Where To Invest March 2016
Investing Strategies Newsletter
Market Investing Strategies Newsletter
March 7, 2016
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 2016 Newsletter Covering:
Where to Invest March 2016
Best Stocks To Buy March 2016
Stock Market Investing Strategies
Stock Options Trade Alerts
Options Trading Strategies
How To Trade Options
Proven Profits Trading Success
Results From Some of Our Recent Trade Alerts
64% Profits on BAC Calls in 2 Days
60% Profits on QQQ Puts in 2 Days
150% Profits on SIG Puts in 3 Days
48% Profits on SPY Calls in 2 Days
92% Profits on VA Calls in 6 Days
157% Profits on TBT Calls in 17 Days
100% Profits on NE Calls in 2 Days
100% Profits on TWTR Calls in 2 Days
223% Profits on XLF Calls in 10 Days
133% Profits on FEYE Calls in 3 Days
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$10,000 Trading Portfolio
Charles Moskowitz Discussion
Funds in Use = No Open Positions
OUT TOO EARLY !!
Week 9 was a small loss with very little trading. We have no open positions in the options account.
The market continues to surprise on the upside, but I think that a great part of this last several days of rally has been a combination of short covering and low volume buying, as we come up to just under the 200 day moving average on the S&P500. Last week we discussed that the financials needed to be involved if we were to test the 2000 level in that index, and they were. I was a little early in selling the BAC 3/12 calls @ $ .93, as they outperformed and traded to almost $2.00. However, as Bernard Baruch said, “I made most of my money getting out to early.”
We are now approaching overbought in all indexes and I feel like the next $40 move in the S&P500 is lower, not higher. While I think we can rally to the serious resistance at S&P 2025 we are more likely to test the recent breakout (now support) at 1950.
We also took a small loss on the FB puts, and I intend to continue to trade this one from the short side. FB remains slightly overbought and in what I would call a BEAR flag. It has consistently made higher highs and higher lows on declining volume. It has been riding along an uptrend line but has been unable to break above the area from where it broke down at the 110-112 area. It has also been a non-participant in the current rally and while it may be a late-comer to the party, the path of least resistance for this name looks lower. This week we’ll try the March 106 puts and keep a close stop.
As Mike discusses on pages 11&12, a lot of people have a misconception about the use of natural gas. Its primary use (which is dramatically growing) is for the generation of electrical power. Most people think of fuel to be burned (heating oil) as a seasonal usage related to exactly that, heating. Natural gas’s seasonal use is spring, summer and into the fall for the power to run air conditioners. With all of the talk (and drop in usage) about coal being a “dirty” fuel, and the beginning last month of the shipping of our natural gas to the rest of the world, this is a very timely idea.
I’m not sure what the weekend news about China confirming a targeted growth rate of 6 ½-7% will mean to the market, but I’m sure the talking heads will have many theories this week. All I know is that we are overbought; approaching a falling 200 day MA and stocks look extended….CAM
DATE |
TRADE |
PRICE |
COST |
PROCEEDS |
RESULTS |
03/01 |
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1.58 |
632 |
68 Loss |
|
03/01 |
0.86 |
344 |
344 Loss |
||
02/29 |
0.91 |
546 |
168 Gain |
||
02/29 |
1.75 |
700 |
|||
02/29 |
1.72 |
688 |
|||
02/18 |
0.63 |
378 |
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New Stock and Options Recommendations
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MARKET Laboratory – Weekly Changes
Prices are copied from Barron’s Weekly and Yahoo Finance and may be incorrect.
| Dow
17,006.77 +366.80 +2.20% |
Nasdaq
4717.02 +126.55 |
S&P 500
1999.99 +51.94 +2.67% |
Transportation
7651.85 +246.82 +3.33% |
Russell 2000
1081.93 +44.75 +4.31% |
Nasdaq100
4329.00 +93.38 +2.20% |
| Gold (spot)
1269.90 +50.10 +4.1% |
Silver
1569.4 +98.0 +6.4% |
Crude
35.92 +3.14 +9.6% |
Heating Oil
116.13 +9.45 +8.9% |
Unleaded Gas
1.3321 +0.0370 +2.9% |
Natural Gas
1.666 -0.125 -7.0% |
| VIX
16.86 -2.95 -14.9% |
Put/Call Ratios
S&P 100 136/100’s +25/100’s |
Put/Call Ratios
CBOE Equity 61/100’s -4/100’s
|
Bonds
162-08 -2-01 2.64%+0.05% |
10 Yr. Note
129-03 -1-09 1.77%+0.02%
|
Copper
227.45 +14.95 +7.0% |
| CRB Inflation
Index 168.55 +6.88 +4.3% |
Barron’s* Confidence
68.8 +1.4 |
S&P100
887.86 +20.92 +2.41% |
5 Yr. Note
120-037-245 1.24% +0.01%
|
Dollar
97.22 -0.93 -1.0% |
DJ Utilities
633.05 +14.02 +2.26% |
| AAII
Confidence Index
Long Term Average |
Bullish
32.0% +0.8%
38.74% |
Bearish
29.3% -2.1%
30.30% |
Neutral
38.7% +1.3%
30.96% |
M1 Money Supply
+3.87% Feb 22nd |
M-2 Money
Supply +5.44% Feb 22nd |
* Component Change in the Confidence Index
M1…all money in hands of the public, Time Deposits Traveler’s Checks, Demand Deposits
M2.. adds Savings and Money Market Accounts both compared with the previous year.
Market Strategies Technical Information
Support/Resistance Levels: SUPPORT RESISTANCE
S&P 500 1951 2012
Dow 16,660 17,183
QQQ 101.10 106.90
Transports 74.48 7787
NASDAQ 4580 4780
Friday’s high, the S&P 2010 level is resistance
$100,000 Trading Portfolio Stock Positions and Trades
Each stock is allocated a theoretical $ 5,000 share of the portfolio unless otherwise indicated.
|
Stocks |
Purchase Price | Purchase Date | Stop/Loss | Price/Date Sold | Profit/
Loss) |
||
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|
8.25 | 02/24 | Sold 5 -$9 Calls | $225 credit | |||
| 29.50 | 02/23 | Sold 3 32.50 Calls | $ 900 credit | ||||
| 6.02 | 02/22 | ||||||
| 5.13 | 01/04 | 5.83 02/29 | $ 560 | ||||
| 6.49 | 12/28 | ||||||
| 51.21 | 12/10 | ||||||
| 36.50 | 12/08 | ||||||
| 53.53 | 12/07 | ||||||
| 50.81 | 11/23 | ||||||
| 28.51 | 10/28 | ||||||
| 7.58 | 09/28 | ||||||
| 43.55 | 08/14 | ||||||
| 1.40 | 02/17 | ||||||
| 0.7411 | 12/26 | ||||||
| 4.84
3.75 |
12/18
|
||||||
| 8.40 | 12/16 | ||||||
| 14.21 | 10/16 | ||||||
| 2.95 | 05/19 | ||||||
| 4.08 | 8/12 | ||||||
| 6.56 | 7/11 | ||||||
| 0.22 | 10/22/12 | ||||||
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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
There were three closed out option positions:
12 BAC Calls made a profit of $ 336;
S&P March 11th 193.50 Puts were stopped out on the 50% Loss Rule, losing $ 688.
The FB March 105 Puts were sold by Charles at about the same time at $1.58 taking a loss of $ 136.
The result in options was a loss of $ 488.
There was one closed stock position:
KRO was sold at $ 5.83 for gain of $ 560.
The result for the entire week was a net gain of $ 72.
For the entire year on closed out trades, our profits increased to $ 6,831.
The options expire on the third Friday of each Month unless otherwise posted.
The Stock table has the following 23 positions: AA(2), APC(2), BAC.B.WS, BSBR( 2 ), CUBA, EYES, LVLT, MOS, NBGGY (3), REPR, SAN, STNG,SUN,TEXQY, TWTR, VA: Short 5 AA Calls and 3 SUN Calls
The options call for a $ 2,500 investment unless otherwise stated; each stock position requires $5,000 unless otherwise mentioned specifically.
The three SUN March $ 27.50 Puts require $ 285.
We are basing money management on a hypothetical $ 100,000.00, and are using a total of $84,684.00 for the 21 open long stock positions plus a credit of $1125 for the AA and SUN written Calls, which reduces the requirement to $ 83,844. This leaves $ 16,156 in cash.
The only option positions are those related to SUN and AA stock positions.
These figures are approximate and there might be errors.
We have not counted the dividends received from many previous trades such as Apple, Colgate Palmolive, JP Morgan, North American Tankers, Santander, their Brazil affiliate BSBR and Blue Capital Reinsurance which was sold for a profit and many others. STNG goes ex-dividend next Tuesday.
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) |
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|
Puts
1.75 |
02/29/16 | 1.58 | 03/01/2016 | ( $ 136 ) |
| Puts
1.72 |
02/29/16 | 0.86 ( 50% Loss Rule ) | 03/01/2016 | ( $ 688 ) | |
| Calls | 0.45 | 02/26/2016 | $ 225 credit
Covered write |
||
| Puts
0.95 |
02/23/16 | ||||
| Calls
|
3.00 | 02/23/2016 | $ 900 credit
Covered write |
||
| Calls
0.63 |
02/18/16 | 0.91 | 02/29/2016 | $ 336 |
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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 | Del Taco TACO ( 0.17 ) Greif GEF ( 0.32 vs 0.30 ) Superior Ind SUP ( 0.30 vs 0.05 )
15:00 hrs Consumer Credit January ( 16.5B vs 21.3B ) Euro zone finance ministers meet on reforms in Greece and Cyprus European Union leaders hold an emergency summit on the refugee crisis
Casey’s General CASY ( 0.95 vs 1.01 ) Douglas Dynamics PLOW ( 0.56 vs 0.63 ) Quanex NX ( -0.10 vs -0.09 ) Seaspan SSW ( 0.30 vs0.27 ) United Natural Foods UNFI ( 0.48 vs 0.65) Thor Industries THO ( 0.62 vs 0.57 ) Urban Outfitters URBN ( 0.56 vs 0.60 ) |
| TUESDAY | Dick’s Sporting Goods DKS ( 1.15 vs 1.30 ) Navistar NAV ( -0.68 vs -0.52 )
The Small Business Optimism Index is reported Assurant, FireEye and Chevron meet with analysts and investors Cisco Chairman John Chambers speaks at the Montgomery Summit on innovations in business and technology The U.S. Energy Information Administration releases its monthly energy outlook on oil,gas and power ABM Industries ABM ( 0.26 vs 0.38 ) Atento ATTO ( 0.32 vs 0.43 ) Blue Buffalo BUFF 0.14 Global Brass and Copper BRSS ( 0.23 vs 0.28 ) Renewable Energy REGI ( -0.47 vs 1.61 ) |
| WEDNESDAY | Amedisys AMED ( 0.35 vs 0.27 ) Asanko Gold AKG ( -0.01 ) Korn/Ferry KFY 0.51 vs 0.46
07:00 hrs MBA Mortgage Index 03/05 ( NA vs -4.8% ) 10:00 hrs Wholesale Inventories Jan ( -0.2% vs -0.1% ) 10:30 hrs Crude Inventories 03/05 ( NA vs +10.374 Mln Bbls )
Black Rock Capital BKCC ( 0.23 vs 0.26 ) Fresh Pet FRPT ( -0.03 vs -0.02 ) Hansen Medical HNSN ( -0.54 vs -0.09 ) Omega Protein OME ( 0.48 vs 0.35 ) Ryerson RYI ( -0.20 vs 0.15 ) Smart and Final Stores SFS ( 0.16 vs 0.16 ) Square SQ ( -0.10 ) |
| THURSDAY | Canadian Solar CSIQ ( 0.73 vs 1.28 ) Cantel Medical CMN ( 0.39 vs 0.36 ) Clayton Williams CWEI ( -1.39 vs 0.33 ) Dollar General DG ( 1.26 vs 1.17 ) Ferrellgas Partners FGP ( -0.90 vs + 1.02 ) Plug Power PLUG -0.05 vs -0.08 Sunesis Pharma SNSS ( -0.16 vs -0.02 )
American Express, Armstrong World Industries, ACI Worldwide, Genpact, Western Union and United technologies meet with analysts and investors. The ECB is expected to cut its deposit rate further in a bid to stimulate growth. 08:30 hrs Initial Claims 03/05 ( 275K vs 278K ) 08:30 hrs Continuing Claims 02/27 ( 2251K vs 2257K ) 10:30 hrs Natural Gas Inventories 03/05 ( NA vs -48bcf ) 14:00 hrs Treasury Budget Feb ( NA vs -$192.4B ) Dynamic Materials BOOM ( -0.17 vs 0.06 ) Five Prime Therapeutics FPRX ( 9.61 vs -0.55 ) Kronos Worldwide KRO ( -0.07 vs 0.17 ) Surgery Partners SGRY ( 0.18 ) The Fresh Market TFM ( 0.48 vs 0.55 ) Ulta Salon ULTA ( 1.54 vs 1.35 ) VeriFone PAY ( 0.46 vs 0.44 ) |
| FRIDAY | Buckle BKE ( 1.08 vs 1.25 ) Citi Trends CTRN ( 0.25 vs 0.31 ) Hibbett Sporting HIBB
( 0.74 vs 0.79 ) Genesco GCO ( 2.13 vs 2.12 ) Kirklands KIRK ( 0.90 vs 0.87 ) 08:30 hrs Export Prices ex-ag Feb ( NA vs -0.8% ) Import Prices ex-oil Feb ( NA vs -0.2% ) Fitch Ratings reviews Greece’s credit rating The Baker Hughes Rig count for oil and gas is released. Last week the oil rig count fell to 392 and total rig counts for both oil and gas fell to 489, nearly the lowest level seen since tracking began in 1948.
|
Market Strategies Fundamentals
The stock market rallied for the third week consecutively following excellent economic reports, much more bullish than expected, and caused a rally into heavy overhead resistance. Friday’s Employment report, as outlined below in the economic section, was excellent.
The Russell 2000 led the way gaining 44.75 points or 4.3%, cascading above its 50 day moving average on March 1st at about the 1044 level and then making a higher high and low each day for the rest of the week ending at 1081.93. The Dow Transportation average rose 247 points or 3.3% to the 7652 level. The DJT had fallen 23.3% to its low at 6403 January 20th, but has now recovered 1249 points or 20%, a 64%, exceeding the usual 61.8% Fibonacci retracement of the drop and leading a recovery of all the important indexes.
The Nasdaq rose 126.55 points or 2.76% gaining for the third week. The S&P 500 gained 52 points or 2.7% to 1,999.99 after having reached a high of 2009.13. Resistance becomes significant from 2010 to the 200 day moving average at 2045. The Dow gained 367 points or 2.20% a smaller percent gain than the other indexes, but penetrating the 17,000 level for the first time since January 6th, to 17,006.77.
All ten Dow Industrial groups were higher led by Oil and Gas up 6.29%. Financials came to life as the second best group, up 4.27%. Basic Materials gained 3.85% and were the third best Dow performer. A general rebound in all commodities from aluminum, copper, cotton and of course crude helped spark the entire move in equities. Technology was third best adding 3.12%; Dow Industrials gained 2.96%; Consumer Goods added 2.65%; Consumer Services were up 2.19%; Utilities improved by 2.19%; Telecommunications gained 2.12% while Health Care was up the least, just 0.40%.
The best cure for low prices is just that, “ Low Prices.” Traders have been long the U.S. Dollar, short emerging market stocks, and short commodity stocks. When these trades unwind, it will be the ultimate short squeeze, and something investors might talk about for years. It may be starting now. The central banks all want inflation. While the S&P 500 Index, as measured by the SPDR S&P 500 ETF ( SPY: 1999.99 ) rose nearly 65% over the last five years, mining and metals companies, as shown by the SPDR S&P Metals & Mining Index ETF (NYSEARCA XME: $ 18.96 ) declined about 70%. This has been, without a doubt, one of the worst bear markets for commodity stocks. Many low priced stocks like Freeport McMoran ( FCX: 9.74 ) which has moved from $ 3.52 January 20th and rallied above its 13-day M.A. on Jan 27th at about $ 4.50.
Market Strategies Economic Data
The February Unemployment Situation Report was quite bullish in that it showed solid payroll growth including upward revisions to both the December and January numbers. Hourly wages declined 0.1% but still up 2.2% year-over-year. Weather was better and less overtime was paid repairing broken lines and damaged equipment. Also, there were more part-time jobs. January nonfarm payrolls were revised up 21,000 jobs to 172,000 from 151,000 while December was revised up 271,000 from 262,000.
Private sector payrolls increased by 230,000 (Briefing.com consensus 180,000). January private sector payrolls revised to 182,000 from 158,000. December private sector payrolls revised to 259,000 from 251,000.
Unemployment rate was 4.9% (Briefing.com consensus 4.9%) versus 4.9% in January. The labor force participation rate was 62.9% versus 62.7% in January.
| Category | FEB | JAN | DEC | NOV | OCT |
| Establishment Survey | |||||
| Nonfarm Payrolls | 242K | 172K | 271K | 280K | 295K |
| Goods-Producing | -15K | 29K | 44K | 53K | 31K |
| Construction | 19K | 15K | 48K | 65K | 33K |
| Manufacturing | -16K | 23K | 6K | 3K | 2K |
| Service-Providing | 245K | 153K | 215K | 226K | 273K |
| Retail Trade | 55K | 62K | 7K | 52K | 21K |
| Financial | 6K | 16K | 8K | 18K | 11K |
| Business | 23K | 15K | 60K | 48K | 91K |
| Temporary help | -10K | -22K | 25K | 1K | -9K |
| Education/Health | 86K | 24K | 63K | 45K | 78K |
| Leisure/Hospitality | 48K | 45K | 35K | 46K | 53K |
| Government | 12K | -10K | 12K | 1K | -9K |
| Average Workweek | 34.4 | 34.6 | 34.5 | 34.5 | 34.5 |
| Production Workweek | 33.7 | 33.8 | 33.8 | 33.7 | 33.7 |
| Factory Overtime | 4.3 | 4.3 | 4.2 | 4.3 | 4.2 |
| Aggregate Hours Index | -0.4% | 0.4% | 0.3% | 0.2% | 0.3% |
| Avg Hourly Earnings | -0.1% | 0.5% | 0.0% | 0.2% | 0.3% |
| Household Survey | |||||
| Civilian Unemp. Rate | 4.9% | 4.9% | 5.0% | 5.0% | 5.0% |
| Civilian Labor Force | 555K | 502K | 466K | 271K | 229K |
| Civilian Employed | 530K | 615K | 485K | 247K | 255K |
| Civilian Unemployed | 24K | -113K | -20K | 25K | -26K |
The U6 unemployment rate, which accounts for the total unemployed plus persons marginally attached to the labor force and the underemployed, was 9.7% versus 9.9% in January. The average workweek declined 0.2 to 34.4 hours (Briefing.com consensus 34.6). February manufacturing workweek was unchanged at 40.8 hours. Factory overtime was 3.3 hours for the third month in a row.
Hourly earnings fell from growing at a 2.5% yearly rate in January to plus 2.2% in February declining inpart because of weather, and also from the sluggish economy and conservative consumer spending; but should help to keep the Fed on hold from raising rates in March.
Market Strategies Cycles
Despite the market’s wild ride in February, DJIA closed out the month with a modest 0.3% gain. Were it not for losses on the last day, S&P 500 would have finished in the black as well, instead it finished the month off 0.4%. NASDAQ was the poorest performer of the month, down 1.2%. This February reverted back towards its mean, bucking the nascent trend of robust February gains following a down January.
A down S&P 500 January followed by a down S&P 500 February has occurred 19 times going back to 1930 including this year. March’s performance following the previous 18 down January/down Februarys was above historical average, gaining 1.68% with 11 advances and 7 declines. April was even better, up 12 of 18 with an average gain of 1.95%. However, March through December and full-year performance in those years was less than stellar. March through December averaged a gain of 3.95% and the full-year averaged a loss of 3.63%. Five of these eighteen previous years were also election years (shaded in grey). Only 2000 and 2008 failed to post gains during the March to December time period as the tech and credit bubbles burst.
The Stock Trader’s Almanac recommended, taking advantage of the usual March surge, suggested establishing new positions in DIA, SPY, QQQ and IWM. These four positions were added to the ETF Portfolio on February 19. DIA’s opened below, traded the entire day and closed below it buy limit on the nineteenth as a dividend was paid. As a result, DIA “Presented Price” and the price it was added to the portfolio at are an average of its open and close on that day. IWM, QQQ and SPY were added using their respective buy limit prices. As you can see they have been wrong in gold.
The long natural gas trade from late February to late April boasts a 72.0% success rate gaining 18 out of the last 25 years. One of the factors for this seasonal price gain is consumption driven by demand for heating homes and businesses in the northern cold weather areas in the United States. In particular, when December and January are colder than normal, gas prices rise through mid-April and beyond (shaded in yellow in next chart). However, just the opposite of this has happened this winter and natural gas price is trading at an almost unbelievable $1.666 per one million British Thermal Units (Btu). This is its lowest price it has traded going back over 17 years to at least 1999.
The trade scenario using the July natural gas contract has a holding period of approximately 41 trading days beginning on or about the 16th trading day of February and lasts until about April 23.
In the short-term, natural gas appears heavily oversold as the mild winter has left inventories well above historical averages for this time of year. If the trend of global warming and above average temperatures persists into spring and beyond, electrical demand could rise earlier and sharper than usual. This would likely cause a spike in natural gas prices. Over the longer-term, the U.S. has begun to export natural gas and analysts expect exports could reach 10%-15% of current output by the end of this decade.
First Trust ISE-Revere Natural Gas (FCG) and United States Natural Gas (UNG) are two popular ETFs that correlate with natural gas. UNG holds natural gas futures and swaps and FCG holds stocks of oil and gas producing companies that are exposed to both crude oil and natural gas prices. Similar to the performance of crude oil, shares of FCG have been declining since June of 2014. . Recent crude strength has begun to aid FCG. It’s January low held in February and its Stochastic, relative strength and MACD indicators have turned positive confirming the shift in momentum. A break out above $4.22 by FCG would be further evidence that the current bounce is sustainable. FCG could be considered a buy on any close above $4.22 with a buy limit of $4.30. If purchased a stop loss of $3.75 is suggested.
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Undervalued Small Cap Stocks
Lower Priced stocks that look to be a buy:
Repro-Med Systems, Inc ( OTCQX: REPR 0.55 )*
Repro Med Systems, Inc. dba RMS Medical Products (OTCQX: REPR) has been one of the best performing stocks in 2016. They announced that its net revenues for the third quarter ended November 30 for fiscal 2016 increased 18% over the previous year’s Q3, led by the Company’s sales of proprietary infusion products. The Company’s current fiscal year ends February 29, 2016.
Revenues for the third quarter of fiscal 2016 were $3,145,000 compared with $2,655,000 for the third quarter of fiscal 2015. Revenues for the first nine months of the fiscal 2016 were $8,942,000 compared with $7,797,000 for the same period last year, an increase of 15%.
RMS continues to benefit from recent lean manufacturing initiatives, which have resulted in increased capacity and decreased direct assembly labor costs compared to last year. Gross margin improved in fiscal Q3 to 67% from 60% in the same quarter last year, and from 63% in fiscal Q2.
Driven by the strong sales in the quarter, net income for the third quarter was $168,000, an improvement of 81% compared with the same period last year. In addition, net income was negatively impacted due to costs associated with several trade shows in the quarter, the hiring of new sales representatives, and continued legal and consulting fees, all of which reflect an investment for growth in future periods. Excluding certain of these non-recurring items, net income margin would have been in excess of 10% for the quarter.
“We continue to see growth in all sectors of the homecare infusion market both domestically and internationally,” commented Andy Sealfon, President and CEO of the company. “I am also very excited about our newest board member, Cyril N. Narishkin and have appointed him as Interim Chief Operating Office to support our expanded management team and accelerate our growth opportunities. Cyril brings a wealth of experience consulting with companies of all sizes, and will also be instrumental in assisting the Company on its lean initiatives and growth plans,” Mr. Sealfon added.
The Company manufactures medical products used for infusions and suctioning. The Infusion product portfolio currently includes the FREEDOM60(R) and our latest FreedomEdge(TM) Syringe Infusion Pumps, RMS Precision Flow Rate Tubing(TM) and RMS HIgH-Flo(TM) Subcutaneous Safety Needle Sets. These devices are used for infusions administered in professional healthcare settings as well as at home. The company’s RES-Q-VAC line of medical suctioning products is used by emergency medical service providers in addition to a variety of other healthcare providers.
The Company’s website may be visited at www.rmsmedicalproducts.com.
Repro-Med Systems, Inc has had an increase in sales each of the last four years. They finished the year of 2014 with $ 11.2 million in sales reflecting top line growth of 29% from 2013.In each of the previous two years they had a 12% increase in sales. The company has had at least $ 700 thousand of net income in each of the past four years and has no debt. The patented needle sets alone can give the company a huge growth potential. In my opinion, with new products coming on stream, the stock should trade between $ 3 and $ 8 in the next two years.
Immune Therapeutics ( OTCQB: IMUN $ 0.16 )*
Use 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.
Clinical trials have gone well and should be released soon.
Oakridge Global Energy Solutions, Inc. ( OTCQB: OGES 0.74 ) *
Oakridge global energy is a developer, designer and manufacturer of proprietary energy storage solutions. The Company is based out of Florida’s “space coast” near Kennedy Space Center. They make premium quality, proprietary batteries, battery systems and lithium ion cells that are built for maximum performance over the traditional lead/acid batteries. OGES, proudly manufacturing in America since 1986, produces batteries for military, consumer, government, and industrial applications. Target market priorities include golf cars and other recreational vehicles, electronics, and devices requiring rechargeable batteries.
Oakridge Energy produces highly reliable, sustainable and dependable batteries for mobile power sources. Based on size and weight, OGES products deliver a higher capacity than comparable competitor batteries. OGES batteries are higher in quality, longer lasting and safer to use. These batteries have undergone and passed rigorous military testing in underwater and aerial vehicles proving to be high/low pressure tolerant. Most significant, OGES batteries are superior performing yet competitive in the market.
Martac Maritime Tactical Systems, Inc., MARTAC recently conducted very successful field trials on the Inter-coastal waterway in Palm Bay, Florida. MARTAC is a Melbourne, Florida based company that designs and produces the Man-Portable Tactical Autonomous Systems (MANTAS) that can reach extreme high speeds and operate anywhere in the world. These vehicles are designed to be used in numerous applications including naval fleet protection, mine warfare, port and harbor security patrol, antipiracy, search and rescue, and many others. shows our high quality and high performance gets us into the military space at a time when made in USA is of critical strategic importance.
Freedom Trucks shows that Oakridge can outperform Tesla and the “Tesla of trucks” – trucks are much more difficult and laborious to power than cars – because of the Oakridge high power high energy
dense batteries, we need only 180 OGES batteries to power the interstate truck that pulls an
80,000 lb trailer, whereas it would take 208,000 Tesla/Panasonic batteries, which is simply not feasible.
Lithium ion batteries, deliver twice the energy of nickel cadmium batteries and are the fastest growing battery segment. Their growth and demand dynamically forward trending. They are lightweight and easy to maintain. They deliver superior electro-chemical output and provide highest energy density for weight, non-metallic and are rechargeable. In 2015, the OGES ProSeries golf car was launched at the annual PGA show, the largest golf show in the world. OGES plans to have a new factory producing its patented thin film solid state lithium ion batteries by 2017. OGES is commencing delivery of small format prismatics to help several smart card customers reach the next generation. Their growth will be serviced by the new factory. These batteries are also in a rapidly growing demand for a variety of p loss 11.36.applications.
Oakridge has recently continued expansion of its ISO certified manufacturing facility and warehouse in Palm Bay, with the support of Florida Governor Rick Scott. The new facility represents a $270 million investment, increasing the size of the manufacturing plant to 70,000 sq-ft to accommodate the growing demand for OGES batteries. Production is expected to increase from 250,000 to 25 million cells per year by 2018. The company’s growth will provide 1000 Americans with new jobs; this is part of the company’s commitment to support domestic employment.
Overseas, Oakridge Global Energy Solutions Limited (Hong Kong) is a subsidiary company that operates for sales and service in Asia.
Tree Top Industries, Inc ( OTC Pink: TTII 0.65 )
The Go Fun Group Holdings, Ltd, which operates in the retail restaurant and online food service sectors and is based in Hong Kong. Go Fun also is engaged in the Green Food sourcing and logistics business, working with sustainable local companies to further the science of healthy food preparation. Go Fun’s retail entities include traditional Chinese, Italian, and Japanese Steakhouse restaurants. TTII entered into a non -binding letter of intent to move forward in partnership configurations. More info to come.
Fundamental Analysis Stocks To Buy with Stops
Fundamental Analysis Stocks To Buy with Stops: Using fundamentals the following are stocks to buy and they have done well. Now it is your decision whether to take profits in these uncertain times.
We still like Sunoco for its fundamental value. We added Harley Davidson to our buy list. Enzo was bought last week for a lower price to buy. We had originally bought at $ 2.78, now at 4.15. It is by no means a lock. Church and Dwight is looking solid and should be bought any two days down.. Alcoa has made nice profits and is worth $ 10. Buy dips. The HDGE goes up when the market goes down. The HDGE fell to its 200 day moving average at about 1099, before rebounding to 11.06. has been a major success for those who believe in hedging. It was bought last week at our limit price of 11.62.and stopped out for a loss at 11.36, the 13 day M.A. The loss was very small considering huge gains on the long AT&T, Alcoa and Bank of America. We would be willing to take profits on further rallies.
| Name | Business Description | PE | P/S | MV mln | Price | Buy Limit | Stop Loss
Or sold |
|
| FFIC | Flushing Financial | Bank Holding company Savings and loans | 13 | 3,5 | 592Mln | 21.35 | 19.50 | 18x |
| SUN | Sunoco | Oil and Gas Refining and marketing | 10 | 0.2 | 2.1B | 32.76 | 26 | 23.50x |
| AA | Alcoa | Aluminum Processing and Technology | N/A | 0.4 | 9.5B | 9.57 | 7.05 | 6.97X |
| SBH | Sally Beauty Holdings | Specialty Retailer and distributor beauty supplies | 16 | 1 | 4B | 31.32 | 27.30 | 26x |
| HOG | Harley Davidson | Motorcycles and related products | 11 | 1.32 | 8B | 46.76 | 39.84 | 36x |
| CHD | Church & Dwight | Consumer Products Sodium bicarbonate Arm and Hammer | 25 | 3 | 10.6B | 91.78 | 79.80
01/26/16 |
Take Profits |
| T | AT&T | Communications | 36 | 1.54 | 211.7B | 37.93 | 34.10 | 32x |
| MSFT | Microsoft | Technology Software, Services, Devices | 17 | 4.7 | 431B | 52.03 | 50.90
|
49.50x |
| KR | Kroger | Food Mfg and Processing | 18 | 0.33 | 37B | 36.62 | 36.76
11/16 |
36.60x
Stopped out |
| VA | Virgin Air | Regional Airlines | 7.2 | 0.9 | 1.5B | 30.06 | 30.30
Suggested buy |
28.50x
|
| ENZ | Enzo Biochem | Life Sciences | NA | 1.35 | 134M | 4.23 | 4.15
Suggested buy |
3.98x |
| BAC | Bank of America | Commercial Bank | 10 | 2.02 | 165.3B | 13.54 | 11.86 | 10.90x |
| HDGE | Advisor Shares | Ranger Bear ETF | 11.06 | Buy 11.62 | 11.36x
Stopped out |
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Rule 17B Attestations and Disclaimers
Princeton Research, Inc. has approximately 2,581,578 shares of AIVN both free and restricted and represents them for Investor relations. Princeton also has about 40,000 shares of TXGE. Princeton is paid $ 1,500 per month from RMS Medical Products. Princeton has bought 81,100 shares of RMS Medical Products. Princeton was paid $ 2,500 to write a report on Xinergy. Princeton has signed a contract with CBLI to be paid $ 2500 for July and August for investor relations. Princeton has been engaged by Target Energy. No contract is currently in place. Princeton was paid about 500,000 restricted shares of Leo Motors.
When there is no movement in penny stocks, even though there is none or very small losses, we will liquidate ( sold AIVN on stop ) even though we like the company, if money is needed for better opportunities.
We now believe REPR represents upside opportunity. The Target ADR trades at about $ 4.50 in U.S. vs 0.05 in Australia. Princeton owns 400,000 Australia shares and about 900 U.S. ADR’s.
Pursuant to the provisions of Rule 206 (4) of the Investment Advisers Act of 1940, readers should recognize that not all recommendations made in the future will be profitable or will equal the performance of any recommendations referred to in this e-mail issue. Princeton may buy or sell its free-trading shares in companies it represents at any time.
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