.4% |
Neutral
45.3% +0.2% |
M1 Money Supply
+7.13% April 13th |
M-2 Money
Supply +6.02% April 13th |
* 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 2087
Resistance S&P 500 2138
Support Levels DOW 17,920
Resistance DOW 18,288
Support Levels QQQ 106.80
Resistance QQQ 111.20
Support Levels NASDAQ 4890
Resistance NASDAQ 5170
$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) |
||
| OSIR 400 | 16.73 | 04/16 | 15.89 Stop | ||||
| FB 100 | 82.77 | 04/15 | |||||
| SCO 100 | 68.48 | 04/13 | 67.37 04/14 | ( $ 111 ) | |||
| STEM 2500 | 0.99 | 03/30 | 0.88 04/22 | ( $ 275 ) | |||
| IMAX 100 | 34.46 | 03/23 | |||||
| GILD 50 | 102.73 | 03/03 | |||||
| ARRY 500 | 8.02 | 02/24 | |||||
| FORM 500 | 8.56 | 02/13 | |||||
| NAT 500 | 10.16 | 02/13 | |||||
| BAC. Wts 5,000 lots | 0.7411 | 12/26 | |||||
| BSBR 500 | 4.84 | 12/18 | |||||
| BCRH 300 | 16.84 | 12/18 | |||||
| SAN 600 | 8.40 | 12/16 | |||||
| XCO 1200 | 3.10 | 11/28 | |||||
| AA 500 | 14.21 | 10/16 | |||||
| FCX 150 | 34.99 | 09/09 | |||||
| NBG 300 | 2.95 | 05/19 | |||||
| XRGYF 5000* | 0.407 | 03/14 | |||||
| RPTP 400 | 15.37 | 01/16 | |||||
| NBG 300 | 4.08 | 8/12 | |||||
| TEXQY* 200 | 6.56 | 7/11 | |||||
| REPR* 5000 | 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 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.
Market Strategies $100,000 Trading Account
New Options Trades:
1) Buy 12 GLD May 112 Calls @ $ 1.77
2) Buy 12 FB May 82 Calls @ $ 1.06
There were three closed long option positions:
Alcoa ( AA ) May 13 Calls making a small profit of $ 160.
There were two losing positions:
TLT Calls: the May 131 Calls lost $ 396 and the May 132 Calls lost $ 288.
The net resulted in a loss of $ 518 for the week in options.
There was one closed out stock position the STEM resulting in a loss of $ 275.
For the full year to date, we have gains of $ 19,527.
Open position losses decreased to $ 8,902.
There are three long Open Option positions:
ARRY June 8 Calls
LOCO May 28 Calls and the
TXN May 55 Calls.
The options expire on the third Friday of each Month unless otherwise posted.
The Stock table has the following 21 positions:
AA, ARRY, BAC.B.WS, BCRH, BSBR, FB, FCX, FORM; GILD; IMAX; NAT; NBG (3), OSIR, REPR, RPTP, SAN, 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
$ 87,550 for the 21 open stock positions. There are three long option positions requiring
$ 2,780 totaling
$ 90,330 leaving
$ 9,670 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) |
| TXN May 55
12 lots |
Calls
0.85 |
04/23/15 | |||
| TLT May 131
12 lots |
Calls
0.99 |
04/22/15 | 0.66 | 04/22/15 | ( $ 396 ) |
| TLT May 132
8 lots |
Calls
1.38 |
04/20/15 | 1.02 | 04/21/15 | ( $ 288 ) |
| LOCO May 28
8 lots |
Calls
0.85 |
04/15/15 | |||
| AA May 13
20 lots |
Calls
0.53 |
04/09/15 | 0.61 | 04/22/15 | $ 160 |
| ARRY June 8
12 lots |
Calls
0.90 |
03/23/15 |
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 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 | Laboratory Corp (LH 1.63 vs 1.51)
Precision Drilling (PDS 0.05 vs0.35 ) Haemonetics ( HAE 0.53 vs 0.46 ) Prec Drilling ( PDS 0.05 vs 0.35 ) Tenneco( TEN 1.04 vs 0.91)
After the Close: Apple ( AAPL: ( 2.16 ) vs 11.62 pre-split: Crane ( CR 1.00 vs 1.05 ) Olin ( OLN 0.25 vs 0.37 ) Rent A Center ( RCII ( 0.50 vs 0.57 )
|
| Tuesday | AK Steel ( AKS -0.24 vs-0.40 )
Boston Scientific ( BSX 0.20 vs 0.20 ) BP ( BP 0.07 vs 1.05 ) Bristol Myers ( BMY 0.51 vs 0.46 ) Coach ( COH 0.35 vs 0.68 ) Corning ( GLW 0.33 vs 0.31 ) Cummins ( CMI 2.15 vs 1.83 ) Ecolab ( ECL 0.81 vs 0.74 ) Flagstar Bancorp ( FBC 0.14 vs -1.51 ) Jacobs ( JEC 0.78 vs 0.63 ) Jet Blue Airways ( JBLU 0.40 vs 0.01 ) Merck ( MRK 0.75 vs 0.88 ) Parker Hannefin ( PH 1.99 vs 1.88 ) Penske ( PAG 0.82 vs 0.73 ) Pfizer ( PFE 0.49 vs 0.57 ) Valero Energy ( VLO 1.70 vs 1.54 ) Sirius XM Radio ( SIRI 0.03 vs 0.02 )
09:00 Case-Shiller 20-city index Feb ( +4.7% vs +4.6% ) 10:00 Consumer Confidence Apr ( 102.2 vs 101.3 )
After the Close: Akamai ( AKAM 0.61 vs 0.58 ) Cliffs Nat resources ( CLF -0.17 vs -0.54 ) Kraft Foods ( KRFT 0.81 vs 0.78 ) Owens Illinois(OI 0.42 vs 0.62 ) Panera ( 1.43 vs 1.55 ) U.S. Steel ( X 0.23 vs 0.27 ) Twitter ( TWTR 0.04 vs 0.00 ) Western Digital ( WDC 1.91 vs 1.94 ) Willis ( WSH 1.40 vs 1.36 ) Wynn ( 1.33 vs 2.32 ) XOOM ( 0.03 vs 0.06 ) Range Resources ( RRC 0.15 vs 0.20 ) Willis Group ( WSH 1.40 vs 1.36 )
|
| Wednesday | Anthem ( ANTM 2.65 )
Garmin ( GRMN 0.57 vs 0.55 ) Goodyear Tire ( GT 0.44 vs 0.56 ) Level 3 ( LVLT 0.33 vs 0.47 ) Humana ( HUM 2.56 vs 2`.35 ) International Paper ( IP 0.81 vs 0.61 ) Master Card ( MA 0.80 vs 0.73 ) Spirit Airlines ( SAVE 096 vs 0.52 ) Starwood ( HOT 0.56 vs 0.63 ) Time Warner ( TWX 1.09 vs 0.97 )
07:00 hrs MBA Mortgage Index 04/25 ( NA vs +2.3% ) 08:30 hrs GDP –Adv Qtr 1 ( 1.1% vs 2.2% ) Implicit Price Deflator Qtr1 ( +0.5% vs +0.1% ) 10:00 hrs Pending Homes Sales March ( 1.6% vs 3.1% ) 10:30 hrs Crude Inventories 04/25 ( NA vs +5.315 Mln Bbls ) 14:00 hrs FOMC Rate Decision and Discussion ( 0.25% as usual )
Baidu ( BIDU 1.13 vs 1.24 ) Stamps.com ( STMP 0.62 vs 0.50 ) Whiting Petroleum ( WLL -0.31 vs 1.05 ) Williams Cos ( WMB 0.14 vs 0.28 ) Yelp ( 0.16 vs -0.04 )
|
| Thursday | Air Products ( APD 1.55 vs 1.32 )
Avon Products ( AVP 0.07 vs 0.12 ) Colgate Palmolive ( CL 0.66 vs 0.68 ) Exxon Mobil ( XOM 0.84 vs 2.10 ) Potash ( POT 0.49 vs 0.38 ) Royal Gold ( RGLD 0.28 vs 0.31 ) Teledyne Tech ( TDY 1.19 vs 1.20 )
08:30 hrs Initial Claims 04/25 ( 290K vs 295K ) Continuing Claims 04/18 ( 2318K vs 2325K ) 08:30 hrs Personal Income March ( 0.2% vs 0.4% ) Personal Spending ( 0.5% vs 0.1% ) CORE PCE Prices ( 0.2% vs 0.1% ) 08:30 hrs Employment Cost Index March Qtr 1 ( +0.6% vs + 0.6% ) 09:45 hrs Chicago PMI Apr ( 50.0 vs 46.3 ) 10:30 hrs Natural Gas Inventories 04/25 ( NA vs +90bcf )
Boyd Gaming ( BYD 0.09 vs-0.04 ) FireEye ( FEYE -0.51 vs -0.53 ) First Solar ( FSLR -0.28 vs 1.10 ) Gilead Sciences ( GILD 2.31 vs 1.48 )
|
| Friday | Chevron ( CVX 0.80 vs 2.36 )
Clorox ( CLX 1.10 vs 1.05 ) Calpine ( CPN -0.05 vs -0.04 ) CVS Health ( CVS 1.08 vs 1.02 ) Duke Energy DUK 1.12 vs 1.17 ) Genesee and Wyoming ( GWR 0.82 vs 0.70 ) Olympic Steel ( ZEUS -0.33 vs 0.25 )
10:30 hrs Michigan Sentiment Apr Final ( 96 vs 95.9 ) 17:00 hrs Auto Sales Apr ( NA vs 5.4Mln ) Truck Sales Apr ( NA vs 8.2 Mln )
Berkshire Hathaway ( BRK B 2374.70) Vanguard Natural Resources ( -0.04 vs 0.31 ) |
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Market Strategies Fundamentals
It has been a long 15 years plus, but the NASDAQ Composite closed at 5,092.08, up 0.71% on Friday, for the week gained 3.25% and finally eclipsed its previous all-time closing high of 5048.62 set on March 10, 2000. This is a significant accomplishment for NASDAQ thanks to earnings reports from Microsoft MSFT $ 47.87 + $ 4.53 and Amazon ( AMZN $ 445.10 ) + $ 55.11. With 8.2 billion shares outstanding the one-day move by Microsoft added $ 37 billion to its market capitization raising it to $ 393 billion. Amazon ( AMZN: $ 445.10 ) gained $55.11 or 14%, has a market cap of $ 207 billion. Amazon for the first time disclosed the financials of its cloud computing business which hit $ 1.6 billion up 49% on a yearly comparison.
The S&P 500 also closed at a new high of 2,117.69, just slightly above the previous record at 2,117.39 set March 2nd. The S&P rose 1.76% for the week. The DJ Transportation Index gained 232.67 points for the week or 2.69%, grazing its 50-day price moving average but not being able to catapult above it, which remains a negative divergence for all the markets going forward. Union Pacific ( UNP: $ 107.51 ) with a mkt cap of $ 95 billion, reported dismal earnings for the quarter last week $ 1.30 vs $1.37 expected and $2.38 same quarter a year ago.
Many companies look rich today compared to standard valuation metrics, but today’s NASDAQ and the companies that comprise the index are far different than 15 years ago. Microsoft was the biggest member of the Nasdaq back in 2000 with a market cap of $ 525 billion. Cisco Systems was second with a market cap of $ 466 billion, now has $ 147 billion. Intel back then was number 3 with a cap of $ 401 billion is now worth $ 152 billion.
Apple is the largest with a market cap of $ 759 billion, but back in the year 2000 had a market cap of about $ 22 billion. Two Biotech stocks, Gilead Sciences ( GILD: $ 103.69 ) which reports next Thursday and Amgen ( AMGN $ 167.91 ) with a mkt cap of $ 128 billion are now in the top 10 Nasdaq mkt caps.
AMGN beat top line revenues by 11.3% with earnings of $ 2.48 vs$ 2.11 expected and $ 1.87 a year ago.Microsoft (NASDAQ:MSFT) reported quarterly earnings on Thursday and beat on both revenues and earnings.
The following chart outlines revenue growth by segment: Microsoft has regained the number two spot on Nasdaq by capitalization with $ 393 Billion. Google is number 3 on the list with a market cap of $388 billion.
Earnings reports : remain slightly positive with a continuing mixed story. Earnings beats are running at 73% versus reduced estimates, but sales growth beats are only 47%.
The market response has been generally positive.
Market Strategies Economic Data
Orders of nondefense capital goods excluding aircraft, a proxy for business investment, have declined for the past 7 consecutive months.
| Category | MAR | FEB | JAN | DEC | NOV |
| Total Durable Orders | 4.0% | -1.4% | 1.9% | -3.7% | -2.2% |
| Less Defense | 2.6% | -1.0% | 2.2% | -3.2% | -1.4% |
| Less Transport | -0.2% | -1.3% | -0.9% | -0.8% | -1.3% |
| Transportation | 13.5% | -1.8% | 8.9% | -10.0% | -4.0% |
| Capital Goods | 4.8% | -1.3% | 7.1% | -10.3% | -2.7% |
| Nondefense | 3.5% | -2.2% | 8.5% | -10.1% | -1.5% |
| Nondefense/nonaircraft (core cap gds) | -0.5% | -2.2% | -0.3% | -0.5% | -0.5% |
| Defense Cap Goods | 17.0% | 7.7% | -6.3% | -11.8% | -12.2 |
Durable goods orders increased 4.0% in March after declining an unrevised 1.4% in February. The Briefing.com Consensus expected durable goods orders to increase 0.5%. Excluding transportation, durable goods orders declined 0.2% in March after declining a downwardly revised 1.3% (from -0.6%) in February. The consensus expected these orders to increase 0.4%.
Market Strategies Cycles
For nearly five decades the annual Stock Trader’s Almanac has studied and analyzed the importance of Mondays (or first trading day of the week) and Fridays (or the last trading day of the week). Friday is the day for squaring positions. Long exposure is trimmed and/or short positions are covered before traders take off for the weekend. This is done to reduce headline risk over the weekend. Mondays are significant because this is the day that weekend news and developments are digested along with any early Monday morning research and strategy comments.
No matter how you slice it, Friday and Monday are important days. Last Friday, the market sold off in excess of 1% on concerns of Chinese growth and possible new market regulation there along with renewed worries about Greece. But, when these concerns failed to materialize over the weekend, the market rallied on Monday to gain better than 1%.
In the following charts the percentage of times DJIA, S&P 500 and NASDAQ have closed higher on each day of the week are presented. The baseline chart is of the S&P 500 using data from March 9, 009 through the end of 2014. Year-to-date charts then follow. Over the entire bull market’s life gains have been fairly equal.
Stocks and ETF’s bought over the past few weeks:
We bought the Enzo Biochem ( ENZ: $ 3.01 ) on the opening last Monday at $ 2.70 as advertised.
We do not have positions in the VXX, SPXU or UDOW The VIX, HDGE 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.
Buy the HDGE on a close above 11.04. We think VIX prices are too low and would like initiate longs on a better chart pattern than presently exists.
We like having both long and short positions because of the tremendous uncertainty of the markets and world events. Please check on the previous weekly market letters if there are questions.
We are long the Alcoa at 13.03 with a close stop just below the 13 DMA.
We are long and behind in 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. Buy GLNG in liquefied N.G. at $ 32 about the 50 day moving average.
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 soldENZEnzo BiochemMedical Labs Research—-1.25123 mln 3.01 2.702.85xBACBank of AmericaCommercial Bank102.02165.3B15.6415.6015.22xHDGEAdvisor SharesRanger Bear ETF 10.8611.04 X10.60X if filledAAAlcoaAluminum110.6616.06B13.2213.0313.10stopXOMExxon MobilOil and Gas110.96351B86.9783.1580CHKChesapeakeOil and Gas7.500.459.31B14.5413.1012.15GLNGGolarLiquefied N.G. HedgingNA30.393.14B35.2432.4430.50SANSantanderBanking world-wide142.3491.6B7.267.286.80DSXDiana ShippingDry Cargo ShippingN/A3.76116.216.605.90STNGScorpio TankersOil Transportation265.61.47B10.067.46 unable7.48
Undervalued Small Cap Stocks
Spanish bank Banco Santander (SAN: 7.26)
is ready to outperform 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 0.405 )*
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: $ 3.01 )
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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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
Princeton Research
3887 Pacific Street,
Las Vegas, Nevada 89121