Where To Invest Now
October 12, 2015
Market Strategies Newsletter
Sample Issue
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Balanced Investing Strategies To Make Money In Up Or Down Markets
A Publication of Princeton Research, Inc. (www.PrincetonResearch.com)
Contributing Staff: Michael King, Charles Moskowitz
Where To Invest In 2015 Newsletter Covering:
Where to Invest October 2015
Best Stocks To Buy October 2015
Stock Market Investing Strategies
Stock Options Trade Alerts
Options Trading Strategies
How To Trade Options
2015 YTD Profits $ 7906
Over 79% Returns
2014 Profits = $ 20,443
Over 204% Returns
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$10,000 Trading Portfolio
Charles Moskowitz Discussion
Week 41 saw a small loss of $18 and YTD gains slipped back to $7906.
We finished the week with no open positions.
While I was bullish two weeks ago, I don’t believe that this rally can continue without any pullback after a run from the closing low on the S&P500 of 1881 on 9/28 to Friday’s close of 2013.
To begin with, things just aren’t that great on the earnings front (AA, YUM, DPZ) and the trade deficit is up. The problem seems to be the strength of the US$. Layoffs continue as one of the only ways to help earnings grow. This does nothing to help the actual economy because without top line growth financial engineering doesn’t help at all in the long run.
As to expecting any help from Europe, things there are actually much worse than here.
The situation brought about by Volkswagen is turning out to be even bigger than originally thought. Let’s try to remember that this is one of the premier manufacturing giants of the biggest economic engine in all of the EU. It’s not an earnings miss, but a massive fraud. It is too soon to know what the ultimate outcome will be, but I strongly doubt it will be pleasant.
The coupling of Oil and stocks is also troubling to me. Either savings at the pump are good for spending or they’re not….You simply can’t have it both ways. I bring this up because retail wasn’t all that great (exception:NIKE) while prices fell from $100 to under $40, and now that we’ve had 25% rise off the bottom it’s hard to decide that it represents good news.
The geopolitical landscape gets more muddled and more dangerous every day. Tzar Putin firing cruise missiles from warships and Turkey suffering what many are calling its “911”, show how a local dispute like Syria can become a regional and then an international crisis.
So, the long and short of it is that if we need a “wall of worry” to climb it has certainly been under
construction for a while. But remember, every once in a while, Humpty Dumpty does fall off the wall.
The top at S&P500 at 2020 looms and this time it’s also got the falling 200 day moving average at 2030 to contend with. And, even if we can get through there, the old support @ 2040-2050 is now resistance.
Unless they have somehow repealed the Laws of Gravity, we are coming up on an 8% rally in 7 trading days that included the lack of news from China due to the holiday. I’m more than a little bit cautious right now….CAM
Market Strategies $10,000 Trading Account Trade Table
1) Buy 4 GLD October $ 110 Calls @ $ 1.25 ( Or Better )
| DATE | TRADES | PRICE | COST | PROCEEDS | RESULTS |
| 10/07 | Sold 6 LULU October 52.50 Calls | 1.74 | 1044 | $ 420 Gain | |
| 10/06 | Sold 4 ETSY October 15 Calls | 0.35 | 140 | $ 20 Loss | |
| 10/06 | Sold 4 ETSY October15 Calls
( 50% Loss Rule )Taken against buys @ $ 0.75 |
0.35 | 140 | $ 160 Loss | |
| 10/06 | Sold 6 XLE October 65 Puts( 50% Loss Rule ) | 0.55 | 330 | $ 330 Loss | |
| 10/06 | Sold 6 TBT October 43 Calls | 1.10 | 660 | $ 72 Gain | |
| 10/05 | Bought 6 XLE October 65 Puts | 1.10 | 660 | ||
| 10/05 | Bought 6 LULU October 52.50 Calls | 1.04 | 624 | ||
| 10/01 | Bought 6 TBT October 43 Calls | 0.98 | 588 | ||
| 09/29 | Bought 4 ETSY October 15 Calls | 0.40 | 160 | ||
| 09/24 | Bought 4 ETSY October 15 Calls | 0.75 | 300 |
Remember, these trades are based on your participation in the
TEXTING SERVICE TO RECEIVE ALL UPDATES.
Previous closed out trades not listed here may be seen in previous market letters in the
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MARKET Laboratory – Weekly Changes
Prices are copied from Barron’s Weekly and Yahoo Finance and may be incorrect.
| Dow
17,084.49 +612.12 +3.72% |
Nasdaq
4830.47 +122.69 |
S&P 500
2014.89 +63.53 +3.26% |
Transportation
8253.16 +379.52 +4.82% |
Russell 2000
1165.36 +51.24 +4.60% |
Nasdaq100
4370.01 +102.56 +2.40% |
| Gold (spot)
1156.30 +19.20 +1.7% |
Silver
1581.8 +55.50 +3.6% |
Crude
49.63 +4.09 +9.0% |
Heating Oil
159.09 +7.10 +4.7% |
Unleaded Gas
1.4167 +0.0753 +5.6% |
Natural Gas
2.502 +0.051 +2.1% |
| VIX
17.08 -3.86 -18.4% |
Put/Call Ratios
S&P 100 145/100’s +59/100’s |
Put/Call Ratios
CBOE Equity 69/100’s -10/100’s
|
Bonds
156-29 -1-29 2.91% +0.10% |
10 Yr. Note
128-154 -276 2.07%+0.10%
|
Copper
241.40 +8.85 +3.8% |
| CRB Inflation
Index 202.69 +8.58 +4.4% |
Barron’s* Confidence
73.8 +1.6 |
S&P100
890.85 +28.58 +3.31% |
5 Yr. Note
120-124 -183 1.38% +0.11%
|
Dollar
94.92 -1.00 -1.0% |
DJ Utilities
583.36 +6.11 +1.06% |
| AAII
Confidence Index |
Bullish
37.5 % +9.4% |
Bearish
28.2% -11.7% |
Neutral
34.3% +2.3% |
M1 Money Supply
+7.28% Sept 28th |
M-2 Money
Supply +6.29% Sept 28th |
* 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 1949 2020 2044
Dow 16,545 17,298
QQQ 102.90 108 30
Transports 7879 8487
NASDAQ 4690 4898
$100,000 Trading Portfolio Stock Positions and Trades
1) Buy 200 SPXU @ $ 34.10
Additional New Trades will Be Texted
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) |
||
| SPXU 200 | 36.32 | 10/06 | 35.79 10/06 | ( $ 94 ) | |||
| ETSY 500 | 14.57 | 10/06 | 14.66 10/06 sold 1000 | $ 150
$ 45 |
|||
| EYES 500 | 5.75 | 10/05 | |||||
| ETSY 500 | 14.36 | 10/02 | |||||
| NFLX 50 | 105.53 | 10/01 | 108.96 10/06 | $ 172 | |||
| CUBA 500 | 7.58 | 09/28 | |||||
| MOS 100 | 43.55 | 08/14 | |||||
| DSX 500 | 7.05 | 05/18 | |||||
| CRM 100 | 72.90 | 04/29 | 66.25 | ||||
| NAT 300
Sold 200 |
10.16 | 02/13 | 14.40 06/25 | $ 848 | |||
| NBG 600 | 1.40 | 02/17 | |||||
| BAC. Wts 5,000 lots | 0.7411 | 12/26 | |||||
| BSBR 500
500 |
4.84
3.75 |
12/18
|
|||||
| SAN 600 | 8.40 | 12/16 | |||||
| AA 500 | 14.21 | 10/16 | |||||
| FCX 150 | 34.99 | 09/09 | 7.75 | ||||
| NBG 300 | 2.95 | 05/19 | |||||
| NBG 300 | 4.08 | 8/12 | |||||
| TEXQY* 200 | 6.56 | 7/11 | |||||
| REPR* 5000 | 0.22 | 10/22/12 | |||||
Remember, these trades are based on your participation in the
TEXTING SERVICE TO RECEIVE ALL UPDATES.
Previous closed out trades not listed here may be seen in previous market letters in the
For those of you who do not buy puts to protect your portfolio, there are many ETF’s that are the inverse of the DOW. The symbols are DOG, DXD, SDS,TZA and RWM, which go up when the DOW, S&P 500 and Russell 2000 go down and down when they go up. The DZZ goes up double when gold goes down.
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Market Strategies $100,000 Trading Account
New Options Trades:
1) Buy 8 GLD October 110 Calls @ $ 1.25
There were five closed option positions
XLE October 65 Puts losing $ 660 and the
ETSY October 15 two sets of Calls both losing totaling $ 360.
There were two profitable trades:
LULU October 52.50 Calls making $ 840 and the
TBT October 43 Calls netting $ 144.
The result for last week was a net loss in options of $ 36.
The result of the two stock trades was profitable:
NFLX made a gain of $ 172 while the SPXU lost $ 94.
For the year to date we have gains of $ 17,531.
Open position losses decreased substantially by over $ 8,000 to $ 6.027.
The options expire on the third Friday of each Month unless otherwise posted.
The Stock table has the following 18 positions:
AA, BAC.B.WS, BSBR( 2 ), CRM, CUBA, DSX, ETSY, FCX,
MOS, NAT, NBG (3), NFLX, REPR, SAN, TEXQY
The options call for a $ 2,500 investment unless otherwise stated; each stock position requires $5,000 unless otherwise mentioned specifically.
We are basing money management on a hypothetical
$ 100,000 and are using a total of
$ 51,284 for the 17 open stock positions. There are no option positions leaving
$ 48,716 in cash.
These figures are approximate and there might be errors.
We have not counted the dividends received from Apple, JP Morgan, North American Tankers, Santander, their Brazil affiliate BSBR and Blue Capital Reinsurance which was sold for a profit and many others.
Executions that have occurred at or near the open or close of trading sometimes vary from our actual numbers. For example, when something opens down and it is through our price, we take the next trade whether it is an uptick or continues lower. This sometimes results in a 50% trade that is slightly above or below the exact number.
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) | |
| XLE Oct 65 Puts
Sold on 50% Loss Rule 1.10 |
10/05/2015 | 0.55 | 10/06/2015 | ( $ 660 ) | |
| LULU Oct 52.50 Calls
12 lots 1.04 |
10/05/2015 | 1.74 | 10/07/2015 | $ 840 | |
| TBT Oct 43 Calls
12 lots 0.98 |
10/01 2015 | 1.10 | 10/06/2015 | $ 144 | |
| ETSY Oct 15 Calls
8 lots 0.40 |
9/29/2015 | 0.35 | 10/06/2015 | ( $ 40 ) | |
| ETSY Oct 15 Calls
Sold on 50% Loss Rule 0.75 |
9/24/2015 | 0.35 | 10/06/2015 | ( $ 320 ) |
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: This is a Sample Issue Only!
TO GET OUR TRADE ALERTS BY TEXT MESSAGE AND
THE COMPLETE VIP MEMBERS ONLY MARKET STRATEGIES NEWSLETTER ISSUES
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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 | .Infosys INFY ( 14.11 vs 54.19 )
U.S. equity markets are open, but banks and the bond market are closed for Columbus Day. Markets are also closed in Canada, Brazil and Japan for various holidays. |
| TUESDAY | Fastenal FAST ( 0.47 vs 0.45 )
Johnson and Johnson ( 1.45 vs 1.50 ) 14:00 hrs Treasury Budget September ( $ 95.0Bln vs $ 105.8Bln ) JP Morgan Chase kicks off the bank earnings season for the third quarter reporting after the market closes. Intel reports after the close. Both reports are looking to be good. CSX CSX ( 0.51 vs 0.51 ) Intel INTC ( 0.59 vs 0.66 ) JP Morgan Chase JPM ( 1.38 vs 1.36 ) Linear tech LLTC ( 0.45 vs 0.53 ) VOXX ( 0.07 vs 0.11 ) |
| WEDNESDAY | Bank of America ( 0.34 vs -0.01 )
BlackRock BLK ( 4.62 vs 5.21 ) Delta Airlines DAL ( 1.72 vs 1.20 ) JB Hunt JBHT ( 0.97 vs 0.87 ) Wells Fargo WFC ( 1.04 vs 1.02 )
07:00 hrs MBA Mortgage Index 10/10 ( NA vs 25.5% ) 08:30 hrs PPI Sept ( -0.3% vs 0.0% ) CORE PPI ( 0.1% vs 0.3% ) 08:30 hrs Retail Sales Sept ( 0.2% vs 0.2% ) Retail Sales ex-auto Sept ( -0.1% vs 0.1% ) 14:00 hrs Fed’s Beige Book Oct ( NA )
DragonWave DRWI ( -0.04 vs -0.14 ) Netflix NFLX ( 0.08 vs 0.96 ) Universal Forest UFPI ( 1.14 vs 0.96 ) Xilinx XLNX ( 0.46 vs 0.62 ) Wintrust Fin ( 0.85 vs 0.79 ) |
| THURSDAY | Citigroup C ( 1.29 vs 1.15 )
Goldman Sachs GS ( 3.06 vs 4.57 ) U.S. Bancorp USB ( 0.82 vs 0.78 ) Taiwan Semi TSM ( 2.85 vs 2.94 ) United Health UNH 1.64 vs 1.63 08:30 hrs Initial Claims 10/10 ( 269K vs 263K ) 08:30 hrs Continuing Claims 10/03 ( 2200K vs 2204K ) 08:30 hrs CPI September ( -0.2% vs -0.1% ) CORE CPI ( +0.1% vs 0.1% 08:30 hrs Empire Manufacturing Oct ( -8.0 vs-14.7 ) 10:00 hrs Philadelphia Fed Oct ( -1.0 vs -6.0 ) 10:30 hrs Natural Gas Inventories 10/10 ( NA vs 95 bcf ) 11:00 hrs Crude Inventories 10/10 ( NA vs 3.073 MlnBbls ) 14:00 hrs FOMC Minutes 09/17 will be scoured for clues related th the timing of a rate increase. House Republicans hold leadership elections. Advanced Micro Dev AMD ( -0.12 vs 0.03 ) Schlumberger SLB 0.77 vs 1.49 |
| FRIDAY | GE ( 0.26 vs 0.38 )
Honeywell HON ( 1.55 vs 1.47 ) KC Southern KSU ( 1.22 vs 1.29 ) Progressive PGR ( 0.48 vs 0.50 ) Sun Trust Banks STI 0.83 vs0.81
09:15 hrs Industrial Production September ( -0.2% vs -0.4% ) Capacity Utilization September ( 77.4% vs 77.6% ) 10:00 hrs JOLTS- Job Openings Aug ( NA vs 5.7353 Mln ) 10:00 hrs Michigan Sentiment October ( 88.5 vs 87.2 ) 16:00 hrs Net Long Term TIC Flows Aug ( NA vs $ 7.7Bln ) |
Market Strategies Fundamentals
U.S. stock futures had the best week of the year after the Dow powered higher for a fifth straight session Thursday, closing back above the 17,000 level, on dovish signals from the Fed minutes. Not since the week before Christmas had the indexes made such a decisive move.
The Dow rallied 612 points to close at 17,084.49 while the S&P 500 gained 63.53 points to 2014.89.
A lot of work remains to be done as before Christmas the Dow was at 18,024 while the S&P 500 closed at 2082.Shares of small-caps represented by the Russell 2000 rallied 51.24 or 4.6%, also its best performance of the year taking along many beaten down stocks that recovered nicely. Emerging market equities rallied 7%. The Nasdaq rose 2.6% on the week to 4830.47.
Helping to boost the overall stock market was a rebound in oil, holding over $50 a barrel. after exceeding that mark Thursday for the first time since late July. Crude prices were set for their biggest weekly rise since 2009. On October 2nd, the XLE ( XLE: $ 68.65 ) the Select Sector Energy ETF, rocketed above its 13 day price moving average and the subsequently on October 6th it rallied above its 50-day M.A. We would look to buy on any reaction into support between $ 65.60 and $ 66. The rigs in use fell again last week to 608 from 614 a very low non-productive number. In October 2009 there were 1609 working rigs in operation.
Asian stocks marched higher today, fueled by indications in the Fed minutes from the September meeting that policymakers remain concerned about low inflation and the global economic slowdown. The Chinese Direxion ETF ( YINN: $ 22.08 ) + 1.51 points or 7.2%, crossed above its 13-day price moving average last Monday before catapulting higher. It has a lot of ground to make up to get to 33.57 where it traded the week before Christmas.
Intel reports earnings on Tuesday after the market. We think dips from present levels are a buy. They will release two Broadwell-based Xeon E5 processors, Xeon E5-1600 v4 and E5-2600 v4, in the first quarter of 2016. IBM’s newly launched Linux servers will face tremendous competition from Intel’s upcoming Xeon processors.
- Arcelor Mital ( MT: $ 6.67 ) is cheap as compared to the overall industry since its price-to-sales ratio is half of its peers, which is another reason why investors should buy it. We would buy on dips below $ 6.
- Despite weakness in the steel market, MT has been able to improve its bottom line performance, indicating that it’s moving in the right direction in a difficult environment. MT has a share of 16.7% in the auto market, which will be a growth driver for it due to increasing auto sales across the globe.MT is improving its infrastructure base by expanding mine capacity in Canada and relining the blast furnace in Krakow, apart from reducing its cost base by 40% in two years.
- Deere and Co ( DE: $ 80.45 ) can be bought on any two days down or at $ 77.50. The shares outstanding have been reduced with constant buybacks while dividends are generous. The company has been aggressively repurchasing shares to the tune of a more than 3% annual decline. In 2005 there were 474 million common shares outstanding. By 2014 this had been reduced to 346 million. In other words, the company bought out one of every four shareholders. As such, earnings-per-share grew by 12.7% per year as compared to 9% company-wide earnings growth and 6% revenue growth.
DJIA, S&P 500 and NASDAQ Have put in a respectable W type low and appear poised to trade much higher during the next few months. The low made on August 25th and then tested on September 29th is sufficient to form a “W” or 1-2-3 bottom chart pattern. The lows should hold on any dips to the 1950 level and should be followed by a rally back above the Sept-October highs to validate a powerful pattern to support a rally to test the all-time highs.
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Market Strategies Economic Data
The U.S. trade deficit widened to $48.3 bln in August from a slightly downwardly revised $41.8 bln (from $41.9 bln) in July. The Briefing.com Consensus expected the trade deficit to increase to $44.5 bln. The stronger dollar combined with weak overseas growth sent exports down 2% vs July and 6.2% vs a year ago, the worst since October 2009.
While the big increase in the trade deficit looks like a clear miss when compared to the consensus forecast, it was actually very much in-line with the $48.0 bln estimate provided in the advance trade of goods report. As usual, a big increase in the trade deficit can be directly tied to a release of the latest version of the Apple iPhone or Samsung Galaxy cellphone. That held true in August as cell phone imports skyrocketed by $2.1 bln. Overall, the goods deficit increased to $67.9 bln in August from $61.3 bln in July. The services surplus increased slightly to $19.6 bln from $19.5 bln.
Total exports declined by $3.7 bln to $185.1 bln in August from $188.8 bln in July. Most of the decline came from a $2.2 bln fall in industrial supplies and materials exports of which $0.8 bln was a result of a decline in fuel and crude oil. Other large declines were reported in food and feedstuffs (-$0.3 bln), automotive (-$0.5 bln) and consumer goods (-$0.6 bln). Capital goods exports managed to post a small increase in exports ($0.1 bln), but that was because of a surge in civilian aircraft exports ($1.4 bln).
A stronger dollar and the release of the latest cell phones caused the U.S. trade deficit to widen to its largest level since the West Coast port strike in March.
| Category | AUG | JUL | JUN | MAY | APR |
| Trade Deficit | -$48.3B | -$41.8B | -$45.2B | -$42.5B | -$42.3B |
| Exports | $185.1B | $188.8B | $187.7B | $187.9B | $189.1B |
| Imports | $233.4B | $230.6B | $232.9B | $230.4B | $231.4B |
Total imports increased to $233.4 bln in August from $230.6 bln in July, a gain of $2.8 bln. Big declines in crude and fuel oil imports (-$1.5 bln) led to a $2.2 bln decline in industrial supplies and materials imports. However, that loss was easily offset by a $4.0 bln increase in consumer goods, due to the aforementioned cell phone imports. Capital goods imports increased by $1.1 bln in August. The petroleum-based trade deficit declined to $6.9 bln in August from $8.1 bln in July.
Wholesale inventories rose 0.1% in August beating the Briefing.com consensus of no change. The July change was revised down to -0.3% from -0.1%. Export prices ex-agriculture fell 0.6% in September after declining 1.3% in August. Import prices ex-oil fell 0.3% between August and September after dropping 0.4% in August from July.
Market Strategies Cycles
Last Monday The Stock Trader’s Almanac put out a Buy signal. It is being delivered a little later than usual as all updates were done using more recent prices than last Monday when the buy signal was released by the Stock Trader’s Almanac.
Although the market did take a breather last Tuesday, they called it perfectly as the major indexes traced out a complete a “1-2-3” or “W” bottom formation pattern. The market also afforded The Stock Trader’s Almanac an opportunity to close out their defensive positions in both Stock and ETF portfolios and add new long exposure.
As has been the case more often than not over the past 65 years, the market did stumble during this year’s “Worst Four/Six Months.” From the April 30 Seasonal MACD Sell Signal for DJIA and S&P 500 through yesterday’s Seasonal MACD Buy Signal, DJIA was down 6.0% and S&P 500 was off 4.7%. NASDAQ’s Seasonal MACD Sell Signal was on June 4 and it was off 5.5%. The naysayers will still call this year a fluke, but DJIA’s and S&P 500’s high year-to-date was in May while NASDAQ managed to eke out a slightly higher high in July. We call this year a resounding success for “Sell in May” and now go into a Seasonal Switching Strategy.
Looking ahead to the rest of the year, seasonal patterns are aligning for a potentially robust yearend rally. There has not been a down DJIA pre-election year since 1939. Historically, a down August followed by a down September has preceded sizable Q4 gains. The fourth quarter is also the most bullish quarter of the year (page 102 of 2015 STA). Market sentiment is no longer excessively bullish while fundamentals remain neutral. The following are suggestions for ETF purchases as expectations for a robust economy in 2016 will possibly begin to gain traction.
Seasonal strength is shaded in yellow in above chart.
Massive S&P 500 Gains Halloween to Christmas” are the largest dollar amount winning trades last featured in the Commodity Trader’s Almanac 2013. It now has a cumulative profit of $289,338 per single futures contact over the last 33 years including most recent data. This trade is obviously linked to the beginning of the “Best Six Months” of the year as detailed in the Stock Trader’s Almanac 2015. Going long the S&P 500 near the end of October and holding until just before Christmas has been successful 25 of the last 33 years, or 75.8% of the time. The average move during this trade’s timeframe has been 4.2% since 1982.
Choices to execute this trade are numerous: full futures contracts, the e-mini electronic futures or a handful of ETFs such as SPDR S&P 500 (SPY) or Vanguard S&P 500 (VOO). SPY has the longest track record, the most assets and is the most heavily traded ETF making it a top choice. VOO’s main attraction is a net expense ratio of just 0.05%. Having issued our Seasonal MACD Buy Signal on October 5, exposure to this trade already exists in the ETF Portfolio, however this shorter-term stands to reinforces the importance of using any October weakness to enter new long positions. There have been just two losses in the past twelve years. Not a perfect track record, but certainly a high probability trade setup.
Undervalued Small Cap Stocks
Lower Priced stocks that look to be a buy:
Repro-Med Systems, Inc ( OTCQX: REPR 0.38 )*
is now a member of the OTCQX, a leading U.S. Stock Exchange. Repro-Med Systems is a unique U.S. manufacturer of proprietary and patented medical devices world-wide which maintains offices and manufacturing facilities in Chester, NY. Principal products include the Freedom 60 Syringe Infusion System, RMS High-Flo Subcutaneous Safety Needle Sets and the RES-Q-VAC Medical Suctioning Pump. In addition to being regulated by the FDA which has the authority to approve medical devices for marketing in the U.S., RMS complies with ISO International standards for quality development and manufacturing. RMS Medical Products is a d/b/a of Repro-Med Systems, Inc which was founded in 1980.
The Freedom60 has a proprietary technology that makes it desirable for the delivery of medications in a variety of therapies. It is very popular for the delivery of subcutaneous immunoglobulin for the treatment of primary immune deficiency disease. The infusion pump uses “dynamic equilibrium” which safely adjusts the flow of medication in accordance with what the patient’s body can accept. This minimizes complications often encountered with other infusion systems which can lead to site reactions and discomfort for the patient. The portability and simple operation of the FREEDOM60 Improves quality of life for patients who otherwise might have to use a complicated electronic pump mounted to a cumbersome infusion pole. Patients then don’t have to be confined.
RMS High-Flo Subcutaneous Safety Needle Sets are being welcomed by healthcare providers and patients alike for their consistently high quality. The infusion sets are an ideal companion for the company’s FREEDOM 60 pump. The needle sets are patented and approved by the FDA. There has not been a new technology in needles other than Repro Med’s vastly better needle sets in quite some time.
RES-Q-VAC is a hand-held suction pump used to clear a patient’s airway or for other purposes when reliable hospital quality suctioning is needed. It uses patented technology to protect users from airborne pathogens and spillage of suctioned material. It is used by emergency service personnel and other first responders, as well as in hospitals and other institutions. There also is a version for use by dentists. RES-Q-VAC is invaluable in the event of disasters where power is lost because it doesn’t require electricity.
The Freedom 60 Syringe Infusion System is a method for administering medication through a small needle to the subcutaneous tissue, which is the fatty tissue just under the skin. Subcutaneous infusion allows medication into the vascular system more slowly. Combined with more frequent delivery this provides more consistent and stable blood levels. The elimination of large swings in these levels decreases side effects improving overall quality of life. RMS provides High-Flo needles to optimize liquid flow. Their smaller 26 gauge high flow needle flows at the same rate as the considerably larger 24 gauge needles, which are considerably less painful when entering the skin.
The Freedom 60 has had great success in Europe reflected in a huge sales increase of 47.8% first quarter 2015 up from same quarter 2014.
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.
Enzo Biochem (ENZ 3.46) Bought at our price of $ 2.78.
This turbulent market has had an effect on the price of Enzo Biochem. The markets, in my opinion, have been in a rotating correction and in some instances, a bear market for some months. It appears that the cause of this is China but I am sure that there are other factors. If you remember the ‘flash crash” of 2010 the market correction was over quickly and those that held through that market decline profited handsomely over the years after the crash. I think that the market is giving us another chance to buy Enzo Biochem at a bargain price. The Company’s fiscal year was over July 31. I would imagine the Quarter and Year results will be made available by mid-October. With the cash settlement in two litigations the cash position should show a major improvement. Top line revenues should also show an improvement. Depending on R&D expenses and litigation expenses the net loss should also show improvement. At today’s price of $2.90 the Company is valued at approximately $130 million and with revenues approaching $100 million or 1.3 times revenues. The last Craig Hallum report had a fair value of Enzo’s business of $6 per share. When AmpiProbe is approved and into the market that number is projected at $14 per share. There is always risk in the market so the investment is not without risk but if held over time should deliver handsome profits off of today’s price. Items to look forward to by the end of the year would be litigation news and an AmpiProbe decision all of which should have a positive impact on the stock price.
Premier Holding Corporation (PRHL: 0.067)* Shares Outstanding 189,218,861
We initiate coverage of the Premier Holding Corporation with an immediate target of $ 0.65, which would be 10x the current closing price which was also the bid price offered mostly at $ 0.07. The deregulated energy business is estimated to be a $ 500 billion+ industry in the U.S. and is estimated to be 5-7 times larger than the lucrative telecom deregulation market launched in the early 1980’s. According to the U.S. Energy Information Administration the deregulated retail electric supply market in the northeast alone is over $ 75 billion annually and the current New York market is approximately $ 7.7 billion.
In February 2013 they purchased 80% of the Power Company ( “TPC” ) which is in the deregulated energy space, a $ 500 billion market. The company offers electricity and gas to consumers in the deregulated energy markets. PRHL through its subsidiaries accumulates residential and commercial clients in deregulated markets from all subsidiaries and cross sells energy and energy efficient products and services. I addition PRHL provides top management and financial support services. They provide two basic deliverables to clients: (1) Energy alternatives brought about by deregulation that result in lower cost energy and (2) Offer energy efficient solutions that provide savings through utilization of state of the art technologies. When Premier acquired TPC, they had sold 11,000 energy contracts. Today that number is over 100,000 contracts. (Residential Equivalent Contracts)
Fundamental Analysis Stocks To Buy with Stops
The HDGE collapsed last week falling below our 11.04 buy level, our signal of the barrier between bear and bull markets. The rally above 11.04 was the buy signal and an opportunity to make money while the markets were plummeting. That is no longer the case. We bought the HDGE @ 11.04. We would have been stopped out at 11.00. HDGE is the BEAR hedge.
We now want to buy Intel on dips and Arcelor Mital. Try to buy on a downside reaction as volatility will persist in October. Use stops. Keep losses small. We were are long Southwest Air (LUV) at 30.50 and Harley Davidson (HOG) at 54. We bought Virgin Air (VA) at 32.20.
Please check on the previous weekly market letters if there are questions.
We are long in Diana Shipping at 6.60. DSX is looking better and you should buy now if not already long . We want to be long Bank of America above 15.65. and would use 15.02 as a stop loss if filled.
BAC looks to have made a double bottom at the 14.63 area.
| Symbol | Name | Business Description | PE | P/S | MV mln | Price | Buy Limit | Stop Loss
Or sold |
| MT | Arcelor Mittal | Integrated Steel mining and manufacturing | 16.8 | 0.14 | 11.10B | 6.71 | 6.10 | 5.22x |
| INTC | Intel | Technology chips platforms processors | 13.6 | 2.8 | 152.83B | 32.14 | 30.48 | 28.50 |
| VA | Virgin Air | Regional Airlines | 7.2 | 1.0 | 1.5B | 33.91 | 32.20 | 29.50 |
| LUV | Southwest Air | Regional Airlines | 16 | 1.15 | 22.6B | 39.94 | 33 | 32.31sco |
| HOG | Harley Davidson | Consumer Goods | 14 | 1.87 | 11.6B | 55.09 | 54 | 52.39sco |
| ENZ | Enzo Biochem | Life Sciences | NA | 1.35 | 134M | 3.75 | 2.78 | 2.44x |
| BAC | Bank of America | Commercial Bank | 10 | 2.02 | 165.3B | 15.52 | 15.65sco | 15.02x |
| HDGE | Advisor Shares | Ranger Bear ETF | 10.74 | 11.04 X | 11.00X | |||
| DSX | Diana Shipping | Dry Cargo Shipping | N/A | 3.7 | 611 | 6.41 | 6.60 | 5.90 |
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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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